There are frequent opportunities in the cryptocurrency market that require a quick response. However, depositing funds into an exchange via bank transfer or e-wallets can take up to several hours or even days. The fastest and easiest way to buy cryptocurrencies is therefore by credit card. In today’s article, we will explain how to use credit cards to buy altcoins on Binance. So, here we go!
Credit Card Fees – What Are the Types?
Although buying altcoins with a credit card is simple and fast, it comes with fees that can be higher than other methods such as bank transfers. When using a credit card, we may be charged the following costs:
- Transaction fees – The fee charged by cryptocurrency exchanges for card transactions is usually higher than for other payment methods (such as bank transfers). Binance, in this case, charges a maximum of 2% commission. All other fees depend on your bank or credit card provider.
- Cash advance fees – A cash advance is when your credit card company borrows you money. In turn, you pay 3%-5% as a fee. Cryptocurrency credit card transactions are also sometimes counted as cash advances. However, Binance users do not incur any fees due to this, as the exchange only accepts Mastercard and VISA cards.
- Foreign transaction commission – Binance does not allow you to make deposits or purchases directly in every currency. This means that if your fiat money is not available you will have to use another such as USD or EUR. In this case, you will also be charged a foreign transaction fee by your card provider (usually around 3%).
Buying Altcoins With a Credit Card – What Are the Benefits?
Buying cryptocurrencies with a credit card comes with many benefits. These include:
- Fast purchases – Using your credit card, you can buy cryptocurrencies almost instantly. This means that you will always be able to take advantage of favorable opportunities in the market. With bank transfers, it can take up to several days to process your deposit.
- Simplicity – Buying cryptocurrencies with a credit card on Binance is very simple. It basically all comes down to following just five steps (which we will break down later in this guide). This is why even a very novice investor should be able to handle the process.
- You don’t need to have cash on hand – As we well know, the cryptocurrency market is very volatile. This means that a buying opportunity can arise at any time. However, what if you are still waiting for your paycheck and it will arrive in your bank account only in a few days? In that case, you can use your credit card and buy cryptocurrencies on Binance instantly and easily. However, keep in mind that failure to pay the debt on time may result in high costs on your bank’s side.
How to Buy Altcoins With a Credit Card on Binance
The process of buying altcoins with a credit card on Binance is so simple that even a complete layman should be able to handle it. Basically, it all comes down to following five simple steps. Here they are:
- First, you need to log into your account. If you don’t have one yet, you can create one using this link. Once you have successfully gone through the registration and KYC verification process, hover your mouse over the “Buy Crypto” button at the top of the page and then click “Credit/Debit Card”. Alternatively, you can also just click on this link.
- Now choose the fiat currency you want to use to make your purchases and the cryptocurrency you want to buy. Binance lets you choose from hundreds of different altcoins. Unfortunately, it does not support all fiat currencies, so you may have to use a foreign one (which incurs an additional fee charged by your bank).
- The next step is to add a new credit card. To do this, click the “Add a new card” button. Then enter your card details and billing address and press “Add Card” again.
- Now click “Continue”. At this point, your transaction details will appear. If everything is correct, confirm your order.
- The last step is to verify the payment on your bank’s OTP transaction page. Once this is done, the cryptocurrency will appear in your spot wallet!
Buying altcoins with a credit card is a good idea if there is an opportunity on the market and you want to take advantage of it. However, it is important to remember that this payment method is often subject to a higher commission. You can also use a credit card when you currently don’t have cash but want to leverage a buy opportunity. You should remember, however, that in case of not paying the debt on time, the bank can charge huge fees!
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