How to Buy Ethereum with Credit or Debit Card

Ethereum, silver to bitcoins gold but still a very popular cryptocurrency to buy. With its underlying blockchain, Ethereum is becoming more and more desirable to crypto investors.

With it currently sitting second in the market cap league table, it doesn’t look like it is going anywhere, and this is apparent with the amount of different methods you can buy it.

Credit card and debit cards are the most common payment methods when purchasing Ethereum using fiat currency. Here is everything you should consider when buying ether using these cards.

5 Simple Steps to Buying Cryptocurrencies with Credit Card

  1. Sign up for free using the link below, enter your details into the required field.
  2. Fill out the questionnaire, this is short and actually very useful!
  3. Click ‘Deposit’, you’ll be asked to choose your payment method, click ‘Credit Card’.
  4. Enter the amount you want to deposit (we’d recommend you start with the minimum before then upping the amount).
  5. Now you have a live account, find your cryptocurrency of choice and buy it!

Where To Buy Ethereum

Buy with Credit Card - eToro

Buying with credit or debit cards used to be very difficult prior to providers like eToro supporting cryptocurrencies. Now that eToro and others do allow you to buy with credit card, the market is much more accessible. eToro keeps it simple, the process is very similar to buying anything online, fill out your details and see the product delivered.

Step 1: Registration

Before you can buy any cryptocurrencies you will need to create an account. This is simple to do and free as well, so you can get used to the platform before taking the plunge. Click the link below and fill out the required fields, you'll then need to fill out a questionnaire to begin with.

Step 2: Deposit

Now you have an account and are ready to buy the cryptocurrency of your choice, it is time to deposit into your live account. Click the button in the bottom left that says 'Deposit', you will be asked to choose a payment method, this is where you pick credit card and then fill out the relevant details and hit deposit.

Step 3: Buy Your Crypto

Now you have a live trading account, you can pick the cryptocurrency you want to buy. eToro offers the most popular and arguably safest coins on the market. Once you've chosen the coin, hit 'Buy', then enter the amount you want to purchase, and finally click 'Trade' and you have bought your coin!

What are the fees when buying with a credit card or debit card?

The deposit fee comprises of the usual credit card or debit card payment fees and, in some cases, exchanges fees. Nearly all exchanges charge withdrawal fees. Converting your fiat currency into ETH attracts a transaction fee. The fees vary from one exchange to another. For example, Binance does not charge any deposit fees, but some exchanges charge up to 11%. 

The average trading fees is 0.20-0.25%. However, certain platforms such as Cash2PM charge 20%. All exchanges have withdrawal fees and most of the time it is a fixed amount. The industry average for ETH withdrawal is 0.01ETH. A few platforms have percentage-based withdrawal fees with the average being 0.10%.

 

Buy Ethereum with a credit card or debit card in your country

Exchanges that support buying Ethereum using credit cards are not accessible from all countries. Coinbase, for example, is only available in 33 countries.  Besides, your bank may vary the fees from country to country. The average bank fees for crypto trading is 3.5% but this can up to 4.6% as is the case with the Royal Bank of Scotland.

 

Withdrawals and limits of credit cards and debit cards

Most exchanges have restrictions on the amount of Ethereum you can purchase using a credit card or debit card. Credit companies also have limits of the amount you can spend on a single transaction. In the UK, for example, traders cannot fund their accounts with more than £500 per day.

 

Pros and cons of buying Ethereum with a credit card or debit card

 

Pros

  • Several exchanges including Coinbase, Bitfinex, Kraken, Huobi, and Binance accept credit card and debit card payments. 
  • Most exchanges offer high purchase limits when purchasing with credit cards. Coinbase, for example, increased its daily limits to £25,000. Changelly has a daily limit of £20,000. 
  • In case you do not get your ETH, you can apply for a chargeback through your credit card or debit card provider. 
  • You can easily pay for Ethereum in any fiat currency that an exchange accepts. 

Cons

  • Credit and debit card fraud is common. The most common if pharming, where hackers clone the exchange’s website and steal your credit or debit card credentials when you make transactions. 
  • It is not possible to remain anonymous since you have to provide your credit details and verify the transactions, which makes it easy to trace transactions back to you.

 

What is Ethereum prepaid card?

It is an Ethereum loaded card. You top it up by sending ETH to the card as you do with a normal debit card, only that here it is from a coin wallet instead of a bank account. It allows you to make payments using Ethereum as you would with a regular credit or debit card. Most of the popular Ethereum debit cards support other currencies as well. They include TENX, Wirex, Coinbase Card, and UQUID.

 

Frequently Asked Questions

  1. Are there similarities between Visa/MasterCard and Ethereum?

    Yes. First, you can use all of them to pay for services. ETH prepaid card or debit card also allows you to make purchases in any currency, just as a credit card.

  2. Can Ethereum replace Visa or MasterCard?

    Yes, because it has a short confirmation period, charges low transaction fees and is more secure. However, this has to wait for a global acceptance of cryptos as payment methods.

  3. Will my Visa/MasterCard block any Ethereum transactions?

    It is highly probable. Recent policy changes are bound to make purchasing cryptos using Visa and MasterCard costly as the two had classified cryptos, ICOs and binary options as “high risk”.

  4. Are there easier ways to buy Ethereum?

    Credit card or debit card buying is the easiest method for those who do not have altcoins, as it is a more common option than cryptos and e-wallets such as Skrill and Neteller.

  5. What is the best exchange to buy Ethereum with a credit card or debit card?

    Coinbase. It has no deposit fees and a low trading charge of 1.46%. However, it is not available in New Zealand as well as most countries in South America, North America and Africa. 

  6. Can you buy Ethereum with a credit or debit card on an exchange?

    Yes. All popular exchanges that accept fiat currency accept credit cards. They include Coinbase, Binance, Bitfinex, Bittrex, Kraken, and Huobi, among others.

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