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Can I Buy Crypto With A Credit Card?

Can I buy crypto with a credit card?

With the recent surge in cryptocurrency popularity, many people ask themselves if it is possible to buy crypto with a credit card. The answer is yes! Many great exchanges will allow you to purchase crypto with your credit card and deposit it into your wallet. You can also use a service like Coinbase, which allows instant purchases of bitcoin, ethereum, litecoin, or bitcoin cash with significant credit cards.

If your chosen exchange and credit card issuer allow you to make the purchase, setting up these transactions is very similar to the process to link and verify your bank account via ACH (automated clearing house).

What is a credit card, and how does it work?

A credit card is a small plastic payment method that allows users to make purchases without paying all at once. Instead, each month, you are required to pay back an amount of money determined by your spending habits and interest rate on what you owe.

Although it may seem like free money in some instances because you don’t “have” to pay right away, the costs add up quickly when not repaid in full each month. If left unpaid or carried over from one billing cycle to another, this can become very expensive, with interest rates as high as 30%.

Credit card companies often offer a sign-up bonus to tempt new customers. This could be in the form of cashback, points, or miles. Just remember, if you’re not disciplined with your spending, the bonus won’t make up for the high-interest rates you’ll incur.

How does buying cryptocurrency work?

Exchanges are where you can buy and sell Bitcoin and Dogecoin. There are a lot of options for cryptocurrencies.

A common way to purchase Bitcoin is through online exchanges, which function similarly to forex and stock markets. However, purchases made using credit cards on such platforms as Coinmama and CEX are not readily available to users in the United States; they must convert their USD into Bitcoins first.

How does buying crypto with a credit card work?

Purchasing cryptocurrency with a credit card is similar to buying other digital money. However, one of the difficulties is credit card processing and cryptocurrency exchange in such transactions. Therefore, the approach will be different for each platform. 

Do not wait until your money is returned before paying your credit card’s interest after the transaction has cleared. In general, you will create an account with the exchange by selecting the currency you wish to purchase and indicating where to send the funds. You then provide your card information and complete the transaction.

Some big cryptocurrency exchanges, like Coinbase, don’t accept credit cards. Coinmama and say they accept credit cards, but only Visa and Mastercard. And even then, that doesn’t mean your credit card company allows it. Most large U.S. credit card issuers don’t let the purchase of cryptocurrency, while others penalize cardholders with fees.

If the cryptocurrency exchange is based outside the U.S., you could incur a foreign transaction fee. Foreign transaction fees charged by your credit card issuer are typically 3% of the transaction amount. That’s a $30 foreign transaction fee for every $1,000 of cryptocurrency you purchase. 

Some credit card companies allowing cardholders to make crypto purchases treat the purchases as a cash advance (cash advances usually refer to when a cardholder uses a credit card to withdraw money from an ATM).

Pros and cons of buying crypto with a credit card.


  • Ability to buy crypto on a whim as if it was just another commodity you wanted to purchase with your credit card.    
  • Your credit score is not impacted, as it would be if you took out a loan to purchase crypto.
  • There is no need for cryptocurrency wallets or other payment platforms such as bank transfers, checks, wire transfers, etc.


  • Some websites have been designed to collect your personal or financial info.
  • Fees may differ depending on the mode of use.
  • Purchasing cryptocurrency with a credit card will incur additional fees and high-interest rates.
  • Your card may also have a lower cash advance limit than your credit limit.
  •  If your credit card issuer considers a crypto purchase a cash equivalent, your spending probably doesn’t qualify for credit card rewards, such as cashback, travel points, or miles.

Things to consider before buying cryptocurrency with your credit card.

  • If the price of cryptocurrency falls after you buy it but before your payment is due each month, then you may end up paying more than what crypto was worth in the first place! This can become extremely expensive if not paid off immediately.
  • You don’t actually “own” any coins or tokens when buying with a credit card and instead give them to the exchange as collateral until fully paid for. So if something happens, such as an attempted theft from your account (happens often), they will liquidate what you owe them on exchanges at market value regardless of how low it might be at that time! This can cause significant losses which would otherwise not happen had those assets been stored securely in a wallet under only your control.     
  • Interest rates for purchasing crypto with a credit card can be very high and vary across exchanges, meaning that it might be in your best interest to sign up at multiple businesses instead of just one to find the lowest possible rate available.

Can I buy bitcoins with a credit card?

Some cryptocurrency exchanges, for example, allow you to purchase bitcoin with a credit card. If you’re making a transaction at an ATM, it will be able to connect your credit card account to the one on which you’ll be using the marketing.

Amex expressly forbids purchasing money with its card, but it allows bitcoin spending. Suppose you can buy on the selected exchange and your card provider allows it. In that case, it’s similar to making ACH transactions using a computerized clearinghouse, according to Courtney Richardson Esq.

The risks involved in investing in cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc.

You should NEVER use credit cards to buy cryptocurrency unless you are 100% sure that it will not drop in price before your balance comes due. At this point, you must pay off the total amount owed or else risk losing everything after liquidation by exchanges. This is extremely risky and is best reserved for experienced traders who know what they’re doing!   

If the price of crypto falls, then so might your purchasing power, as there’s no guarantee whatsoever that the value of any cryptocurrencies purchased today would be worth anything tomorrow if sold at market prices. This can become expensive quickly when paid with a credit card instead of using funds held securely within wallets under only one’s control!

Does any credit card issuer block purchasing crypto?

No. However, many banks and credit card issuers block transactions from other countries. In addition, it makes it difficult for users outside of the U.S. to purchase crypto with a credit card because exchanges will not allow foreign I.P. addresses to use their platforms if they cannot determine where those transactions originate from.

If you have credit card debt, you should pay that off first before considering buying cryptocurrency. The interest rates on credit cards are much higher than the returns you would get from investing in crypto, so it’s not worth it to take on more debt just for the sake of speculation.

Does buying crypto count as credit card purchases or a cash advance?

Yes. Buying crypto with a credit card is considered a cash advance and purchase when applied to the terms of use for most cards because it’s treated much like buying anything else on your card, which counts as an “eligible” transaction under normal conditions. The interest rates associated with these transactions can be extremely high depending on how you obtain cryptocurrencies.

Some credit card companies may even issue cash advance fees if a cardholder attempts to purchase crypto. Note that some major U.S. credit card companies don’t make information on their websites easy to find regarding whether or not they allow cardholders to buy cryptocurrencies. 

Does buying crypto count as a cash advance? What about ATM withdrawals made inside of the U.S.?

No, but it’s essential to consider that this could change at any time if your bank decides differently, which is why you should ALWAYS check with your credit card issuer before doing anything! In reality, there are few restrictions when using cryptocurrency platforms.

Because they don’t have access to enough information from users to enforce these kinds of rules without being given something specific by customers beforehand, such as where they’re located physically on any particular day or what their intentions might be (i.e., gambling vs. investing).

Do I get charged a cash advance fee?

Yes. However, many cards do not charge fees at all when buying cryptocurrency with a credit card since they’re treated like any other transaction (or cash advance) because it’s an “eligible” purchase under the terms of most card issuers. This is why we recommend using Visa or Mastercard over American Express if possible because they tend to be more lenient.

Due to price drops, Amex has strict policies against buying cryptocurrencies because users might lose money on their investments overnight. Before choosing to liquidate assets held by exchanges/platforms where one accepts crypto, making purchases with a credit card is difficult or impossible.

Do I get charged interest if I buy crypto with my credit card? Do any cards offer rewards for purchasing cryptocurrency on them?

Yes, some cards will charge you around the same amount as they would when charging purchases at an ATM (which is not recommended by most users because of how expensive it can be!). Still, many others do not charge anything extra depending upon what type of purchase one makes and whether or not your issuer charges annual fees!

The best thing to do is to check with your bank to know exactly what kind of transaction(s) might result in a fee being applied to your statement since this can vary from company to company. In terms of reward programs, the answer is: it depends upon the card and your issuer.

Can you give me an example of a credit card issuer that doesn’t charge fees for crypto?

For instance, Visa has not charged users transaction fees when buying cryptocurrencies with their cards since they officially supported such transactions around mid-2018. 

This means that most customers won’t face any price at all while using their Visa to make purchases or ATM withdrawals in addition to anything else related to digital assets! 

Please note, though, that this does NOT mean ALL banks will be accepting cryptocurrency purchases via credit cards anytime soon because many still do not approve of these kinds of activities despite how popular widespread they’ve become over time.

Bottom line:

You should always check with your bank before purchasing crypto via credit card because cryptocurrencies are highly volatile, and prices can change substantially in a brief period.

EdFed is here for you to provide the top-rated credit cards that can help you with cryptocurrency purchases! We have Credit Card programs that you can go through before you make financial decisions quickly.

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