How to Buy Crypto with Credit Card
As outlined above, the safest and easiest way to invest in digital assets with a credit card is through a regulated exchange in your jurisdiction. With a platform like OKX, users can sign up instantly and connect their credit card to deposit funds and start trading. They also offer the highest limits at $5,000 USD per day.
You can get started in minutes with this guide:
- Sign Up: Visit the OKX platform and sign up with an email & password.
- Select Fiat & Crypto: Select the fiat currency you want to deposit and the amount. Also find the cryptocurrency (e.g ETH) you want to buy in the dropdown list.
- Complete Transaction: Select 'Buy ETH' and input your credit card details to complete the transaction.
What are the fees to buy Crypto with a Credit Card?
The fees to purchase cryptocurrencies with a credit card will vary from exchange to exchange. That said, the minimum is generally around 2.99% because that is the fee that both VISA and Mastercard charge to transact using their network.
The other fee you will need to consider is the trading fee when executing a transaction on a platform. Fortunately for users, OKX charges industry-leading fees starting at 0.08% per trade. This is significantly cheaper than alternative like eToro or Coinbase who charge in excess of 2% to buy or sell.
Are there risks of buying Crypto with a Credit Card?
Yes, there are risks associated with buying cryptocurrency using a credit card. One major risk is that the value of the cryptocurrency may decrease after you have purchased it, which could result in you owing more on your credit card than the cryptocurrency is worth. Additionally, some credit card companies may classify cryptocurrency purchases as cash advances, which can incur higher interest rates and fees.
Additionally, some countries may have laws and regulations that restrict the purchase of cryptocurrency using a credit card. It's important to do your own research and to make sure you understand the risks involved before making any purchases.
VISA & Mastercard Cryptocurrency Policy
Visa and Mastercard, two of the largest credit card companies in the world, have recently begun to allow certain cryptocurrency transactions on their networks. However, both companies have stated that they will only facilitate transactions that comply with all applicable laws and regulations, and they have implemented certain restrictions on cryptocurrency transactions.
Visa has announced that it will support the use of USD Coin (USDC) for business-to-business (B2B) transactions. Visa also announced that it will allow the use of crypto to fiat on-ramps and off-ramps through its partners.
Mastercard has also announced plans to support certain cryptocurrencies on its network and will work with select partners to offer cryptocurrency services to consumers, including the ability to buy, hold and sell cryptocurrency.
Buying cryptocurrency with a credit card is becoming increasingly popular and more accessible. With the help of platforms like OKX, users can purchase cryptocurrencies with their credit cards in just a few clicks. However, it's important to do your own research and understand the risks associated with these types of transactions before investing. Be sure to check if there are any applicable laws and regulations in your jurisdiction before making any purchases.