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 Steps to Buy with eToro Now

Buying any cryptocurrency with eToro is easy, simply follow the steps below:

  1. Sign up for free with eToro, entering your details in the required fields.
  2. Fill out the questionnaire, this is both educational for you and eToro.
  3. Click 'Deposit', you'll then be asked how you want to fund your account.
  4. Choose your required payment method, follow the simple steps to link your payment.
  5. Enter the amount you want to deposit and you're good to go!
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Buy with eToro

eToro is one of the first cryptocurrency providers that allow you to buy using many payment methods as well as other services. The actual process is very simple as well and one of the reasons we do recommend eToro for both beginners and experts.

Step 1: Registration

To get started, you'll need to register with eToro. It is free to sign up and you don't need to deposit right away, which means you can get used to the platform before going live.

Step 2: Deposit

Once you're happy with the platform and ready to buy for real, it is time to deposit some money into your account. Click the deposit button in the bottom left, then choose your payment method of choice. Enter the amount you want to deposit, we'd recommend starting low before adding extra over time.

Step 3: Start Trading

Now your account is live and ready to go, the process is like any other CFD provider, you will need to search for the coin you want to buy, be it bitcoin, ethereum or whatever your preferred choice is. Hit the 'Buy' button and then 'Trade', make sure you understand your risk parameters before you jump in.

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.

FAQs

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

  2. 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. 

  3. 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.

  4. 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”.

  5. 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.

  6. 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.