If you’re thinking about investing in cryptocurrencies you’ve probably already gravitated towards the obvious choices; Bitcoin (BTC) and Ethereum (ETH). These are the cryptos that are making waves, getting worldwide attention, and creating millionaires regularly. So, they’re a good place to start. But deciding that you’d like to invest in Ethereum and physically investing in Ethereum are two different things. How do you go about investing in a cryptocurrency, as far as the step-by-step process is concerned? Is ETH a good choice as far as making a crypto investment goes?
In this crypto guide, we’re going to look at how to buy Ethereum with a credit card. There are, of course, other ways to invest in a cryptocurrency. But we’re focusing on doing so with a credit card. We’ll also take a closer look at ETH itself and investigate if it is a good investment opportunity.
If you’re short on time and just want to know how to buy Ethereum, you can simply go to eToro, Binance or Plus500. They’re the best platforms to transact on if you’re looking to invest in cryptocurrencies with a credit card. Read on if you’re looking for a more detailed explanation.
Before we get to the details on how to buy Ethereum, let’s first look at what Ethereum is. ETH is a blockchain-based cryptocurrency that works on a proof-of-stake model. As with all cryptos, Ethereum is decentralised, not governed by any bank, and is supported by a passionate community.
The coin saw its initial launch after the release of Bitcoin. Vitalik Buterin, the founder of Ethereum, intended for his crypto to be better than Bitcoin in every way. Thus he started a blockchain of his own, the one we know today as Ethereum. Notably, the biggest difference between BTC and ETH is the proof-of-stake versus proof-of-work models. BTC uses a proof-of-work model; a system under great criticism due to the enormous energy cost. ETH switched to a proof-of-stake model soon after launching, providing a much more environmentally-friendly solution to the needs of blockchain tech.
Ethereum is the second biggest crypto after Bitcoin, though is recently being seen as a step up from Bitcoin in almost every regard. If you intend to invest in a cryptocurrency with a bright future, most investors would agree that you can’t go wrong with ETH.
Next, you’ll want to know how to buy Ethereum. You can invest in ETH at many online platforms, including various brokers and exchanges. You can buy crypto directly with a credit card or debit card, or trade for it with other cryptos. If you want to trade with other cryptos you’ll want to check out a different crypto guide.
Crypto exchanges are online platforms designed to quickly and efficiently let traders transact with one another. Some exchanges are centralised and others aren’t. Which you choose to use is a matter of preference, depending on if you want to trade anonymously or not. If you want the added security of regulation you’ll have to complete the Know Your Customer (KYC) process at the exchange. This process will require that you provide a validated identification.
We’ll also look at crypto brokers as an alternative purchasing platform.
If you specifically want to buy Ethereum with credit card transactions, keep in mind that not all cards are compatible. Since several companies believe that cryptos are a risky transaction, they won’t even allow you to use a card at an exchange. Let’s look at each credit card and see if crypto transactions are permitted.
We’ll look closer at various brokers and exchanges, but before we do, consider eToro to be our overall pick for the best credit card crypto platform. The standout feature of eToro is that the platform doesn’t charge a credit card deposit amount. This is dramatically better than other platforms. Though keep in mind that even if eToro doesn’t charge a fee for a credit card deposit, your bank might.
eToro also accepts a minimum deposit of $10. This means that you can get started with minimal fuss, test out the platform, and risk no more than an initial $10 deposit. If you want to buy Ethereum with credit card transactions, consider eToro the perfect starting point.
But let’s also take a look at a few other brokers. Besides eToro we also investigated Binance and Wunderbit for credit card transactions. Both of these brokers have their benefits, but the biggest drawback of each is the associated credit card fees. If you make a credit card deposit at Binance the fee is a flat rate of 2%. This may not seem like a lot but becomes significant the bigger the deposit you intend on making. If you’re a professional trader that makes sizable deposits regularly the 2% in fees quickly adds up.
At Wunderbit the same problem applies but is dramatically more pronounced. At Wunderbit the fee on credit card deposits is 5%. Needless to say, there is a reason that we put forward eToro as our favourite if you intend to buy Ethereum with a credit card.
Crypto exchanges are similar to brokers, though are more streamlined and accessible. If you’re a beginner you’ll probably want to stick to an exchange. We investigated a few exchanges, paying special attention to how each handles credit card transactions. We settled on a top 3 that stand apart for offering low fees, having user-friendly interfaces, and providing fast transaction speeds. The listed exchanges are all also thoroughly regulated and operate fully within the law.
Our first exchange is Crypto.com. Crypto.com is, first and foremost, very trusted within the crypto-sphere. As far as credit card deposits are concerned, the platform charges 2.99% for a deposit plus an additional fee for a credit card deposit. It’s a big step up in fees in comparison to a broker, though the transaction process is also dramatically easier. At exchanges like Crypto.com, all transactions are fully automated, meaning that from depositing to buying Ethereum should take no more than a few seconds.
Next up we looked at KuCoin. KuCoin is another widely respected exchange, though was less clear in terms of transaction fees. If you want to deposit with your credit card you’re going to have to investigate the fees for yourself. Depositing fees vary dramatically, though if you’re depositing with a credit card there will be an additional fee. Simply put, your experience with KuCoin will depend on how much you’re looking to deposit.
eToro is a crypto broker as well as a crypto exchange. Not surprisingly, as an exchange, the platform also shines. No fees are charged for making a standard deposit, but a fee will apply to making a credit card deposit.
Next in our crypto guide, we’ll take a closer look at how to make a credit card transaction at an exchange or broker. We’ll go step by step, keeping in mind that not every exchange or broker will be the same. Though, the following steps will apply more or less to whichever platform you choose. If you do run into any problems keep in mind that each site will have a customer support centre.
Before you make any crypto transactions at an exchange or broker, sign up for an EWallet. You’ll need to store your purchased crypto somewhere, and the best place is a secure online EWallet. If you want a better idea of which wallet is best check out a different crypto guide. For the time being, let’s assume you have a wallet and are ready to proceed.
You may have decided to use eToro or a different exchange, but either way, you’ll have to sign up on that platform. Keep in mind that if you’ve chosen a platform that requires the KYC process you’ll need a validated identification document. If you have this documentation close at hand the KYC process will be much quicker. To sign up you’ll also need to provide details such as a name, email address, mobile phone number and physical address. Once you’ve completed registration your account should become active immediately.
Now that your account is active you can make a deposit. Select the option to make a deposit, then choose your preferred method. In this case, choose the appropriate credit card. Indicate how much you’d like to deposit then verify the transaction. Keep in mind that you’ll have to provide the full credit card number as well as the CVV code.
Once the deposit is in your account you can now purchase ETH. Simply select ETH, indicate how much you’d like to buy, and proceed to make the purchase. The transaction should happen instantly and the crypto should appear in your account.
Now that you have your crypto you should move it for safe storage. You can store your Ethereum in the wallet you organised earlier. Head to the wallet, select the appropriate option to generate a delivery address, and then enter the address in the withdrawal section of your platform. The crypto should automatically appear in the wallet.
In most cases credit cards are easy to use, making them the obvious choice for many traders. But, as you’ll have seen, there are many drawbacks to buying Ethereum or other cryptos with a credit card. Credit card fees are high and most cards are not supported. If you want to learn how to buy Ethereum with other, cheaper and more convenient methods check out a different crypto guide.
Yes, you can buy ETH and other cryptos with a credit card. However, credit card deposit fees are higher than other methods. There are cheaper and more convenient banking methods that are more suited for the crypto sphere.
Yes, if a credit card is accepted at an exchange or broker it is perfectly legal to transact. It may, on the other hand, take some searching to find a platform that accepts the credit card you intend on using to transact.
Different exchanges and brokers charge different fees for making a credit card deposit. eToro has the lowest deposit fees in our investigation, but it is recommended that you investigate each platform yourself before making any deposits.
In our investigations, we found that eToro was the best all-around platform to make credit card deposits. The site charges no fees for deposits, making it the cheapest option. eToro also provides excellent versatility and a wide range of trading options. However, we recommend that you do your own investigation into which platform you prefer.
