In this article, I will explain How to Buy NFTs Using Credit Cards which eliminates the need for having any knowledge regarding cryptocurrency.
I will discuss the most optimal platforms, fees, payment security tips, the steps needed to be taken, and the best service providers that enable direct fiat transactions enabling a flawless NFT buying experience. Let’s get started!
What is NFTs ?
NFTs or Non-Fundable Tokens are one-of-a-kind digital assets stored securely on blockchain technology. Art, Music, videos, and even real-life assets can be marked using this revolutionary technology.
Unlike cryptocurrencies such as Bitcoin or Ethereum, NFTs are valueable to collectors and creators, making them unique and available in limited quantities.
Generally built on blockchain networks like Ethereum, NFT smart contracts guarantee transparency, security, and authenticity.
NFTs have transformed ownership by giving artists and content creators an avenue to monetize their work whilst also ensuring buyers get proven ownership along with scarcity.
How to Buy NFTs Using Credit Cards
Now, credit card payments are compatible with more platforms which makes the purchasing of NFTs much easier. One of the best examples out there would be Binance NFT, as users are able to buy NFTs directly using credit cards. Let’s take a look at how this is done:
Step 1: Creating and Verifying Accounts at Binance
Visit Binance NFT and create an account. Complete KYC (Know Your Customer) procedures to allow for fiat payments.
Step 2: Top Up Your Binance Account
Click on the Buy Crypto button and select Credit/Debit Card. Select the cryptocurrency you would like to buy using a credit card (USDT, BNB, or ETH).
Finish the purchase and the money should reflect in your Binance wallet within a few minutes.
Step 3: Go to the NFT Marketplace
Open the NFT Marketplace tab on Binance. Check specific collections or use the search option to purchase the specific NFT you are looking for.
Step 4: Payment of NFT Using a Credit Card
Hit the Buy Now button (Fixed price NFTs) or click on the bid button (for auctions). If suitbale, select Credit/Debit Card payment option.
Step 5: Confirm and Store Your NFT
If crypto is the only form of payment the NFT can be purchased with, swap the USDT, BNB or ETH you previously purchased to complete the transaction.
After you pay, the NFT will be deposited in your Binance NFT wallet. You can store, sell, or transfer it to a different wallet such as MetaMask.
Fees & Transaction Costs
If you buy NFTs on the Binance NFT marketplace with a credit card, make sure that the following expenses are disclosed:
Credit Card Purchase Fees
Binance charges a 1% to 3.5% fee depending on your location, payment method, and provider, which means that buying crypto with a credit card is costly. Some banks may charge extra fees for foreign transactions.
NFT Marketplace Fees
Buying Fee. There is no explicit fee charged when an NFT is bought. However, if you decide to use crypto that was loaded by credit card, you will likely pay exchange rate spreads.
Selling Fee. Marketers and sellers of NFTs will incur a 1% marketplace fee for the sale of an NFTs.
Gas Fees (For Transfers & Withdrawals)
When switching NFTs to external wallets like MetaMask, users would need to cover network gas fees which vary by the blockchain (Ex. more Ethereum users means higher gas fees).
Fees Recharged When Converting Currency
If the credit card used differs from the supported fiat currencies from Binance’s account, currency conversion fees might be required.
Buy NFTs Directly with cards
This is different from paying for more cryptocurrency in your NFT wallet. In this case, you are purchasing the NFT with a credit card.
Here is how it works: If the collectible is listed for 500 MATIC which is approximately $825, then $825 will be fully charged to your card. The on-ramp solution service provider will do all the behind-the-scenes work of changing your $825 into 500 MATIC.
It is important to note still that purchasing NFTs with credit cards means you will always pay an exchange fee in addition to the cost of the NFT because of the fiat-to-crypto bug.
Of course, that means you would need to provide some information in order to satisfy KYC guidelines.
Security Tips for Safe Transactions
Here are some crucial security recommendations that will help keep your transactions on Binance NFT as safe as can be:
Use Official Channels: Always navigate to Binance NFT through the app or its website to protect against phishing attacks.
Activate 2FA: Secure more of your account by enabling 2FA. It provides another layer of difficulty for intruders.
Be Cautious of Imposter Marketplaces: Fake markets are the newest phishing attempt. You need to be extra careful not to get your login credential stolen.
Secure Your Wallet from Exposure: Keep your private keys and seed phrases safe. Sharing them is not restricted to online scams.
Do Not Click on Strange Links: Links on social media, emails, or private messages should be approached with caution. Always check who the sender is before proceeding.
Recent Changes in Scams: Make sure to get yourself updated on news concerning fraud and safety in the NFT environment.
Authenticity of NFT: Look at the accounts of the users who created the NFT and the transactions that have taken place to ascertain the validity of the NFT.
Pros & Cons
Pros and Cons of Paying with a Credit Card on Binance NFT
Pros
Quick and Simple Transactions – You can buy an NFT without ever touching a piece of cryptocurrency.
Endless Selection – Obtain exclusive Binance NFT collections and top creators.
Fraud Protection Payments – Features from Binance’s account security help against as well as protect users from fraud.
Fiat Currency Payment – No need to pre-convert fiat to crypto.
Integration to Other Binance Services – Effortless trading and storage of NFTs on the Binance ecosystem.
Cons
Loss of Money – Transactions made through credit cards may add fees on top (1%–3.5%) plus other extra charge from money conversion.
Bigger Steps – In order to get some NFTs, users would have to purchase cryptocurrency first.
Blockage From Your Bank – Transactional crypto’s from certain banks are support by some banks which makes it difficult.
Buying Counterfeit Products on NFT – Sellers need to be screened in order to steer clear of getting fake and undocumented NFTs.
No Money Back – Most critics have no options for recourse in these purchases which means no chargeback choices.
Top 7 NFT-Centric Payment Processor Firms
1. MoonPay
MoonPay is one of the most convenient NFT payment solutions which allow users to buy NFTs using credit and debit cards, Apple Pay, and Google Pay.
It connects with leading marketplaces such as OpenSea and Rarible, so users do not have to go through the hassle of buying crypto separately before getting NFTs. Due to its easy and secure interface, many NFT lovers tend to prefer it.
2. Ramp
Ramp is an excellent service that allows users to purchase NFTs using many traditional forms of payment, making the process really easy unlike other NFT payment solutions.
It is accepted widely by NFT platforms such as Axie Infinity and Zora, guaranteeing smooth transactions.
Since Ramp has a comprehensive focus on compliance and fraud management, it is a good option for users wishing to get NFTs without any crypto knowledge.
3. Wyre
With credit card payments and bank account deposits, Wyre offers an easy-to-use fiat gateway for buying NFTs.
They work with many consumers like MetaMask and OpenSea, meaning users can fund their wallets and purchase NFTs almost instantly.
Along with great security and compliance regulation, Wyre helps users access NFTs without going through complicated crypto exchanges.
4. Wert
Wert provides a simple conversion option for cryptocurrencies, allowing users to buy NFTs directly without the hassle of purchasing crypto first.
By using Wert for Tezos, Polygon, or Ethereum, non-crypto users can conveniently make instant purchases for NFTs using credit cards.
Wert is highly beneficial for websites trying to onboard users not familiar with crypto due to the simplified buying workflow.
5. Simplex
As a primary gateway from fiat currency to crypto, Simplex’s feature of purchasing NFTs is integrated into Binance, Trust Wallet’s and OpenSea’s wallets.
Through Simplex, users can purchase crypto via credit cards which can then be used for NFT transactions.
Known for its fraud prevention technology, each payment made on Simplex is verified through an AI-driven risk management system so transactions are protected.
Conclusion
Thanks to payment solution providers and NFT marketplaces that support direct fiat transactions, buying NFTs with a credit card is now easier. Payment gateways like MoonPay, Simplex, and Wyre, along with Rarible and OpenSea, permit users to purchase NFTs without the necessity of owning crypto.
Although this approach is easy and convenient, its transaction fees, security risks, and the policies of relevant marketplaces should be analyzed before proceeding.
Following security best practices and being cost-aware allows for effortless and secure purchases. This method is perfect for newcomers looking to get into the NFT collecting space or even looking to add onto their existing collection.
