Buy Bitcoin with Credit Card
The Complete Guide for 2022
Cryptocurrency has been taking the world by storm for over a decade. The changing financial landscape is driving more and more people to take things into their own hands. As a result, the digital finance market is growing exponentially.
The idea of decentralization has the tech-savvy savers of the world running to get involved, not to mention the traders and investors who see it as a potential gold mine. The buying and selling of Bitcoin is a whirlwind market and one that, when navigated well, can be beneficial for several reasons.
One of the ways people are getting a piece of the proverbial pie is through buying Bitcoins with their credit cards. It may seem an obvious solution, but for many years it was difficult. To buy into Bitcoin using this type of card was almost impossible. Very few platforms recognized it as a payment option until recently. The credit card method is becoming more popular for its potential upside and minimal risk, but how exactly does it work?
Here we have a complete guide to buying Bitcoin with your credit card in 2022. Before we dive in, let’s take a closer look at what all the hype is about.
What Is Bitcoin?
Bitcoin was the first of its kind. Its invention kicked off the entire cryptocurrency movement in a big way, and it remains at the top of the game more than 12 years later. Even if you know nothing about digital currencies, what they do, and how they work, we bet you’ve still heard of Bitcoin. If not, it is time to get out from under the rock.
A Brief History of Bitcoin
After the infamous implosion of the stock market in 2008, there was no way things could go back to how they were. Literally trillions of dollars were lost. The time that followed was one of the worst in American financial history. Many people were left questioning how their money managed to disappear without their knowledge and shone a light on the way banks were lending and investing money.
People wanted control of their own money. Sound reasonable enough right? Fiat currencies, aka. the cash we use daily (USD, Euros, etc.) is centralized, meaning they are connected to a bank or government and ultimately tied to their future.
Bitcoin was the first to pioneer decentralization in currency. The value of each coin is determined solely by supply and demand. It is stored in a personal online wallet that only the account holder has access to and all transactions or investments are completely in their hands. The first coin was mined on the third of January 2009, and the rest is history.
Now, more than 45 million Americans have invested in Bitcoin, making it the leading cryptocurrency on the market. Bitcoin is a force to be reckoned with. From being little more than some mystical coins floating around cyberspace, it is now being dubbed the finance of the future,
The market value is volatile, just like any currency, but that is what makes it exciting. Trading is all about buying low and selling high by keeping track of the market value. Before you start thinking about all that, you need to get yourself some coin. One of the best ways to do so is by using a credit card.
How to Buy Bitcoin with Credit Card
Credit cards always make buying things that bit quicker and easier, and Bitcoin is no different. Using a credit card to purchase Bitcoin online is becoming the most popular way of doing so. The ease and speed of transactions make it possible for anyone anywhere to buy into the exciting world of cryptocurrency.
How exactly does it work? The trick to buying Bitcoin with a credit card is all about finding the best platform. In the early days, purchasing Bitcoin this way was very complicated and difficult. These days, it could not be easier when you have the know-how! More and more cryptocurrency exchanges keep appearing claiming to be the best, but more on that later.
To buy Bitcoin using a Visa, Mastercard, or any other type of credit card, you must follow these steps:
- Open a digital wallet: Download the wallet app of your choice and set up an account. Make sure you take note of your encryption keys. If you don’t, you can’t get back in.
- Connect your credit card: Connect the card to your wallet account and verify all your details.
- Find an exchange: Make sure the option you want to use works compatibly with your card type. Also, research the fees and rates to ensure you are getting a good deal.
- Start buying: You can buy as much Bitcoin as you desire and have it wired to your digital wallet.
Something to note about buying Bitcoin in this way is security concerns. To verify your card, you must provide ID verification and prove the card belongs to you. Some people feel uncomfortable sharing this information with an online exchange. That lack of confidence is why it is imperative to use one that you trust.
Top Platforms to Buy Bitcoin with Credit Card
To help you feel more comfortable, we have put together a list of Bitcoin exchange platforms that have good reputations. Based on years of activity, client reviews, and other data, we believe to be reliable sites to get involved with and trade on. Anytime you share your personal details online, you should always thoroughly research the company that you are sharing them with.
Part of the reason exchanges asks for these details is to avoid fraudulent activity. You may feel frustrated about having to share information, but it is better than a site not caring who uses your card!
Here is a brief overview of five of the best exchanges out there today. We compare fees and reviews and give our overall opinion to help you make a more informed decision about where to invest in Bitcoin.
Buying Bitcoin with Credit Card Through eToro (Pros & Cons)
eToro is a licensed cryptocurrency exchange based out of Israel. The platform was founded around 2007 and focuses on social trading and helping its users follow examples of other, more experienced traders.
- Easy to navigate user-friendly platform
- Lots of options of how to use your Bitcoin
- Reasonable fees
- Allows copy trading
- $200 minimum deposit
- Difficult to withdraw coins
- Not transparent about trader information
- You have to pay to take out your money
If you are new to trading and are not yet confident about how best to invest, eToro is a useful platform. By allowing you to track and copy other people’s trades on the platform, it helps to build your confidence and portfolio simultaneously.
Buying Bitcoin with Credit Card Through Coinbase (Pros & Cons)
Coinbase is easily one of the most recognizable platforms in the United States for trading Bitcoin. With reputation comes trust, which is why so many people view Coinbase as a leader of the industry.
- Very low minimum deposit (only $2!)
- Excellent reputation
- More than 50 different cryptocurrencies are available to trade in
- Works in over 100 countries
- Poor customer support
- Some fees are higher than the average exchange
- Buying with a credit card is not available in every region
- Not so straightforward for beginners
Coinbase is an excellent choice for experienced Bitcoin traders who want to branch out into new currencies. The well-established name makes it a trustworthy company to work with, which is a good thing for sharing credit card details. Although the credit card service is not available everywhere, it is a good option for those who can.
Buying Bitcoin with Credit Card Through Binance (Pros & Cons)
Binance is a huge international exchange, but not available in the USA. Luckily, the company built a separate platform specifically for use in the states. Binance US is a popular platform for people who want to buy with a credit card because of the low fees and pleasant user interface.
- Low trading fees
- $10 minimum deposit
- Smooth user experience
- Allows easy credit card purchasing even though the platform is crypto-only
- Not available in every state
- US branch has fewer currency options than the main exchange.
- Doesn’t always work well on Android devices
Peer-to-peer trading is one of the highlights of this exchange and is a big reason so many experienced traders use it. Binance is one of the biggest international platforms out with the US, and the national branch is building just as much traction. Despite being fairly new on the scene, there is no denying its market influence.
Buying Bitcoin with Credit Card Through Bitpanda (Pros & Cons)
With an impressive customer base of over one million users, Bitpanda is a giant in the industry. It is one of the newest platforms on this list, having launched in 2014 out of Vienna, Austria. The European platform quickly because the leader for its home continent and has now spread even further to become a favorite in every corner of the world.
- Comes with a built-in digital wallet so users don’t need to work across platforms
- Excellent choice of payment methods, working compatibly with almost any credit card
- Allows you to withdraw cash easily and in a variety of ways
- Very easy platform to use
- Fees are high, especially when paying with a credit card
- No insurance leaves you unguarded should the site be hacked
- Works only in the European time zone
Where Bitpande shines as a Bitcoin exchange is how versatile the platform is. It is a one-stop-shop for all your crypto trading needs and has a reputation to match. Although the fees are high compared to some other sites on this list, the service received is superior. As a trading interface, this platform is one of the most advanced.
Buying Bitcoin with Credit Card Through Coinmama (Pros & Cons)
Another trusted and instantly recognizable industry name is Coinmamma. This exchange is a firm favorite for traders looking to buy with a credit card and provides some excellent opportunities once you go live.
- Trusted reputation
- Highest buying limit for credit cards
- Works almost anywhere
- Simple, user-friendly interface
- Good customer support
- Comparatively high fees
- No mobile app
- You cannot access crypto to crypto trading
- Does not have a built-in crypto wallet feature
After almost a decade on the scene, Coinmamma maintains excellence in service, opportunity, and support. The simplicity of the platform makes it an excellent choice for first-time Bitcoiners. With no minimum deposit and plenty of step-by-step guides, the higher fees are forgivable.
The Benefits of Buying Bitcoin with Credit Card
- Fast transactions are the biggest appeal for many.
- The Bitcoin deposit is made into your wallet almost immediately.
- A credit card is a simple way for first-timers to break into the market.
- Using a card lets you buy using normal fiat currency, rather than making complicated digital transactions.
- User-friendly exchanges that come with credit card purchases are designed to make the experience easy for everyone.
- You can forget about drawn-out wire transfers that pose security risks and long wait times.
Disadvantages of Buying Bitcoin with Credit Card
- The transaction fees are higher and apply every time you make a purchase.
- Purchase limits on credit cards mean you can only buy small amounts at a time.
- You cannot trade anonymously if you buy with a credit card, due to ID verification requirements.
- Experienced Bitcoin traders do not usually opt for this method of buying.
What Is the Alternative?
Although a credit card is one of the easiest ways, it is not for everyone. An alternative is to open an account on a digital wallet application and credit the account with funds. You can do this either by transferring funds from a bank account or paying with a card. Once the account is credited, you can then exchange it for cryptocurrency.
This method involves a couple of extra steps, but it does let you avoid the high transaction fees involved with buying directly with your credit card.
Why Is Bitcoin Worth Investing in?
First of all, it is important to remember that trading is, by nature, a risky game. That being said, the rewards can outweigh the risk when handled intelligently and carefully. Bitcoin is undoubtedly one of the most exciting investment opportunities out there today. The market fluctuation provides an excellent opportunity for people to turn volatility into an advantage.
Investing in Bitcoin is a great way to branch out your portfolio and broaden your financial horizons, but it should always be done with care, precision, and research. By using your credit card to invest, you keep it simple and can step gradually into the world of trading.
Bitcoin has come a long way over the last decade. What was once a world reserved only for those with the technical know-how and financial insight is now an open playing field for whoever feels like joining. Being able to buy Bitcoin with a credit card is one of the ways the system has been made more inclusive.
Using a credit card to buy Bitcoin is quick and easy, especially if you use one of the exchanges detailed above. Despite the high transaction fees and purchase limits, this is still a very appealing route to take for many.
Bitcoin and decentralized currencies are all about giving people the chance to take control of their financial future in a new and exciting way. If you are ready to join the millions of Americans who have already invested, buying with a credit card is a good way to get your foot in the door.
Frequently Asked Questions
Can I use my credit card at a Bitcoin ATM?
No, you cannot. It is not possible to use a credit card at any Bitcoin ATMs at this time. The machines accept only cash payments. Rather than putting in your card to withdraw cash, you insert cash, and the machine converts it to Bitcoin.
Is it possible to buy Bitcoin with a Visa card? If yes, how can I do it?
Credit cards are one of the fastest ways to buy Bitcoin in 2022, and Visa cards are no exception. You can use your Visa Credit card on all the major exchanges to purchase Bitcoin. All you need to complete the transaction is a digital wallet, a Bitcoin address, an account on a platform that supports credit cards, and a few minutes of spare time.
Does a Bitcoin ATM charge extra fees?
There is always a transaction fee when using a bitcoin ATM. Depending on the brand you use, this fee can vary from around seven to 25% when you buy. The world average is around eight and a half percent. Selling via an ATM costs less, the average fee coming in at almost five and a half percent.
CoinFlip and BitTeller have some of the lowest transaction fees and more than 1000 US locations between them.
Can a Discover card be used to buy Bitcoin?
It is possible to buy Bitcoin using a Discover card, provided you have a “Cash Back Credit Card.” Whenever you get a cashback bonus, you can withdraw it to your account and use it on a compatible exchange.
What is the current value of Bitcoin?
The value of Bitcoin is determined by supply and demand and changes from day to day. The best way to track the current valuation of Bitcoin is through an online market tracker. There are several sites where you can do this. Bitcoin Ticker is a good choice because it follows six of the most prominent exchanges to give as accurate a valuation as possible.
Can I cash out my Bitcoin?
Yes, you can. Depending on what exchange, trading platform, or digital wallet you use, the process varies slightly. What does not change is the fact that your Bitcoin is under your control at all times, and you can do with it as you please. If that means withdrawing it to cash, then okay! You can choose to transfer the cryptocurrency into a standard bank account, which may take a few days to clear.
If you do decide to cash out, be sure to do it at a time when the exchange value is high! Otherwise, you could miss out on some profit.