Buying crypto with credit cards?

For some, using a credit card to purchase Bitcoin seems like a good way to own the cryptocurrency and use the future gains to pay off the debt and fees.

Buying crypto with a credit card can be extremely expensive. Until you understand the true cost, keep your Mastercard and Visa away.

While it is possible to buy cryptocurrencies with credit cards, not all crypto exchanges accept them.

But just because you can buy crypto with a credit card doesn’t mean you should.

Cryptocurrency exchanges make money in different ways, in addition to a fee the exchange charges for its service (everyone is doing it, some are hiding), it might charge an additional fee for using a credit card. For example, the exchange might charge you a percentage of the transaction amount to exchange fiat (USD, EUR, GBP, YEN, RUB) for bitcoin or other cryptocurrency.

When you pay with a credit card, you’re hit with credit card fees on top of the normal exchange trading fees.

To buy cryptocurrencies on one of the exchanges with a credit card, you have to pay:

Exchange rate spread: 1.9%

Commission fee: up to 3.9%

Credit card fee: 5%

All these fees are built into the trade price, so you may not even realize how much you are losing unless you compare it to the true exchange rate.

Pros and cons
Pros If you need crypto right that moment its ok. And that’s all.

Cons
When you use a credit card, you’re charged with multiple fees. These fees are not associated with other payment methods like SEPA, International bank transfers or ACH transfers. Use cash (SEPA, International bank transfers or ACH transfers) instead credit cards.

Will SPARTAEX add credit card payments?

There is a huge demand of buying crypto with credit card. Right now SPARTAEX will not implement credit card payments, because we think that our users deserves fair prices when buying crypto. We are exploring better options to integrate credit card crypto buying on SPARTAEX. One of “better options” is lower credit card fees.