What is Ethereum?
Since its appearance in 2015, Ethereum has become one of the most popular cryptocurrencies available on the market. Ethereum does not act only as a currency but can also be used as a platform for establishing smart contracts, allowing users to create applications that can be used for a variety of services and industries.
This cryptocurrency has seen a major increase in its value in 2017, one of over 4000% since the year began. And considering that Ethereum has now become an established player in the crypto world, many are seeking to invest in this digital asset.
In this guide we will cover a few of the most popular options for buying Ethereum by using a credit card.
Considerations before buying
Fees and charges
Fees are the first thing a customer is concerned about. Some exchanges have their fees paid separate from the transactions while others have it included in the cost of the buy. To avoid any unpleasant surprises, make sure you understand how your exchange service calculates its fees. Be aware that credit or debit card fees differ from other transaction fees. In addition, some exchanges may have the option of withdrawing directly to your credit or debit card, but at cost.
Some exchanges are not available worldwide, so it’s best to check if which provider has their services supported in your country. Also, credit card fees may differ from country to country.
Most exchanges require some form of verification in order for you to be able to purchase Ethereum. Some are not so thorough and only need you to provide an email address, while others require a selfie of you and you ID card.
There are a few exchanges that have started to have credit and debit card services available for buying Ethereum. Below you will find a list of these exchanges.
CEX is a UK- based exchange founded in 2013 that initially operated as a cloud mining provider. It since has become one of the most popular exchanges, now only dealing with cryptocurrency transactions. It supports buying and selling Bitcoin and Ethereum. CEX is available in most countries, including US.
It supports the instant purchase of Ethereum through Visa/MasterCard credit and debit card. However, the exchange rates are quite high, charging 3.5% + $0.25 / £0.20 for credit cards deposits with a flat rate of $3.80 / £2.90 for credit card withdrawals (plus 1.2% for MasterCard withdrawals). It also adds a 7% service fees included in the price of Ethereum.
Coinbase is currently one of the world’s most used cryptocurrency exchange. It operates in 32 countries all over the world. Once you have completed the ID verification process, your credit or debit card will be verified by making two small transactions. After that, you may start buying Ethereum with your card.
It charges a standard fee of 3.99% on all credit or debit card buys, regardless of your location.
CoinMama is available in 226 countries around the world and in 24 states of the United States. One unique feature of this exchange is that it allows users to buy up to $/€ 150 worth of Ethereum without requiring identity verification. If you want to purchase more, you will need to go through the ID verification process that we’ve mentioned before.
CoinMama also doesn’t need to verify your credit card in order for you to buy Ethereum. You just specify your wallet address (the exchange doesn’t have an online wallet) and fill in your card details you can start buying Ethereum.
Transaction fees are quite high though, with a 6.45% fee per transaction and an additional fee of 5% for each credit card transaction.
Hopefully this guide will help you in finding the perfect exchange platform on which you can buy Ethereum.