Setting up a digital wallet and start the trading business has become simpler than going for a shopping spree. Selecting the crypto exchange to trade and start buying the coins through the credit card is easy and simple, however not all the card issuer and the cryptocurrency exchanges accept the payments to go through the credit card mode of payments. It all depends on the Issuer of the credit card who may treat the buying and selling of credit card as a cash advance and charge exorbitant fees and high tag a high-interest rate.
Is it Feasible to purchase Cryptocurrency with Credit Cards?
- the increase in processing fees discourages many to go via buying coins with credit cards,
- the interest charged for trading in the coins currency while trading form the software platform Ethereum Code could be high
- the buyer could end up paying more amount of interest than the profit he makes in trading in the cryptocurrency while trading with a small amount of funding in the Ethereum Code
- the amount gets rolled over to the next billing cycle and the interest amount gets snowballed into a huge amount which makes the entire transaction to be debt-laden
- if there is no cash, it is not advisable to trade in cryptocurrency using credit cards, as default in making the interest payments could lead to a penalty that is usually very high
When to use a Credit card
- Usually, it is not a good deal to trade in crypto using credit cards, however after considering the cost of the processing and other incidental expenses, if one stands to gain out of the crypto transactions they might very well take it as a payment mode
- once a new credit card is issued, the bonus incentive lures the buyer to purchase the coins in cryptocurrency, that can be done if the amount earned as a bonus is higher than the entire transaction costs charged for a credit card transaction
- before entering into the crypto world of trading, it is important for the purchaser to know if the issuer accepts cryptocurrency form of trading and swiping off the trade amounts in credit card
If one plan to make purchases of coins from crypto exchanges, it is always advisable to decide the exchanges that accept credit cards as a mode of payment. Some card issuers classify the crypto trading as cash advances and the other start charging interest immediately, hence checking with the banks prior to making cryptocurrency transactions is better than paying huge amounts as interest.