Cryptocurrency exchanges and investing apps provide various payment methods, such as ACH bank transfers, debit cards, and credit cards. While not every platform will allow you to purchase cryptocurrency with a credit card, you can do some research and find an exchange that accepts it.
But just because you can purchase crypto with a credit card doesn't mean you should. In addition to the risk of accruing high-interest debt, charging crypto purchases to a credit card could come with cash-advance fees or other complications. Review the pros and cons of this payment method before you decide.
Is it possible to buy crypto with a credit card?
Purchasing crypto with a credit card is possible, but only on certain crypto exchanges and investment apps. Debit cards and ACH bank transfers are more common payment methods.
For example, Robinhood is a popular investment app that allows you to buy crypto through its Robinhood Connect service. However, the only available payment methods are debit cards, bank account transfers, and using your Robinhood Buying Power.
Compare that to the Kraken crypto exchange, where you can buy crypto with a debit or credit card, Apple Pay or Google Pay, your cash balance, or Plaid ACH. However, Kraken requires an eligible verified membership to add a payment card, and you might have to pay fees to use a card.
Can you use credit card rewards to buy crypto?
You can’t redeem most credit card rewards directly for crypto purchases, but there are ways to indirectly purchase crypto with your cash back, points, or miles. Many cash-back credit cards provide two redemption options that could indirectly fund your crypto investments: statement credits and bank deposits.
A statement credit can cover some or all of your credit card balance, including a recent crypto purchase. A bank deposit gives you cash you can use for just about anything, including crypto purchases — if your chosen platform supports ACH transfers.
Why have my crypto purchases been rejected on my credit card?
Financial institutions have different policies regarding purchasing crypto using credit or debit cards. This could include anti-fraud measures, in which case you must contact your bank to confirm the transaction. However, some credit cards may not be accepted on a crypto exchange, so you would have to try an alternative card or payment method.
Read more: Does getting your credit card declined hurt your credit score?
Why am I being charged a cash advance fee for purchasing crypto with my credit card?
Some banks treat specific types of purchases as cash advances. For example, Chase has a list of purchases it considers “cash-like transactions” that will be treated like cash advances. These include, but aren’t limited to, purchasing lottery tickets, money orders, wire transfers, and cryptocurrency.
Cash-advance terms and conditions vary by card but often include high interest rates and added fees. There’s typically no grace period with the interest rate on a cash advance, so expect interest to start accruing immediately.
If your issuer categorizes a crypto purchase as a cash advance, it's also likely that you won't earn credit card rewards on the purchase.
Read more: What is a cash advance on a credit card?
Which exchanges and investing apps allow credit card crypto purchases?
These are some popular crypto exchanges and investment apps and their accepted payment methods for buying cryptocurrency.
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4 steps to buy crypto with a credit card
1. Find a suitable crypto exchange or investment app and set up an account
There are many available crypto exchanges and investment apps where you can buy cryptocurrency. These include exchanges like Kraken and Coinbase and apps like Robinhood and Cash App.
Note that not every exchange or app has access to every type of cryptocurrency. If you want to buy, sell, or exchange a specific type of crypto, you need to find a platform that supports it.
2. If required, fund your account and complete identity verification
Some platforms require you to fund your account with fiat currency, such as the U.S. dollar (USD), before you can buy crypto. This could be where you use a credit card to add funds if the platform supports credit card payments.
You might also have to verify your identity through know-your-customer (KYC) verification. This security measure helps ensure you are who you say you are and helps prevent identity theft and fraud.
KYC verification could ask you to provide your address, date of birth, last four digits of your Social Security number, and other personal information.
3. Purchase your desired cryptocurrency
Once your account is set up, it’s time to buy crypto. Most crypto platforms support well-known cryptocurrencies such as bitcoin (BTC) and ethereum (ETH). Expect to pay additional transaction fees if you’re using a credit card to make your purchase.
Read more: 6 sneaky tricks credit card issuers use
4. Store your crypto
Many crypto platforms automatically store your crypto after you purchase it. This could include holding it in cold storage with no internet connection or hot storage connected to the internet.
You can also move your crypto to your own cold or hot storage, such as a digital crypto wallet mobile app you can access from your phone or a USB drive you must plug into a computer to access.
Pros and cons of buying crypto with a credit card
While purchasing crypto with a credit card is doable, the risks likely outweigh any potential rewards. Get familiar with the terms and conditions of your credit card and crypto exchange, then consider the following benefits and drawbacks before you make a decision.
Buying crypto with a credit card FAQs
Is it safe to buy crypto with a credit card?
Buying crypto with a credit card is typically safe if it’s an accepted payment option with a reputable crypto exchange or investment app. However, you'll likely have to pay additional fees for a credit card payment. Your card issuer could also charge you a cash advance fee and interest for cryptocurrency purchases. Lastly, you risk accruing high-interest credit card debt if you can't pay off the purchase immediately.
What are the fees for buying crypto with a credit card?
There are often fees associated with buying crypto with a credit card, but they vary by platform and card issuer. Research the fee schedules of specific platforms to see the associated costs. You should also review the terms of your credit cards to see how crypto purchases are categorized — or if they're allowed at all.
Can I buy on Coinbase with a credit card?
No, Coinbase no longer accepts credit card payments. The following are the Coinbase-accepted payment methods: debit card, ACH transfer, PayPal, Apple Pay, and Google Pay.
Where can I buy cryptocurrencies?
You can buy and sell crypto on specialized crypto exchanges and investment apps that support crypto trading. These include popular platforms like Robinhood, Gemini, Kraken, Coinbase, Cash App, and more.
Where can I buy bitcoin with a credit card?
If you want to buy BTC, these are some platforms that accept credit cards as a payment method to purchase cryptocurrency:
This article was edited by Alicia Hahn .
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