Buy Altcoins With Credit Card | Beginners Guide

This guide will examine the best method to buy altcoins with a credit card, 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.

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.

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: 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: 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: 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: P2P platforms facilitate real-world trades between buyers and sellers. Here you can confirm a time and location where the transaction will take place.

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

• Step 1: Find a broker like eToro that fits your investment needs. Also, ensure they accept credit cards as a payment method.

• Step 2: 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: 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 and input the amount you’d like to deposit.

• Step 5: 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.

• Step 6: 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 a top-tier cryptocurrency exchange that accepts credit cards.

• Step 2: Create an account with the cryptocurrency exchange and verify your identity to lift restrictions.

• Step 3: 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.

• Step 4: 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: Again, write in your card details and input the amount you want to deposit. The funds should arrive instantly in your account.

• Step 6: Now, you’ll need to exchange your fiat currency for a stable coin. So if you deposited US dollars, exchange the money with the USD/USDC pair.

• Step 7: 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: 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: Those interested in buying altcoins are likely to diversify their portfolio to minimize risk. Therefore, the crypto broker should have a great range of low and high-market cap coins.

• Ease of Use: 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: 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: 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

• Invest Without Having Money: If you want to buy an altcoin before you believe its value increases, using a credit card allows you to make the purchase straight away. This ensures you won’t miss the next pump and can make significant profits by borrowing funds.

• Potentially Earn Rewards: If your credit card issuer treats crypto transfers as regular purchases, you may be able to receive lower interest rates. Also, you can earn rewards on your investment spending like cashback.

• Widely Accepted: Credit cards are widely accepted on cryptocurrency exchanges and brokers. This makes the payment method hassle-free because you can instantly transfer funds without guessing if the platform will accept the money.

• Fast Deposits: Credit cards let investors instantly transfer funds to the platform without a waiting time. This allows you to buy the altcoins you need before they rise in value.

• Instant Purchases: Some cryptocurrency platforms allow you to instantly buy altcoins without trading interfaces. This makes crypto investing more accessible to beginners since they won’t need to learn the complexities of trading.

Cons

• High-Interest Rates: Cryptocurrency purchases are often treated as cash advances. This would lead to higher fees and no grace period for interest charges. Moreover, cardholders will not receive rewards on the amount advanced, making them a costly method of investing.

• Fees: Using a credit card to purchase altcoins directly results in much higher fees. Although this method of acquiring coins is more straightforward, you’d be better off depositing money to the exchange. Afterward, you can use the trading interface to purchase coins at much better rates.

• Debt: Cryptocurrency is a highly volatile asset, making them risky to purchase, especially with borrowed funds. If the coin you buy decreases in price significantly, you are left at a considerable loss with debt. Therefore, you should always ensure that you can pay back the card issuer even if your portfolio takes a hit.

• Credit Score Can Take a Hit: A major factor affecting your credit score is the amount of debt you owe, also referred to as Credit Utilization. Having a high Credit Utilization is a red flag that you are overly reliant on the borrowed funds. This causes your credit score to plummet, putting your future at risk. For example, you won’t be able to get a mortgage or a car loan easily.

• Blacklisted Platforms: The credit card issuer can block transactions to the cryptocurrency platform. This makes it challenging to invest in altcoins since you’ll most likely need to transfer funds to various payment services before depositing to the broker.

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 Are The Alternative Payment Methods to Buy Altcoins With?

• Debit Cards: Debit cards are widely accepted and convenient to use. Simply write your details and hit deposit.

• PayPal: The eWallet lets you purchase various altcoins through their platform, removing the need to use a crypto broker or exchange.

• Bank Transfer: A secure and fast way to send funds is via bank transfer. Before clicking transfer, ensure that the reference code is correct so the money enters your broker account.

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.

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