Most people into cryptocurrency usually think that it is impossible to purchase Bitcoin (BTC) by using your credit card. This is not true. You can buy Bitcoin using your credit card if the online broker is FCA-regulated. But, you will need to check their fees and commissions to ensure that you are not overcharged for this.
This guide serves to expose some of the most cost-effective, safest, and easiest ways of buying Bitcoin with your credit card.
Quick Guide to Buy Bitcoin on eToro via Credit Card
If you need to buy Bitcoin using your credit card – the five quick steps shown below will direct you on what you are meant to do. To do this with eToro, you will only be needing about 10 minutes, and the platform also comes with a commission-free purchase.
You can purchase Bitcoin using your credit card with eToro with these five quick and easy steps.
- Register on eToro for your brokerage account
- Get your ID uploaded.
- Deposit the funds with your credit card.
- Purchase the Bitcoin.
First Step: Register on eToro for Your Brokerage Account
For you to purchase the Bitcoin using your credit card on eToro, you are expected to register. All you need to do is to click the “Join Now” tab. Then you will be needed to supply some basic details of yourself. These details include:
- Your complete name
- Your contact address
- Country insurance number
- Current email address
- Current mobile number
First-time users will have to confirm their phone numbers by inputting the personal code through SMS. This code is sent by eToro.
Second Step: Get Your ID Uploaded
Since it is FCA-regulated, eToro can process Bitcoin purchases with credit cards. However, you will need to confirm your identity first. You shall be needing two documents which you will have to upload. These documents are:
- Your government-issued identity, like your driver’s license or your international passport.
- A proof of your current address by uploading your current bank statement or a utility bill.
Your documents will automatically be verified with eToro. But, you will still be able to deposit funds with your credit card if you do not have the documents close by. But your deposit will be limited to $2,250. Before you withdraw your funds, you will need to be verified. So, we think that you have to act quickly now.
Third Step: Deposit the Funds with Your Credit Card
The moment that your account has been opened, you can now deposit some money. You can deposit a minimum amount of $200 and nothing less. eToro comes with numerous payment options. A person will need to select the option that says “Debit/Credit Card”.
You will then buy the Bitcoin just like any other thing you are buying with your credit card. For users buying with their credit cards, eToro supports Diners Club, Maestro, MasterCard, and Visa. For deposits coming outside of the UK, eToro typically charges about 0.5% in exchange rate fees.
Fourth Step: Purchase the Bitcoin
You will only be able to purchase the Bitcoin when your deposit is confirmed. On eToro, this is done instantly. If you want to buy the Bitcoin, you can just type ‘BITCOIN’ in the search box that is in the upper part of the screen. Click on the blue ‘Trade’ tab when the BTC logo appears.
You will then be shown a ‘Buy BTC’ purchase form. In the box denoted as ‘Amount’, you will need to enter the value of your Bitcoin purchase. You are expected to buy a minimum of $25. Everything above this amount is acceptable. For this transaction to be completed, you will need to click on the ‘Open Trade’ tab.
Advantages of Buying Bitcoin with Credit Card
The Quickest Way of Buying Bitcoin
You get your transaction completed instantly when you buy Bitcoin using a credit card. This is the direct opposite of using a bank transfer. This transaction usually takes between 3 and 7 days for the funds to be processed. The transaction will need to be validated before it gets credited. Using a credit card gives you an instant Bitcoin purchase.
Protection from Credit Card Fraud
Most people do not know that providers of credit card offer excellent fraud protection when compared to debit cards. There is a law that protects malicious purchases with a credit card between £100 and £30,000. This can not be said for the debit card. If your credit card gets used fraudulently, the provider is bound by law to provide a cover against such a transaction.
Credit cards come with additional security in the form of encrypted payments. eToro comes with a robust credit card payment encryption system. What this means is that they do not see your type in numbers when you are making a deposit using your credit card.
When you purchase Bitcoin on eToro using your credit card you get the opportunity to withdraw your money via a simple process. This is possible because the coins are kept in your portfolio until you need to cash out.
Best Places to Buy Bitcoin via Credit Card
This is the best platform to purchase your Bitcoin because it is regulated by the FCA. eToro is a broker online which specializes in handling full-time assets. Besides purchasing different assets like indices, commodities, forex, ETFs, and stocks, cryptocurrencies are also some of the things that you can purchase on this platform. EToro is a platform for 16 various digital currencies, with Bitcoin included.
eToro is now home to about 13 million users and its most popular feature is the fact that it does not come with any commissions whatsoever. Without any commission, one can buy and sell their Bitcoin free of charge with no commission whatsoever. Furthermore, users need not pay any annual or monthly costs.
Speaking of payments, you can easily buy Bitcoin using a credit card. You get to open up an account and upload your documents in just a matter of minutes. Then, you will be required to deposit nothing lesser than $200 by using your credit card.
You get to see the funds on your account with eToro. The funds are immediately added to the account. You can then purchase Bitcoin immediately. eToro should be noted that apart from depositing funds with credit cards, users on eToro are also allowed to deposit their funds using Paypal, bank transfer, or debit card. It should be noted that while your minimum deposit on eToro is $200, the minimum amount of Bitcoin you can buy with this is $25 and not the full $200.
It is also right that we mention the CopyPortfolios that is on offer by eToro. CopyPortfolios are managed investment portfolios that make it possible for people to passively invest about 100% of their deposits. You have numerous CopyPortfolios that you could select from – this includes two which are used to track the broader parts of the cryptocurrency market. You need no extra fees to put this feature to use.
In terms of safety, eToro is a sure platform where your safety is guaranteed.The platform is a well-regulated platform and is properly regulated on all three fronts. The platform boasts of a license from FCA which is such an essential authorization that helps guarantee investors fund. With this FCA-certification, users can purchase Bitcoin using a credit card without ever needing to worry about being defrauded. Furthermore, eToro is adequately licensed by CySEC plus other well-licensed regulators based in Australia. This gives users further reassurance on their funds.
- Sells 16 most popular cryptocurrencies including Bitcoin
- You get to buy Bitcoin by not paying any commission.
- Over 13 million users are on the platform.
- You get to invest a minimum of about $25.
- eToro accepts a wide range of payment methods such as bank transfers, e-wallets, and credit/debit card.
- eToro makes copy trading possible through the complete automation of Bitcoin trading.
- The platform is fully regulated by the FCA.
- Has a total of over 150 ETFs and more than 1700 stocks.
- Comes with a little $5 withdrawal fee.
- The platform is operated entirely using US dollar.
CoinCorner is the best Bitcoin trading broker due to its fast account set-up. if you ever need to set up your Bitcoin trading account in no time, then CoinCorner is your best bet. It is another nice option apart from eToro where you can buy the Bitcoin with your credit card. Exchange is an online cryptocurrency specialist which makes it easier to purchase Bitcoin using your credit card, bank transfer, or debit card.
When we tried it, the set-up process was very smooth and straightforward. This means that the entire process of registration, depositing your fund, and purchase of the Bitcoin should only last for several minutes. CoinCorner accepts a minimum deposit of about £5. This makes it an excellent platform for people looking to try out the platform with a small amount to invest with.
However, CoinCorner seems to be lacking when it comes to fees. After all, is done, most people buying with their credit card are expected to pay a commission fee of about 2.5%. This is significantly higher than the 0.5% that eToro charges its users. Additionally, users will be expected to pay some trading fees each time that they buy and sell Bitcoin. People looking to invest as much as £300 will be expected to pay a trading fee of about 1%.
For instance, if you purchase Bitcoin valued at £500 using your credit card, there will be a fee of 2.5% that you will need to pay on this amount. This will result in about £12.50. then you will still get to pay a 1% commission on the transaction. In this case, the 1% commission amounts to only £5. In the final analysis, it is reassuring to think that CoinCorner comes fully regulated by authorized agencies like the FCA. This means that your funds shall be safely kept and you will not need to worry about it getting lost, stolen, or spent.
- This is a faster platform that offers you instant Bitcoin trading.
- It is known to support various methods of payments.
- You get to set up different recurring investments in cryptocurrencies.
- Comes with a reward program involving over 1,000 businesses.
- The trading fees are extremely high.
- Has trading and charting tools that are minimal.
Binance is one of the most popular trading platforms for Bitcoin. This platform comes with hundreds of digital cryptocurrency pairs. Binance is another option for people looking to purchase Bitcoin using a credit card and uses Bitcoin for trading in the short term. This is possible since the cryptocurrency exchange has hundreds of tradable cryptocurrency pairs for sale.
Binance processes cryptocurrency transactions worth about a billion dollars daily. This makes the platform one of the biggest trading brokers in the crypto trading industry.
People who are based in the UK will be expected to pay a transaction charge of 2% to use their credit card to purchase Bitcoin. Once the purchase is successful, they are expected to keep their coins using their Binance wallet. They also have the opportunity to withdraw the crypto coins out of their wallet. Also, one more thing that they can do with their Bitcoin is that they might decide to exchange their Bitcoin with a different cryptocurrency just like Ripple or Ethereum.
To this end, it is essential to state here that Binance is not a coin that is recommended for investors who are new in the crypto business. The only time that people recommend the platform is when the user has had some sufficient experience in the crypto trading market.
- This is the biggest exchange for cryptocurrency by trading volume.
- Comes fully supported with hundreds of cryptocurrency pairs.
- Has about 0.1% trading commission.
- Comes with easy support with bank transfers and credit/debit card.
- The platform is known and trusted widely in the cryptocurrency industry.
- The platform is useful for experienced traders that need highly sophisticated features and tools.
- This is not a good cryptocurrency investing platform for people who are new to cryptocurrency investments.
- Comes with a normal charge of 2% for all deposits with credit/debit card.
People looking to purchase Bitcoin by using their credit cards have lots of options when doing this. However, eToro is one of the best options to quickly get started on your journey to trading with Bitcoin. eToro is one of the small selections of Bitcoin brokers that help process your transactions in just minutes. With this mentioned, most of these platforms eliminate the risks which come with purchasing Bitcoin by using a credit card.
But, you might still be at risk of incurring interests during purchases. The other worse thing that could happen is that the Bitcoin value could just end up becoming lesser than what it was before you deposited your fund with the card provider.
With all these said, eToro is the most excellent FCA-regulated online broker for users to purchase Bitcoin using their credit card. You get to open your trading account in just minutes. Furthermore, your deposits are usually instantly processed. While you usually do not pay anything like commission when you finally invest with your Bitcoin.
Can I buy Bitcoin using my credit card?
You can purchase Bitcoin using your credit card. But, the online broker has to be FCA-regulated. Conversely, all brokers regulated by the FCA are mandated to verify and confirm the identities of every account holder on their platform. This means that people will not be able to purchase Bitcoins using their credit cards if they do not upload their identity.
Do I get to pay any cash advance charge if I purchase Bitcoin using my credit card?
This is usually dependent on the policies of the issuer of your credit card. Typically, deposits with some online platforms, gambling transactions, and ATM withdrawals can be referred to as cash advance. If this is the case, it is most likely that an extra fee of between 3% and 5% will be charged.
Is it within the law to use your credit card with Bitcoin?
Of course, it is within the law to use your credit card to purchase Bitcoin. But, you need to ensure that you make use of an FCA-regulated broker. Furthermore, certain credit cards issuers do not support Bitcoin purchase using your credit card.
What is the minimum amount of Bitcoin I can buy with my credit card?
The minimum amount greatly has to do with your chosen platform. when you purchase Bitcoin using eToro, the minimum amount you need to meet is about $25.
How is Bitcoin cashed out to my credit card?
If you use eToro, your Bitcoin investment can be cashed out using the same card you used when making your deposit in the first instance.
What fees do I have to pay when buying Bitcoin using my credit card?
You need to factor in the potentiality of the purchase being marked as a cash advance, as well as interest being applied on your next statement. Additionally, most brokers will charge you a trading commission on the purchase.