Do you want to learn how to buy altcoins with a credit card? This guide will examine the best methods, the best altcoin cards, along with the top cryptocurrency exchanges. Also, we’ll go over the buying process with a credit card and how to deposit coins to an exchange. Read on to find out more.
Top Altcoin Brokers That Accept Credit Cards
There are many cryptocurrency brokers available in the market, below we’ve listed the top platforms to help you get started.
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Can You Buy Altcoins With A Credit Card?
You can purchase altcoins directly with a credit card if your card issuer allows this type of transaction. Also, your banking service may provide an investment section, allowing you to buy coins via credit card through their system. However, some services decline cryptocurrency purchases to protect cardholders from losses, market volatility, and fraud.
Nevertheless, most cryptocurrency services allow credit cards as a deposit method, letting investors bypass the restrictions. We’ll discuss which crypto platforms are compatible with credit card purchases below.
Altcoins include all cryptocurrencies and tokens that are not Bitcoin.
What Crypto Platforms Accept Credit Cards?
Many cryptocurrency platforms incorporate credit cards as a deposit option or a form of payment. Let’s go over the most popular methods of buying altcoins with a credit card.
Cryptocurrency exchanges:
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These platforms allow you to buy, sell, and trade altcoins. They have competitive fees and are often the best choice for investing in altcoins due to the various staking programs.
Cryptocurrency brokers:
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Here, you can invest in altcoins through derivative products like ETFs, CFDs, and futures. This means you won’t directly own the assets and will rely on the broker to keep your funds safe.
Banks and ewallets:
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Your bank or eWallet may have a dedicated section for investing in cryptocurrencies. They offer CFDs for Bitcoin, Ethereum, and altcoins. However, banks and eWallets have much higher fees compared to other platforms.
Peer-to-peer (P2P) marketplaces:
How to Buy Altcoins With a Credit Card?
If you’re buying altcoins for the first time with a credit card, the process may seem unfamiliar. Below you’ll find an in-depth, step-by-step guide on investing through a crypto broker or exchange.
Cryptocurrency brokerages
Find a broker like eToro that fits your investment needs. Also, ensure they accept credit cards as a payment method.
Step 2: Create an account and verify it
Begin the sign-up process and input your personal information correctly. Afterward, verify your identity by providing a picture of your driver’s license, passport, or ID card. Also, you may need to show proof of address by uploading a document of your phone bill, utility bill, or bank statement.
Step 3: Transfer funds into your brokerage account
Most brokers don’t allow clients to purchase altcoins directly with a credit card. So you’ll need to transfer funds into your brokerage account through the deposit page. Head over to the payments section and select the credit card option.
Step 4: Write your card details
Write your card details and input the amount you’d like to deposit.
Step 5: Click the crypto investment section
Click the crypto investment section and select the altcoin you want to buy. An investment page will pop up where you analyze data and look at graphs before buying.
Finally, input the amount you want to purchase and click the buy button. The newly purchased altcoin will show up in your portfolio section.
Cryptocurrency Exchanges
Step 1: Choose the exchange
Choose a top-tier cryptocurrency exchange that accepts credit cards.
Step 2: Create an account and verify it
Create an account with the cryptocurrency exchange and verify your identity to lift restrictions.
Step 3: Navigate to their main page
Then navigate to their main page, which can contain a section where you can purchase altcoins directly with a credit card. Simply input your details, the coin you wish to purchase, and the amount. Next, click buy, and the transaction will complete. Afterward, you can find the altcoins in your exchange wallet.
However, some exchanges do not provide a direct purchase feature. In this case, you’ll need to deposit funds into the account. Head over to the deposit page and select credit card as the payment option.
Step 5: Write in your card details
Again, write in your card details and input the amount you want to deposit. The funds should arrive instantly in your account.
Step 6: Exchange your fiat currency
Now, you’ll need to exchange your fiat currency for a stablecoin. So if you deposited US dollars, exchange the money with the USD/USDC pair.
Step 7: Select the coin you want to purchase
Select the coin you want to purchase using the correct stablecoin pair. Next, choose the type of order – market, stop-loss, or limit. Finally, input the amount you want to purchase and hit the buy button. The altcoin will appear in your cryptocurrency exchange wallet.
How to Deposit and Withdraw Via Credit Card
Deposit
To deposit funds into a cryptocurrency broker or exchange, you’ll need to open their dedicated payments section. Then select ‘credit card’ as your preferred payment method and input your details. Afterward, write the amount you want to deposit and click make payment.
Withdraw
Withdrawing fiat currency from your broker or exchange account is a straightforward process because the platform will save your previously used details. Therefore, you can quickly click ‘credit card’ as the withdrawal method, and the platform will send funds to the card you used earlier.
However, if you’re using a different credit card, write your details in the required sections. After, click withdraw, and the money will reach your account within 1-2 days, depending on the platform’s transfer speeds.
What Should I Look for in a Credit Card Altcoin Broker
Fee charges:
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Some cryptocurrency platforms allow you to purchase altcoins directly with your credit card but apply a transaction fee. Most often, you’ll find that depositing money first and then using the platform’s trading interface results in significantly fewer fees.
Altcoin variety:
Ease of use:
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The crypto broker should be straightforward to use and provide new investors with informational resources on how to navigate the platform. Also, the site should have easy-to-find features, making your investment journey effortless.
Broker reputation:
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Established brokers have been in the industry for years, creating a respectable reputation for providing great services. Therefore, you can trust them more compared to other platforms since they have a track record of keeping clients happy.
Security:
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Perhaps the most important factor is the protection provided by the broker because you want to leave money on the platform knowing it’s safe. Take note of all the security technologies they implement to keep clients’ funds safe. At the very least, they should allow 2-step authentication and incorporate SSL encryption.
Should I Buy Altcoins Using A Credit Card
Pros
Cons
Is Using a Credit Card the Best Method to Buy Altcoins?
Using a credit card to purchase altcoins is too risky since you are going into debt to buy volatile assets.
It’s far better to use a debit card because there is less risk associated with using saved-up money.
What to Consider when Buying Altcoins with Credit Card?
When you make a purchase in a foreign currency, most credit cards charge a foreign transaction fee. For example, if you use US dollars to buy altcoins on an exchange, your credit card company may charge a foreign transaction fee. However, purchasing altcoins with a credit card is still relatively cheap compared to other payment methods.
If you buy altcoins with a credit card, you may also incur a service fee. This cost can vary depending on the type of card you use.
What Are The Alternative Payment Methods to Buy Altcoins With?
Debit Cards:
PayPal:
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The eWallet on Paypal lets you purchase various altcoins through their platform, removing the need to use a crypto broker or exchange.
Bank Transfer:
Final Thoughts
Using a credit card to purchase cryptocurrency won’t make sense for most investors since there is too much risk associated. Cardholders should consider the major disadvantages like entering debt, impacting their credit score, high fees, and significant interest rates. We’ve gone over the pros & cons and how to select the best crypto platform for yourself. Now It’s up to you to decide if the payment method is ideal for your investment needs.
FAQs
Can I Buy Altcoins Anonymously With A Credit Card?
Unfortunately, you cannot buy altcoins anonymously with a credit card because you need to provide identity proof to the card issuer. However, there are alternative methods of buying crypto without ID, like prepaid cards.
How Fast Is Buying Altcoins With A Credit Card?
You can instantly purchase any altcoin using a credit card through the instant buy portal. Binance has this feature on its main page, making investing more accessible to beginners.
Do I Need a Crypto Wallet?
It’s ideal to have a crypto wallet for transferring funds to and from an exchange. Also, they offer more security than exchanges.
Are There Low Fees When Using Credit Cards to Buy Altcoins?
Buying altcoins instantly via credit card is subjected to high fees. However, depositing with a credit card and then using the trading interface to buy coins results in fewer costs.
Can I Hold Cryptocurrency in My Credit Card Account?
It’s unlikely that your credit card account has the feature to hold cryptocurrency because it requires a dedicated crypto wallet address. However, if your card issuer has a crypto section, it’s most likely a form of investing with CFDs.
Can I Buy Other Cryptos Using Credit Cards?
You can purchase various cryptocurrencies using a credit card. Navigate to your platform’s instant buy section and choose the altcoin you want to acquire.
Can I Buy Altcoins With A Credit Card Instantly?
Yes, many established exchanges have an instant buy section for cryptocurrencies. However, they apply higher fees compared to using the trading interface.
Are Credit Cards the Easiest Way to Buy Altcoins?
Credit cards are one of the easiest ways to buy altcoins because they’re fast and straightforward to use. Fill in the required sections with your card details, and you’re good to go.
Does Coinbase Accept Credit Cards?
Unfortunately, Coinbase does not accept credit cards as a form of payment. Instead, the platform supports debit cards, PayPal, and bank transfers.
