Dr. Robbs Crypto Guide

The process to purchase Bitcoin with credit cards is similar to the one for buying the cryptocurrency with debit card or through automated clearing home( ACH) deliveries. You will need to enter your credit card details with the exchange or online trading firm and permit the transaction. In general, nonetheless, it is not a good idea to purchase Bitcoin with credit cards. There are a couple of reasons for this.

First , not all exchanges let Bitcoin buys employing credit cards due to associated processing costs and the health risks of fraud. Their decision to do so may work out in the significance of customers. This is because credit card processing can tack additional charges onto such transactions. Thus, in addition to paying transaction fees, you will end up with processing costs that stock exchanges may pass onto you.

The second reason is that credit card buys is likely to be expensive. Credit card issuers treat Bitcoin acquisitions as cash advances and charge hefty costs and interest rates on such advances. For example, American Express and Chase both count buys of cryptocurrencies as cash advance transactions. Thus, if you purchase $ 100 worth of Bitcoin using an American Express card, you will pay $10( current cash advance fee for such transactions) plus an annual percentage fee of 25%.

An indirect method of purchasing Bitcoin using a credit card is to get a Bitcoin Rewards credit card. Such cards role like your typical rewards credit card except they offer rewards in the form of Bitcoin. So, they expend cash back earned from purchases into Bitcoin. An instance of a Bitcoin Rewards card is the BlockFi Bitcoin Rewards Credit Card. Beware, nonetheless, that the annual cost on these cards may be immerse and there may be additional costs associated with conversion of fiat currencies into crypto.

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