How to Buy Bitcoins With a Credit Card | 3 Steps

How to buy Bitcoins with a credit card is an important question to consider with the rising fame of cryptocurrency. Whether or not you should use a credit card to purchase any virtual currencies has been discussed and weighed by many people.

Some people feel that using a credit card to purchase cryptocurrency is safe; other people are against it because of the fees and high-interest rates associated with credit cards.

Lucky for you, credit cards are not the only option for buying Bitcoins (or any other cryptocurrency). There are other methods available such as debit cards, wire transfers, ACH, and even Pay Pal! Some of these options are actually better than using credit cards because the fees involved are not as high.

Whether you want to learn how to buy Bitcoins with a credit card, debit card, or anything else, there are three simple steps involved with this process. Let’s get right into them.

Step 1: Choosing a Broker

If you’re new at buying Bitcoin, you probably want a broker that’s safe and makes the process easy for you. This means that there can’t be any sketchiness involved with the broker.

When looking for a broker, you should be looking for one that has the following qualities:

  • Easy Access to Cryptocurrency
  • Good Value (not too much in fees)
  • Safety & Security
  • Ease of Use

The easiest broker options to use when buying Bitcoins are Coinbase and Gemini. These platforms fit all of the Criteria listed above and although they do charge small fees for transactions, they are very reasonable prices to pay for the benefit of having easy access to the crypto market.

Word of advice, using ACH transfers to buy your cryptocurrency is, by far, the most inexpensive options when using these platforms. Using credit cards or debit cards to buy cryptocurrency proves to be a lot more expensive than ACH transfers.

Now, remember how I said that there must be no sketchiness involved in the broker? Well, Coinbase and Gemini are regulated platforms that do not break any laws of the designated nations they can be used in.

All Brokers Require:

  • Anti-Money Laundering (AML)
  • Know Your Customer (KYC)

In short, these mean that all of them (even non-crypto brokers) will require personal information such as ID, phone number, address, and everything else that standard brokerages require.

Signing up with either of these brokers will get you started on the right foot to buying Bitcoins and any other cryptocurrency!

Step 2: Choose a Place to Store your Bitcoin

Once you’ve bought your Bitcoin (or other cryptos) you need to find a place to store them. Although Coinbase and Gemini go above and beyond on their safety standards to keep your crypto safe, they act as a bank and do not provide you direct control or APY benefits on your cryptocurrency.

Now, if you don’t mind having an intermediary holding your Bitcoin as if it were a bank with no APY, then go ahead and leave your Bitcoin on these platforms.

They both offer above-average safety for the crypto they hold. Coinbase’s safety is just as great as Gemini’s safety.

However, if you’d like to have direct access to your Bitcoin with no other party involved, or if you’d like to earn high interest on your cryptocurrency then let’s look at your two best storage options!

Cold Wallet

This is a wallet that is independent of an internet connection, it cannot be hacked remotely. It safely stores your private key and provides you with a seed phrase to access your cryptocurrency. It can be safely used on an untrusted computer.

If you were to ever lose this wallet or it was stolen, you can use the back-up phrase to access your cryptocurrency from another wallet.

However, make sure to NEVER share your seed phrase with anyone. Whoever has access to that phrase has access to your crypto. So make sure to write it down, keep it safe and never tell anyone about it.

To perform any type of transaction with this wallet, you need to connect it to a computer and a bridge program (a program that allows the connection between your wallet and your electronic device). This will grant you control over the wallet. These wallets offer a mix of security and ease of use. Unfortunately, you need to keep it on you at all times to send the coins.

And sending or trading any crypto is not a practical process.

Although this is one of the safest forms of storage for your crypto, the drawback is that you don’t earn any interest on it. The crypto just sits in there and goes up or down in value depending on what the markets are doing.

However, if you’re looking for a place that stores your Bitcoin, and pays you a high 6% APY on its value, then you might be looking for the following option.

BlockFi (Hot Wallet)

This web wallet has a connection to the internet, so make sure to enable multi-factor authentication for maximum security when using this wallet.

The great benefit of this is that BlockFi pays above-average interest rates for holding your cryptocurrency within them. The following interest rates are what BlockFi offers (Jan. 2021).

blockfi interest rates

Some people (in the United States) who don’t want to expose their money to the volatility of cryptocurrency will convert their regular dollars to US Dollar Coins (USDC) or US Dollar Tether (USDT), two forms of stablecoins, to earn the high-interest rates on their money.

They also offer a Rewards Bitcoin Credit Card with amazing benefits!

BlockFi is partnered up with well-known investors in the financial industry in efforts to continue to improve its services and provide the best quality interest rates for its users.

The drawback with using BlockFi though is that it is not insured by corporations such as the FDIC or SIPC. However, the majority of the funds in BlockFi are kept in a cold storage. Meaning that those funds are as safe as if you were to store them in your own cold storage.

The fact that it is not insured has not stopped me from using it though, as the services provided by BlockFi are not only trusted by investors like myself but the large venture capital industries using their money to back BlockFi up.

Using BlockFi has been a very lucrative decision for me and I have not had negative experiences with it.

Step 3: Don’t Forget Taxes!

If you’ve ever bought, sold, or exchanged Bitcoin, you probably have to pay some taxes on it. But no one wants to be spending extra time on taxes, especially for something like cryptocurrency. So let’s automize it!

A tool I use to calculate and pay my right taxes every year is There are other options out there but this is the one I use and I have found the most value from.

This account integrates with almost every cryptocurrency account that I have (minus BlockFi).

What you do is you allow this account access to view your cryptocurrency accounts but they can’t actually go in and buy, sell, exchange, or make other transactions in your accounts. They only have an external view of your account as an auditor.

This account can calculate all your transactions for you, it then aggregates all of it for you, and puts it into a document for you. You can print that sheet out and give it to your tax professional so that you don’t have to do any of the tax calculations yourself.


Overall, buying Bitcoins with a credit card might be the more expensive route to take, luckily, the same platforms that accept credit cards (Coinbase & Gemini) would also accept alternative and less expensive methods.

Once you have bought your Bitcoins, you could either leave them in the brokerage and get no interest on them, put them in a web wallet while earning a high-interest yield, or store it in a cold wallet with the utmost security, while foregoing the high-interest yields.

Also, don’t forget about taxes. If you don’t want to do your taxes yourself, you could have an automated auditor do the tax calculations for you.

I hope this article has been helpful, please let me know if you have any questions or comments about these platforms. I’d be more than happy to read and respond to them.


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  1. As someone who is just beginning to look into crypto currency I find this fascinating. Thank you for sharing this article. My husband trades online frequently and is always spouting knowledge of all of these things. I generally have no idea what he is talking about. I have had a browse through this site and you have made things pretty clear even for a newbie to the industry. I might just give him a run for his money.. or at least know what he is talking about.. a little.

    1. I’m happy to hear this was helpful! Thank you for your feedback

  2. I have been interested in investing in bitcoin for a long time but didn’t know how to go about it.  This is the FIRST article I’ve found that actually tells now HOW to do it instead of trying to get me to buy into some platform in which I would do something to earn bitcoin (surf sites or whatever).  Your advice on brokers, wallets and taxes in invaluable.  A million thanks to you!!!!!!!

    1. Absolutely! It’s always good to get the real news out there without trying to skew the audience toward a specific direction that the writer is trying to get them to. I think that whatever someone wants to do with the cryptocurrency is completely up to them, and whatever decisions they make should be based on their ultimate goals not the writer’s

  3. A good dose of healthy advice. It is all very new to me so I enjoyed reading your take on buying bitcoin with a card. It really doesn’t make sense when there is a cheaper option. I was fascinated by the option of where to store it and how to pay tax (lest we forget). It will soon be time for me to put my toe into bitcoin so I will be bookmarking this page for another read.

    Thanks for your valuable information.

    1. I’m happy to hear this was helpful! Thank you for your feedback 🙂

  4. Do you really think that it is a good idea to buy bitcoins? I haven’t been involved with bitcoins as I don’t fully understand how they work in the market. 

    I feel that using a credit card to buy bitcoins is not a good idea because of the fees. Thank you for this step by step guide on how to buy bitcoins with a credit card. I am tempted on trying it, even that I’ve never been involved with bitcoins before. I don’t know if taxes apply to my country. I live in Eastern Europe. 

    1. I think that it would be a good idea to start accumulating BTC if you see the flaws in our current monetary system and want to look for alternatives that don’t have the same flaws. Though, I would never advocate getting into something that you are not familiar with. If you are looking to get into Bitcoin or any other cryptocurrency, I definitely recommend that you read this article on crypto and this article on blockchain technology

      Going into anything blindly can always be dangerous. But if you familiarize yourself with it first, you can see why it would align with your personal goals 

  5. Maria Theresa Gonzales

    Interesting! thank you for this information about investing in Bitcoin.  I am always fear of being scam, In never knew that Paypal accepts.  With the 2 wallets you mentioned, I have not tested it but at least for Paypal, I am confident.  Could you tell how much Paypal is charging fees ? 

    1. Although Paypal is a method of attaining crypto, you won’t have direct control of that crypto to where you could move it to your own crypto wallet or send it to other people. I personally stay away from using Paypal as a platform to buy cryptocurrency because they are the ones in complete control of that currency, you cannot withdraw it from their system unless you sell your crypto and withdraw the cash proceeds from the sale. In which case, you no longer own the crypto (you never really did when you bought via Paypal in the first place).

      As far as what they charge in fees, take a look at their fees page to see their exact rates. In my opinion, the fees are too high for the type of service they provide. The amount that PayPal makes and the exchange rate provided on Paypal may be different than what you would pay on other cryptocurrency platforms with better services

  6. Thank you for sharing. I’ve been just recently started to learn bitcoins and become interested to invest in them. I’m glad that there are brokers who accept credit card payments. Just a bit curious, do they accept payment from any country? I am located in South East Asia. Thank you.

    1. Yes! Some do and some don’t! And I can confirm that Coinbase is available to those in Southeast Asia!

  7. Hello Misael

    Thank you so much for such an informative post. You are very right, choosing the right broker does make the process easier for anyone. I have a not so good experience with choosing a wrong broker. However I always say we learn from our mistakes. our mistakes do make us make better choices in the future. I am glad that today I have learned a little more on buying bitcoin.

    About Ledger and BlockFi wallets being the two best storage options, thank you so much for the info. I am definitely going to try them out. I love the interest.

    Once more thank you for the info.


    1. Absolutely! Glad this was helpful 🙂

  8. I wish I had this info when I first got interested in it. Bitcoin gave my head  spin at first as I could not deal with the fact you could store it offline and could lose it forever if you forget your key phrases. This article makes it easier to know what kind of things you need to consider if you want to play with Bitcoin. Thanks

    1. Glad this was helpful! Thank you so much for the feedback!

  9. Very comprehensive and straightforward guide! It’s great to see all the different options and what makes them different from each other

    Would you say you use bitcoin to carry out transactions, or is it an investment strategy for you. If it is, how do you navigate the constant volatility to make sure you don’t become a victim of all the speculation going on?

    1. Thank you! Great question, I only use it as a means of diversification for my investment portfolio for now. I don’t use it for transactions (at least not yet). 

      And, in terms of how I handle to volatility, all I do is Dollar Cost Average (DCA) every week into it. DCA simply means that I continue to buy the same amount every week despite the ups and downs. I don’t just pour everything in it all at once. Doing this has helped me withstand the volatility, and thus far, I’m at a huge gain with it.

  10. This is a very interesting post on using a credit card to buy bitcoin and cryptocurrency. If using a credit card is more expensive than other forms of payment, why would you want to use a credit card, or are there certain advantages in using a credit card for buying cryptocurrencies that you would not have when using other forms of payment?

    1. Not any significant enough to make a better option than something like ACH transfers. So I would always go with ACH

  11. Hi, I have learned so much about this article on how to buy a bitcoin with a credit card. I agree that some people are against buying it with a credit card because of fees and high-interest rates like you’ve said. I like the fact that you’ve clearly stated other means that bitcoin can still be purchased. Thanks for sharing this important information especially for us beginners in crypto world.

    1. Absolutely! Glad this was helpful, thanks for browsing around the site!

  12. I am still a complete beginner in the field of investing in cryptocurrencies, I am in the phase of collecting the various information and important data, so articles like “How to Buy Bitcoins With a Credit Card” are very welcomed because I always learn something new and important. For example, in this article I learned that I can automate the calculation of annual taxes, this is great information!
    Thanks for this article, which can be very helpful for many, as well as for me.
    I wish you much success,

    1. Thank you for your feedback, I wish you great success as well 🙂

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