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Can You Buy on Coinbase with a Credit Card?
May 14, 2025
Quick Answer
Yes, you can purchase cryptocurrency on Coinbase with a credit card, but be aware that your card issuer will likely process the transaction as a cash advance.
Should You Buy On Coinbase With A Credit Card?
Using a credit card on Coinbase has distinct advantages and disadvantages to consider.
Benefits of Using a Credit Card
- Instant Transactions: Purchases are processed immediately, allowing you to buy crypto without waiting for bank transfers to clear.
- Potential Rewards: You may earn credit card rewards like cash back or points on your purchase, depending on your card issuer.
- Fraud Protection: Credit cards typically offer strong consumer protections against unauthorized transactions.
Drawbacks of Using a Credit Card
- Higher Coinbase Fees: Coinbase charges a larger fee for credit and debit card purchases compared to other payment methods like ACH transfers.
- Cash Advance Classification: Many card issuers treat crypto purchases as cash advances, which often come with high fees and start accruing interest immediately.
- Interest Charges: If you carry a balance on your card, the purchase will be subject to your credit card's standard interest rate.
- Issuer Restrictions: Some banks and credit card companies may decline or block cryptocurrency purchases.
How to Buy On Coinbase With A Credit Card
Using a credit card on Coinbase offers a swift and convenient method for purchasing cryptocurrency. Follow these general steps to navigate the process and make your first crypto purchase.
- Set Up and Verify Your Account: Before you can buy, ensure your Coinbase account is fully set up and you have completed the required identity verification (KYC) process to enable card purchases.
- Add Your Credit Card: Navigate to your account's payment methods section and add your credit card details. Coinbase may place small, temporary authorizations on your card to verify it.
- Select the Right Card: Not all credit cards are equal for crypto purchases. Consider potential cash advance fees and rewards. To find a suitable option, you can use the Kudos explore cards tool to compare different cards.
- Initiate the Purchase: Go to the trading section, select the cryptocurrency you wish to buy, and enter the desired amount. Choose your linked credit card as the payment source.
- Review and Confirm: Carefully review the transaction summary. Pay close attention to the Coinbase fee, any potential fees from your card issuer, and the final amount of crypto you will receive before confirming.
Impact On Your Credit Score
Using a credit card to buy on Coinbase can affect your credit score in several ways. It's important to consider the potential impacts before proceeding with a transaction.
- Credit Utilization Ratio: A large crypto purchase can increase your credit utilization ratio. Keeping this ratio below 30% is generally recommended to avoid a negative impact on your score.
- Cash Advance Treatment: Many issuers treat crypto buys as cash advances, which come with higher fees and interest rates. This classification can also be viewed unfavorably by potential lenders.
- Payment History: As with any purchase, timely payments are crucial for a healthy credit score. Failing to pay your credit card bill on time will negatively affect your payment history.
Alternative Ways To Buy On Coinbase
Fund with a Bank Account
For those looking to avoid credit card fees, linking a bank account is a primary alternative. Using an ACH transfer allows for direct funding of your Coinbase account, often with higher purchasing limits compared to cards. While this method is more cost-effective, it's important to note that funds may take a few business days to settle before you can withdraw the purchased crypto.
Set Up Recurring Buys
Another consideration is adjusting your purchasing strategy with recurring buys. This setting automates purchases on a schedule you determine—daily, weekly, or monthly. It’s a practical way to execute a dollar-cost averaging (DCA) strategy, which can help smooth out your entry price over time and reduce the stress of trying to time the market with single, large purchases.
Choose the Right Card to Buy On Coinbase
Selecting the right credit card is key to maximizing your returns when you buy on Coinbase. Kudos simplifies this decision with its Explore Tool, which sifts through nearly 3,000 cards to find your perfect fit. By taking a quick quiz about your preferences for rewards and perks, you get personalized, unbiased recommendations to ensure you’re earning the most from every transaction. Start by checking out the best cards of 2024 to find your match.
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Frequently Asked Questions
What are the fees for buying crypto with a credit card on Coinbase?
Coinbase charges a variable fee, typically around 3.99%, plus any cash advance fees your card issuer may apply.
Are there limits on how much I can buy with a credit card?
Yes, Coinbase imposes daily and weekly purchase limits which vary based on your account level and purchase history.
Why was my credit card purchase declined on Coinbase?
Declines can occur if your bank blocks crypto transactions, you have insufficient funds, or entered incorrect information.
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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.
