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Can You Buy Crypto with a Credit Card?
July 1, 2025
Quick Answer
Yes, it is possible to buy crypto with a credit card, though many exchanges and card issuers either block such transactions or treat them as costly cash advances.
Should You Buy Crypto With A Credit Card?
Let's examine the key benefits and drawbacks of this payment method.
Benefits
Convenience: It offers a fast and familiar payment process for instant transactions.
Rewards Programs: Purchases may be eligible for your card’s rewards, like cashback or travel points.
Security Features: Credit cards often come with built-in fraud protection for transactions.
Costs
Cash Advance Treatment: Many card issuers treat crypto buys as cash advances, which have higher fees and start accruing interest immediately.
Higher Exchange Fees: Platforms usually charge more for credit card transactions compared to bank transfers or debit cards.
Interest Charges: If you carry a balance, the purchase will accrue interest at your card's standard, often high, rate.
Transaction Blocking: Some banks and credit card companies may decline or block cryptocurrency-related purchases.
How to Buy Crypto With A Credit Card
Buying cryptocurrency with a credit card can be a fast and convenient way to enter the market. Here’s a general overview of the process to get you started.
- Choose the Right Card: Not all credit cards are crypto-friendly. Some issuers block crypto purchases or charge high cash advance fees. Select a card that permits these transactions and ideally offers rewards. You can use resources like Kudos' explore cards tool to find a suitable match.
- Select a Crypto Exchange: Choose a reputable cryptocurrency exchange that accepts credit card payments. Consider factors like security, fees, supported assets, and user interface before creating an account and completing any required identity verification.
- Link Your Credit Card: Once your exchange account is set up, navigate to the payment methods section and add your credit card details. The platform may perform a small verification transaction to confirm ownership.
- Purchase Your Cryptocurrency: With your card linked, you can now buy crypto. Select the asset you want, enter the amount, review the transaction details and fees, and confirm the purchase.
- Secure Your Assets: For long-term holding, consider moving your crypto from the exchange to a private wallet where you control the keys. This provides an additional layer of security for your investment.
Impact On Your Credit Score
Using a credit card to purchase cryptocurrency can affect your credit score in several ways. Here are a few key factors to keep in mind before you buy.
- Credit Utilization Ratio: A large crypto purchase can increase your credit utilization ratio, a key factor in your credit score. Lenders prefer to see lower balances, so a high ratio can negatively impact your score.
- Cash Advance Treatment: Many card issuers classify crypto purchases as cash advances, which often carry higher fees and interest rates. This can also be a red flag on your credit report, potentially lowering your score.
Alternative Ways To Buy Crypto
Bank Transfers and Debit Cards
Beyond credit cards, a common way to purchase cryptocurrency is through direct bank transfers (ACH) or by using a debit card. These methods link directly to your checking or savings account, offering a straightforward way to fund your crypto wallet. While bank transfers might take a few days to process, debit card transactions are typically instantaneous. Both options often come with lower fees compared to credit card purchases, making them a cost-effective choice for many investors.
Peer-to-Peer (P2P) Platforms
Peer-to-peer exchanges offer another distinct avenue for acquiring digital assets. These platforms act as a marketplace, directly connecting buyers with sellers. This approach opens up a much wider range of payment options, from online payment services to direct bank deposits. P2P trading can provide greater flexibility in terms of pricing and payment methods, allowing users to find arrangements that best suit their needs without relying on traditional financial intermediaries.
Choose the Right Card to Buy Crypto
Selecting the right plastic is key, particularly if you plan to buy crypto. With nearly 3,000 cards on the market, finding one that aligns with your digital currency goals—like earning Bitcoin back on purchases—can be a challenge. Using an AI-powered recommendation engine can help you sift through the options and find your credit card match.
For those looking to maximize their credit card benefits, Kudos is the premier free shopping app for your online purchases. Plus, we are currently providing $20 back after your first qualifying buy—simply sign-up for free with code "GET20" and make a purchase at a Boost merchant.
Frequently Asked Questions
What are the fees for buying crypto with a credit card?
Fees often include a card processing fee from the exchange and a potential cash advance fee from your bank.
Is it safe to buy crypto with a credit card?
Yes, when using a reputable exchange with strong security. Always protect your account with a strong password and 2FA.
What are the risks of buying crypto with a credit card?
Key risks include high cash advance fees, interest charges, and the inherent volatility of the cryptocurrency market.
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Editorial Disclosure: Opinions expressed here are those of Kudos alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
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