Economic instability, a desire for financial independence, and institutional adoption—all these factors continue to drive the interest and adoption of Bitcoin, pushing its market presence and influence to new heights.
In this article, we explore various methods for purchasing Bitcoin using a credit card—from centralized exchanges to crypto wallets—so you can get involved too.
What's the Bitcoin (BTC) hype all about?
The current hype around Bitcoin is fueled by several factors, driving both mainstream and institutional interest.
One significant reason is the ongoing economic uncertainty and inflation fears, which have led investors to seek alternative stores of value. Bitcoin, often referred to as “digital gold,” is considered a hedge against inflation and currency devaluation. The finite supply of Bitcoin, capped at 21 million tokens, adds to its allure as a deflationary asset.
Additionally, the narrative of decentralization and financial sovereignty resonates with a growing number of individuals disillusioned with traditional financial systems. The idea of a decentralized, borderless currency that operates independently of central banks and governments is particularly appealing in today's global economic climate.
Another driver is the increasing institutional adoption of Bitcoin as a legitimate asset class. Companies such as Tesla, MicroStrategy, and Square have made substantial investments in Bitcoin, signaling confidence in its long-term value. This institutional endorsement not only legitimizes Bitcoin but also attracts more investors looking for high returns and portfolio diversification.
Regulatory developments have also played a role in the current hype. The approval of spot Bitcoin ETFs in the US has made it easier for traditional investors to gain exposure to Bitcoin without the complexities of direct ownership. This has broadened the investor base and increased market liquidity.
Buying Bitcoin (BTC) with a credit card
Purchasing Bitcoin with a credit card has become increasingly accessible and convenient, so let's explore the most popular trading options.
Centralized exchanges
Centralized exchanges, such as Binance or Coinbase, are the most popular platforms for purchasing Bitcoin with a credit card.
These exchanges offer user-friendly interfaces that make it easy for you to navigate and execute transactions. They also provide the advantage of instant purchases, allowing you to acquire bitcoin quickly. Additionally, centralized exchanges typically have high liquidity, ensuring that there are ample buy and sell orders available, which helps in executing trades at favorable prices.
However, there are some drawbacks to using centralized exchanges. One of the main disadvantages is the higher fees associated with credit card transactions, which can make purchasing Bitcoin pricier. Also, regional restrictions may apply, limiting access to these exchanges for people in certain countries or regions.
Fintech platforms
Fintech platforms such as PayPal and Revolut are increasingly allowing people to gain exposure to cryptocurrencies as well.
You can easily buy Bitcoin using accounts and credit cards on these platforms, and thus benefit from the convenience and security that these services offer.
Having said that, one significant drawback is that you may face difficulties when trying to withdraw your Bitcoin to external wallets, limiting your control over your assets. This limitation can be a concern for you if you prefer full custody of your cryptocurrency holdings.
Bitcoin ATM
In the US and Europe, Bitcoin ATMs have become a popular method for purchasing Bitcoin and other cryptocurrencies using cash or a credit/debit card. Some of these ATMs also offer bidirectional functionality, allowing you to not only buy Bitcoin, but also sell it for cash.
This provides a convenient and immediate way to engage in cryptocurrency transactions. You can benefit from instant transactions and the receipt of Bitcoin, making the process quick and straightforward.
Bitcoin ATMs, however, often come with higher fees compared to online platforms such as Binance and Coinbase, making transactions more costly. Also, the availability of Bitcoin ATMs is limited to specific locations, which is a drawback if you don’t have one nearby.
Crypto wallets
Purchasing Bitcoin with a credit card is easiest through Bitcoin wallets, such as Phantom wallet, which offers both a browser extension and mobile app (iOS and Android).
Our wallet also integrates with several third-party payment services, such as MoonPay and Coinbase, which streamline the transaction process and ensure you have multiple options for purchasing Bitcoin.
Additionally, the fees associated with these transactions are competitive, making Phantom an attractive option for those looking to invest in Bitcoin without incurring excessive costs.
How to buy Bitcoin (BTC) with a credit card and Phantom
To begin, ensure you have the Phantom browser extension or mobile app installed. If you don’t, download it now.
Once you have Phantom set up, open your wallet and navigate to the “Buy” tab. Here you'll see two Bitcoin buy options: Bitcoin (Taproot) and Bitcoin (Native SegWit).
Native SegWit transactions are cheaper because they contain less data, whereas Taproot transactions are more expensive due to their larger data size. For a straightforward BTC purchase, we recommend opting for Bitcoin (Native SegWit). However, if you're interested in exploring the broader BTC ecosystem, including Ordinals, Bitcoin (Taproot) might be more suitable.
Going further, enter the USD amount of Bitcoin (Native SegWit) you wish to buy and click “Next.”
Next, choose your preferred payment provider: MoonPay or Coinbase. The selected service will guide you through the buying process, enabling you to complete your purchase using a credit card.
Upon completing the transaction, your Bitcoin (Native SegWit) will be automatically deposited in your Phantom wallet.
Disclaimer: This guide is strictly for educational purposes only and doesn’t constitute financial or legal advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.
