The exchange and trade or cryptocurrency is a common concern. Millions of cryptocurrencies are traded every day on hundreds of exchange platforms. You can buy crypto using various crypto exchanges through your bank account or UPI. There is no doubt that you can buy your cryptocurrency using a credit card as well, but it is neither preferable nor advisable by crypto geeks. It is always safe and better to keep your crypto away from your credit cards.
How to use a credit card to buy crypto?
Popular exchanges like Coinbase, CoinMama, Bitpanda, etc. allow their users to buy cryptocurrency using a credit card.
Let’s see an example of buying Bitcoins using Coinbase. Here’s how you can do it in easy steps :
- Register yourself/sign up on Coinbase by creating an account.
- Visit the official portal of Coinbase.
- Enter your personal details and create a strong password.
- Confirm your email through the email verification and sign in.
- On the top right corner, click on your profile
- Click on settings and choose a mode of payment
- From this screen, click on “Add Payment method”.
- Click on a debit card (credit card: Visa and MasterCard)
- Enter your card details accurately.
- After entering your details, add your card.
- You’ll see a confirmation message saying your card has been added.
- Navigate to the buy page and select Bitcoin for purchase.
Similarly, you can create buy crypto on CoinMama,
- Create an account on CoinMama
- verify yourself by submitting your Id
- Get a Bitcoin wallet if you don’t have it already
- Choose a credit card as your mode of payment
- Enter your Bitcoin wallet address
- Submit your card details
- Navigate on the app to buy Bitcoin
Is it safe to use credit cards for buying Crypto ?
Buying cryptocurrency and other altcoins with a credit card is a big mistake according to experienced and knowledgeable investors. Let us know why :
- HIGH TRADING FEES
Any exchange that you use charges a fee for providing you the service to trade in cryptocurrency. Generally the fees are low and affordable, but when you trade with a Credit card the exchange charges high trading fees as well as additional fees for using credit cards.
- RESTRICTIONS BY CARD ISSUER
When you buy anything from your credit card, it is a credit that is availed from your credit issuer or company. Your issuer charges you an advance fee for using your credit card to buy Crypto. The payback interest rate is also high. Along with this, there is no grace period for Repayment and No credit card rewards.
- BANNED BY BANKS
Certain banks do not trust the volatility of the crypto market and hence have banned their customers from using credit cards to buy any sort of cryptocurrency.
There are no restrictions on buying cryptocurrency using a credit card but it is not a good deal for any rational investor. You can rather use other modes of payments like debit card, UPI or net banking.