Learn Where & How to Buy Ethereum With Credit Card - A Beginner's Guide
Ethereum is an open-source platform that features smart contract functionality. Its native crypto token is known as Ether (ETH). It is the second-largest crypto by market capitalisation.
Financial services like banks issue credit cards to give the holders the power to purchase goods and services on credit. Unlike debit cards that allow customers to withdraw on their deposits, credit cards have limits since they offer advances. Anyone can use a credit card when purchasing Ethereum especially when you do not have ready cash.
Steps to Buy Ethereum With Credit Card
While cryptocurrency is still relatively new, there are many convenient ways you can buy ETH. Many banks already accept the currency, which means you can perform a bank transfer if you like. You are free to use your debit card or credit card.
If you wonder whether you can purchase Ethereum with a credit card, you are in the right place. Read on for the simple steps of buying the cryptocurrency with a credit card:
- Register on an Ethereum exchange: You can buy ETH from many different cryptocurrency trading platforms worldwide. But since not all of them are created equal, you must do due diligence when choosing your preferred exchange. Once you have registered, ensure that you verify your identity.
- Ensure your credit card is active: If you do not have a credit card, ask your financial institution to give you one. But if you are not sure about the status, confirm whether it is active and act accordingly. You can also check your transaction limit, determined by your past credit history and your current cash flow.
- Open an Ethereum wallet: Since credit cards do not have cryptocurrency wallets, you need the traditional wallets to receive, store or transfer your coins. Ethereum.com features many credible ETH wallets that you can open for free.
- Buy Ether: Use the credit limit in your credit card to pay for your purchase.
This is the traditional way of buying Ethereum with a credit card. But you can opt to partner with peer-to-peer marketplaces as well. You should do simple online research to find these platforms. Check the profiles of the organisations and individuals that sell in your chosen marketplace. Choose one that accepts your credit card as a payment method.
Best Places to Buy Ethereum With Credit Card
There are several cryptocurrency exchanges on the market today. But many of them have several weaknesses. Some of them do not support fiat currency trading. At the same time, many of the platforms are making bold steps to make it possible for customers to buy Ethereum with fiat currency. They have partnered with various payment processors to enable users to make purchases with a debit or credit card.
But please note that some exchanges are unreliable. It means that you need the help of an experienced expert to help you make the best decision. We have listened to you and compiled a shortlist of the best places where you can buy Ethereum with your credit card.
Pros and Cons of Buying Ethereum With Credit Card
What Are the Transaction Fees on Credit Card?
When it comes to credit card processing, there are three major parties involved. The card network, the card issuer, and the payment processor, and all of them will charge you something for their service. If you want to buy Ethereum with a credit card, work with Visa or MasterCard.
The card issuer will charge you a commission, typically a flat fee and a percentage. Factors such as chargeback fees, PCI-compliance fees, and annual account fees influence the amount you will ultimately pay. Businesses in the US that carry out transactions between $10,000 and $250,000 annually pay an average of 2.87% and 4.35% per credit card transaction.
If you are using a Mastercard credit card, you will pay an average processing fee ranging from 1.55% and 2.6%. For Visa, the average cost is 1.43% to 2.4%.
ETH to Credit Card: Can I transfer Ethereum to Credit Card?
The process of transferring Ethereum to a credit card is easy. Even though you should not expect a direct method of transferring the digital currency, you can complete the process in under 15 minutes. Register on your cryptocurrency trading platform and complete the verification process. After that, provide the company with the valid details of your credit card account. Transfer your ETH to the platform via their wallet address. Once that is done, they will transfer the money to your credit card, where you can withdraw it from your bank or an ATM.
Credit Card to Ethereum: Is It Possible to Convert My Credit Card Funds to ETH?
Many credit cards are not compatible with cryptocurrency exchanges. So, you may not directly convert credit card funds to ETH. But with this payment method, the funds are safe and cannot be reversed whether you are buying or selling. So, you can take your time and use an indirect method to convert the funds.
Start by registering with your exchange platform that supports credit cards. If you want an instant transfer, ensure you choose an exchange that offers the service. If you fail to get one, look for a credible peer-to-peer marketplace. Next, identify an individual or company that offers the kind of service that you want. Send the money to your selected seller and have them send the digital currency to your cryptocurrency wallet.
Often, you will be forced to use the service of an established escrow company. These third-party entities are created to ensure that both the seller and the buyer get the best experience. Some exchanges do not use this service. In this case, you should consider whether the company has a good reputation for offering quality and reliability.
Frequently asked questions
If you want to buy Ethereum with a credit card, you must choose a reliable cryptocurrency trading platform. Many people find this process to be the most troublesome. So, we have listed some of them to make the work easy for you. Whichever platform you choose, it should have the following features: Transparent fees All transactions are secure The transaction fees are affordable Offer professional customer support service Allows you to buy and sell Ethereum 24/7
Ethereum is a blockchain-based platform that works in the same way as other cryptocurrencies. But it is also the fuel that powers the Ethereum network. If you buy it, you can make purchases and develop decentralised apps. You can also use the money to buy other cryptocurrencies if you are concerned about the high volatility of ETH.
Yes, if you want to invest in ETH and do not have cash at hand, it is the most secure way to purchase the coins. Remember that you will have to pay the money with interest on a specific date. If you default, you reduce your credit score and pay late fees.
There is no straight answer to this question since it depends on why you need to buy Ethereum. But if you are an investor, then the best time could be when the price is lowest. Other factors, such as your ability to repay in time, should also drive you to make the right decision.
No, as of 2020, the two companies have not introduced crypto wallets. This is why you need to open an independent wallet whenever you want to buy and sell Ethereum.
The simplest way to buy Ethereum is to work with individuals and companies that sell this token on peer-to-peer marketplaces. Once you find the ideal seller, you can bargain for the kind of deal that suits your needs. Remember, these entities are often willing to complete the transaction within minutes. You can also look for exchanges that allow direct buying and selling.
You need three things to be able to sell or buy Ethereum. The first one is an active credit card. If your card is no longer in use or you have exhausted the transaction limit, you cannot use it to purchase the tokens. You also need an ETH wallet. This is where you can store or manage your coins. Lastly, you need a reliable cryptocurrency trading platform. These exchanges sell Ethereum, and you can buy or sell to them your tokens and make a profit.
Yes, your credit card can receive the money. The exchange must send fiat currency for the card for it to accept it. As the cardholder, you must also send ETH to the trading platform via their wallet address.