One of the best aspects about crypto exchanges is that these platforms accept a wide range of payment methods. Among the multiple payment methods, crypto exchanges also allow you to buy bitcoin with credit card. Yes, you can use your good old credit card to buy Bitcoin or almost any other crypto out there. But would you use it? Or rather, would it be a good option to buy bitcoin with a credit card? Or, are there risks involved in purchasing BTC with credit card?
Credit card purchases are not uncommon in the crypto exchange zones. In fact, there are certain advantages to buying BTC with a credit card. The post below offers a brief on how to buy bitcoin with credit card as well as whether credit card would make a viable option for you.
Steps for purchasing BTC with credit card-
Step 1
Let’s assume that you have already chosen your preferred crypto exchange to buy bitcoin with credit card. Now, simply sign in to the exchange account.
Step 2
Go to the Menu bar and find a section called “Buy Crypto”. After you click on that option, you would be directed to payment method types.
Step 3
So, go to payment options and from there choose Credit Card as you have planned to buy bitcoin with credit card.
Step 4
Next, you will be requested to select your preferred fiat currency. After you make the selection, just enter your chosen fiat amount. Once you enter it, the system would show you how much BTC would be available for your chosen amount.
Step 5
Now, you will have to link your card to the crypto exchange. You have two options here- one you can save the card details. Otherwise, you can enter the details for the current transaction and choose not to save the details.
Step 6
Enter the card details in required fields. After you have entered all the needed details, click on “Add Card”. The card details will be added for the time being.
Step 7
Check the entered data once again. If everything’s in order, confirm your order to buy bitcoin with credit card
Step 8
Wait for a minute. Your chosen crypto exchange would recalculate the amount and price. They also need to double-check to ensure genuine transactions on their part.
Step 9
If everything is going right, the exchange will direct the user to the OTP page to verify the transaction. Submit the OTP to settle the payment.
Advantages of purchasing crypto with card
There is not one but multiple advantages of purchasing Bitcoin with your credit card.
Faster access to BTC
This is the fundamental reason why people want to buy bitcoin with credit card.
The crypto market is extremely erratic and can change at the drop of a hat. Prices fluctuate real fast and sometimes you need to act immediately. If you go for bank transfer or wire transfer, it might take you days to process your transaction. By that time, the market might move in another direction altogether. So, when you are dealing with crypto, you have to act instantly. This is why you should buy bitcoin with credit card.
One of the best advantages of card purchase is that it is always instant. You do not need to wait for days to get the transaction processed. Thus, when you are looking to cash in on the current best price for Bitcoin, there could be no other option than credit card. With a credit card, you can always be guaranteed of immediate purchase.
Familiar payment method
Crypto is an emerging asset class and involves a long learning curve, especially for new traders and investors. Now, amid such colossal details to be studied, won’t it be better to find a payment method that you are already familiar with?
As you are already acquainted with making purchases with a credit card, you would be able to grasp easily the ways to buy bitcoin with credit card. Put simply, the facility to use credit cards would make your crypto journey more comfortable right from the first purchase.
Anytime Cash support
The primary reason why credit cards were able to earn a stronghold in the payment scene is that it allows you to meet your expenses even when you are short of cash.
You might come across your target price for Bitcoin all of a sudden. But sadly, it’s mid-month and you have to wait for at least 15 days for salary. Does that mean that you would have to miss out on the price just because you don’t have cash handy? Well, in that case, the best option is to buy bitcoin with credit card. These cards always allow you to make purchases even when you don’t have money in your account.
The risks
We will wind up the article with a brief on the risks that you might encounter if you buy bitcoin with credit card.
Higher and multiple fees
For those uninitiated, credit card purchases always incur higher fees in comparison to other payment methods allowed by crypto exchanges. The minimum fee that you would have to pay is around 2%- however, several exchanges might charge even more.
In fact, there are multiple fees to be paid if you buy bitcoin with credit card. Added to the transaction fee, you would have to pay a fee for cash advance. The cash advance charge could be somewhere like $6-$10, depending on your card provider. Besides, you will have to pay a charge for foreign transactions if your chosen exchange is not based in your particular country.
Scam risk
Nit all crypto exchanges out there are authentic platforms. Some of them are also hackers or scam artists. When you buy bitcoin with credit card, you would have to provide details of the card. If it’s a scam platform, the details would reach the scammers.
Credit card is a quick and convenient payment method for purchasing BTC or any other crypto. But, if you have time to wait for a while, please look for other payment methods.
