It is hard to imagine modern life without technologies, especially the Internet. The breakthrough in technology with the development of the Internet has changed many aspects of our lives. For instance, the financial and economic spheres. Namely, the emergence of cryptocurrency as a separate method of payment. So today’s topic is cryptocurrency, and how to buy it with a credit card.
How to check if your credit card supports crypto
You will only be able to buy crypto with your credit card if it supports “3D Secure”. You won’t need to pre-fund your account to acquire cryptocurrency if you choose this payment method.
Contact your credit/debit card issuer directly to see if your card supports 3D Secure. If your card doesn’t support it, you’ll get an error notice. It is important to remember that this method is only suitable for cryptocurrency wallet Europe and the United Kingdom. For instance, the majority of significant U.S. credit card providers don’t let you buy crypto when others will make you pay the fee. Credit cards are not accepted by certain major cryptocurrency exchanges. Other providers claim to take credit cards, but just Visa and Mastercard.
To begin purchasing cryptocurrency using a credit card, you’ll need a credit card issuer and a crypto exchange that both accept it. Although it is possible to buy Bitcoin using a credit card, most major credit card issuers in the United States, as well as certain major cryptocurrency exchanges, do not allow it.
An electronic transfer from a bank — either connecting a bank account to the exchange or setting up a wire transfer — is a better and more prevalent way to pay for cryptocurrency transactions using dollars. You may also pay for crypto purchases using another crypto on several exchanges. For example, you could sell Bitcoin and acquire Ether.
Tips you have to remember about crypto
Even though buying crypto with a credit card is a comfortable and reliable method for experts, beginners have to remember the following steps.
To trade dollars for Bitcoin or another cryptocurrency, a cryptocurrency exchange is likely to charge you a percentage of the transaction value. In addition to the exchange’s service fee, you may be charged an extra cost if you fill your account using a credit card.
In case you still have questions or facing difficulties, and want to buy crypto with credit card with no trouble, read this article to the end to find the solutions.
For example, other cryptocurrency exchange companies charges a fee for each transaction, as is common. However, if you pay with a credit card, you’ll be charged an extra 5%. A $100 credit-card fee would be applied to a $2000 purchase. To go back to even value, you’ll need reasonable returns on your investment.
It is important to note that for cash advances, many credit cards charge a higher annual percentage rate than ordinary purchases.
A distinct cash advance credit limit, which is smaller than the total credit limit, is available on some credit cards.
How to buy Bitcoins in 3 steps
- To create a card crypto wallet you need to check the card to see whether it supports cryptocurrency purchases and what costs it imposes. (For more information, see the cash-advance penalty section.)
- Find a cryptocurrency exchange that accepts credit card purchases. Some of the bigger ones don’t.
- Input your credit card details and link the card to your exchange profile to fund your crypto account. It’s comparable to the procedure of buying services or goods online and filling out the payment form at the checkout.
Advantages and Disadvantages of buying Bitcoins with a card
Advantages
- If you don’t have any cash, you can purchase cryptocurrency.
- The transaction might earn points or count toward a sign-up bonus if your credit card permits it – but many large ones don’t.
Disadvantages
- Fees, a higher APR, and the loss of a grace period are all examples of cash-advance penalties. (See the preceding paragraph.)
- Fees are charged by the bitcoin exchange.
- If you don’t pay off your credit card account in full each month, you’ll be in debt.
- Your credit score will be affected.
- Scams or a foreign-exchange charge are a possibility.
