Blog Misc Using a Crypto Credit Card: The Future of Digital Banking?

Using a Crypto Credit Card: The Future of Digital Banking?

date June 23, 2022 time 6 min read 194 views

Buying cryptocurrency with a crypto credit card is possible; however, you should consider the crypto credit card company and which crypto exchange accepts it. Since then, the majority of major US credit card issuers have prohibited the purchase of cryptocurrency (while others charge cardholders huge fees). On the other hand, some major cryptocurrency exchanges, such as Coinbase, do not allow crypto credit card purchases of cryptocurrency, while others restrict the types of crypto credit cards that can be used to purchase it. Coinmama is a common example; they only accept Visa and Mastercard.

So, here are the first steps to buying crypto, the most popular of which is Bitcoin, via a crypto credit card in the most popular crypto exchanges, and the fees you must charge.

Switchere

Switchere is a platform that lets you buy and sell popular virtual currencies such as Bitcoin, Litecoin, Ethereum, and Ripple using your own credit, debit, or bank cards such as VISA, Mastercard, Maestro, SOFORT, and SEPA. The Estonian-based instant exchange service that was launched in 2019. (Europe). Although it is a new exchange, it has a clear vision – to be a gateway for everyone to facilitate cryptocurrency transactions – and plans to enter the Asian market.

How to buy crypto with credit card on Switchere

Switchere crypto credit card

Step 1: After logging in to your account, go to the switchere.com homepage and fill out the following purchase information:

  • You have: Select the kind of currency on the right, then enter the amount you want to buy.
  • You get: Select the crypto you want to buy on the right and on the left you will see the number of cryptos you receive corresponding to the amount of currency above.

When done, select “Buy Bitcoin”.

Step 2: Enter the address of your bitcoin, litecoin, or ethereum wallet. Then click “Make Payment.”

Step 3: Enter your Credit Card Details and select “Pay” to complete the purchase.

Once the payment is complete, you should receive cryptocurrency in your wallet within minutes.

Switchere fees

A blockchain fee of 0.0005 BTC is added to each bitcoin transaction. In addition, depending on your mode of payment, there is a processing fee ranging from 0.4 percent to 7.5 percent, as well as a service fee that is waived on your first exchange. When you hover your mouse over the info icon next to the exchange rate, Switchere conveniently displays all fees.

Binance

Binance, the world’s leading digital currency exchange, has officially launched a feature that allows users to purchase cryptocurrencies using VISA and MasterCard credit cards. Simplex, an Israeli payment processor, offers a very convenient crypto credit card payment method. Simplex previously collaborated with the Kucoin, Huobi, and Changelly exchanges to integrate cryptocurrency payment via VISA/MasterCard.

How to buy crypto with credit card on Binance

Binance crypto credit card

Step 1: After logging into your Binance account, move your mouse to the top right corner and select Buy/Sell Crypto and your preferred channel to purchase crypto.

Step 2: Select the currency and the amount of crypto you want to buy and click Buy Now. Then, tick ​​“I have read….“ and click Go To Payment to go to the payment step on Simplex.

Step 3: Fill in the required information including your card and personal details.

Click Pay Now.

Step 4: Verify information

Here, you will be asked to verify your Email and Phone (phone number).

Enter the email entered the above step, click the green Verify button

Check your phone for the 4-digit code that was sent to you. If you have not received it, click Verify to have the system resend the message or call you.

Then press Continue.

Step 5: Verify your identity

Select the type of personal document (Passport, ID card, License) you want to use for verification, here I choose ID Card (ID card)

Upload photos of the front (Front side) and back (Back side)

Fill in the information printed on the ID card including: First name: Name; Last name: Last name + middle name; Date of Birth: Date of birth, ID number: ID number; Expiration ID: Expiration Date

Residential address: Permanent address, default is the billing address (same as billing address)

Finally, click Upload Document

You have now completed all the steps required to purchase cryptocurrency with a VISA card. Simplex will validate your personal information and deduct funds from your VISA/MasterCard in accordance with the invoice. They will also email you to notify you that they are reviewing your personal documents and verifying the transaction, which could take 20-30 minutes. The crypto you successfully purchased will be transferred to your Binance wallet.

Binance exchange fees

The fee for any cryptocurrency purchase on Binance using Visa/MasterCard is 3.5% or $10; this fee is not collected by Binance but is paid to the Simplex platform. This is currently the lowest fee when compared to most platforms that support buying coins with other credit cards.

KuCoin Exchange

Similar to Binance, Simplex also cooperates with KuCoin exchange to launch a utility to buy and sell digital currencies using VISA/MasterCard. You also need an account to use this feature on the Kucoin exchange. 

How to buy crypto with credit card on KuCoin

KuCoin crypto credit card

Step 1: Go to Assets / Main Account. In the left menu column, in the Buy Crypto with Credit Card section, click Buy Now.

Step 2: Select the currency and the amount of crypto you want to buy. Then click Buy Now. Check “I have read…” and click Confirm.

Note, if you do not have a crypto wallet address on Kucoin, the system will ask you to create one. Click Deposit, select crypto and then click on it to create a wallet address.

After completing this step, the system will move to the payment step on Simplex. Please scroll up and continue as steps 3, 4, 5 in the section to buy crypto with VISA on Binance exchange. The crypto you successfully purchased will be sent to your wallet on Kucoin exchange.

Kucoin exchange fees

Basic Spot trades have a flat fee of 0.1 percent. This fee will be reduced if you increase the VIP level of your account (meet trading volume eligibility or hold KCS tokens). When you raise your account’s VIP level, you will receive a fee reduction and the transaction fee will be reduced.

CoinMama

Coinmama is a service that has been in operation since 2013 for buying and selling Bitcoin using a crypto credit card. They charge a fee for the service, and there is no maximum amount of bitcoins you can purchase. Coimama provides prompt and dependable service. Bitcoins are delivered immediately after your purchase is confirmed, and customer service is excellent.

How to buy crypto with credit card on CoinMama

CoinMama crypto credit card

Step 1: After registering your account, you access here:

Step 2: Enter the amount of crypto to buy, you will see the corresponding amount of USD to pay. Then, click Buy Now.

Step 3: Choose payment method VISA, MasterCard and enter the crypto wallet address to send. Finally, click Proceed to payment.

After completing this step, the system will move to the payment step on Simplex. Just like how to buy BTC on Binance exchange above. Please scroll up and follow steps 3, 4, 5 in buying BTC with VISA on Binance exchange. The Bitcoin you have successfully purchased will be sent to the crypto wallet you entered.

Coinmama exchange fees

The business transaction Coinmama charges a fee for each purchase, as is customary. If you pay with a crypto credit card, you will be charged an additional 5% fee. A $50 credit-card fee would be applied to a $1,000 purchase. That means you’ll need a high return on investment just to break even.

You now understand how to buy cryptocurrency with a crypto credit card. All of the methods for purchasing Bitcoin described above take less than 30 seconds to complete, and less than 1 minute to enter the crypto market and engage in any activity you desire with your newly acquired Bitcoin.

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Trevor Kraus

Trevor Kraus

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