Buying bitcoin with a credit card was once, just a few short years ago, a nearly impossible task. The exchanges that offered bitcoin didn’t want to be connected to the established, traditional financial system and the credit card companies didn’t want to be connected to bitcoin, thinking that it was a currency for criminal types.
Fortunately, most exchanges have come to trust traditional financial firms, and the banks and card companies now know bitcoin isn’t used by criminals and other unsavory persons. Today, you have a number of ways to buy bitcoin with a credit card. Below we’ll show you where, and give you step-by-step instructions on how to complete a credit card transaction for bitcoin.
Finding the Right Bitcoin Exchange
Because of banking laws, most bitcoin exchanges don’t deal in fiat currencies, but there are several that have become compliant and can offer bitcoin in exchange for U.S. dollars. It’s still most common for the exchanges to operate with bank transfers as the primary method of payment, but a growing number are coming to accept credit cards.
Conversely, some exchanges have moved away from credit cards. Coinbase, one of the largest U.S. exchanges, removed the ability for its customers to add new credit cards in February 2018. Customers who have cards linked to their account can still use them, but no new cards can be added. The company said it made the move because it was unable to ensure customers would have a positive experience when purchasing with a credit card.
Probably the biggest obstacle to buying bitcoin with a credit card is the credit card issuers. As you can see in our FAQs about Buying Bitcoin with a Credit Card, there are a number of banks that have banned purchases of bitcoin with credit cards they’ve issued. The commonly accepted reasoning for this is the banks are waiting for regulations to emerge that will protect consumers and the banks.
Buying Bitcoin with a Credit Card
Even with all these hurdles, it’s still fairly easy to buy bitcoin with your credit card if it’s issued by a bank that allows bitcoin purchases.
Buy bitcoin with a Visa or Mastercard.
Here you can choose how much bitcoin you’d like to purchase. New users who have only gone through the basic identity verification can buy as little as $20 and up to $1,000 of bitcoin per day. There is also a $3,000 per month limit for basic users. Those who verify their address can purchase up to $3,000 per day with a $30,000 monthly limit, and if you submit your government-issued ID, you can purchase up to $10,000 per day with a $100,000 monthly limit.