Can You Buy Crypto With A Credit Card? (2024)

In short—yes, you can buy crypto with a credit card. But there are only a few credit card issuers and crypto exchanges that offer this option. There are also third-party gateways that let you purchase crypto with a credit card as well, but with even higher fees than a crypto exchange.

Here’s what you need to know about buying cryptocurrency with a credit card.

Crypto Exchanges That Let You Buy Cryptocurrency With a Credit Card

As of March 2024, here are some major cryptocurrency exchanges that let you purchase crypto with a credit card:

• Binance. Allows crypto purchase with a Visa or Mastercard credit card
• Coinbase. Allows crypto purchases with credit cards as long as it supports “3D secure”, which is a type of online security protocol for identity verification
• eToro. Allows crypto purchase with Visa, Mastercard, or Maestro credit card
• Crypto.com. Allows purchase of specific crypto with a Visa or Mastercard credit card through Crypto.com gateway
• Kraken. Allows purchase with Visa or Mastercard only

Some exchanges only allow direct deposits from banks, cash deposits or debit card purchases. Limitations also exist as to what types of credit cards may be accepted by exchanges. There are also smaller crypto exchanges that let you purchase crypto with a credit card, but many simply connect to a “fiat gateway,” which is a partner app that processes the transaction.

As of March 2024, here are the major crypto gateway services that allow you to purchase crypto with a credit card:

• MoonPay
• Simplex
• Banxa

Keep in mind that fiat-to-crypto gateways are third-party partners to crypto exchanges in most cases, and may charge much higher fees.

Credit Cards That Allow You To Purchase Crypto

Once you find an exchange that allows purchasing crypto with a credit card, you need to check with your specific credit card issuer to find out if it allows cardholders to purchase cryptocurrency. Some credit card issuers ban cryptocurrency transactions, but many are now allowing them, albeit with some strict rules.

Credit card issuers may have crypto-specific policies, or may refuse to process transactions that are deemed too risky. Policy information varies for each card issuer, and transactions are typically coded as a cash advance, which may come with high fees and interest rates from most credit card companies. Your credit card provider may also enforce a daily limit on crypto purchases and a total limit on cash advances.

Can You Buy Crypto With a Credit Card Without Verification?

Whether or not you can buy cryptocurrency with a credit card without verification depends on the platform you use. If you are required to provide proof of identity, it usually requires a copy of a government ID (such as a driver’s license or a passport). This measure helps platforms prevent fraud and in some cases comply with federal regulatory requirements.

The purchase experience of buying crypto with a credit card varies by platform. But most crypto exchanges that allow credit cards require you to do the following:

1. Sign up for an account. You’ll need to sign up for an account through a crypto exchange that supports credit cards. Signing up may require completing identity verification, such as submitting a picture of your photo ID, or taking a selfie picture to verify your identity.
2. Add your credit card information. Once you have an exchange account, you’ll need to add your credit card as a payment method. Most exchanges allow you to do this as part of the purchase process, so you may need to navigate to the “Buy Crypto” section of the exchange website or mobile app.
3. Deposit funds. Some crypto exchanges require depositing U.S. Dollars to the platform first. You may be able to do this with a credit card, though the transaction will most likely be coded as a cash advance.
4. Purchase crypto. Once you’ve connected your card and deposited funds (if required), you can choose which cryptocurrency you wish to purchase. Some exchanges require a hold on card purchases that could delay the timing of your purchase by 72 hours.

Not all platforms allow you to use a credit card to make your cryptocurrency purchases. If you do choose a platform allowing such transactions, keep in mind that there may be extra fees associated with the purchase. In most cases, credit card companies will treat cryptocurrency purchases via a credit card as cash advances. Forbes Advisor never encourages using a credit card for cash advances. They incur high interest rates and additional cash advance fees.

Remember: A cash advance does not usually involve a grace period and begins incurring interest immediately.

If you choose to purchase crypto with your credit card, there are multiple fees and charges that may be added to your purchase. Rather than estimating the cost, take the time to calculate the entire cost—cash advance fees and interest, plus crypto exchange fees—before proceeding.

Cryptocurrency Exchange Fees

Most crypto exchanges charge a commission fee and/or a service fee for using a credit card to purchase or deposit crypto. Depending on the exchange, vendors within the exchange may also design fees for purchasers depending on a few factors, like where the vendor is located, the purchase amount and what type of credit card is used.

Here are a few crypto exchange fees to watch out for:

• Transaction fee. This is usually a flat fee for purchasing crypto. This fee can range from 0.10% up to 3% (or more), depending on the exchange.
• Debit and credit card fee. Some crypto exchanges charge an additional fee for debit or credit card purchases. This fee usually ranges from 3% to 5% of the total purchase.
• Spread fee. Many crypto exchanges charge a “spread,” which is a markup on the purchase price of a specific cryptocurrency. This fee is in addition to other transaction fees.

Credit Card Company Fees

In addition to being charged fees from your chosen cryptocurrency exchange, credit card companies charge fees on your purchase as well.

Here are several types of fees a cardholder can incur:

• Cash advance fees. Most cards treat a cryptocurrency purchase as a cash advance. This means each crypto purchase is subject to a cash advance fee. A typical fee of either $10 or 5% (whichever is greater) would be charged. These fees are in addition to fees charged by the vendor or exchange and above and beyond the cash advance APR.
• Cash advance interest rates. Most cards have a higher Annual Percentage Rate (APR) for cash advances—often well over 25%. This is a variable interest that changes with the market. Interest begins to accrue immediately, on the day the purchase is made, and continues to accrue until the credit is paid off. By comparison, cardholders typically have a grace period until the credit card due date before purchases begin accruing any interest.
• Foreign transaction fees. A foreign transaction fee may be applied to each crypto purchase, if the vendor is from a different country and the credit card used charges fees for foreign transactions.

In addition to the high fees and interest charges, here are a few risks of using a credit card to buy cryptocurrency:

• No credit toward rewards or bonuses. Credit used to purchase crypto (and thus make a cash advance) typically doesn’t qualify for any purchase rewards and the charges do not count toward welcome bonus spending requirements.
• Lower credit limits. Cash advances often have a lower threshold than the cardholder’s overall credit limit that applies for card purchases. Cardholders hoping to make big crypto buys may find themselves limited by the cash advance terms and limitations.
• High risk for fraud. There’s outsized fraud potential, if a vendor isn’t properly vetted and the cardholder provides valuable information such as their name and credit card number.
• High investment risk. Investing in crypto using your credit card can lead to serious debt. Cardholders can quickly accrue high fees and interest making repayment more challenging and increasing their credit utilization rate. They may also lose their investment value due to the volatile crypto market.
• Mandatory hold on funds. Many exchanges place a hold on funds coming from credit cards. In combination with the volatile nature of crypto, this may significantly impact your ability to buy when prices are low.

While purchasing crypto with a credit card is not a good idea—there are credit cards that offer crypto rewards for everyday purchases. Whether or not these cards are a good choice will depend on your circ*mstance and risk tolerance. But, these cards allow you to accumulate cash-back rewards in the form of select cryptocurrency. Some of these cards even offer bonus categories to earn more crypto rewards on select purchases.

Here are a few popular credit cards that offer crypto rewards:

• Venmo Credit Card*. The Venmo Credit Card* offers 3% cash back per dollar spent in your eligible top spend category, 2% cash back on the next category and 1% cash back on all other purchases. Rewards earned sync with your Venmo account and can be used to automatically purchase bitcoin, ethereum, litecoin or bitcoin cash with no transaction fees.
• The Gemini Credit Card®*.The Gemini Credit Card®* is linked to your Gemini crypto exchange account and offers 4% cash back per dollar spent on gas and EV charging purchases up to $200 in spend per month on the first year, 1% thereafter, 3% cash back on dining, 2% cash back on groceries and 1% on all other purchases. Rewards are used to automatically purchase crypto through the Gemini exchange and are added to your account in real-time.

Pros

• Purchases may enjoy more protections than ACH transactions
• May be more convenient than other payment methods

Cons

• Very few crypto exchanges allow credit card purchases
• High fees from crypto exchanges
• Purchases treated as cash advance by most credit card issuers
• Cash advance flat fee and high interest rate applied
• No interest grace period on cash advance purchases
• Low cash advance limit on your card may cause transactions to fail
• No rewards can be earned due to cash advance coding of transaction
• May require additional identity verification
• Transaction may take longer than other payment methods
• Borrowing money to purchase a risky investment is ill-advised

If you want to buy cryptocurrency—using a credit card is probably the most expensive way to accomplish this goal. Though there are some crypto exchanges and services that allow crypto purchases with credit cards, you will be charged exorbitant fees for the privilege. Credit card issuers usually code crypto purchases as a cash advance—which tacks on a flat cash-advance fee and extremely high interest charges that start immediately.

Buying crypto with a credit card can reduce the value of your investment and minimize your returns by a significant margin. Using ACH or direct deposit is a much better option, as most U.S. exchanges don’t charge fees for these services. For those who insist on using a credit card, we advise contacting a credit card representative to discuss what repercussions you’ll face with your specific credit card issuer and look for a cryptocurrency exchange with the lowest credit card fees.