![]() ![]() After all, there are potential pitfalls to be aware of any time you use a credit card for a purchase – and especially one as volatile as cryptocurrency. If you’re thinking about investing in crypto with a credit card, it’s important to go in with your eyes wide open, experts say. Pros and cons of buying crypto with a credit card For example, a platform called Paxful lets you buy up to $200 in cryptocurrency per day with an Amex gift card (which you can buy with an Amex credit card). ![]() You may also be able to purchase crypto with your favorite American Express credit card, although you’ll likely have to take extra steps to do it. There are other credit cards from smaller issuers that could work for crypto purchases, although you may have to make a small test purchase to find out. If you’re ready to buy crypto with a credit card, you’ll need to find a platform that allows it and making sure you have the right credit card to facilitate the transaction.įor example, you may be able to purchase it with the Alliant Visa Signature Card* or USAA® Preferred Cash Rewards Visa Signature® Card*. You may have better luck with some smaller banks or credit unions that haven’t officially banned buying cryptocurrencies with a credit card. That said, several of the biggest card issuers, including Bank of America, Chase, Citigroup, TD Bank and Capital One, have all banned the purchase of cryptocurrencies via their credit cards. In fact, many of the most popular crypto exchanges, including Coinmama and CEX.io, let consumers buy crypto with a credit card issued by Visa or American Express. If the question “Can I buy crypto with a credit card?” has crossed your mind, you should know that the answer is yes. If you’re thinking of going that route, here’s what you should know. If you decide to buy cryptocurrencies, you’ll need to find an exchange, many of which let consumers pay with a credit card. “If you have an appetite for risk, crypto should be in your portfolio.” “Cryptocurrencies are very volatile however, this also means they have a good chance to appreciate,” said Kirill Bensonoff, a crypto advocate and entrepreneur who has been an active member of Boston’s blockchain community, in a previous interview. Some disagree, however, pointing out that the speculative nature of cryptocurrencies makes them an appealing component of a long-term investment strategy. Some governments have warned their citizens about the risks of investing in cryptocurrencies for that very reason. Cryptocurrencies also lack the protection of FDIC insurance, which protects cash you keep on deposit with traditional banks. Unlike other currencies, cryptocurrencies aren’t backed by any governments – nor are they regulated by financial institutions. ![]() A “blockchain” is a record of all cryptocurrency transactions that are made. When you buy cryptocurrencies, they’re typically stored and tracked in a digital wallet until you’re ready to sell them. Today, the price hovers around the $38,000 range. They fluctuate in value, so buying crypto one day doesn’t mean you’ll have the same amount the next day, week or month.įor example, in the first half of 2021, one Bitcoin – the most well-known cryptocurrency – was worth more than $64,000. What to know about investing in cryptoĬryptocurrencies are virtual currencies you can use to pay for goods and services, just as you might use dollars, euros or pesos. Read on to learn how to buy crypto with a credit card and factors to consider before you make this decision. With crypto sparking so much interest – and some exchanges offering the convenience of buying cryptocurrencies with a credit card – it helps to know what you can and cannot do, as well as the potential pros and cons. In fact, a 2021 survey showed that millennials, in particular, feel comfortable owning crypto – 15% said they feel very comfortable and 34% reported feeling somewhat comfortable. Still, crypto is definitely gaining steam as an asset class, and even as a speculative investment. Not only do investors run into transaction fees when buying crypto with a credit card, we all know that crypto is volatile in nature on its own. Many Americans are intrigued by the idea of investing in Bitcoin and other cryptocurrencies, but doing it with a credit card is risky.
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