Buying Your FIRST “Crypto” with a Credit Card

In an effort to demystify some of the crypticism around purchasing crypto with your cc, let’s start with the basics: how do we define money or currency? 

1. Fungibility: Commodities are mutually interchangeable; for example the U.S. dollar is currently equivalent to 0.87 Euro. 

2. Scarcity: There is a limited supply of crypto, similar to the precious metal gold. 

3. Durability: Items must be able to withstand being used repeatedly, and here you’ll find crypto to be even more durable than physical money. 

4. Transferability: Items must be able to be transferred from one to another, for example Kitty takes 1 physical U.S. dollar and gives it to Kelsey. 

5. Divisibility: 1 U.S. dollar can be divided into 4 quarters, 10 dimes, 20 nickels or 100 pennies. 

Crypto coins or tokens clearly fit into all of the above definitions, and in some cases make more sense as currency than tangible exchanges. So what types of cryptocurrency do we have available? According to ​​CoinMarketCap, a highly referenced price-tracking website for cryptoassets, there are nearly 17,000 types of cryptocurrency coins or tokens. (Sheesh!) 

Bitcoin was essentially the first pioneer to establish themselves in the proverbial “wild west” of cryptocurrency and account for almost half of the crypto market. Other types of cryptocurrency aside from Bitcoin (BTC) are referred to as ‘Altcoin,’ and the most popular among them is Ethereum (ETH, which is the second largest crypto following BTC. 

Okay so why all the different types of crypto?

Just a decade ago there was only Bitcoin. Crypto was created to revolutionize the way we transfer money, and essentially remove the middleman. Blockchain technology decentralizes security from one individual or group with a distributed database and ledger. 

Various coins have varying degrees of accessibility and functionality – from revolutionizing finance, health, energy, data storage, privacy and security, machine learning, social networks, supply chain and content ownership – and some crypto can only be traded with other crypto, while some crypto can be trade with fiat currencies, which are government-issued currencies such as the U.S. dollar or Euro. An analogy I use is to think about grocery shopping – Trader Joe’s is my go-to, but there’s always a few items they don’t offer, so I order cinnamon sticks for my hotty toddys and burrata for my winter caprese via Amazon Fresh. 

Option 1: Coinbase

So back to the question at hand: how in the world do I purchase a coin or token with my credit card? Let’s start with the most simplified method: Coinbase. It’s free, user-friendly and is the most widely used Bitcoin wallet. 

1. Download the Coinbase app and create an account. You’ll need a valid ID and may be asked for proof of address. 

2. Tap on the payment method box and connect your bank account, debit card or initiate a wire. 

3. Start a trade buy pressing the button with opposite facing arrows and select “Buy” from the list of options. 

4. Type “Bitcoin” into the search bar then tap it to open up the purchase screen. 

5. Use the number pad to input the amount you want to spend in your local fiat currency. The app will automatically convert that into a Bitcoin amount. 

6. Tap “Preview buy” to see the details of your purchase and make sure everything looks gucci before confirming your purchase. 

7. Give yourself a round of applause, baddie – you’ve officially just purchased your first Bitcoin! 

Option 1: Binance

Another great purchasing platform for Web3 noobs is Binance, self-described as operating the world’s biggest bitcoin exchange and altcoin crypto exchange in the world by volume. 

They’ve got three versions of their platform you can purchase from: 

1. Binance.com grants access to their crypto trading and services platform from your web browser (both computer or mobile phone). 

2. Binance Desktop is their standalone software avail for desktop and laptops running Linux, macOS or Windows. 

3. Binance App is their mobile app which can be used on your phone or tablets running iOS or Android. 

Follow these step-by-step instructions for buying Bitcoin on both Binance.com and Binance Desktop: 

1. Visit Binance.com and login with your Binance account. If you don’t have one, click here to open a Binance account. 

2. On the menu bar at the top left side of the website or desktop app, go to “Buy Crypto” and select “Credit/Debit Card.”

3. You are now led to a new page where you can proceed with your Bitcoin purchase. Select your preferred local fiat currency and enter the amount you want to spend. (Please note that there are minimum and maximum amounts you can enter for each corresponding local currency. Then, under Coin, select “BTC” (or your preferred cryptocurrency). Then, click “Buy BTC.”

4. A pop-up window will open on the website where you can enter your card information, such as your card number, expiration date, and CVV code. Enter these details, then click “Next.” You’ll be prompted to enter more information such as your country, address, city, and postal code. Once you’re done, click “Pay Now.”

5. You will now see a “Confirm Order” prompt, where you can check if your order is correct. To confirm your order, click the checkbox beside the “I have read and agree to…” section and then the Confirm button. 

6. Once the transaction is successful, you will receive your Bitcoin, ya ‘lil baddie. 

And here’s the skinny for purchasing via the Binance App: 

1. Download the Binance App on your mobile device and login to your Binance account. If you don’t have a Binance account, click here to open one. 

2. In the top left corner of the screen, tap the profile icon and switch to Lite.

3. Tap the yellow trade icon in the middle of the screen and choose “Buy.”

4. Search for Bitcoin, then enter the amount of local fiat currency you want to use for the transaction. 

5. You will be led to a page where you can choose whether you want to pay with cash deposit or credit/debit card. If it’s your first time using a credit card for the transaction, select “Change Card” and select “Pay with new card.” You can then proceed to enter the details of the card that you want to use for this transaction.

6. Once you’ve confirmed the card that you will use, you can proceed to confirm your transaction. Click “Confirm” to push through with your purchase. You will then see a summary of details for your transactions. Once you’re happy with the details, click “Confirm” again and wait a few seconds until the “Purchase Successful” screen appears.

All of these Binance options to purchase crypto with your credit/debit card take less than a minute to finish.

Bada-boom, bada-Binance, bada-baddie. 

<3 Kelsey

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