Can I Buy Bitcoin With a Credit Card – How to and Drawbacks

Life is so easier with a credit card that we’re accustomed to making credit card purchases for every online transaction nowadays. Credit cards are convenient, flexible, and generally accepted worldwide. But if you’re planning to continue the habit of using credit cards for purchasing Bitcoin, you might want to reconsider.

Let’s first understand why experts don’t recommend using a credit card for buying Bitcoin. If these reasons don’t seem to affect you, we’ll also show you some verified methods to buy bitcoin with credit cards instantly.

Can I Buy Bitcoin With a Credit Card?

Yes, you can buy Bitcoin with a credit card. Sounds about right? Here’s the catch.

First, you will have limited options for choosing the exchange platform. If you’re too used to Coinbase or other similar platforms, it’ll be the time to say goodbye to them. Several cryptocurrency exchange platforms don’t accept credit cards. Even the ones that do accept only limited credit card issuers. In most cases, exchanges only accept VISA and MasterCard.

Second, you’re at the mercy of your credit card issuer. In most cases, your credit card company won’t allow you to buy crypto. Even when they do, they penalize you with additional credit card fees that take a significant bite out of your earnings.

If limited options seem inadequate to you, let’s talk about the financials.

What are the fees for buying Bitcoin with Credit Cards?

There isn’t a single transaction fee when you buy Bitcoin with a credit card, but a list of different charges. Some of the probable costs you’ll incur when you take the leap towards credit cards are:

Exchange Platform Fees

While it is common for exchanges to charge a nominal price for their service, credit card users need to pay extra. Let’s take the case of Coinmama.

If you want to purchase Bitcoins on Coinmana, you need to spend at least $60. On every purchase, the exchange levies a 5.9% transaction fee. Credit card users also need to shell out an extra 5% of the transaction amount as card fees.

Imagine a scenario where you’re buying $100 worth of Bitcoin; you’ll need to pay $110.90 at checkout because of all the extra charges.

How bad is it for a crypto investor? Well, if you have bought Bitcoin worth $100, you’ll need about 11% profit just to get your money back even before you start thinking profits.

As Bitcoin is a volatile asset, there is no fixed timeline for when you’ll break even. But when you do, the prices may fall again and eat into your investment.

Charges and Penalties from the Credit Card Issuer

While we’d like to think of crypto as an asset, your credit card issuer is most likely to treat your Bitcoin purchase as a cash advance or taking money out of an ATM. Credit card companies see no difference between withdrawing a cash advance or buying a Bitcoin.

What does this mean for users? More fees!

Here are some finer details:

Cash Advance Charges

When you take an advance, you need to pay about 3-5% of the transaction as a fee. Did you buy crypto worth $500? Well, now pay a $15 to $25 cash advance fee too.

Higher Interest Rates

Card providers may also have a higher annual percentage rate on cash advances than regular online purchases.

No Grace Periods

You usually get a grace period of about 20 days when you use your credit card, meaning companies wait for some time before charging interests. On the other hand, interests in cash advances start from day one.

Lower Credit Limit

Many credit cards have a lower credit limit for a cash advance. For example, suppose your overall credit limit is $10,000. In that case, some cards may only allow you cash advance payments of up to $5,000.

No Rewards on Credit Card Purchases

People love using credit cards, as they also help you get cashback, travel points, air miles, and more. Some cards also give you a sign-up bonus for spending a specific amount. However, as credit card issuers consider crypto purchase a cash equivalent, you won’t receive any rewards. Also, your Bitcoin purchase won’t count in your spent amount.

Some credit cards charge foreign transaction fees if you’re making a transaction on an exchange based out of the U.S. A typical foreign transaction fee may be about 3% of the transaction amount.

Credit Cards | Source:

Every credit card provider has a different set of guidelines. What a card provider considers cash advance also differs.

It is best to call customer services to know whether you’ll accrue any cash advance charges.

The Verdict

It is best to avoid credit cards, particularly if you’re riddled with student loans or any other form of debt. First, you’re investing in a high-risk asset. Second, you have to pay the amount back with high interest. Third, you pay platform fees to crypto exchanges. So card penalties and charges with your credit card can further add to the interest amount.

Lastly, you also use up your available credit and run into the risk of a low credit score. This can further hamper your chances of obtaining other loans. In conclusion, you may end up spending more than your prospective earnings.

I know the risks- Tell me How Can I Buy Bitcoin With a Credit Card?

Credit cards may not be as evil if you do not have any alternative payment method. For example, if you’re buying Bitcoin for HODLing and expect a more significant return in the long run, you can use a credit card.

Now that you know the drawbacks and benefits let’s look at the reliable ways to purchase Bitcoin with your credit card.

Buy Bitcoin with Credit Cards on Exchanges

Exchanges remain the most trusted method for purchasing cryptocurrency. However, you’ll need to find an exchange platform that supports credit card transactions. Unfortunately, Coinbase and – the most popular exchange platforms do not support credit cards. But you can use your debit card, bank transfer (ACH), PayPal, Wire Transfer, Apple Pay, and Google Pay on Coinbase.

Presently, Coinmama and are two verified platforms that support credit cards. While Coinmama charges a 5.9% transaction fee plus 5% credit card charges, levies a 2.99% fee on VISA and MasterCard.

Coinmama has a more user-friendly interface between the two. Another interesting feature is the ‘Buy Bitcoin Instantly’ option on Coinmama that lets you buy BTC in a few clicks.


Buying Bitcoin with Credit Cards on Peer-to-Peer Exchanges

Peer-to-peer(P2P) exchange platforms allow users to buy and sell Bitcoin from other users. Platforms such as Paxful support multiple payment options ranging from Visa and MasterCard to American Express and Discover.

Another popular P2P exchange is Bisq that levies a 0.05% to 0.70% transaction fee. The best part of using Bisq is quick registration, allowing you to purchase crypto without any KYC requirement.

If you want to purchase Bitcoins on a P2P platform, you must first register on the platform. Search for Bitcoin and select your preferred payment method as ‘Credit Cards.’ You can filter out the type of credit card on most P2P platforms. Once you hit search, you receive a list of available vendors that accept credit card payments.

Select the deal that you find most suitable for you. Next, verify the dealer through their transaction history, reviews, etc. After you’ve confirmed the details, enter your credit card number, wallet address, and personal information. Once the seller receives the payment, they’ll release the coins to your Bitcoin address.

You’ll have to pay a typical fee as platform charges, while sellers also charge about 5%to 10% higher than market rates. Some platforms also offer escrow/brokerage services for keeping your transaction safe. Unless both parties confirm the exchange, these platforms hold your cryptocurrency purchase, making them a safe option for buying BTC.

Other Methods: Earn Bitcoin as Rewards

Crypto rewards are an up-and-coming feature that many credit cards are offering. Whenever you make regular purchases with your credit card in your local currency, you earn a specific cashback which you can choose to receive in Bitcoins. For example, the SoFi credit card gives cardholders a 2% cashback on every purchase.

Many other companies such as Brex, Venmo, BlockFi rewards-Visa, Gemini, and more also offer cashback in Bitcoin and other cryptocurrencies.


You can buy Bitcoin with a credit card through exchange platforms and P2P platforms. However, buying Bitcoin with a credit card often incurs large expenses due to platform fees, card penalties, and more. If you want to avoid these costs and protect your credit score, you can always use methods like debit cards and bank account transfers.

FAQs on Buying Bitcoin with Credit Card

Can I Buy Bitcoin with Credit Card on Coinbase?

Coinbase does not accept credit cards for Bitcoin purchases. Presently, U.S. customers can choose from ACH, Debit Card, Wire Transfer, PayPal, Apple Pay, and Google Pay options only.

Can I Buy Bitcoin with Credit Card on Gemini?

Gemini only supports ACH transfer or debit cards for instant Bitcoin purchases. However, U.S. customers can register for the Gemini Credit Card, which gives you the option to receive crypto rewards on every purchase Source.

Can I buy bitcoin with Credit Card on Binance?

U.S. customers cannot buy Bitcoin with a credit card on The default payment method for buying BTC on the platform is the wallet. You can add funds to your wallet through your debit card or a bank transfer. Source

Can I buy bitcoin with Credit Card on Trust Wallet?

You can buy Bitcoin with a credit card on Trust Wallet. However, the platform allows credit card payments only for a minimum purchase of $50 and a maximum of $20,000. Source

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