With loads of buss around digital currency at the moment, you may think of using your old credit card to own a few coins and thus join the bandwagon of the same. Although it is possible, yet happens to be a complex procedure to get things done using your credit cards. There are several challenges in buying these coins using your card. In fact, you should know a couple of key issues pertaining to the same before you think of swiping for bitcoin. Well, you need to check some key points when it comes to buying digital currencies using your credit cards. The fact of the matter is you can get to know more about it from portals like a crypto genius. Well, let us check it out as under:
Can you procure digital currencies using your credit card?
If you think you should try using your credit card for buying digital currencies like Bitcoin or others, the answer is certainly positive, but the thing is you need to know the complication though. First things first, you need to find out the right digital currency exchange for the same. This is nothing but a big business that further facilitates the buying and selling of digital currencies somewhere like a stock exchange. You have the chance of exchanging the credit card and boost up the transaction using the same. Several exchanges are accepting credit cards and thus would give you the privilege and even the fees that can be seen adding up 3 percent or beyond the transaction. Also, if you are interested in paying for the exchange fees using your card, it can be a problem, though, yet can be fixed to a great extent. Several credit card companies, although they are not allowing to buy digital coins, there are a few who are also allowing the same.
Why companies disallow and allow to buy digital coins?
A few companies allow to procure digital currencies using credit cards, but a few do not allow, and the reasons could be the following:
- Ambiguity- If you have invested much time researching digital coins, you will come to know how volatile these coins could be in recent past years. Most of the digital coins are have no stable histories, and their volatile nature lurks a few risks and makes things notorious against the deal. They may fail to use their credit line when it comes to making their money go in a dicey kind of purchase.
- Improper Regulation – Unlike any other popular financial product, one can find too trivial a kind of regulations found around digital currencies. The lack of regulations can be seen adding up the uncertainty that is seen making things really a risky affair. It can be a legal blend down the line, and the banks just love to hate this thing about the same.
- Cash equivalence – The other big reason why many face issues about digital coins are that they are not very much fans of digital coins and that it can be traded even for the actual currency. This can further add certain issues like tax invasions, money laundering, and several other legal issues. This is perhaps the key reason why many of the credit card issuing companies are not going to allow them to procure the same.
All these reasons can come before the credit card company, and thus they do block the purchase of bitcoin or any other digital coins using credit cards. You can easily think of buying the same on your own. So when it comes to buying digital coins using credit cards, you need to check the above points first and then proceed. The fact is using credit cards for procuring different digital coins can be an expensive affair as it can include charges of 3 and 5 percent per transaction that are charged as per the advance fees by the companies. Also, the cash advances are seen putting heavy interest from the very first day that can end up putting the higher than standard APR.
Wrapping Up
There are several ways of buying digital coins using credit cards. However, the sequence seems to be different. You need to weigh the pros and cons of the same and then proceed ahead for it. So good luck with buying digital coins using your credit cards.