If you’re looking to buy Bitcoin (BTC) using your credit card, look no further because this guide will tell you all you need to know. In addition to outlining how you trade BTC using Visa and MasterCard, the table below will show you the best places to buy BTC using your credit card.
Best Credit Card Cryptocurrency Exchanges
When the Bitcoin boom first hit, the only way you could own tokens is by mining them. Eventually, exchanges allowed you to swap one type of cryptocurrency for another. As platforms such as BitPanda Exchange have evolved, they’ve started to accept credit card payments. This, in turn, has made it safer and more convenient to buy BTC online.
How Credit Card Payments Have Made it Easier to Buy Bitcoin
One of the main reasons Visa and MasterCard Bitcoin payments have become popular is the level of protection they offer. Because these payment processors are highly regulated, you’re afforded a level of protection when you choose this option.
Indeed, if you were to use Coinbase Exchange or the Changelly platform to buy BTC with a credit card, you’d have a point of recourse in the event of a transaction failure. In other words, if the deposit doesn’t go through, it can be traced by Visa or MasterCard. In contrast, crypto-to-crypto payments aren’t as easy to trace and, therefore, riskier if you’re a novice.
Credit card transactions have also made BTC more accessible. For example, at CoinCheck Exchange, you can use your credit card to buy Bitcoin using Japanese Yen. Over at Kraken, the same option is available but in USD, GBP and EUR. Put simply, credit cards are international, which means you can pay to trade wherever you are as long as local laws permit.
A Brief History of Credit Card Crypto Exchanges
2009 to 2013: During the early days of Bitcoin and altcoins, there was no way to purchase credits using your credit cards. Because early exchange platforms either used crypto-to-crypto provisions or trades set up between individuals, there was no scope for official credit card transactions.
As the early exchanges started to emerge from 2012 onwards, accepting credit card deposits was difficult due to chargeback issues. However, as the industry grew and leading platforms started to generate money, anti-fraud companies started providing insurance against chargebacks. Although this made credit card payments more expensive than bank transfers, it opened up the market.
2013-2014: Coinbase was one of the first major cryptocurrency exchanges, which also means it was one of the first to accept credit cards. Coinmama Exchange also went live in 2013 and got around the issue of banks being wary of crypto payments by transferring tokens from its own holding rather than via peer-to-peer system. This gave Coinmama more control over the sale process and, therefore, made credit card payments possible.
By 2014, CEX Trading had gone live and now has a network of 700,000+ traders swapping cryptocurrencies and making credit card deposits. This model has since been adopted by dozens of alternative exchanges.
2018: Following a period of growth in 2017, banks started to worry about customers falling into debt by buying cryptocurrencies. In 2018, UK-facing exchanges had to stop processing credit card payments from customers that used Lloyds, Halifax and Bank of Scotland. In light of this move, Coinbase stopped supporting all credit card transactions from UK and US customers.
Today: Outside of the crypto-specific exchanges, modern trading platforms like eToro now provide an alternative for credit card users. Because these exchanges allow you to buy contracts for difference (CFDs) rather than the underlying asset, they’re subject to strict financial regulations. The benefit of this is that credit card payments are not only allowed but extremely safe.
Credit Card Bitcoin Payments vs. Other Payment Methods
Although credit card BTC transactions have become popular in recent years, there are other ways to buy cryptos using fiat currencies. One of the best ways to buy BTC is PayPal. To give you an idea of how these two match up, here are some of pluses and minuses to buying Bitcoin using a credit card:
Security: Credit card and PayPal payments are both extremely safe. However, the former will often offer some type of insurance in the event of fraud taking place. In other words, if your deposit was stolen by a rogue operator, you may be able to get your money back from the credit card provider.
Personal Details: Perhaps the biggest advantage PayPal has over credit cards is the amount of personal information you have to give away. With cryptocurrencies being all about decentralisation and anonymity, there are those that feel credit card payments require you to include too many personal details. Although PayPal still requires you to input some details, it’s not as many. For complete anonymity, crypto-to-crypto exchanges such as Binance Exchange are the best.
Fees: It can sometimes be the case that credit card BTC transactions have higher fees that PayPal and bank ACH transfers. For example, PaxForex Exchange will charge 6% and insist on a minimum deposit of £100. However, this isn’t always the case. Luno Crypto Exchange and City Index don’t charge any deposit fees.
Transaction Times: Both credit card and PayPal transactions are processed instantly. In contrast, bank and wire transfers can sometimes take up to 24 hours to complete.
Availability: Compared to PayPal, credit cards are accepted at more exchanges. From our list of recommended crypto exchanges, 22 accept Visa and/or MasterCard, including CEX Trading, 24Option Trading and Kraken Exchange.
As you can see, buying BTC with a credit card is not only simple buy secure, efficient and accessible. To buy Bitcoin using your Visa or MasterCard, check out our table of recommended brokers.
Top Cryptocurrency Exchanges to buy with Credit Card
For other payment methods, see:
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