Crypto Venture News One stop Crypto Track Down 
Just like the .com stocks in the 1990s and the gold in the 1850s, everybody is trying to grab the cryptocurrencies. So now the question that arises is can you buy cryptocurrency with credit cards? Yes, now buying digital currencies with a credit card is possible but can be a heinous undertaking. Cardholders will have to pay for both sides of the transaction that involves digital currencies and credit cards. So with a credit card cryptocurrency purchase is not going to be easy. Other than that the holder will have the potential to lose money quickly as the digital currency market is highly volatile.
When With Credit Card Cryptocurrency Purchase Is Allowed
The best thing to do is consult the issuer to know whether it is allowed to buy digital currency with the credit card you have. American Express presently allows the purchase of digital currencies with their card but with few strict guidelines. Bank Of America recently altered its tune in 2021 when a user of Reddit shared the image of a letter that was received by them which stated that the credit card cryptocurrency purchase would be treated as advances in cash.
Along with double checking with the credit card issuer, the crypto holders should also search for a digital currency exchange that is willing to accept credit cards for purchase and deposits. Some allow only direct depositions from banks, debit card purchases, or cash deposits. So now the question is can you buy crypto with a credit card on Coinbase. As of now, Coinbase is not accepting credit card cryptocurrency purchase, but exchanges like CEX.io, Coinmama, and Paxful accept credit cards.
Limitations also prevail as to what type of credit cards are being accepted on the exchanges. MasterCard or Visa are credit cards that allow cryptocurrency purchases. For example, Paxful has different types of Bitcoin vendors across the globe who sell on the website of this exchange. It is among the few exchanges that are presently accepting credit cards from American Express. So you can buy Bitcoin with credit card instantly.
When With Credit Card Cryptocurrency Purchase Is Not Allowed
There are major credit card companies in the US that may not allow credit card cryptocurrency purchase by the cardholders. For example, Citibank blocked its cardholders from using credit cards for the purchase of Bitcoins and other digital currencies in 2018 fearing the fluctuations and the chances for fraud. There are some credit card companies that may even issue cash advance fees if the card holder tries to make a crypto purchase.
It is to be noted that there are certain big credit card companies in the US that do not make information available easily on their website on whether the cardholders are allowed or not to buy cryptos with their credit cards. It is best to call the representative and talk to them. And there are some digital currency exchanges that do not allow the purchase of digital currency with credit cards and they are eToro and Coinabase.
Types Of Fees That Can Be Expected By The Cardholders
Cardholders can expect to pay fees to both the credit card issuer and the exchange from where the currency is purchased. Before you purchase any digital currency from an authorized credit card, do a good research and evaluate the exact cost that will be required and then determine the monetary valuation and then if everything is at par then proceed to purchase.
Cryptocurrency Exchange Fees
The digital currency exchange may charge a fee as a commission or service for availing the credit card for deposit or purchase of crypto. For example, CEX.io is a cryptocurrency exchange that offers a handful of digital currencies which includes Bitcoin. Users here are allowed to buy crypto using their credit cards of either Visa or MasterCard. But the U.S cardholders are subject to a commission that is nearly 2.99% with a minimum purchase of $20.
Depending on the exchange, vendors acting inside the exchange may also make their own fees for the buyers depending on the latest factors like where the vendor is located, the type of credit card that is being used, and the amount of purchase that has been made.
Credit Card Company Fees
Some credit card companies that allow credit card cryptocurrency purchase treat the purchase as cash advances. This has few disadvantages:
Cash advance fees
There are some cards that treat the purchase of digital currencies as cash advances. This implies that each crypto purchase is liable to cash advance fees which is a typical fee of either $10 or 5% whichever is greater will be charged.
Cash advance interest rate
Most of the credit cards have a higher APR (Annual Percentage Rate) in case of cash advances that is nearly 25%. This interest rate is a variable that keeps on altering with the market. Interest will begin to be levied on you from the day you make the purchase and will continue until you pay off the credit.
No credit on rewards or bonuses
The use of credit for the purchase of digital currency does not typically qualify for any rewards in purchase nor spending that will be thought of as a sign of bonus.
Foreign transaction fee
A foreign transaction fee may be levied to the purchase of each crypto if the vendor is not from the same country and the credit card that is used charges fees for any international transaction.
Conclusion
With credit card cryptocurrency purchase won’t make sense for most of the people. Cardholders should take into account the major drawbacks before they plan to buy crypto with credit cards. Buying crypto is accomplished often with debit cards, direct deposits, or wire transfers.
Credit card purchases often emerge with high fees that drop the valuation in a good investment or reduce the return by a significant proportion.
Frequently Asked Questions On Credit Card Cryptocurrency Purchase
1. Can you purchase cryptocurrency with a credit card?
Buying digital currencies with a credit card is possible but can be a heinous undertaking. Card holders will have to pay for both sides of the transaction that involves digital currencies and credit cards.
2. Should you buy crypto with a credit card?
With credit card cryptocurrency purchase won’t make sense for most of the people. Cardholders should take into account the major disadvantages before they plan for the crypto purchase with credit cards. Buying crypto is done often with debit cards, direct deposits, or wire transfers.
3. Can you buy crypto on Crypto com with a credit card?
To buy crypto on crypto.com, tap the “Trade” button, then “Buy” and then select “CRO” or the crypto you prefer to purchase. Add your debit/credit card on the screen that follows, which will formulate a secure link to our payment gateway.
4. Is there a crypto credit card?
There are crypto debit cards that are available with which you can purchase goods and services. But as of now, there are no crypto credit cards.
