Short answer: Yes, but the convenience comes at a steep price.
When buying cryptocurrencies on an exchange, you have to choose a payment method to deposit cash into the exchange. From there, you trade that cash for crypto.
Funding your account using ACH (that is, connecting your bank account) is generally the cheapest route — sometimes it is even free. The same cannot be said for credit cards.
While they may be convenient, that convenience comes at a steep price.
Crypto exchange transaction fees
Cryptocurrency exchanges make money in different ways. Almost all of them take a cut whenever you trade. This is true no matter which payment method you use.
However, when you pay with a credit card, you’re hit with credit card fees on top of the normal exchange trading fees.
Credit card fees vary from exchange to exchange. Before purchasing with a credit card, google your exchange’s fees to understand what you’re getting into.
For example, to buy cryptocurrencies on Coinmama with a credit card, you have to pay:
- Exchange rate spread: 2%
- 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.