Before buying cryptocurrencies with a credit card, it's essential to weigh the pros and cons. There may be better purchasing options for entering the crypto market.
If you're new to crypto, you might be considering the best fiat on-ramp for your needs. Bank deposits, wire transfers, and debit card purchases are some alternatives. If you lack sufficient funds for an immediate or large purchase, exploring how to buy crypto with a credit card could be worthwhile—though many card issuers banned crypto purchases in 2017-2018 due to price volatility concerns, some are now reversing these policies.
How to Buy Cryptocurrencies with a Credit Card
Finding a Compatible Card
Your ability to buy crypto with a credit card depends on your card issuer’s regional policies. Generally, residents of the U.S., EU, and Singapore have more opportunities, though policies remain inconsistent.
Exchange Requirements & Fees
Most centralized exchanges accept credit card payments. Exceptions like Coinbase limit U.S. users to bank transfers, debit cards, or PayPal, while EU/UK users can use credit cards with "3D Secure" support.
Popular Exchanges Supporting Credit Cards:
- Huobi
- Binance
- Changelly
- ChangeNOW
Fees to Expect:
- Exchange transaction fees: 0.5%–4%
- Foreign exchange (FX) fees: ~3% (if applicable)
- Cash advance fees: Typically $5 or 10% of the transaction (whichever is higher)
👉 Compare crypto exchange fees
Cash Advances
Issuers like American Express and Chase allow crypto purchases but treat them as cash advances, incurring higher fees (e.g., $500 on a $5,000 purchase) and immediate interest.
Issuer & Exchange Limits
Daily spending limits and exchange purchase caps vary. Verify your exchange’s limits in account settings.
Is It Safe to Buy Crypto with a Credit Card?
While generally safe, risks include:
- Data breaches: Avoid saving card details on exchanges.
- Irreversible transactions: Unlike credit card charges, crypto transfers can’t be reversed.
- Self-custody risks: Move funds to a non-custodial wallet for better security.
👉 Explore non-custodial wallet options
Will Crypto Purchases Affect My Credit Score?
Yes, like any credit card purchase:
- High balances relative to your credit limit may lower your score.
- Missed payments due to crypto losses can hurt creditworthiness.
Crypto Credit Cards—Earn Rewards in Crypto
Distinct from traditional cards, crypto credit cards (e.g., BlockFi, Nexo, Gemini) offer cashback in crypto.
Examples:
- Nexo Card: Borrow against crypto collateral; earn 2% crypto cashback.
- BlockFi/Gemini: Currently invite-only (2021 launch).
Conclusion: Should You Use a Credit Card?
Pros:
- Instant access to crypto.
- Useful for small, time-sensitive purchases.
Cons:
- High fees (cash advances, FX).
- Credit score risks.
Better Alternatives:
- Bank transfers (lower fees).
- Debit cards (no interest).
FAQ
Q: Can I cancel a crypto transaction made with a credit card?
A: No—blockchain transactions are irreversible.
Q: What’s the cheapest way to buy crypto?
A: Bank transfers (ACH/SEPA) usually have the lowest fees.
Q: Do all exchanges accept credit cards?
A: No, policies vary by region and issuer.
Always prioritize repayment plans and risk management when using credit.
### Keywords:
- Buy crypto with credit card
- Crypto credit cards
- Cryptocurrency fees
- Cash advance crypto
- Nexo Card
- Crypto exchange limits
- Credit score crypto
- Non-custodial wallets