In this post, I review four crypto exchanges where you can buy crypto with a credit card and no fees. To research this article, my team collected data on 27 crypto platforms that allow you to buy digital currencies with a credit card. Out of those, we identified four that do not charge you an additional fee for using a credit card. However, there is a catch with all of them. There is always a catch.
This review is part of my series on how to buy crypto.
4 Platforms Where You Can Buy Crypto with a Credit Card and No Fees
1. Utorg
Utorg is a platform that allows you to buy more than 30 cryptocurrencies with a credit card or debit card. Accepted credit card issuers are Visa, Mastercard, and Maestro. Utorg does not accept cards issued by American Express, UnionPay, MIR, or others.
While there are no fees for using a credit card, the platform does charge a markup of 10-12%, which is extremely high. Consider that fees for buying crypto using a normal deposit on Coinbase costs 0.6%.
The main benefit of using storage is that it offers a simple user interface to buy cryptocurrencies using a card.
Verification takes 5 minutes.
The platform’s spread is exorbitant, however, and it is clear that they are aiming at users who are in a hurry to buy a specific coin because they believe its price will go up.
Utorg is available as a website and a mobile app.
2. Bitpanda
Bitpanda is a popular crypto exchange based out of Europe.
Credit card fees
Bitpanda does not charge any additional fees for crypto purchases made with a credit card. However, they do add a spread of approximately 1.49%.
Accepted Credit cards
To deposit fiat currency on Bitpanda with a credit card, you need to use a MasterCard credit card with SecureCode or a Visa card with Verified-by-Visa activated. If you use a virtual credit card without a name, you may need to go through manual approval.
You will also need to go through a quick verification process.
Note that Bitpanda issues its own bank card to users who can use it to directly convert crypto to fiat and spend it.
Maximum deposits
The maximum deposit amount by credit card is €20,000 daily, €300,000 monthly, and up to €5,000,000 in total. The minimum purchase amount is €1
Bitpanda supports deposits in the following fiat currencies
- EUR
- USD
- GBP
- CHF
- TRY
- PLN
- HUF
- CZK
- DKK
- SEK
3. IXFI
The trading platform allows you to buy, hold, and trade over 1185 crypto coins. They use multiple payment providers, and at the time of writing, they are advertising that you can use Swipelux to buy crypto on IXFI with a 0% commission.
However, when I checked Swipelux’s terms and conditions, they mentioned a 4.5% fee in addition to the blockchain network fee.
4. Paybis
Paybis is a reliable platform that allows users to buy, sell, and trade various cryptocurrencies.
The platform was founded in 2014 and offers a range of digital currencies, including Bitcoin, Ethereum, Litecoin, and others.
Paybis is known for its user-friendly interface, multiple payment options, and high-security standards.
Paybis doesn’t charge fees for the first credit or debit card cryptocurrency purchase. However, a 2.49% fee will be applied to the second credit or debit card transaction.
Why You Should Not Use a Credit Card
Using a credit card to buy crypto is the most naive way to invest in the market.
Even if you are convinced the price of an asset will rise, there is no guarantee that this will happen.
If the price moves in the opposite direction, it means that you will accumulate credit card debt after your grace period expires.
Credit card interest rates can range from 20-40%, depending on your credit score.
It is the most expensive way to borrow money, which is why banks and other financial institutions offer incentives to help you get one.
However, credit card fees can add up very quickly, sending your financial life into turmoil.
You don’t want to end up making expensive credit card payments to make ends meet.
For this reason, avoid being greedy.
There should never be urgency in buying crypto.
If you are feeling urgency, it means you are letting emotions cloud your judgment.
Popular Payment Methods that Are Cheaper than Using a Credit Card
Most crypto exchanges do not charge any fees for transferring money from your bank account.
US citizens can make ACH bank transfers, Canadians can use Interac eTransfer, and Europeans can make instant SEPA transfers.
See my guide on crypto exchanges that accept PayPal for more details.
Can I Buy Crypto Anonymously When Using a Credit Card?
If you need to convert fiat to crypto, you will need to use an onboarding platform.
This means you will need to verify your personal information with the platform.
You will need to share your name, email address, phone number, and home address.
The only exception to this rule is Bitcoin ATMs.
In some countries, there is a limit below that allows you to purchase Bitcoins for cash anonymously.
For example, the limit in Canada is $995. If you want to purchase a larger amount, you will need to go through identity verification.
FAQs
Can I buy crypto with a credit card with no fees?
In theory, yes, but in practice, there are hidden high fees such as spreads. Pay attention to offers that expire. Also, keep in mind that buying crypto with a credit card is the easiest way to end up owing a lot of money to a bank at high interest rates.
Is there a credit card fee for buying crypto?
Yes, most crypto exchanges charge extra fees when you buy crypto using a credit card. It’s common for these fees to cost between 3-5% of the amount you are purchasing, which is very expensive. It is better to use alternative payment methods, such as bank transfers, to deposit money on a crypto exchange.
Which crypto wallet does not charge fees?
Most crypto wallets do not charge fees for depositing and withdrawing your digital assets. You will, however, need to pay a network fee to the blockchain, which is used to reward miners and validators for verifying transactions. In addition, you will be charged trading fees for swapping between currencies or using features such as virtual debit cards and staking.
Why is it so hard to buy crypto with a credit card?
Many crypto exchanges prohibit credit card purchases because they fear fraud and chargebacks. Once a cryptocurrency transaction is completed, it is irreversible, making it difficult to retrieve funds if a chargeback is initiated.
Can I buy crypto for free?
It’s impossible to buy crypto for free because you always need to pay the network fee to the people who verify transactions on the blockchain for you. If you use a crypto trading platform, you will need to pay additional fees in the form of commissions or spreads for the platform’s service.
Troubleshooting credit card payments
If your credit card is not going through, check your credit card details and the expiration date. Make sure that the credit card provider is accepted on the platform you are using and that the jurisdiction from which you are joining is allowed to use credit cards.