Unless you live under the rock, you probably must have heard about Bitcoin and its recent rise in value. Bitcoin is not just the first and most popular cryptocurrency but also one of the most valuable cryptos in the world. Since reaching new highs earlier this year, more people have been joining the wagon and investing in Bitcoin.
However, one common question among Bitcoin enthusiasts is if they can buy Bitcoin with a credit card. In this post, we will be addressing that question and other related questions that might have been bothering your mind concerning buying Bitcoin.
Can I Buy Bitcoin With Credit Card?
Yes, you can buy Bitcoin with a credit card. Although this used to be really hard a few years back. But now, it is much easier to purchase Bitcoin with credit and debit cards – thanks to some exchanges and brokers working tirelessly to bring convenience to the crypto community.
Buying bitcoin with a credit card is not only convenient but also offers pretty quick transactions. However, buying Bitcoin using this method is not as easy as providing your credit card information to the website. You will have to go through reliable exchanges or brokers that allow you to exchange your real-world money for Bitcoins.
What Platforms Can I Use to Buy Bitcoin with A Credit Card?
When it comes to buying BTC with your credit card, there are majorly two options available for you to explore. Each of these options involves a slightly different approach and has its own unique pros and cons. Here are the two major options:
Buying cryptocurrency through exchanges
Exchange platforms allow you to buy and sell cryptocurrencies with other users while they take a cut of any transaction performed on their platform. While some websites only allow crypto-to-crypto trading, some also allow you to exchange fiat currency for digital currencies. So they accept credit cards as a payment method for buying cryptocurrencies on the platform.
Buying bitcoin using crypto brokers
Cryptocurrency brokers provide a quick and easy way to buy Bitcoin and other digital currencies. They buy cryptocurrencies at wholesale rates and then resell them for a profit. They also allow you to buy cryptocurrencies using fiat currency. Buying cryptocurrencies from brokers seems to offer a simple entry point for crypto buyers because they are less complicated than buying on exchanges.
However, buying from a broker means paying higher fees for your transactions. So, the speed and convenience you enjoy with buying Bitcoin from a broker come at a cost. Popular exchanges and brokers that allow you to buy Bitcoin with credit cards are Coingate, Coinbase, eToro, Coinmama, etc.
Out of the few examples mentioned above, Coingate comes highly recommended because of the ease and quick transaction the platform offers. In a few minutes and few steps, you can quickly and safely buy your Bitcoin from them using your credit card.
How Do I Buy Bitcoin On Coingate With Credit Card?
Since we recommend Coingate, let’s walk you through the simple step to get the job done using the platform. Here are the steps to follow to buy Bitcoin with credit card on Coingate (similar to how it happens on most other platforms too):
- Visit Coingate dedicated page
- Choose the amount you want to spend on Bitcoin or the amount you want to buy
- Provide your wallet address
- Input your credit card details
- Verify your identity
- Wait for your Bitcoin to be sent to your wallet
What Are The Risks Involved in Buying Bitcoin Using a Credit Card?
When buying Bitcoin using this method, you will need to first check and be sure the platform or company you are using has a good reputation. If you use a sketchy company or platform, it is possible that they are collecting your card information to later use it for fraudulent purchases.
Also, some users have reported cash advanced fees. Therefore it is important that you understand how your credit card company handles the purchase of Bitcoin.
Are There Any Advantages To Using This Method?
Yes. Buying cryptocurrencies with a credit card provides the easiest way to buy. It is also one of the fastest. Also, if you are not the “very technical” type of buyer, buying with a credit card will be easier – it is just like shopping online with your card.
What Are The Disadvantages?
Due to the risk of scams and fraud, the fees are usually higher when buying cryptocurrencies with your card. It can also be hard to buy large amounts of bitcoin using this method.
Can I Use My Credit Card To Buy Bitcoin On Bitcoin ATM?
Apart from buying from a broker or an exchange, another option people use to buy bitcoin is to use Bitcoin ATM. These are dedicated ATMs that work just like the regular cash ATMs but only for Bitcoin. However, when it comes to buying with your card, you can’t use the Bitcoin ATM. The machine only accepts cash.
Is It Legal To Buy Bitcoin With A Credit Card?
Of course, it is completely legal to purchase Bitcoin with your credit or debit card. However, some banks don’t allow their customers to use their cards for crypto purchases. So if you are not sure if your financial institution allows this, you will need to check with them to be sure.
Why Is The Method Not Widely Accepted?
The major reason many providers don’t accept the use of credit cards on their platform is because of chargeback problems. While Bitcoin transactions are irreversible, credit card charges can be reversed or canceled. That means if a buyer asks his card provider to reverse charges after getting his Bitcoin, it would be impossible to get back the coin from him, making it easy for him to cheat the sellers out of their cash. This is also the reason most banks won’t allow their customers to use their credit cards for crypto purchases.
Can I Buy Other Cryptocurrencies Using My Credit Card?
This totally depends on the broker or exchange you are using. Coingate, for example, allows users to buy other cryptos such as Ethereum, Tether, Litecoin, Ripple, Stellar, and many more using their credit cards.
Can I Buy Less Than One Bitcoin?
Yes, that is possible. Each Bitcoin is divisible to the smallest unit called a Satoshi. One Satoshi is 0.00000001 bitcoin. When buying Bitcoin, you don’t have to buy a full bitcoin. You can buy as little as one Satoshi. When using your broker or exchange, you can specify how much bitcoin you want to buy or how much fiat currency you are willing to spend. And the equivalent crypto will be sent to your wallet.