Credit cards have been a global norm for decades, and their adoption continues to expand. In fact, 82% of Americans now have at least one credit card, with their share of total payments growing from 16% in 2016 to 32% in 2023. In many other parts of the world, credit cards continue to become more commonplace as payment networks broaden their reach.

Crypto, on the other hand, is another story. Many parts of the world are just beginning to familiarize themselves with digital assets and their evolving role in everyday payments. To bridge this gap, user-friendly platforms like Cash App allow users to send Bitcoin (BTC), a move that helps familiarize the general public with the concept of cryptocurrency.

With both financial tools on the rise, it’s no surprise that more people are asking, “Can I buy crypto with a credit card?” The short answer is yes – some crypto exchanges have already integrated with major providers like Visa and Mastercard. However, buying crypto with a credit card isn’t always the simplest or most practical option.

So, how can you decide when it makes sense to purchase crypto with credit? In this guide, we’ll break down everything you need to know.

Can you buy crypto with a credit card?

At the time of writing, using a credit card to buy crypto isn’t very common, as many exchanges and card issuers still don't support cryptocurrency transactions. However, this option is becoming more accessible through centralized exchanges (CEXs), wallets, and other financial platforms.

That said, the novelty of virtual currencies and concerns over fraud, debt accumulation, and chargebacks have led some credit card providers to restrict crypto purchases. Even in regions without specific regulations against using credit cards for crypto, some CEXs avoid credit card transactions due to chargeback risks and evolving regulatory concerns.

Where can I buy crypto with a credit card?

The list of crypto-friendly card issuers and providers is ever-changing, with new options emerging and others discontinuing their services. CEXs like Crypto.com, Coinbase, and Kraken allow credit card purchases depending on region, while wallets such as Phantom and Trust Wallet accept credit card transactions for select cryptocurrencies. Fiat-to-crypto services like MoonPay also enable seamless credit-to-crypto conversions.

As to whether card issuers like American Express, Visa, and Mastercard allow crypto purchases on these platforms, it’s important to check regional restrictions and potential fees before using a credit card for crypto transactions.

How can I buy crypto with a credit card?

Once you’ve confirmed that both the card issuer and crypto platform accept credit card transactions, buying cryptocurrency works much like any other credit card purchase. Just enter the amount of crypto you’d like to purchase along with the card number, expiration date, and CVV, and submit the transaction for processing. Some platforms also allow users to link their credit cards to their accounts for future convenience. In most cases, the purchased cryptocurrency appears in the trader’s CEX account within seconds, with the purchase amount reflected on their next credit card statement.

Some fiat-to-crypto services, such as MoonPay and select crypto ATMs, allow purchases to be sent directly to a self-custodial wallet instead of being held in an exchange wallet. In such cases, users must paste their public wallet address or scan its QR code to specify where the cryptocurrency should be sent. It’s important to use the correct address for the cryptocurrency being purchased (e.g., Bitcoin for BTC, Litecoin for LTC, etc.), as sending crypto to an incompatible address will result in loss of funds. 

Are extra costs involved in using credit cards for crypto? 

Credit cards offer appealing features like speed, potential rewards, and deferred payments, but these conveniences often come with higher fees. Traders should carefully review the fee schedule for credit transactions on their chosen crypto platform to decide if the added costs are worth it.

• Processing fees: Many CEXs and fiat-to-crypto services impose higher processing fees for credit card transactions than other payment methods. These fees, which go directly to the platform facilitating the cryptocurrency order, can vary significantly between providers.
• Cash advance fees: In some cases, card issuers treat crypto purchases as cash advances rather than regular transactions. This means cardholders incur additional fees and higher interest rates typically associated with cash advances whenever they buy crypto.
• Cross-border transactions: Even on multinational platforms, fees aren’t standardized globally. Traders may face foreign transaction fees or currency conversion charges depending on their location and the currency used for the purchase.
• Interest payments: Even if a crypto purchase isn’t treated as a cash advance, cardholders might still pay interest if they don’t settle their full credit card balance. Carrying a balance and paying only the minimum each month can result in mounting interest costs over time.

Can you buy crypto with a credit card with no verification?

For privacy-focused traders, using a credit card isn’t an ideal option. Unlike trading on decentralized exchanges (DEXs) with crypto wallets, credit card transactions can be easily linked back to a user’s identity. Additionally, most decentralized finance (with crypto wallets, credit card transactions can be easily linked back to a user’s identity. Also, most decentralized finance (DeFi) applications currently don’t support credit card purchases.)

People who use credit cards to buy cryptocurrency typically rely on centralized institutions that collect personal information, such as names, home addresses, and phone numbers, as part of their “Know Your Customer” (KYC) policies. These policies help centralized exchanges (CEXs) comply with laws like anti-money laundering (AML) regulations by ensuring transactions are traceable to an individual.

While KYC protocols help prevent illicit activities, they also mean there’s no way to use a credit card on these platforms without disclosing personal information. Furthermore, since all transactions are recorded on credit card statements, there’s a clear paper trail showing when and where cryptocurrency purchases were made.

Alternatives to buying crypto with a credit card

Using credit cards is becoming easier, but it’s still not the most accessible option on crypto trading platforms. Fortunately, there are other widely accepted methods for converting cash to cryptocurrency, many of which come with lower fees. 

• Bank transfers: Traders can link their bank accounts to CEXs and fund their accounts directly using wire transfers or Automated Clearing House (ACH). Bank transfers often come with low or no fees, allowing for high limits on large purchases. However, these transfers can take a few business days to process and require sharing bank account details with the exchange.  
• Debit cards: Crypto trading platforms are more likely to accept debit cards than credit cards. Debit card transactions work similarly to credit card transactions but pull funds directly from a bank account rather than charging them to a credit line. While this offers instant and convenient processing, it can still come with higher transaction fees and lower monthly limits than bank transfers. 
• Fintech apps: Payment apps like PayPal and Cash App now allow users to buy cryptocurrency directly or connect with exchanges to complete purchases. These apps offer a user-friendly way to get started with crypto, especially for existing account holders. However, they tend to have higher fees than bank transfers, and some apps restrict sending crypto to external wallets.  
• Crypto ATMs: Physical Bitcoin ATMs let users deposit cash or use a debit card to purchase cryptocurrency. They’re convenient and user-friendly and allow coins to be sent directly to a self-custodial wallet. On the downside, crypto ATMs often charge the highest transaction fees and can be vulnerable to security risks, such as targeted scams or fraudulent devices. 

Optimize crypto purchases and tracking with CoinTracker 

No matter how or where you buy crypto, CoinTracker makes managing your portfolio effortless. In just minutes, you can connect all your exchanges and crypto wallets for real-time tracking of every transaction. CoinTracker’s Portfolio Tracker helps you analyze gains and losses while keeping tabs on activity in DeFi, including staking and liquidity pools. With CoinTracker, you can also generate compliant tax forms automatically, ready for your personal accountant or platforms like TurboTax.

Get started for free today and discover how CoinTracker can simplify your crypto tax reporting. 

Disclaimer: This post is informational only and is not intended as tax advice. For tax advice, please consult a tax professional.