How to Buy Crypto With a Credit Card: The Ultimate User Guide for 2024
Last Updated: 2024-10-22
Main Takeaways
Credit cards are one of many ways to buy crypto with local currency. You can use VISA and Mastercard credit cards, as well as Apple Pay and Google Pay, to make your purchases.
Users can also save themselves the extra work of buying crypto manually over time by setting automatic cryptocurrency purchases with the Recurring Buy.
The advantages of buying crypto with a credit card include a fast, beginner-friendly experience, the availability of recurring buy plans, and the ability to earn crypto with Earn products. However, while credit cards offer convenience and speed, they also come with unique risks.
Some people prefer using digital wallets or bank transfers to buy crypto. These payment methods typically incur the lowest fees, but they can be slow for those who value convenience and speed. For such users, credit cards can offer a solid alternative. On Binance, you can buy crypto using a VISA or Mastercard credit card.
If you are considering buying crypto with a bank card, first check if your card issuer and payment network allow this type of transaction, as some credit card providers can block crypto-related purchases for various reasons. It is always a good idea to double-check with the issuer before initiating a crypto transaction.
Read on to understand the pros, cons, and fees associated with using a credit card to purchase crypto.
Top Reasons to Buy Cryptocurrency With a Credit Card
1. Invest at the right moment
Every crypto user knows that the market moves fast. A few days could make the difference between buying an asset at the bottom or near the all-time high. Credit card purchases give you the freedom to act the moment you see the opportunity – just make sure you plan your income streams such that you are always in a position to cover your credit card bill at the end of the statement period to avoid accruing interest.
2. Enjoy speed and convenience
The speed of credit card transactions makes it easy for first-time buyers to purchase crypto with fiat currency. Credit card transactions are completed in a matter of seconds. Conversely, bank and wire transfers often take three to eight days. Due to this, for investors looking to move quickly, a credit card is a great choice. It's also useful for those who want to buy crypto during popular Launchpool event periods or when a new token is being listed, as in such scenarios timing is critical as well.
3. Enjoy familiar user experience
Credit cards are an ideal payment method for beginners who are not yet ready to go through more advanced payment methods that require a certain level of familiarity with crypto transactions. For those who are early on their Web3 journeys, checking out with a credit card is a familiar experience. Simply enter your card number, expiry date, and CVV, and you’re all set. Plus, credit-card-friendly crypto exchanges and platforms are often intuitive to use themselves.
4. Earn rewards via subscribing to Earn products
Some people believe that, at the end of the day, all the transaction fees accumulated throughout the credit card crypto purchase process will outweigh the rewards. This is simply not true. What you get from your crypto purchase depends on how you use your digital assets, and the opportunities are numerous, including a range of lower-risk options. For example, you can easily buy crypto with your credit card and subscribe to Binance Earn products to make your digital assets work for you without much involvement on your behalf.
How to Buy Crypto With a Credit Card on Binance
Have you done all the research on your credit card provider’s terms and fees? If so, here’s how you can start buying cryptocurrency on Binance with a credit card.
Simply go to the [Buy Crypto] page, select your preferred local currency and crypto token, and enter the amount you wish to purchase. You can use VISA and Mastercard credit cards, as well as Apple Pay and Google Pay, to make your purchases.
Read our step-by-step guide to learn how you can easily buy crypto via credit card on Binance.
If you want to dollar-cost average (DCA) your crypto portfolio or automate your crypto buys with a credit card, you can consider using Recurring Buy. It allows you to set a daily, weekly, bi-weekly, or monthly plan, as well as the asset and its amount you want to purchase on a recurring basis. For more information, read How to Grow Your Crypto Portfolio: A Guide to Binance's Recurring Buy.
What Are the Fees When Buying Cryptocurrency With a Credit Card?
Credit card fees come in all shapes and sizes. Below, we’ve outlined the most common fees you might incur, depending on your situation. We recommend that you supplement this information with your own research to find out what fees are applicable to your specific case.
Transaction fees
Cryptocurrency exchanges charge a small fee for credit or debit card transactions. This is usually higher than other popular payment methods like bank transfers. Binance charges some of the lowest fees in the market of up to around 2%. Any additional fees will come from the bank and credit card provider’s side.
Foreign transaction and exchange fees
Users who buy crypto with their local currency via a credit card on a platform based outside of their home country are likely to incur a foreign transaction fee. Foreign transaction fees are typically around 3% of the transaction amount. For example, if you purchased $1,000 in cryptocurrency, you would pay a $30 fee. Also, users who are buying crypto with a fiat currency different from the currency of their bank account can incur exchange fees that depend on the bank.
What Are The Risks of Buying Crypto With a Credit Card?
Now that you know the benefits of using a credit card to buy crypto, you should also be aware of the potential risks associated with the process.
1. Your credit card information could be at risk
Today’s crypto landscape is saturated with exchanges touting their unique benefits. Most of these exchanges are legitimate businesses. However, some of these exchanges are scam operations looking to exploit newcomers or users eager to make a quick profit. While credit cards usually have strong fraud protection built in, every user should have the ability to identify and steer clear of a scam. At Binance, we recommend users always do their due diligence before making any crypto purchase.
2. Your credit score could be impacted
Credit utilization refers to the amount of credit you use. It’s also a significant factor in your credit score. Too much credit, and you’ll damage your credit score. In the worst case, this damage piles up if you fall behind on your monthly credit card bills. To avoid this situation, we recommend users only buy what they can afford to lose. Newcomers especially should start with small amounts and consider using a dollar-cost averaging strategy via Recurring Buy.
Some credit card providers enforce a maximum limit on the amount of cryptocurrency you can purchase every day. Users who make bulk crypto purchases should check if they are within their daily limit. Otherwise, the credit card transaction can be declined.
Final Thoughts
Buying cryptocurrency with a credit card offers a fast, convenient, and beginner-friendly way to enter the crypto market, especially for those who value speed and ease of use. With options like VISA, Mastercard, Apple Pay, and Google Pay, and features such as Recurring Buy, Binance makes it simple to invest at the right moment and automate your purchases. However, it's crucial to be aware of the associated fees and risks, including potential impacts on your credit score and the need for due diligence to avoid scams. By understanding these factors and planning your purchases wisely, you can make the most of your credit card transactions while navigating the exciting world of cryptocurrency.
Further Reading
Dollar Cost Averaging (DCA): A Step-by-Step Guide for Crypto Investors
How to Grow Your Crypto Portfolio: A Guide to Binance's Recurring Buy
Disclaimer: Digital asset prices can be volatile. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not liable for any losses you may incur. Past performance is not a reliable predictor of future performance. Before trading, you should make an independent assessment of the appropriateness of the transaction in light of your own objectives and circumstances, including the risks and potential benefits. Consult your own advisers, where appropriate. This information should not be construed as financial or investment advice. To learn more about how to protect yourself, visit our Responsible Trading page. For more information, see our Terms of Use and Risk Warning.