Buy Bitcoin With Credit Card
Buying crypto with a credit card can be a fast and convenient way to buy. But it can also come with some pitfalls.
The biggest problem is that some card issuers consider crypto purchases to be cash advances, which are subject to higher interest rates and fees than regular purchases.
Buying with a credit card
Credit cards aren’t always the best choice when buying cryptocurrency. Not only do they carry higher fees than other payment options, but they also can come with a number of drawbacks.
If you’re not sure whether a credit card is right for you, take a look at these tips to make the process simpler:
First of all, check with your credit card issuer about its policy on crypto purchases. Some companies prohibit it altogether while others consider the purchase to be a cash advance, which will incur interest from day one and lower your credit limit.
Secondly, you’ll need to choose a crypto exchange that accepts credit cards. This will cost you a fee that is typically 3% to 5% of the value of the transaction.
Some cryptocurrency exchanges, such as Bybit, have begun to offer credit card purchases, but it’s important to double-check the fees before completing a purchase. In addition to a standard transaction fee, some exchanges charge a commission.
Buying with a debit card
If you don’t want to go through the hassle of converting your cash into Bitcoins or waiting for a bank transfer, then buying cryptocurrency with your debit card is an option. These transactions can take a day or two to complete, though they are faster than credit card payments.
Before you make a payment, it’s important to check whether the exchange accepts debit cards. Not all of them do, and some charge very high fees.
Once you’ve found a service that accepts your preferred payment method, sign up and link your card to your account. Most platforms require verification before you can use your card to buy, and address verification is also required with some exchanges.
Buying with a bank transfer
There are many ways to buy bitcoin, but one of the fastest and most secure is via a bank transfer. Bank transfers are irreversible, making them safer for exchanges and reducing chargeback risk.
Buying crypto through a bank transfer also saves you money in fees. For example, Coinbase charges $14.9 per transaction when buying with a bank transfer instead of $39.9 using a credit card.
This is a great option for first-time buyers and people who don’t have access to credit cards. In addition, it’s often the cheapest deposit method for exchanges.
Phemex has partnered with Legend Trading, a legally compliant Money Services Business (MSB). This MSB enables Phemex users to purchase crypto through USD/GBP/CHF/EUR/JPY/CAD bank transfers.
Buying with a bank account
Credit cards are a popular payment option for buying cryptocurrency. Most major exchanges and wallets offer this feature, making it faster and easier to buy bitcoin using your credit card than ever before.
Many platforms like Bybit https://www.bybit.com/en-US/ , Bitpanda, and Wirex let you purchase cryptocurrency with a Visa or MasterCard. This option is fast and secure, usually taking less than a day to complete a transaction.
However, there are some downsides to this method. The most obvious is that you’ll incur high transaction fees and may be charged interest from your credit card issuer.
Aside from that, you’ll also lose any rewards you get with your credit card. This is because your crypto spending will be treated as cash advance and not a normal purchase, which won’t count toward your credit limit or qualify for any rewards.
Moreover, you’ll need to be verified before you can use your credit card to buy cryptocurrency. This verification process typically requires submitting ID and selfie photos or other documentation that verifies your identity.