How to Buy Bitcoin With a Credit Card in 2024

How to Buy Bitcoin With a Credit Card

The easiest way to buy Bitcoin with a credit card is to purchase it online from one of the top crypto exchanges. Exchanges make it easy to buy and sell Bitcoin with a credit card and other cryptocurrencies directly from your smartphone, tablet or computer. Check out our recommended platforms below and follow the steps to buy Bitcoin with a credit card.

1. Choose a platform

Start by choosing a platform that supports credit card payments. This shouldn’t be hard as major platforms support credit card services like Visa and Mastercard. Any one of our top picks below is suitable.

2. Create and fund your account using a credit card

Head to the sign-up section of your chosen platform and fill the form with your name, contact information, and KYC documents like an ID and a utility bill. Once your account is verified, select your chosen payment method to make a deposit (a credit card).

3. Buy Bitcoin

Once you have funded your account, search for bitcoin with the ticker BTC and your local currency (e.g. BTC/GBP). If your local currency is unavailable, you may use a popular one like USD. However, you may be charged conversion fees. Alternatively, you can buy Bitcoin directly with a credit card without funding your account first. Select “credit card” as a payment option when doing so.

Why Should I Buy Bitcoin With a Credit Card?

Convenience

Everyone knows the convenience credit cards offer. Buying Bitcoin with a credit card is straightforward once you have registered with an exchange. However, this convenience comes at a cost. Purchasing Bitcoin with a credit card isn’t one of the most economical methods.

While convenient, credit cards are not suitable for frequent transactions, due to the fees. But if the Bitcoin price rises, a single credit card transaction fee wouldn’t be an issue for most.

Security / Safety

Credit card technology has come a long way since its inception. Now, we have 3D secure cards that add an extra layer of security by requiring users to authenticate transactions before processing them.

Transaction limits can also be imposed on cards to ensure that large sums of money are not processed without your permission.

Speed (deposit time)

Credit card payments are one of the fastest in the world, often processing transactions within seconds. For crypto platforms, credit card payments are usually the instant payment method.

And thanks to global networks set up and maintained by providers like VISA and Mastercard, almost anyone from any country can carry out credit card transactions.

Affordability

While credit card payments are not the cheapest (actually, they are usually among the most expensive), they are more affordable for international payments than SWIFT and wire transfers.

The average SWIFT transfer costs 3% – 5% for big banks, while the average credit card processing fee costs 1.29% for VISA and 1.39% for Mastercard, 1.58% for Discover, and 1.5% for American Express.

Ease of Use

Credit card transfers are easier to make than some local options. It is more convenient for cross-border payments than bank or wire transfers. It, along with bank transfers, are among the most popular payment methods available globally.

Improve credit score

Credit cards can help improve your credit score provided you pay your debts at the end of the month. You can buy Bitcoin using a credit card and settle the debt at the end of the month. Doing this improves your credit score, granting access to more funds at better rates.

Credit card companies also give rewards for settling debts on time, like cashback, miles, or even gift cards.

Buying Bitcoin Direct vs Crypto Exchange vs P2P vs Broker

Buying Bitcoin Direct

Buying Bitcoin directly from people may help you maintain anonymity but is fraught with risks. The most prominent is that the legitimacy of the counterparty is not guaranteed. Also, transfers can be limited to other credit card accounts and a small amount.

Buying directly with credit cards can also be less secure as the counterparty may not invest much in platform security. The range of altcoins to buy from may be limited to a few popular coins, reducing opportunities to make profitable investments.

Crypto Exchange

Buying Bitcoin with a credit card on an exchange is easy and secure, especially within a regulated environment. Most large exchanges usually have two purchase options with credit cards. You can either buy the Bitcoin directly through the platform or fund your account with your credit card and use your balance to buy Bitcoin.

Whichever you use, the cost and the time to process the transaction are usually the same.

Brokers

If you prefer to go through a crypto broker or OTC desk to gain Bitcoin price exposure, ensure they are fully compliant with regulations. These regulations are in place to ensure you can trade safely and securely.

Buying Bitcoin Anonymously Using a Credit Card

It is not currently possible to buy Bitcoin anonymously with a credit card. You generally only have a couple of options to buy Bitcoin anonymously. One is to buy through a Bitcoin ATM, the other is to arrange to purchase Bitcoin anonymously on peer-to-peer exchanges.

Unfortunately, Bitcoin ATMs do not offer credit cards as a payment method due to double-spend concerns.

Peer-to-peer exchanges are also not an option as purchases made with a credit card will unavoidably leave traceable records. As a result, we do not believe it is possible to buy Bitcoin anonymously with a credit card.

Buying Bitcoin Without Verification Using a Credit Card

It is not currently possible to buy Bitcoin using a credit card without first verifying your identity. This is because online purchases require sensitive details like your credit card number and CVV code.

Regulated exchanges or brokers must ensure that the credit card user, owner, and account owner are the same person. Account verification helps them do so.

How Much Does It Cost to Buy Bitcoin Using a Credit Card? - What Are the Fees?

When setting out to buy Bitcoin with a credit card, the first thing you will need to consider is the cost of the transaction.

Fees for buying Bitcoin with a credit card vary depending on your bank, jurisdiction, and the exchange or broker you are using. In general, exchanges will charge an additional processing fee under 4%.

Merchants are allowed to charge convenience fees for using a credit card, but only if it is a specialty payment channel for the business, not one that forms the majority of payments to the business.

Some larger exchanges charge below 4% fee for buying Bitcoin with a credit card. Buying crypto from a foreign platform may come with a foreign transaction fee. It is important to confirm all credit card fees with your bank before proceeding.

Is Using a Credit Card the Best Way to Buy Bitcoin?

The reality is there is no best method to buy Bitcoin. Credit Cards may not be the best payment method, but they might be the easiest and fastest. However, situations may arise where using a credit card is infeasible. In those cases, these alternative payment methods can be used instead.

Bank transfer

Bank transfers to buy Bitcoin are just as popular as credit cards as the majority of users in developed countries have bank accounts. Local transfers are cheap and fast, and several global brokers have local accounts in popular regions. However, international transfers can get expensive and take several days to clear.

Neteller

Neteller is an electronic wallet and payment platform that allows users to make international payments using their bank accounts or credit cards where it would have otherwise been infeasible or would have taken several days. Using Services like Neteller for buying Bitcoin are growing as a viable payment method as it gathers more users globally.

Paysafecard

Paysafecard is a semi-anonymous way to buy Bitcoin, provided the cards are bought physically without creating an account on the online platform. Paysafecard can be used to purchase Bitcoin on peer-to-peer markets that do not require account verification.

Paypal

PayPal is a global leader in electronic wallet services. It is also an instant payment method as its transactions are fast. It may not be as widespread as credit cards, but it offers a cheaper payment method at a comparable transaction speed. You can buy Bitcoin with Paypal directly or through a broker or exchange.

Apple Pay

Apple Pay is a digital payment service for Apple users. It has grown in popularity in the last few years and is being added to the list of payment methods for a growing number of exchanges and brokers. Apple Pay also works with credit cards and bank accounts to move money across borders during international transactions. There are some platforms that allow you to buy Bitcoin with Apple Pay.

Google Pay

Google Pay is the Android version of Apple Pay. It allows users to pay for items in-store or online without divulging their payment details. Google Pay can be used to buy Bitcoin as it works with a number of crypto exchanges and is growing in adoption as the mobile internet grows.

What Should I Look For in a Platform When Buying Bitcoin With a Credit Card?

Low withdrawal and deposit fees

Credit card fees are usually one of the highest among crypto platforms, usually only surpassed by wire transfer fees. Some platforms charge fees for credit card payments, and some don’t. Those that do usually add their fees to the charge the payment provider levies to process the transaction.

Ensure that the platform charges minimal credit card fees for deposits and withdrawals. For example, eToro does not charge for credit card transactions while Binance charges 1.8%.

Speed of platform

While credit card transactions are usually instant, how fast your payment goes through depends on the platform’s ability to clear the transaction quickly from their end.

Reputation of platform

Platforms known for fraud, multiple hacks, and leadership getting into trouble with the law should be approached with caution. While not all hacks mean the platform is sketchy, it does mean that they have not implemented the best security measures they can. Approach platforms with a bad reputation with caution.

Security

Crypto platforms deal with smart contracts and a lot of digital assets. Weak smart contracts are often hacked, and the industry is rife with tales of breaches and theft. The absence of a platform breach is a usually good sign of tight security, especially when that exchange has been in business for several years.

Licenses and regulations

As countries develop crypto legislation and policies, exchanges must adapt to remain on the good side of the law. Defaulting exchanges may be forced to cease operations immediately, placing user funds at risk. Ensure the exchange of your choice is licensed in the country(ies) it operates.

Final Thoughts on How to Buy Bitcoin With a Credit Card

Buying Bitcoin with a credit card is a simple and straightforward process albeit one with a higher cost. However, it still remains one of the cheapest for cross-border payments.

eToro is our top pick as the overall best place to buy Bitcoin using a credit card as it does not charge deposit or withdrawal fees. It is also highly regulated and has a minimum deposit requirement of $10, cheap compared to some others.

Credit card charges can add up for frequent transactions and is, thus, more suitable for infrequent and large transactions.

Methodology - How We Picked the Best Platforms to Buy Bitcoin With a Credit Card

The platforms covered in this guide are derived through rigorous testing, research, and reviews. We paid attention to security, transparency, reputation, deposit and withdrawal fees, and time in the game.

The platforms listed are the best we found in the various categories we listed them. For example, Binance was one of the most flexible ways to buy Bitcoin with a credit card because it supports over 70 fiat currencies.

Check out our ‘why trust us’ and ‘how we test’ pages for more information on our testing process.