Buy Crypto & Bitcoin With American Express | Beginners Guide
American Express is one of the world’s largest card issuers, with over 100 million cards globally. The company has a long history of innovation and customer service and is now one of the leading financial institutions in the United States.
Before we discuss whether you can buy crypto with American Express, let’s briefly look at how cryptocurrencies work.
Cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrencies are decentralized and not subject to government or financial institution control.
Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Since then, hundreds of different cryptocurrencies have been created. These are often referred to as altcoins or alternative coins.
Cryptocurrencies are traded on decentralized exchanges or trading platforms and can also be used to purchase goods and services. Investing in cryptocurrency is a risky endeavor, but it can be profitable. To buy crypto with American Express, you’ll need to find a reputable exchange that accepts American Express credit cards. This article will look at how to buy crypto with American Express.
Ways to Buy Crypto with American Express
American Express is one of the most popular global credit card providers. You can also use it to buy cryptocurrencies, including Bitcoin, Ethereum, and other digital assets. However, being a US-based financial institution, American Express has to remain compliant with several industry regulators and monetary authorities.
One major issue with using American Express for bitcoin is how the concerned bodies handle the chargeback request. Cryptocurrency exchanges typically do not allow you to place any chargeback request once a successful transaction occurs.
However, when you make deposits with an American Express credit card, the platforms find it challenging to accommodate the possibility of a chargeback. This is why major global cryptocurrency exchanges do not allow you to deposit funds with an AmEx card to buy bitcoin or other digital currencies.
That said, there are quite a few ways for you to buy crypto with an American Express credit card. Let’s check those out:
The first option to buy crypto with American Express is to look for a regular cryptocurrency exchange where you can use your AmEx credit card to deposit funds. Unfortunately, popular cryptocurrency exchanges like eToro, Binance, Coinbase, Huobi, and others do not allow AmEx credit cards for fund deposits.
However, you can look for regional or local small-scale cryptocurrency exchanges that accept American Express. For example, if you are from the Middle East or MENA region, BitOasis and Rain are two good exchanges that receive funds from AmEx and other credit cards.
As you cannot directly use an American Express credit card with most cryptocurrency exchanges, the best option is to use a P2P exchange. P2P exchanges do not typically let you store fiat money in a digital wallet and, thus, work differently.
Instead, you will only make a payment when a transaction occurs while using these exchanges. You can trade bitcoin and other currencies in a P2P marketplace directly with other traders without using any intermediary exchange.
CoinCola, LocalBitcoins, and Paxful are three of the most widely used P2P exchanges globally where you can conveniently buy bitcoin with your American Express credit card.
Another option to buy crypto using AmEx cards is to purchase it through local brokers. You will find physical stores that sell crypto and digital currencies in many large cities globally. You can simply visit those stores with your identification documents and pay the fiat money using an AmEx card.
Why Should You Buy Crypto with AmEx
AmEx is one of the oldest and most trusted financial institutions based in the United States. Here are some compelling reasons for you to buy crypto with American Express:
Long history of success
AmEx has been in business for over 170 years. It has built a reputation for being a reliable and trustworthy company. When you buy cryptocurrencies with American Express, you can be confident that you are dealing with a company with a long history of success.
Also, AmEx is one of the few financial institutions able to weather the financial crisis of 2008 without any significant problems.
Credit card support
Another reason to buy cryptocurrencies with American Express is to use credit facilities. This is a considerable convenience for many people who do not want to invest their money right away to purchase cryptocurrencies.
In addition, American Express also offers a great rewards program. When you use your AmEx card to purchase cryptocurrencies, you will earn points you can redeem for cash back, gift cards, or travel. This is a great way to start with cryptocurrencies without putting down money.
Fast and easy transactions
Another great benefit of using American Express to buy cryptocurrencies is that you will not have to deal with the hassle of setting up a bank account or going through a lengthy verification process. The transactions are protected with AmEx’s industry-leading security protocols.
American Express is renowned for its affordability as the institution offers one of the most competitive rates globally. Moreover, you can also redeem your reward points to offset the yearly fees.
AmEx transactions are secured with a global chargeback policy. If you suspect anything has gone wrong, you can simply request a chargeback and open a transaction dispute within a specific timeframe. The chargeback policy protects you against credit card and identity theft.
Finally, American Express also offers excellent customer support. Suppose you have any questions or problems regarding any transactions. In that case, you can contact AmEx customer service provided by your service provider bank or financial institution, and they will be more than happy to help you.
How to Buy Crypto with AmEx – Step by Step
Once you decide to buy bitcoin or any other digital currency using your American Express credit card, the actual steps of purchasing will vary depending on which method you use. One of the most convenient methods is to buy your desired cryptocurrency from a P2P exchange. Let’s see how you would do that.
The basic steps are similar across any exchange of your choice:
Choose the cryptocurrency
The first and most crucial step is to choose which cryptocurrency you will buy. Hundreds of coins, NFTs, and digital currencies are available in the global marketplaces. One of the best investment indicators is your currency’s market dominance, which indicates its overall popularity.
According to Statista, Bitcoin (BTC) is, at present, the most dominant cryptocurrency globally, with 44.76% dominance, which is closely followed by Ethereum (ETH) at 19.37% and Tether (USDT) at 6.06%.
Moreover, while choosing your currency, remember that only the most dominant currencies, typically the top few, are available for trading on the P2P exchanges. Thus, you won’t have many options to choose from.
Choose the exchange
Once you decide which currency to buy, find an exchange where it is available. For example, CoinCola lets you trade nine currencies, whereas Paxful allows only three. Look for several features while choosing your exchange. Some features are reputation, payment protection, payment methods, availability of escrow accounts, etc.
The next task is to open an account in your chosen P2P crypto exchange. You may need to provide valid identity documents, contact details, and other related information to open an account. P2P exchanges usually offer an excellent level of confidentiality and anonymity.
Choose the best offer
One of the best things about P2P exchanges is that you can see hundreds of offers and pick the best one. Navigate to the offer page and find the best one based on your research.
Check trader’s profile
When trading at P2P exchanges, remain careful with choosing the trader. P2P marketplaces often maintain a reputation and feedback profile for traders, which you should evaluate carefully to avoid any potential fraud.
Make payment and complete the transaction
Finally, add the offer to your shopping cart as you do with any other online shopping website. Make payment using your American Express credit card. Once the payment goes through successfully, the exchange will arrange for the bitcoin or cryptocurrency to be transferred to your account or connected crypto wallet.
The platform will hold both your fiat money and the digital currency in an escrow account for a while as a security measure to prevent fraud.
Best Crypto Trading Platforms to Buy Crypto with American Express: Compared
|Platform||Minimum Deposit||Trading Fee||Withdrawal Fee||Number of Coins|
|0.0001 BTC||Zero||0.0004 BTC||9|
|$5||Maker/Taker: 0.24%/0.48%||0.0005 BTC||60+|
|Varies||1% for advertised ones||Sending fee applicable. Incoming transactions are free.||Bitcoin only|
|$10||Sell 1%, Buy 0||0.1% - 5% processing fee||3|
Founded in 2016, CoinCola from Hong Kong is one of the few crypto exchanges that allow you to deposit fiat money from your American Express credit or prepaid debit card for purchasing cryptocurrencies. Apart from regular crypto exchange services, CoinCola also allows P2P trading through a secured escrow account hosted by CoinCola.
The exchange also allows you to issue CoinCola gift cards which you can send as a gift to someone to buy bitcoins and supported currencies from the platform. CoinCola supports nine currencies, including the major ones such as BTC, ETH, EOS, XRP, and BCH.
- Secure trading: Investors and traders are often concerned about security while buying cryptocurrencies from less regulated P2P exchanges. CoinCola addresses the concern by implementing an escrow account system for all transactions to safeguard your fund.
- Major trading pairs: Although CoinCola does not support many currencies, you can get significant coins and USD trading pairs. Thus, you won’t find much difficulty while trading.
- Gift cards: CoinCola makes it easy for you to send a gift card to someone who can use it for any crypto trading purposes.
- Referral bonus: CoinCola aims to grow a community of fellow traders and, thus, emphasize referral bonuses and affiliate programs. You can earn a steady flow of passive income if someone who joined through your link makes trading.
- Availability of traders
- Security through the escrow account
- No trading fees unless you withdraw the amount
- Less regulated
- Trading fee: None
- Minimum deposit: 0.0001 BTC
- Withdrawal fee: 0.0004 BTC
Bahrain-based Rain is among the few mainstream cryptocurrency exchanges that accept all credit cards, including American Express, for fiat money deposits. Founded in 2019, Rain is regulated by the Central Bank of Bahrain.
BitMEX venture, in partnership with BlockWater, a Kuwait-based cryptocurrency investment fund, awarded a seed fund worth $2.5 million to Rain.
As Rain complies with the local authority of Bahrain, they have placed a lengthy and rigorous account verification method to confirm your identity. At present, Rain offers services to customers from six countries in the middle-east, which are Bahrain, Kuwait, Oman, Saudi Arabia, UAE, and Qatar.
- Free trading: Rain does not charge anything for purchasing, selling, and swapping cryptocurrencies. They are the first cryptocurrency exchange from the middle-eastern region to introduce zero fees on trading.
- Great liquidity: Currently, Rain supports over 70 cryptocurrencies making it a convenient crypto trading place with excellent liquidity for your fund. They accept coins on the platform only after comprehensive due diligence and background analysis.
- Strong security: Rain offers you strong security despite the verification process being slightly lengthier than many competitors. Every platform trader must submit proof of identification to perform any trading.
- Advanced portfolio management: You can always get a bird’s eye view of your entire portfolio. Also, you can effortlessly swap from one currency to another.
- Zero trading fees
- Backed by Coinbase
- Available only in a limited number of countries
- Trading fee: Zero
- Minimum deposit: $1
- Withdrawal fee: $15
Bitoasis is another regional cryptocurrency exchange for buying crypto with an American express credit card. UAE-based BitOasis caters to customers from the Middle-east and the MENA region. Besides valid credit cards, including American Express, BitOasis supports direct bank deposits in UAE Dirham (AED) and Saudi Riyal (SAR).
BitOasis offers mobile apps for both Android and Apple app stores. BitOasis requires the customers to be citizens or permanent residents of one of the supported countries. You will have to submit proof of identification to get started. The exchange has partnered with several local companies that will independently verify your identity within a short time.
- Versatile trading pairs: BitOasis supports over 60 currencies and over 100 currency trading pairs. You can readily swap your cryptocurrency to other currencies to take advantage of the market movement.
- Cold storage: BitOasis maintains a 100% cold storage facility for all the currencies your store on the platform. Cold storage gives you an extra layer of security by keeping your funds offline in case of cyber-attacks.
- Mobile apps: You can do everything related to your trading through the BitOasis mobile apps on iOS and Android.
- Suitable for all: The online trading platform offers both regular and pro users different versions – BitOasis Core and BitOasis Pro.
- Advanced trading platform (BitOasis Core and Pro)
- OTC trading supported
- Backed by Coinbase
- Only supported for countries in the middle-east and MENA region
- Trading fee: Zero (3.675% fees for cards deposits)
- Minimum deposit: $5
- Withdrawal fee: 0.0005 BTC
Buying crypto with American Express is easy if you use LocalBitcoins, the Finland-based P2P exchange. Founded in 2012, LocalBitcoins is one of the oldest and largest P2P exchanges for bitcoin trading. LocalBitcoins also lets users advertise their offers for bitcoin trading.
Trading on LocalBitcoins is free of cost in your first month. However, the users simply have to pay a 1% fee for the advertised assets. So far, more than 8 million users have registered their accounts on the platform and traded BTC.
LocalBitcoins is registered in Finland and is regulated by the national and EU authorities. It is available to customers from over 190 countries.
- Escrow protection: LocalBitcoins protects your fund in an escrow account until the transaction is completed. The escrow account protects you from fraudulence.
- Reputation tracking: The exchange keeps a rating system or reputation scoring for all traders so that you can confidently trade with sellers or buyers with good ratings.
- Conflict resolution: Conflict is not uncommon when you trade on a P2P marketplace despite many security measures. However, the customer support team of LocalBitcoins is always ready to step in to resolve any disputes.
- Anonymity: One of the key reasons you would come to P2P exchange instead of the regular ones is to maintain anonymity while trading. LocalBitcoins protects your identity carefully on the platform and does not reveal it to the users.
- Wide range of supported payment methods, including American Express
- Ability to find the best offer
- Minimal advertising fee
- Lack of regulatory protection
- Trading fee: Zero for regular ones. 1% for advertised ones.
- Minimum deposit: Varies depending on your country.
- Withdrawal fee: No sending fee. Charges applicable for incoming transactions
Paxful is one of the most popular and user-friendly crypto exchanges globally that lets you buy bitcoin with AmEx. The P2P crypto trading platform supports over 350 payment methods, including American Express credit cards, bank transfers, online wallets, gift cards, and various digital currencies. Many people even traded BTC and other cryptos with physical assets like gold or cars.
The versatility of payment methods is one of the key advantages of P2P trading platforms like Paxful.
There are over 12,000 active offers on Paxful from over 12,000 verified sellers. Over 6 million users have registered on the platform globally.
Paxful offers great security through escrow protection and a reputation system to protect you from fraud. Currently, the platform supports the trading of three popular cryptocurrencies: Bitcoin, Tether, and Ethereum.
- Secure trading: The platform’s escrow protection keeps your fund protected until the successful completion of a transaction. You can reverse a transaction if you suspect any fraudulence from the traders.
- Feedback system: Buyers and sellers can provide feedback to each other once a transaction is completed. The reviews system makes it easy for them to earn trust in the future. Users can also use it to find reputable traders.
- Paxful wallet: To store the coins you have purchased, you won’t need to use any external wallets, as Paxful has a built-in wallet that is free of cost.
- Passive income: Paxful allows you to invite your friends and have them sign up with your referral code. Once they trade on the platform, you will also get a good share of the transaction fees.
- Passive income opportunity through referrals
- Easy interface
- Integrated wallet
- Low number of supported coins
- Trading fee: 1% for sellers, zero, or buyers
- Minimum deposit: $10
- Withdrawal fee: 0.1% to 5% processing fee depending on the withdrawal method
Can I buy bitcoin with American Express?
Yes, you can buy bitcoin using an American Express credit card. American Express does not prohibit the purchase of cryptocurrencies. However, major cryptocurrency exchanges do not accept American Express credit cards as a regulatory requirement. Nonetheless, you can still buy bitcoin using your AmEx card from many P2P exchanges that accept AmEx as a payment method.
Which credit card can I use to buy cryptocurrencies?
A majority of cryptocurrency exchanges do not accept credit cards of any type. A few exchanges that accept credit cards are limited to Visa and Mastercard for regulatory reasons. However, you can still use your credit card to buy cryptocurrencies from many P2P exchanges, regional exchanges, and local crypto brokers.
How can I buy crypto with AmEx?
You can buy crypto using AmEx from regional exchanges and P2P exchanges. P2P exchanges often do not need to comply strictly with the regulatory bodies since they do not hold cryptocurrencies and only act as a channel to facilitate the transaction. Thus, you can head to one of those P2P exchanges and buy crypto with your AmEx card.
Does Paxful accept American Express?
Paxful, a leading global P2P crypto exchange, accepts various payment methods, including American Express and all types of credit or debit cards. In addition, you can also use our online wallets like PayPal, Neteller, or Skrill to purchase crypto from Paxful.
Does Coinbase accept credit cards?
Coinbase does not accept credit cards as a payment method due to regulatory reasons. You can, however, purchase cryptocurrencies from Coinbase using your debit card, local bank account, Apple Pay, or Google Pay.
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