Buying cryptocurrency with a credit card may seem like a fast and easy option, but it comes with limitations. In 2025, many major banks and card providers still block these purchases, while those that do allow them often charge high fees or impose usage restrictions. If you’re considering this method, it’s important to understand the full picture before proceeding.
In this guide, we’ll walk you through where you can buy crypto with a credit card, which cards are supported, the risks involved, and a step-by-step breakdown of the process. You’ll also learn about common fees, KYC requirements, better alternatives, and what mistakes to avoid.
Step-by-Step: How to Buy Crypto with a Credit Card
Buying crypto with a credit card may seem quick, but it requires a few careful steps to ensure the process is smooth and secure. Here’s a simple breakdown to guide beginners.
Step 1: Research Credit Card and Exchange Compatibility
Before you start, confirm that your credit card issuer allows crypto purchases. Then, choose a crypto exchange like Coinbase, Kraken, or Crypto.com that supports credit card payments. Visit their websites to verify updated policies on accepted payment methods and supported countries.
Step 2: Link Your Credit Card and Complete KYC
Create an account on your chosen exchange. You’ll likely be asked to complete KYC (Know Your Customer) verification by uploading ID documents. Once verified, add your credit card as a payment method, making sure the name on the card matches your account details.
Step 3: Make Your Purchase
Navigate to the buy section on the platform, select your desired cryptocurrency, enter the purchase amount, and choose your credit card as the payment option. Review the transaction summary, including fees and total cost, and then confirm the purchase.
Where Can You Buy Crypto with a Credit Card?
Buying cryptocurrency with a credit card has become easier, thanks to growing support from mainstream exchanges and fintech solutions. However, not every exchange supports this payment method, and those that do often apply higher fees. Below are platforms that currently enable credit card transactions for crypto purchases, along with a dedicated solution for decentralised platforms.
Major Crypto Exchanges That Support Credit Card Payments
Most centralised exchanges that allow fiat purchases also support credit card transactions. Here are some of the most popular options:
Coinbase: Known for its ease of use, Coinbase allows users to buy Bitcoin, Ethereum, and other cryptocurrencies using credit cards, though it charges a relatively high transaction fee.
Kraken: Kraken accepts credit card payments in supported regions and offers a secure, regulated platform for crypto purchases.
Binance: Through its ‘Buy Crypto’ feature, Binance lets users purchase coins with credit cards issued by Visa and Mastercard.
Crypto.com: Crypto.com’s app allows users to buy more than 250 cryptocurrencies using a credit card, often offering promotions for new users.
eToro: This platform supports credit card payments and also allows trading of both cryptocurrencies and traditional financial assets.
Uniswap (via MoonPay): Though Uniswap is a decentralised exchange, it supports credit card payments indirectly through MoonPay, which acts as a fiat on-ramp.
These platforms typically require full identity verification before allowing card-based purchases and may charge fees ranging from 2.99% to 5%.
How MoonPay Enables Credit Card Use on DEXs
MoonPay acts as a fiat-to-crypto gateway, bridging traditional financial systems and decentralised exchanges. When using platforms like Uniswap or OpenSea, users can click “Buy with Card,” which redirects them to MoonPay.
Here, users enter payment details, complete KYC checks, and receive the crypto directly into their wallet. While being convenient, this process still involves higher fees and is subject to MoonPay’s transaction limits and regional availability.
Also Read: CEX Vs DEX Explained
Which Credit Cards Can Be Used to Buy Crypto?
Not all credit cards support cryptocurrency purchases, and even those that do may come with strict conditions or high fees. It’s important to understand which cards work and which ones are blocked by default so you can plan your crypto transactions effectively.
Cards That Support Crypto Purchases
American Express: AMEX is one of the few major credit card issuers that allows direct crypto purchases. However, AMEX cards often incur high fees, sometimes exceeding 4%. Additionally, not all platforms accept AMEX, so availability is limited.
VISA and Mastercard: Technically, both VISA and Mastercard support crypto transactions, but the approval depends on the issuing bank. Some fintech-focused banks may allow it, but major commercial banks often block these purchases by default. Always verify with your card issuer.
Cards That Typically Block Crypto Purchases
Most traditional banks do not allow cryptocurrency transactions through their credit cards. This is often due to concerns about fraud, volatility, and chargeback risks. Here are some issuers known for blocking crypto transactions:
- Chase
- Citibank
- Bank of America
- Wells Fargo
- Capital One
- Barclays
- Discover
- TD Bank
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Note: These restrictions are subject to change, so it’s advisable to check with your card provider before attempting a crypto purchase. |
What You Should Not Do When Buying Crypto with a Credit Card?
While buying crypto with a credit card seems fast and easy, it’s just as easy to make costly mistakes. Below are five common pitfalls to avoid if you want to protect your finances and stay safe.
Don’t Ignore the Fees
Credit card purchases usually attract multiple layers of fees, transaction fees from the exchange, cash advance fees from your card provider, and interest charges that start from day one. These costs can quickly eat into your investment returns. Always calculate the total cost before confirming a purchase.
Don’t Buy During Market Hype
Buying crypto when prices are surging due to news or social media hype is a classic FOMO trap. Using a credit card to buy during these peaks could leave you with high-interest debt and a coin that’s dropped in value. Always invest based on research, not emotions.
Don’t Use Your Entire Credit Limit
Spending close to or over your credit limit for a crypto purchase can damage your credit score. High credit utilization raises red flags to lenders and increases your repayment burden. Always leave a safety margin and only use what you can repay comfortably.
Don’t Skip KYC on Sketchy Platforms
Platforms that let you skip KYC (Know Your Customer) may seem convenient, but they often lack proper regulation and security. This opens the door to fraud, poor customer support, and even loss of funds. Always choose platforms with proper licensing and security standards.
Don’t Forget About Tax Tracking
Every crypto purchase, whether via card, P2P, or crypto-to-crypto, is a taxable event in many jurisdictions. If you don’t track these transactions, you’ll face headaches at tax time. Tools like KoinX can help automate the tracking process so you stay compliant without the stress.
Also Read: What Can I Buy With Cryptocurrency?
What Fees Should You Expect When Buying Cryptocurrency With Credit Cards?
Buying crypto with a credit card often includes multiple hidden costs. Here’s a breakdown of the most common fees you’ll face during the transaction process.
Cash Advance Fees
Most credit card issuers treat crypto purchases as cash advances, not regular transactions. This triggers cash advance fees, typically ranging between 3% to 5% of the purchase amount. For a $1,000 purchase, you could pay $30–$50 in fees right off the bat, before even receiving your crypto.
Interest Charges on Advances
Unlike regular purchases, interest starts accruing immediately when you make a cash advance. These APRs are significantly higher, often between 18% and 30%, depending on your card issuer. There’s no grace period, meaning you’ll start accumulating interest from the day of the crypto purchase.
Low Limits and No Rewards
Crypto purchases usually don’t earn cashback, travel points, or rewards, even on premium credit cards. In addition, many issuers apply lower limits to cash advances, meaning you can’t spend as much on crypto as you could on standard purchases, even if you have the available credit.
Can You Buy Crypto with a Credit Card Without KYC?
Some investors look for ways to buy crypto anonymously, but KYC (Know Your Customer) is now a standard requirement on most platforms. Here’s what you need to know.
Why Do Most Platforms Require KYC?
Most centralized exchanges like Coinbase, Binance, and Kraken require users to complete KYC. This helps platforms comply with anti-money laundering (AML) laws and ensures user accountability. Without KYC, these platforms legally cannot process credit card transactions, especially for high-risk purchases like crypto.
Is It Possible via Decentralized Exchanges?
Technically, some decentralized exchanges (DEXs) like Uniswap allow crypto purchases using credit cards via third-party services like MoonPay. However, even these gateways often require some form of identity verification before processing payments, especially when credit cards are used due to fraud risk and cardholder protection policies.
Also Read: Crypto SIP for Beginners
Alternatives to Buying Crypto with a Credit Card
If your credit card isn’t supported or you’re looking for lower fees and better flexibility, there are several alternative ways to buy crypto. These options may offer greater reliability, cost savings, and fewer restrictions.
Use a Debit Card
Debit cards are widely accepted by exchanges and typically don’t carry the same restrictions or high fees as credit cards. Since you’re using your own funds rather than borrowing, you also avoid cash advance charges and interest. Most major platforms like Binance, Crypto.com, and Coinbase support debit card payments for instant crypto purchases.
Use a Bank Transfer
Bank transfers, like ACH (in the US) or SEPA (in Europe), are among the most cost-efficient methods to buy crypto. They allow direct fiat transfers from your bank account to your exchange wallet. While slightly slower than card payments, they usually have lower fees and higher transaction limits, making them ideal for larger investments.
Use Crypto to Buy Crypto
If you already hold crypto, converting one coin into another is a seamless method. Most platforms, including Uniswap, Binance, and Coinbase, support crypto-to-crypto trades. This is ideal if you want to diversify your portfolio without additional fiat deposits or credit-related fees.
Use Peer-to-Peer (P2P) Platforms
P2P platforms like Binance P2P or LocalBitcoins let you buy crypto directly from other users using various payment methods, including bank transfer, cash, or mobile wallets. These platforms often don’t require credit cards and give users more control over how they transact. Just make sure to trade only with verified users to avoid scams.
Also Read: Top Crypto Debit Cards in 2025
What Are the Risks of Buying Crypto with a Credit Card?
Buying crypto with a credit card might seem convenient, but it carries significant financial and credit-related risks. Understanding these potential downsides is essential before committing to a credit-based crypto purchase.
Market Volatility and Loan Repayment
The crypto market is highly volatile, and using borrowed money increases exposure. If the value of your crypto drops shortly after purchase, you’ll still owe the original borrowed amount , with interest. This mismatch can lead to repayment stress, especially if your investment fails to recover quickly.
High Fees and Cash Advance Charges
Most credit card issuers classify crypto purchases as cash advances, which come with hefty charges. Expect fees of 3–5% per transaction, plus interest rates starting from 17.99% and reaching up to 29.99% APR. These costs accumulate rapidly, often outweighing potential short-term gains.
Impact on Your Credit Score
Large credit card purchases raise your credit utilisation ratio, which directly affects your credit score. Buying crypto with a card, especially near your credit limit, can hurt your score and reduce your borrowing capacity for other essentials. If you miss payments, the damage can be long-lasting.
Impact on Your Credit Score
Large credit card purchases raise your credit utilisation ratio, which directly affects your credit score. Buying crypto with a card, especially near your credit limit, can hurt your score and reduce your borrowing capacity for other essentials. If you miss payments, the damage can be long-lasting.
Lack of Purchase Protection
Unlike traditional purchases, credit card crypto transactions often lack buyer protection. Once processed, they’re typically irreversible. If you get scammed or send funds to the wrong wallet, your card issuer likely won’t reimburse you. This makes it riskier than other online transactions, where disputes can lead to chargebacks.
Limited Platform Access
Not all crypto exchanges support credit card payments, and those that do may restrict transaction amounts or limit supported regions. Some banks also block these payments altogether, leading to failed transactions or frozen accounts. This can leave you without access to your funds when you need them most.
Also Read: Types of Cryptocurrency
Conclusion
Buying cryptocurrency with a credit card offers unmatched speed and convenience—but it comes with real costs. High transaction fees, poor credit terms, and increased tax obligations make this method more suitable for occasional use rather than regular investing. For beginners, it’s crucial to weigh these trade-offs and understand the full financial impact.
If you’re using multiple platforms or payment methods to invest in crypto, staying tax-compliant can get tricky. KoinX helps automate your crypto tax reporting across 300+ platforms. Join KoinX today and make tracking effortless.
Frequently Asked Questions
Can I Use a Prepaid Credit Card to Buy Crypto?
Yes, some crypto exchanges accept prepaid credit cards, especially if they are backed by major networks like Visa or Mastercard. However, prepaid cards may still be subject to high transaction fees and identity verification requirements before purchases are approved.
Are There Daily Limits When Buying Crypto with Credit Cards?
Yes, most exchanges impose daily purchase limits when using credit cards. These limits depend on the user’s account verification level and the card issuer’s policies. It’s important to check both exchange and card terms to understand your actual buying capacity.
Will I Earn Reward Points on Crypto Purchases?
No, most credit card companies exclude cash advance transactions like crypto purchases from earning rewards. Even cards that offer crypto cashback rewards usually don’t allow buying crypto directly with the same card.
What Happens If a Crypto Transaction Fails?
If a credit card transaction for crypto fails, the funds are usually returned to your account after a short processing period. However, some providers may hold the amount temporarily, so it’s essential to monitor your statement and follow up if needed.
Are Crypto Purchases with Credit Cards Traceable for Tax Purposes?
Yes, both exchanges and credit card statements keep records of transactions. These records can be used to trace the cost basis and date of acquisition, which are crucial for calculating crypto capital gains or losses during tax season.
