Own crypto with confidence
Own crypto with confidence
- Own BTC & 70+ other cryptoassets
- Join a community of 25+ million
Cryptoassets are highly volatile and unregulated in the UK. No consumer protection. Capital gains tax on profits may apply.
How to buy Bitcoin with a credit card in the UK
Using a credit card to buy Bitcoin isn't cost-effective or a good idea, but it can be done.
Crypto is unregulated in the UK; there's no consumer protection; value can rise or fall; tax on profits may apply.*
Although it's possible to buy cryptos like Bitcoin with a credit card, you should think very carefully before you do.
While a credit card might seem like a convenient payment option, there are some serious downsides you need to consider, including additional fees and the risk of your payment being blocked. And, it can be tricky to find a crypto trading platform that accepts credit card payments.
How to buy Bitcoin with credit card
If you've thoroughly researched the fees and risks and decided to buy Bitcoin with credit card, here are the general steps you'll need to take.
- Choose a platform that accepts credit cardsFirst you will need to find a platform that actually accepts credit card payments. There are a small number of platforms including crypto exchanges, investment apps and brokers that may let you pay by card.
- Create an accountRegardless of which service you use to buy Bitcoin with a credit card, you will need to create an account. At a minimum, this requires you to sign up with an email and password. Additionally, most exchanges will require you to pass a Know Your Customer (KYC) process which involves photo ID.
- Make your purchaseThe next step is to actually purchase Bitcoin with your credit card. This requires you to provide your full credit card details. Depending on the service provider, they will also ask for billing details such as the associated address, along with the name on the card. Once the details of the credit card have been entered, then you can choose the amount of Bitcoin you would like to purchase. Remember – you can purchase less than 1 whole BTC.
- Store your cryptoTrading platforms typically offer an in-built wallet to hold your Bitcoin on your behalf. If you don't plan on trading frequently, it's a good idea to consider transferring most of your funds to a personal crypto wallet for added security.
Purchasing Bitcoin with a credit card might seem convenient but it carries a lot more risk than using funds in your bank account. Using a credit card means you are taking on debt which is going to compound rapidly if you don't pay it off immediately. Taking on debt to invest in anything – especially a volatile asset like Bitcoin – is particularly ill-advised because you could wind up losing more than your initial investment.
James Edwards
Finder's Global Crypto Editor
Where to buy crypto with credit card in the UK
Use the table to compare platforms that let you purchase Bitcoin with a credit card in the UK. Compare fees, supported currencies and special offers.
Crypto is unregulated in the UK; there's no consumer protection; value can rise or fall; tax on profits may apply.*
1 - 5 of 9
Best places to buy Bitcoin with a credit card
There are several places to buy Bitcoin with a credit card, including:
- Cryptocurrency trading platforms. Exchanges and brokers that accept credit card typically require identity verification before purchase.
- Bitcoin ATMs. Some Bitcoin ATMs accept credit card payments, allowing users to purchase Bitcoin in person.
- Peer-to-peer marketplaces. P2P platforms such as Paxful connect crypto buyers and sellers, some of whom may accept credit card payments.
How much does it cost to buy Bitcoin with a credit card?
While buying crypto with credit is generally straightforward, it can also be quite expensive. This is because there are several fees that can contribute to the cost of your transaction, not only from the crypto broker but also from your card issuer. These charges can include:
| Cash advance fee | Many card issuers treat a cryptocurrency purchase as a cash advance. This means your purchase will usually incur a cash advance fee and will also attract higher interest rates than normal purchases. |
| Exchange/broker fee | The platform you use to buy Bitcoin or another cryptocurrency will impose its own transaction fee. These tend to range from 4–5%, but are higher in some cases. |
| Credit card surcharge | You may also be asked to pay a credit card surcharge on top of any other fees and commissions being charged. |
| Currency exchange fee | If you're using a local credit card on an overseas exchange, you might wind up paying foreign currency conversion fees. |
| Higher interest rates | Credit card providers often charge fees upwards of 10% p.a on credit loans. Double-check the loan and repayment information with your card provider and remember to account for interest rates when calculating your repayments. |
Pros and cons of buying Bitcoin with a credit card
Pros- Speed. Transactions made with a credit card are usually processed quickly, allowing you to buy Bitcoin and have it in your wallet in a matter of minutes.
- Earn rewards. Some credit cards offer rewards or cashback for purchases made on the card, which could help offset the cost of buying Bitcoin.
- High fees. Buying Bitcoin with a credit card can be more expensive than other methods due to the fees charged by the credit card company and the platform used to make the purchase. Exchanges typically apply a surcharge of between 1.5% and 5%.
- Debt. Using a credit card to purchase Bitcoin means you are going into debt. If the price of Bitcoin drops, you will still need to repay your debt in full, plus any interest.
- Interest. If you don't pay off your credit card balance in full each month, you will be charged interest on the purchase, which can add significant costs over time and increase your debt.
- Payment blocks. Credit card issuers have been known to freeze the accounts of customers who use their cards to buy crypto, so it's a good idea to check if your bank is crypto-friendly before making a purchase.
- Credit card fraud. As with any online purchase, there is a risk of credit card fraud when buying Bitcoin with a credit card. It's important to only buy from reputable platforms and to take steps to secure your credit card information.
Is it safe to buy Bitcoin with a credit card?
There are a few things worth considering before you decide to purchase Bitcoin with a credit card.
Security of the platform. Make sure the platform you are using is reputable and has a good track record of protecting customer information. Check for security features such as 2-factor authentication and SSL encryption.
Fees and charges. Be aware of any fees or charges associated with buying Bitcoin with a credit card. Compare these to other purchasing options to ensure you get a fair deal.
Volatility of Bitcoin. The value of Bitcoin can be highly volatile, so be prepared for the possibility of significant price fluctuations after purchasing.
Legal and regulatory compliance. Some countries have regulations and laws that restrict or prohibit the buying and selling of Bitcoin. Be sure to check the laws and regulations in your country before making a purchase.
Wallet security. If you plan to store your Bitcoin in a wallet, make sure to choose a secure and reputable wallet provider.
Reputation of the company. Check the company's reputation, its regulatory compliance and if it has had any security breaches in the past.
Credit card debt. Buying Bitcoin on credit can easily lead to credit card debt if not managed properly, so it's essential only to spend what you can afford to repay.
Other ways to buy Bitcoin
Credit cards aren't the only way to purchase Bitcoin – or the best. There are several other ways to buy Bitcoin that are generally more cost effective.
- Bank transfer. You can use a cryptocurrency exchange that accepts bank transfers as a payment method. Many major exchanges allow you to deposit funds via bank transfer and then use those funds to buy Bitcoin, usually with comparatively low to no fees attached.
- PayPal. You can buy Bitcoin with PayPal which can then be used to make purchases on millions of online stores that accept PayPal as a payment method. Some crypto exchanges also support PayPal as a deposit method, allowing you to transfer funds from your PayPal onto the exchange, and then trade them for Bitcoin.
- Cash. You can buy Bitcoin with cash through a variety of methods, including a Bitcoin ATM or via a peer-to-peer crypto marketplace.
It's important to remember that each of these methods has its own advantages and disadvantages. Research and compare the different ways to buy Bitcoin before making a decision, and always use reputable providers to ensure the safety and security of your funds.
Frequently asked questions about buying Bitcoin with a credit card
* Cryptocurrencies aren't regulated in the UK and there's no protection from the Financial Ombudsman or the Financial Services Compensation Scheme. Your capital is at risk. Capital gains tax on profits may apply.
Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
More guides on Finder
-
Bitcoin (BTC) price prediction 2023
A panel of industry specialists give us their predictions on the price of Bitcoin to 2030.
-
How to buy Bitcoin (BTC) in the UK
Learn how to buy Bitcoin in the UK with our simple step-by-step guide and tips on what to know before you get started.
-
How to mine Bitcoin (BTC)
Is Bitcoin mining still a profitable venture? In this article we explain the basics, outline the steps involved and discuss the costs to consider.
-
How to buy large amounts of Bitcoin
Want to buy a large amount of bitcoin? This guide takes a look at the easiest and cheapest ways to spend big on cryptocurrency.
-
Bitcoin (BTC) price, chart, coin profile and news in the UK
Want to ramp up your Bitcoin knowledge? Bitcoin was the world’s first-ever digital currency and blockchain. Follow our easy-to-understand guide on what Bitcoin is, how it works and where to buy it.
-
Bitcoin statistics
We’ve rounded up the statistics on Bitcoin, the first and largest cryptocurrency.
-
Bitcoin vs Ethereum
What exactly is the difference between Bitcoin and Ethereum? A beginner’s guide to Bitcoin vs Ethereum.
-
8 ways to get free Bitcoin
Here are 8 legitimate ways to earn free Bitcoin. See which methods interest you, find out how to get started and grow your digital wallet.
-
11 crypto scams to avoid
A round-up of the most common crypto scams and how to detect and avoid them.
-
How to buy Bitcoin without ID in the UK
If you want to buy cryptocurrency without ID in the UK, find out everything you need to know in this guide on how to buy bitcoin anonymously.
Ask an Expert