Recently, many people have been asking why purchasing cryptocurrencies with a credit card always fails. Actually, there is a policy reason behind this. In 2022, Taiwan’s Financial Supervisory Commission issued a letter requiring banks to prohibit virtual asset platforms from being designated merchants for credit cards. In simple terms, Taiwan’s government does not allow direct credit card purchases of cryptocurrencies. The government’s main considerations are to prevent money laundering risks, control financial risks, and due to the recent high volatility in the cryptocurrency market and frequent exchange failures, they started regulating from the payment side.

But in reality, this ban doesn’t completely block all avenues. As long as you know alternative methods, it’s still possible to invest in cryptocurrencies. I’ve summarized some of the most commonly used deposit methods for your reference.

The advantages of credit cards are obvious—fast, convenient, instant account credit, and the ability to accumulate rewards. The downside is also quite painful: the handling fee is usually between 1.5% and 3%, plus a currency exchange rate that’s 3% to 5% worse than banks, so overall costs can reach 5% to 8%. For example, if you spend 100 yuan on a credit card to buy coins, you might only actually receive about 95 yuan worth of cryptocurrency.

In comparison, wire transfers have a different fee structure. They are not charged as a percentage but as a fixed fee, which becomes relatively smaller as the transfer amount increases. Therefore, large investors usually choose wire transfers. The cost is roughly 0.2% to 0.5%, but it takes several hours to a few days for the funds to arrive. Another option is C2C trading, which means buying coins directly from merchants. This method is more flexible but less transparent, with higher risks.

Currently, in Taiwan, a practical way to invest in cryptocurrencies is to first buy USDT stablecoins with TWD on domestic platforms, then transfer to international platforms to trade other cryptocurrencies. Alternatively, if you want to use a credit card, you can try some legitimate international platforms—they are less affected by Taiwan’s regulations, but the transaction costs are higher, making them suitable for small investments or for those wanting to accumulate credit card rewards.

If you simply want to participate in price fluctuations of cryptocurrencies, you don’t necessarily have to buy spot. Some legitimate contract trading platforms also support credit card deposits, offering 24-hour two-way trading. This method eliminates the hassle of holding actual coins and is strictly regulated by financial institutions, making the risks more controllable.

In summary, credit cards used to be the most convenient way to buy coins, but now they are quite restricted in Taiwan. However, as long as you understand the characteristics and costs of various deposit methods, you can still find a suitable investment channel. The key is to carefully calculate the handling fees and exchange spreads for each method. Don’t be fooled by the surface-level “fast and convenient” appeal—small amounts can use credit cards for convenience, but for large investments, wire transfers are more cost-effective.