Ethereum (ETH) has firmly established itself as the second-largest cryptocurrency by market cap — second only to Bitcoin.
Ethereum, however, was created with a different purpose to Bitcoin’s. Ether, or ETH, is the cryptocurrency that powers the Ethereum platform.
The Ethereum blockchain uses ETH for the purposes of smart contract creation, dApps, DeFi, transaction fees payments, and more. To this end, Ethereum can be used as a potent investment tool, as its use-cases could help it overtake Bitcoin in the coming years.
The good news is that you can buy Ethereum with a credit card with ease. It is a very popular payment method, it works relatively quickly, and you can use both of the biggest card providers Visa or Mastercard.
Our Quick Tutorial to Buy Ethereum with Credit Card
Step 1: Sign-Up
Step 2: Make your First Deposit
Once your account is set up, you can go to "Deposit" and follow the instructions to fund your account with Credit Card . Enter the amount you want to deposit (beginners normally start with lower amounts), follow the steps and check your new account balance.
Step 3: Buy Ethereum!
Other Methods of Buying Ethereum with Credit Card
Of course, the steps above only explain how to buy Ethereum on centralised exchanges. Since that is the most common method of purchasing Ethereum with a credit card, most people are likely going to need to know those steps.
However, the crypto industry is advanced enough these days to be able to offer alternative methods of buying ETH. For example, you can also turn to buying or selling Ethereum on decentralized exchanges. The biggest difference in using these platforms is the fact that you do not have to deposit any money. Simply choose a cryptocurrency you wish to buy with your credit card, enter the amount and complete the transaction.
Alternatively, there are also P2P platforms that would allow you to buy Ethereum, or even buy bitcoins, and then use it elsewhere for buying ETH with those Bitcoins.
Advantages and Disadvantages of Buying Ethereum with Credit Card
Buying Ethereum with Credit Card Fees
Buying ETH with a credit card comes with certain fees, although those may vary from one exchange to another.
Most exchanges will not charge you fees for depositing money on their platform. This is their way of thanking you for choosing their exchange to do your business.
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%.
However, purchasing coins on exchanges or through brokers will come with fees that vary from one exchange to the next. The size of the fee will also depend on the size of your purchase.
Is Buying Ethereum with a Credit Card the Best Method?
Buying Ethereum with a credit card is one of the most popular methods to use.
If you want a method where there are fewer fees, you would likely want to try out a bank transfer instead. This will take longer, so may not be the best if you are in a hurry to buy to get ahead of the market. However, bank transfers are a great option if you want to make monthly purchases to steadily grow the size of your investment.
An additional option is to use PayPal, which generally has lower fees than using a credit card but still offers ease of use and convenience.
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
This is something that depends on you. Ethereum has plenty of use cases, but that will mean little if you are not interested in using those. If you wish to use dApps, then yes, absolutely. If you wish to use it for online shopping, then Bitcoin is likely a better option.
Using your credit card as a means of payment for crypto is safe, yes. There are other risks, however, such as losing your money if Ethereum's value drops. However, the purchase method itself is perfectly safe.
As mentioned before, Ethereum has many use cases. You can use it to operate dApps built on its blockchain or create smart contracts. You can use it for trading, as ETH has countless trading pairs. HODLing is another option if you expect its price to grow and wish to increase your investment by buying when prices are low.
Using a credit card for buying cryptocurrencies is quite widespread and popular, and pretty much all fiat-to-crypto exchanges will accept it as a payment method. The key is to use a reputable exchange in your region so your investment is safe from illegal practices.
Unfortunately, no, cryptocurrencies do not work this way. Instead, you could sell your ETH for your local currency and then withdraw the money. Alternatively, you can withdraw the coins to your Ethereum wallet.
Yes. While the crypto industry still remains largely unregulated around the world, it is still subjected to taxes in most places.
Instantly, no. Very quickly — yes. Ethereum transactions get processed much quicker than Bitcoin's, but they still need up to five minutes to confirm large transactions if you have paid the standard gas fee rate.
Unfortunately, no. While more and more banks are starting to open up to crypto, there are many of them that are still against the digital finance industry. With that in mind, each bank has its own ideals and rules, so you will need to look into your bank’s policy.
Unlike traditional markets, crypto trading is not limited by the time of day. It is open 24/7, everyday of the year.
There are multiple methods to choose from, so you will need to see what your priorities are: speed, low fees and security — and use the adequate method.