How to Buy Bitcoin and Crypto with American Express [2023] (2024)

Summary: American Express does not offer crypto trading directly on its platform. Instead, investors in the US can connect their AMEX banking account to a cryptocurrency broker licensed by the Financial Industry Regulatory Authority (FINRA) to purchase digital assets such as Bitcoin (BTC) and Ethereum (ETH).

After testing more than ten crypto trading platforms, we found the multi-asset investment platform eToro as the best option to buy crypto for AMEX users. eToro offers competitive fees and a selection of 80+ crypto coins trusted by over 30 million customers. Regulated by FINRA and FinCEN, eToro is an easy, safe, and cost-effective platform for investing in crypto.

Can you buy crypto with American Express?

Yes, you can buy crypto with AMEX, but you need to connect to a FINRA-licensed cryptocurrency exchange. As mentioned above, it is because American Express does not offer crypto trading or buying and selling of Bitcoin directly through its online banking platform.

How to buy crypto with American Express?

The best way to buy Bitcoin or any other cryptocurrency with AMEX in the US is through a FINRA-regulated broker like eToro, which is a licensed and widely trusted multi-asset investing platform with over 70 cryptocurrencies and unique features such as “Copy Trading,” which enables users to copy top-performing crypto traders, in addition to a staking service, custom watchlist, as well as advanced charts and technical analysis tools.

How to buy crypto with AMEX: Step-by-Step

You can get started in minutes with four simple steps:

• Step 1: Create an account on eToro and complete your verification (personal or company);
• Step 2: Enter the USD amount you want to deposit on the eToro platform;
• Step 3: Connect your AMEX credit card to deposit your selected fiat currency;
• Step 4: The final step is to find the cryptocurrency you want to purchase and execute your trade.

About American Express

American Express or AMEX in short (NYSE: AXP) is an American financial services company specializing in payment cards. Founded in 1850 as an express mail dispatcher, the company later expanded its services to include money orders, traveler’s checks, and credit cards. American Express operates worldwide, with 56.4 million cards in use in the US and 121.7 million cards globally (as of 2021).

Services offered by American Express include:

• Personal banking: Checking accounts, savings accounts, credit cards (rewards/cash back/travel/no annual fee), mortgages, home refinancing, certificate of deposits (CDs), individual retirement accounts (IRAs), high-yield savings accounts (HYSA);
• Business banking: Business checking and savings accounts, lines of credit, credit cards;
• Wealth management: Automated investing, personalized consultation, rewards as you invest.

Notably, in 2022, there were a total of 133.3 million American Express cards in circulation.

American Express crypto policy

While American Express doesn’t provide access to crypto trading directly from its platform, AMEX crypto users can link their credit cards to FINRA-regulated crypto exchanges to buy digital assets.

As of 2023, American Express had not announced any official AMEX crypto policy. However, AMEX executive Gonzalo Pérez del Arco, director of government affairs in South Europe, stated in June 2022 that the bank isbullishon crypto and is actively aiming to add more crypto-related services. For example, American Express has even launched its own crypto rewards card, the Abra Crypto Card, in June 2022.

Furthermore, American Express, like many other financial institutions, has historically been cautious regarding cryptocurrencies and has expressed concerns about their volatility and lack of regulation. However, in March 2023, American Express ventured into the Non-Fungible Tokens (NFTs) and the metaverse with multiple trademark filings, so it is safe to say that the financial giant is Web3-friendly.

American Express crypto fees

For AMEX crypto users, buying cryptocurrencies directly on the American Express online platform is not possible. Therefore, customers must link their bank account to a regulated online investing platform, like eToro, to buy and sell digital currencies. eToro is a secure and convenient option as it offers lower fees and complies with regulatory standards. eToro charges a fee of 1% for trading crypto, included in the market price (bid-ask spread). However, users should also consider hidden fees, such as overnight fees, a flat withdrawal fee of around $5, and a small conversion fee, if applicable. eToro’s trading fees are subject to change at any time, so users should check the crypto fees website on eToro before trading.

Additionally, please note that using an AMEX credit card as a payment method may result in additional charges from the bank. Therefore, it is best to check the American Express online portal for exact credit card fees, or even better, contact the bank directly before investing in cryptocurrencies to avoid any unexpected expenses.

How to buy crypto safely

A cryptocurrency’s value can change frequently and dramatically, making them much riskier than traditional asset classes such as stocks or bonds. Even worse, if the value goes down, there’s no guarantee it will rise again. In addition, the space is rife with scams, such as rug pulls, Ponzi schemes, and phishing, putting both seasoned and inexperienced investors at risk.

Furthermore, although cryptocurrency broker-dealers in the US are required to register with FINRA, which imposes several requirements on them, including implementing and maintaining both anti-money laundering (AML) and customer identification programs (CIPs), crypto assets themselves are not regulated.

Fortunately, there are steps you can take to ensure you’re being careful when buying crypto. Let’s look at a few tips on what you should do when getting started with digital assets and how to best protect yourself and your money:

• Research the cryptocurrency you want to buy: Make sure you understand how it works and what the risks of buying crypto are;
• Only use a safe device: Avoid public computers and Wi-Fi networks. Always use your personal computer with a VPN, which helps establish a secure connection between you and the web, keeping your sensitive information safe;
• Choose a reputable exchange: Ensure the exchange is licensed by the appropriate regulators in your country and has a solid track record. Study the exchange’s user terms and agreements carefully to learn more about where your money is kept and what happens to your funds if the business goes bankrupt. You may also want to scour through user reviews to catch any red flags;
• Secure your account: Use two-factor authentication and a strong password to protect your account;
• Use a secure wallet: Store your cryptocurrency in a secure wallet to protect it from hackers. You can opt for either a hot (online) or cold (offline) wallet. To choose the right one for you, make sure to check out our in-depth guide on crypto wallets;
• Don’t invest money you can’t afford to lose: Because the crypto market can be so volatile, you need to be conservative with your investments, particularly when starting out. For more investing tips, have a look at our guide on investing mistakes to avoid;
• Monitor your investments: Keep an eye on the market and be aware of any changes in the price of the cryptocurrency you’re investing in.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to buy crypto with American Express: