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Is There an Advantage to Buying Bitcoin with a Credit Card?

Right now, Bitcoin is currently trading the lowest prices of this quarter. For those who have been thinking purchasing Bitcoins, now is a good time to invest in the highly popular cryptocurrency, and, with cryptocurrency exchanges accepting credit cards, it has never been easier to enter into the desirable Bitcoin marketplace and buy the well-known and highly coveted currency.

Bitcoin, established in 2009, is a digital currency that is powered by blockchain technology. A unique addition to the asset market, cryptocurrencies provide a global medium of exchange without any transactional fees or exchange rates and because the Bitcoin currency was created outside the traditional financial system of banks and governmental oversight, cryptocurrency allows anonymous transactions and international, unregulated transaction. Like the precious metals, Bitcoins can also be used to store wealth in countries whose state-owned currencies are being devalued or in countries marred by high inflation rates. Unlike more commonly traded financial assets, these transactions are not traded through standard markets, meaning that regular people, not financial institutions, are reaping the rewards and benefits of Bitcoin trading.

Cryptocurrency exchanges have become more user-friendly, with easier to use interfaces, and many, have opened up new payment options for Bitcoin trading, including allowing credit cards to purchase cryptocurrency and other digital assets. This has opened up the market to a larger pool of buyers and has boosted Bitcoins popularity. Credit cards, particularly those that offer bonus miles, cash back, and other perks, are an attractive payment method for buyers. Many people are much more comfortable using a credit card, and, with the inherent buyer’s protection programs that credit cards extend to users, more traders are relying on credit card payments and foregoing standard electronic funds transfers. To buy Bitcoins with credit card is now very convenient and safe. The availability of credit card purchasing options has also opened up Bitcoin buying to those who wouldn’t normally consider the purchase.

However, there are some things to consider before purchasing Bitcoins with a credit card. Not all credit cards issuers have allowed Bitcoin transactions, and some have added daily or monthly Bitcoin purchase limits. By reading through the card issuers disclosures carefully, the risk of restricted purchases and limitations will be eliminated. Another important factor to investigate before a Bitcoin transaction is verifying how the purchase will be charged by a credit card company. There has been a noticeable trend in card issuers treating cryptocurrency purchases as cash advances, rather than as purchases. If this is the case, the cash advance fees will often make the cryptocurrency transaction too expensive and therefore, another payment method should be used.

By opening the cryptocurrency market to credit card purchases has allowed the Bitcoin market to flourish and grow. Responsible trading through can increase the available bonuses, cash back, and airline miles giving buyers additional satisfaction with their Bitcoin buys and allowing more buyers into the cryptocurrency markets, making the Bitcoin a highly desirable and marketable asset, free from the services charges traditional assets incur.

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