Trading Bitcoin and Ethereum with International Credit Cards: The Complete Guide

In the current complex and volatile financial market environment, cryptocurrencies have become a potential investment channel that many investors are interested in. While traditional businesses face difficulties, the technology sector continues to maintain strong growth. Bitcoin and other cryptocurrencies are considered future technologies, so it would be a mistake to overlook this investment opportunity. The question is, how to buy coins safely and effectively with a credit card in Vietnam?

Methods to Own Bitcoin and Ethereum

If you want to start your cryptocurrency investment journey, the first step is to understand the source and purchasing channels. Bitcoin and Ethereum are like any other commodities – you can buy from miners, other investors, or through specialized trading platforms.

Searching directly from miners takes a lot of time and effort. Therefore, the most popular method today is using trading platforms or peer-to-peer (OTC) markets.

Trading via trading platforms: This is the most trusted method on the market. These platforms act as intermediaries, bringing together many traders, creating a safer trading environment compared to direct transactions with strangers. However, prices may be higher than direct trades due to platform fees.

Peer-to-peer (OTC): This method allows you to trade online with holders of cryptocurrencies you know through communities. The advantage is no intermediary fees and the ability to negotiate prices, but the risk of scams is higher due to lack of third-party verification.

Choosing Payment Methods: Domestic ATM vs International Credit Card

When deciding to buy coins with a credit card or other payment tools, you need to understand the pros and cons of each option.

Payment via Domestic ATM Card

This is a quick and cost-saving method. The purchase price of coins will be significantly lower than with international credit cards. The reason is that buying with an international credit card incurs high processing fees from service providers, plus complex identity verification procedures.

Most major banks in Vietnam support internet banking services, allowing easy online payments. The only condition is that your card must be registered for this service.

Payment via Visa/Mastercard

This method is popular in countries with strict legal regulations on cryptocurrencies. When buying with a domestic card, you must prove income or complete complicated procedures; many people prefer international credit cards to avoid legal risks.

Currently, trading platforms offer various payment options: Visa/Mastercard, bank transfer, e-wallets, and other intermediary services.

Criteria for Choosing a Suitable Trading Platform

When selecting a platform to buy coins with a credit card, consider the following factors:

Transaction Fees Different platforms have different fee structures. Spread (spread), commission (commission), and overnight fees are the main types of fees. Some platforms also have different minimum deposit requirements, often starting from $50 or higher.

Supported Cryptocurrencies Most platforms support Bitcoin (BTC) and Ethereum (ETH), but the list of other coins may vary. Some offer over 150 cryptocurrencies, while others focus only on major ones like BTC, ETH, Litecoin (LTC), XRP.

Security and Reputation Choose platforms regulated by international supervisory agencies, with strict identity verification processes. 24/7 customer support is also a sign of a reliable platform.

Liquidity High trading volume ensures you can buy and sell quickly without affecting the price. Newer platforms may have lower liquidity.

User Interface If you are a beginner trader, choose a platform with a friendly, easy-to-use interface. Support for multiple platforms (web, Android, iOS) is also an advantage.

CFD Trading: Profit from All Price Movements

The goal of any investor is to generate profit from their assets. Besides buying and holding Bitcoin, you can make money from price fluctuations through contracts for difference (CFD).

CFD is a derivative financial instrument that allows you to profit based on the price movements of the underlying asset without actually owning it. Unlike direct investment, with CFDs, you can profit whether the market goes up or down.

Profit Mechanism

When Bitcoin price rises: you place a Long (buy) order at a low price, then close the position (sell) to take profit when the price increases.

When Bitcoin price falls: you place a Short (sell short) order at a high price, then close the position (buy) to take profit when the price decreases.

Features of CFDs

Cryptocurrency volatility often ranges from 5-10%, creating many profit opportunities for structured traders. CFD platforms usually support popular cryptocurrencies like BTC, ETH, Litecoin (LTC), Bitcoin Cash (BCH), XRP.

Each cryptocurrency has different parameters:

• Bid-Ask spread (spread): ranges from 0.0089 to 32.4 depending on the coin
• Leverage: from 1:5 to 1:10, allowing you to earn large profits with small capital
• Contract size: varies by coin
• Margin requirement: from 10% to 20%
• Overnight fee: from 0.022% to 0.0487%

The Role of Leverage in Margin Trading

Leverage is the main factor that makes CFD trading attractive. For example, with 1:10 leverage, you can buy a Bitcoin CFD worth $910 and only need to put in $91 own capital. This allows investing in high-value assets without large capital.

However, leverage is a double-edged sword. If your prediction is correct, profits can multiply many times. But if wrong, you could lose your entire initial capital if prices move quickly against your position.

Advantages of CFD Trading:

• High profitability with small capital
• Can profit whether the market rises or falls
• Helps learn risk management
• Allows diversification of investment portfolio

Disadvantages:

• High risk, potential to lose all initial capital
• Not suitable for beginners or inexperienced traders
• Must understand risk management and personal risk tolerance

Recommendations for New Traders

If you lack extensive trading experience, start with a demo account. Many platforms offer virtual money (usually around $50,000) to practice with various financial instruments such as Bitcoin, forex, gold, oil, or indices, without risking real capital.

Only when you fully understand the trading mechanisms, have a solid risk management plan, and stable psychology should you move on to real trading. Remember, CFD trading is not a quick way to get rich but a tool that requires skills, knowledge, and discipline.