Investing in Bitcoin and other cryptocurrencies starts with one crucial step: buying coins, also known as depositing or funding your account. Using a credit card to purchase crypto is one of the simplest and most convenient methods, available on major exchanges and even some decentralized platforms. However, while highly accessible, this method has drawbacks that may not suit all investors.
This guide explains how to use a credit card to buy Bitcoin and other cryptocurrencies, compares the pros and cons, and explores alternative funding methods.
What Does "Buying Crypto" Mean? Converting Fiat to Digital Assets
Everyday money issued by governments is called fiat currency (e.g., TWD, USD, EUR). Cryptocurrencies like Bitcoin are decentralized digital assets on blockchains. Before trading crypto-to-crypto (e.g., BTC to ETH), you first need to acquire crypto using fiat—a process called funding or depositing. Credit cards offer a straightforward way to do this.
Step-by-Step Guide to Buying Crypto with a Credit Card
Key Considerations for Taiwanese Users
Taiwan’s Financial Supervisory Commission (FSC) prohibits credit card purchases of crypto due to its speculative nature. While some global exchanges support credit card deposits, not all cards work. Testing is required to confirm compatibility.
👉 Explore trusted crypto exchanges
How to Buy Bitcoin on Binance with a Credit Card
Follow these steps:
- Register an account on a supported exchange (e.g., Binance, Bybit, OKX).
- Complete KYC verification (ID required).
- Navigate to the "Buy Crypto" section.
- Select your fiat currency (e.g., TWD, USD) and cryptocurrency (e.g., BTC).
- Enter the purchase amount (minimum ~550 TWD or 15 USD).
- Choose credit card or Apple/Google Pay as the payment method.
- Submit payment—coins appear in your exchange wallet instantly.
Supported Taiwanese Banks (May Vary):
- Taishin Bank
- LINE Bank
- Cathay United Bank
- DBS Bank
- Others: First Bank, Chang Hwa Bank
Fees and Exchange Rates
- Typical Fees: 2% (exchange) + 1.5% (credit card) = 3.5% total.
- Price Differences: Exchanges may offer less favorable rates than local brokers. For example, 1,000 TWD might buy 4.41% fewer BTC on Binance vs. Maicoin.
Best For: Small, quick purchases due to higher fees on large amounts.
Pros and Cons of Credit Card Purchases
| Pros | Cons |
|---|---|
| Instant deposits | High fees (3.5%+) |
| No blockchain transfers | Limited card compatibility |
| Beginner-friendly | Not ideal for large purchases |
Alternative Funding Methods
- Bank Transfers: Lower fees for larger amounts.
- Convenience Stores: Pay cash at 7-Eleven/FamilyMart (Taiwan only).
- P2P Trading: Risky for beginners; requires caution.
👉 Compare crypto funding options
FAQs
1. Why does my credit card fail when buying crypto?
Some banks block crypto transactions. Try cards from supported banks or use Apple Pay.
2. Are there daily limits for credit card purchases?
Yes, exchanges often impose limits (e.g., $5,000/day). Check your platform’s rules.
3. How quickly can I trade after buying crypto?
Coins are available immediately on exchanges—no waiting for blockchain confirmations.
4. Is buying crypto with a credit card safe?
Stick to reputable exchanges. Avoid platforms demanding upfront payments or offering "guaranteed returns."
5. Can I earn credit card rewards on crypto purchases?
Yes, but rewards may not offset high fees. Compare cashback rates vs. transaction costs.
Next Steps After Buying Crypto
- Earn passive income: Stake or lend your coins (up to 20% APY).
- Trade: Swap BTC for altcoins or stablecoins.
- Withdraw to a wallet: Secure long-term holdings offline.
For deeper dives, read our guides on crypto taxes and earning strategies.
**Notes**: