Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk.
Summary: Currently, Affirm does not support direct purchases of cryptocurrencies like Bitcoin. To buy crypto, an Affirm alternative like eToro can be used, offering bank compatibility, compliance, and low fees.
While fees vary across different exchanges, eToro charges no deposit or trading fees for over 25 crypto assets, only applying a variable spread fee of over 1%. Despite increasing demand for crypto transactions, Affirm has yet to announce any plans for crypto-related products or services. Until then, regulated third-party brokers like eToro seem to be the best option for potential crypto investors.
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Can I Buy Crypto with Affirm?
As of now, you cannot directly purchase cryptocurrencies like Bitcoin with your Affirm account or card. Affirm, being a Buy Now Pay Later app, isn't directly compatible with major licensed cryptocurrency exchanges in the United States, such as Coinbase and eToro. Therefore, transactions involving cryptocurrencies aren't directly manageable through Affirm, or with deposits from Affirm accounts.
How to Buy Crypto with an Affirm Alternative
To safely buy cryptocurrencies using an Affirm alternative with a standard bank account, you can use a regulated third-party broker. It allows secure USD deposit from your bank via ACH transfer or credit/debit card, among others. eToro is a recommended option due to its bank compatibility, compliance, and low fees.
Here's a concise guide on buying crypto with a bank account on eToro:
- Register and confirm your identity on eToro.
- Click 'Deposit Funds' on the screen's bottom left.
- Specify your USD amount to deposit and select your deposit method.
- Finalize your deposit, and use these funds to invest in cryptocurrencies.
What are the Fees?
The costs associated with cryptocurrency investing can vary based on the crypto exchange you choose in the United States. Thankfully, eToro is an attractive option for investors seeking an Affirm alternative, as it charges no deposit or trading fees when purchasing or selling from over 25 crypto assets on their platform. eToro only applies a variable spread fee (over 1%) on their prices, which is a competitive rate compared to other exchanges.
In comparison to widely-used platforms such as Coinbase, it's evident that they levy higher fees, including a 1% spread fee and an additional 1% trading fee, amounting to a total of 2% transaction cost per trade.
Is Affirm Crypto-Friendly?
Affirm is not inherently crypto-friendly, as it does not directly support its users' cryptocurrency investments. Currently, Affirm does not have the infrastructure to deposit or withdraw funds to and from FINRA-licensed and FinCEN-regulated cryptocurrency exchanges operating within the USA. In addition to this, Affirm has not announced any plans to release crypto products for customers, particularly given the regulatory turmoil in the USA.
In conclusion, while Affirm currently does not support direct cryptocurrency transactions, there are alternatives like eToro that offer a secure and compliant platform for crypto investments using a standard bank account.
These alternatives, often more cost-effective than popular platforms like Coinbase, can serve as a viable solution for potential crypto investors. It remains to be seen whether Affirm will adapt to the increasing demand for crypto transactions amidst the shifting regulatory landscape in the USA. Until then, using a regulated third-party broker seems to be the optimal choice.