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How to Buy Bitcoin With Credit Card

Bitcoin Credit Card
Author: Sam Grant

Sometimes referred to as digital gold, Bitcoin is the original and most established cryptocurrency. In a tough year for the global economy, Bitcoin has reinforced its credentials as a store of value (SoV) and safe-haven asset, outperforming gold since the start of the year. The price of Bitcoin price rose 30% since the start of the year, while the yellow metal saw between 15-20% gains. 

Analysts including Bloomberg are predicting Bitcoin’s all-time high of $20,000 will be revisited this year.  At the time of writing, BTC was repeatedly testing key resistance at $10,000. 

In a note to the market, a Bloomberg analyst suggested the same trade winds behind gold are now behind Bitcoin. “Something needs to go really wrong for Bitcoin to not appreciate,” the analyst reportedly said.

5 Steps to Buy Bitcoin with eToro Now

Buying any cryptocurrency with eToro is easy, simply follow the steps below:

  1. 1
    Sign up for free with eToro, entering your details in the required fields.
  2. 2
    Fill out the questionnaire, this is both educational for you and eToro.
  3. 3
    Click 'Deposit', you'll then be asked how you want to fund your account.
  4. 4
    Choose your required payment method, follow the simple steps to link your payment.
  5. 5
    Enter the amount you want to deposit and you're good to go!
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Why Should I Buy Bitcoin With Credit Card?

Everyone knows the convenience credit cards offer and buying Bitcoin with a credit card is fairly straightforward once you have registered with an exchange. Like most things in life, convenience comes at a cost, and purchasing Bitcoin with a credit card isn’t one of the most economical methods. 

When buying Bitcoin through a cryptocurrency exchange you have to consider credit card fees, exchange fees, and blockchain fees. Buying Bitcoin through a broker or OTC Desk may be one of the most accessible ways to gain exposure to the cryptocurrency market, with far fewer fees than traditional cryptocurrency exchanges.

In comparison to exchanges, brokers generally offer a wider selection of payment methods including credit cards.

While a convenient way to buy Bitcoin, repeated transactions with credit cards is not really practical due to the fees. But if the Bitcoin price rises to $20,000 like Bloomberg is predicting, a single credit card transaction fee wouldn’t be an issue for most.

Buying Bitcoin With Credit Card Directly

 Many people are under the mistaken belief that you can simply go to a Bitcoin website and buy Bitcoin with a credit card. This is not the case, you will always need to go through a third party to gain access to the cryptocurrency market, whether that be an exchange or a broker. 

If you wish to buy Bitcoin and store it in a wallet, you will need to buy Bitcoin on a cryptocurrency exchange or peer to peer exchange. 

No two exchanges are created equal and it is important to do some research to ensure they are easy to use, legitimate, and secure. 

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

Buying Bitcoin Anonymously Using 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 and 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 any purchase you make with a credit card will leave a traceable record and there is no way to avoid this. As a result, we do not believe it is possible to buy Bitcoin anonymously with a credit card.

Global Regulations for Buying Bitcoin With Credit Card

Normally when you register on a cryptocurrency exchange or broker you will need to verify your identity. 

This is because exchanges and brokers need to abide by Anti Money Laundering (AML) and Know Your Customer (KYC) laws, and the requirements of these vary from region to region.

These regulations are not something to be feared, rather they are designed to prevent money laundering and protect your account and identity from theft.

KYC or ‘Know Your Customer’ is the process most brokers and exchanges employ to verify a customer’s identity and you will likely be required to provide documents to satisfy regulatory requirements before you can trade. 

Credit card companies themselves have to abide by these same regulations when signing up new customers.

European Union

In Europe, a number of more stringent financial regulations have been introduced over the last few years to fight money laundering. The European Commission Action Plan released in May 2020 reveals an intention from regulatory authorities to increase enforcement in combating financial crime across the EU. 

A photo ID and proof of address are the two basic mandatory KYC documents that are required to confirm one's identity when registering on an exchange or broker within the EU.

United Kingdom

In the UK, the laws that determine KYC requirements are the Money Laundering Regulations 2017. The European Joint Money Laundering Steering Group provides guidance to companies on compliance. Buying Bitcoin with a credit card is not an issue for anyone over the age of 18 in the UK and there are several exchanges and brokers that accept credit and debit cards.


The Australian Transaction Reports and Analysis Centre (AUSTRAC), supervises financial transactions in Australia and determines client identification requirements.

Buying Bitcoin with a credit card is fairly straightforward with exchanges and brokers required to demonstrate that the customer is who they say they are. 

Normally, you will be asked to prove your identity and proof of address will a utility bill to register and purchase Bitcoin with a credit card.

Is Buying With Credit Card Available in My Country?

Credit cards are a widely accepted and trusted form of payment around the world. One of the most convenient payment methods, credit cards also charge some of the highest fees. 

If you live in a region that allows people to buy cryptocurrency then you will likely have access to different options including exchanges and brokers. Check the country’s regulatory environment and then search for a suitable platform online that services your region. Brokers are generally more likely to offer credit cards as a payment method than cryptocurrency exchanges.

What Are the Differences Between Bitcoin and Credit Card?

With all this talk about payment methods, you can forget that many cryptocurrencies are also a type of payment network, with key differences. 

Bitcoin is a decentralized network for storing and transferring value, but it really isn’t designed to process payments like VISA. Bitcoin is far too slow to be used as a payment rail for goods or services, currently. 

The Lightning Network is being designed to rectify this situation but for now, Bitcoin is slow and expensive, when compared with some other cryptocurrencies. The reason it is still valuable is because of its diminishing supply, security, and network effects. This transformed Bitcoin into a form of digital gold, more than a means to make everyday payments. 

Bitcoin transactions are peer-to-peer and without a financial intermediary, like a bank. Credit cards are much more widely accepted than Bitcoin and transactions are reversible, while with Bitcoin they are not. 

For this reason, Bitcoin is not really suited to micropayments on-chain. The main chain and layer 2 solutions are being developed.

When you send BTC on the Bitcoin network miners charge you fees. The oldest and most established cryptocurrency, Bitcoin is limited by block size and transaction fees are typically some of the highest across the cryptocurrency market. 

These fees will need to be factored in when you buy Bitcoin on a cryptocurrency exchange or send it to a wallet. When you trade Bitcoin through a broker you will not have to pay Bitcoin blockchain fees as you are not actually transferring the underlying asset. Instead, you are speculating on Bitcoin trading instruments. 

Credit cards also incur processing fees, which are generally higher than Bitcoin blockchain fees.

What Limitations Exist for Credit Cards While Buying Bitcoin?

When purchasing Bitcoin on an exchange or broker you may initially be limited to the amount you can buy. These limitations are typically lifted with further verification procedures.

After purchasing Bitcoin on an exchange, you will need to transfer your new digital assets into a wallet controlled by you as soon as possible. Leaving coins with an exchange is trusting them with your money.

When you make this transfer you will be subject to Bitcoin blockchain fees and the slow processing times of the Bitcoin Blockchain. For many people, the wait to receive your Bitcoin in a digital wallet can be stressful, as transactions can take anywhere from ten minutes to 24 hours.

The last limitation is in finding a cryptocurrency exchange that will accept credit cards. Some major exchanges offer this payment method, though many do not. Regulated brokers are more likely to offer credit cards as a payment method.

What Fees Are Associated With Credit Cards?

When setting out to buy Bitcoin with a credit card, the first thing you will need to consider is the cost of the transaction. While convenient, credit cards are one of the most expensive payment methods and therefore not really suited to repeated transactions.

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 normally under 4% for using a credit card.

Merchants are allowed to charge ‘convenience fees’, for using a credit card, but only if it is a speciality payment channel for the business and not one that forms the majority of payments to the business. These fees are normally capped at the actual processing cost or 4% whichever is lower.

Some of the larger exchanges have a less than 4% fee for buying Bitcoin with a credit card. If you are purchasing a cryptocurrency on an overseas exchange you may be charged a foreign transaction fee and it is important to confirm all credit card fees with your bank before proceeding.

What Are the Pros and Cons of Buying Bitcoin With Credit Card?

There are pros and cons to any payment method and credit cards are no different. Big on convenience but high in fees, credit cards are the payment method favoured by people who want something immediately and don’t mind paying for that convenience. Let’s take a look at the pros and cons of buying Bitcoin with a credit card.


  • Convenience -  one of the most painless payment methods available

  • Growing acceptance - more and more exchanges are offering credit cards as a payment option

  • Fast processing - credit cards are faster than most payment methods

  • Secure - credit cards aren't linked to your bank account so they provide an extra layer of security

  • Buyer protections - credit cards offer fraud protection like chargebacks

  • Rewards - using your credit card through PayPal you can earn still rewards 


  • Expensive - credit cards have high fees and interest that accrue on purchases

  • Not always accepted at cryptocurrency exchanges

  • Convenience fees and surcharges from merchants

  • Not anonymous

Is Buying Bitcoin With Credit Card the Best Method?

The reality is there is no best method when it comes to buying Bitcoin. Credit Cards may not be the best payment method, but they might just be the easiest and fastest.

The truth is different payment methods suit different buyers. The majority of Bitcoin buyers prefer a bank transfer to an exchange or broker. This is because it is one of the cheaper methods of transferring money. 

While some people want the lowest possible fees many others just want the simplicity, convenience, and confidence in buying Bitcoin with a credit card.

You really just have to determine what is the payment method that suits you best. Wire transfers are the cheapest, credit cards the easiest and buying Bitcoin with Paypal is somewhere in between the two.

There is also a range of PayPal alternatives like Skrill and Neteller that are gaining in popularity, and which also offer a good balance of affordability and convenience.

Further Tips for Buying Bitcoin With Credit Card 

When setting out to buy Bitcoin with a credit card, the first important step is to identify a safe place to trade or purchase a digital asset.

If you buy Bitcoin with a credit card on an exchange, be prepared to remove your coins and place them in a digital wallet where you can also store your private keys. Leaving your coins on an exchange can be problematic if the exchange goes out of business, delists your coin, or gets hacked.

If you merely want to trade the value of Bitcoin, then a broker is a great option. Brokers offer more flexible trading options and lower fees, without having to secure the coins.

When choosing a broker to buy Bitcoin with a credit card, make sure to select one that is regulated by a global authority as there are many websites that are merely fronts for phishing your personal data or stealing your deposit. Set up an account with the broker you are considering using to check its legitimacy beforehand and to confirm it accepts credit cards.


Buying Bitcoin with a credit card can be a simple and straightforward process whether you are buying BTC on an exchange or buying Bitcoin CFDs on a broker. The main difference is that with the latter you won’t be able to take possession of your coins. Brokers offer the ability to gain fast exposure to Bitcoin price movements without the hassle of securing your coins in a wallet.

Depending on your location in the world, there are many payment methods available for buying Bitcoin and these vary in convenience, speed, and cost. Exchanges and brokers have different fee structures and you should confirm the credit card fees before purchasing Bitcoin.

There may not be a faster and more convenient way of buying Bitcoin than with a credit card but if fees are of concern you may consider a one-off deposit to try and minimize your exposure to repeated transaction fees.

Frequently Asked Questions

  1. It is important to fully understand the fee structure of your credit card. Issuers typically charge you any number of fees including interest charges, late payment fees, cash advance fees, over-limit fees, and more. These fees can be avoided by carefully managing your credit card to avoid being stung.

  2. When you buy Bitcoin on a brokerage platform or OTC Desk, you are really entering into an agreement to trade the value of Bitcoin from one moment to another, in the future. This contract for difference or ‘CFD’ is a versatile trading instrument that enables low fee, active trading, and flexible margin options.

  3. Yes. Bitcoin is actually considered the safest cryptocurrency as it has been around for the longest time without being compromised. The larger the network grows the more difficult it becomes to attack due to network effects.

  4. Yes. Most countries in the world are permissive to Bitcoin and it remains legal to buy and use in 2020. Germany was the very first country to categorize Bitcoin as a "unit of account", which can be legally traded. Banks are increasingly being allowed to legally store and sell Bitcoin and other cryptocurrencies in many regions.

  5. Yes. Currently, it is a simple process to buy Bitcoin with a credit card in Europe, though only a few exchanges offer credit cards as a payment method.

  6. The first risk you encounter will be in choosing the exchange or broker. Sadly, there are unregulated and fraudulent exchanges operating. It is important to make sure the brokerage platform you use is regulated, secure, and can be trusted with your money.

  7. Credit cards can have interest rates as high as 20% per year and many hidden charges, making it a risky gamble, particularly with leverage. We do not recommend going into credit card debt to buy Bitcoin. If the market or Bitcoin crash, you would be saddled with debt and have no leverage.

  8. Bitcoin has entered a bullish market structure and many analysts including Bloomberg are suggesting the price will return to all-time highs before the end of the year. The impact from the global pandemic has led to a flight to safe-haven assets and Bitcoin has outperformed gold this year by 15%. After a brutal bear market in 2018 and 2019, Bitcoin and the wider cryptocurrency market appear to have reversed and entered a bullish market structure with analysts and thought leaders positive and encouraged.

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