When bitcoin first appeared, such virtual money was traded on specialized forums and in tech-savvy systems. Today, becoming the owner of cyber assets has become much more manageable. You may buy cryptocurrencies with fiat banknotes in just a few clicks using various payment technologies, such as credit and debit cards, bank transfers, and wallets. Still, you must open an account with a reliable exchange. Let’s discuss how to buy cryptocurrency with a card and whether it’s profitable.
Is it possible to purchase digital coins with a credit card?
In some situations, cryptocurrency buy with a credit card is real, but it all depends on the exchange you prefer, and the conditions set by the card company.
Many major exchanges, e.g., WhiteBIT, CEX.io let you make financial transactions with a credit card, but some popular platforms, including Coinbase and Gemini, refuse such payment variants. Financial institutions that deal with cards offer different terms and fees.
On WhiteBIT, users can buy crypto with a credit card via a special tool that uses different merchants like Utorg and Mercuryo.
How to receive cryptocurrency with a credit card?
The process of receiving a digital cache depends on the specifics of a particular platform, but most often, it includes the next steps:
- Create an exchange profile or log in: if you are a new market player, undergo identity verification before the operation is concluded.
- Determine the proper virtual money: define the cybercash you plan to buy and the investment sum. Check if you can get this particular digital money through a credit card on the exchange.
- Select a credit card as your payment option: you may choose the account you used before to receive digital assets or add another. Many systems require credit card verification before a user finishes a purchase. In some situations, the procedure takes up to several days.
- Set the volume of cryptocurrency to buy; you don’t have to pay for a whole coin; you may purchase $200 worth of bitcoin, although its cost is much greater.
- Click “View Transaction” to see all the purchase details, including the commission.
- Tap “Pay” and the operation will be transferred to the financial institution that issued your card; they may also require proof of purchase.
Since any card issuer that lets you purchase cybercash treats such manipulation as a cash advance, it is essential to pay immediately after it clears. You can cut the sum of interest you must pay.
Advantages and disadvantages of adding a credit card to get digital money
The purchase of virtual assets allows traders to invest regardless of the volume of their savings and profitably use the rewards received during transactions. Let’s look at other benefits of such economic procedures:
- Significant transaction speed: credit card processes are completed in a few seconds.
- Suitable for beginners: if you don’t understand more complex payment technologies, indicate your card number, expiration date, and CVV and start investing.
Although there are many benefits to receiving crypto coins, some experts believe such a transaction is risky. For instance, the interest you owe if you don’t pay off the balance right away may exceed your investment revenue. Besides, your credit score may suffer if you don’t make your payments on time.
How to find the optimal credit card for shopping?
When a user decides where to buy cryptocurrency, he is trying to understand which card is better for financial transactions. We recommend considering the number of parameters:
Protection: choose cards from reliable financial institutions so as not to worry about the safety of capital.
- Fees: the exchange and banks will charge you for employing your card. Compare the conditions offered by different financial institutions.
- Rewards: so far, the checklist of prizes for use is small, but some issuers offer cashback.
- Mobile application: whether operations can be processed on the go.
- Availability: it isn’t challenging to find a solution available worldwide. Make sure the preferred card is valid in your region.
A credit card is just one of many options for getting cryptocurrencies. Although this transaction method involves a higher commission, it is simple and can close an operation, even in the absence of cash, quickly. Investors looking for a lower-cost approach can utilize a bank transfer if they want cryptocurrency to buy now; however, be prepared because such a payment may take several days.