When it comes to buying bitcoin, there’s one golden rule to always follow: do your research. While there are a number of awesome bitcoin platforms and services out there, not watching out for the telltale signs of bad actors can be dangerous.
You can certainly buy bitcoin with a credit card, but you’ll have to do so through an exchange. It’s important to only use a credit card on an exchange you can trust, so do your research before entering any personal information. While many exchanges charge fees for basic services, there are other exchanges, like ours here at BitLeague, that are 100% free to use. Using a free, secure bitcoin exchange is the best way to ensure your transactions are safe and protected. When buying with a credit card, there are also a few additional things to be aware of.
Your purchase limit may be lower initially.
Many BTC exchange platforms prefer their clients connect a bank account to their service. This allows these platforms to avoid fees and ensure that they’ll receive the money the client has authorized for them. Many credit cards have limits and restrictions for sending money, which can make things much more complicated for platforms attempting to make withdrawals. When purchasing BTC with a credit card, be prepared to have to make several smaller transactions for a period of time before much larger transactions are authorized. This is a safeguard measure that protects you and your bitcoin platform by ensuring transactions go through safely.
Debt is a possibility
When you buy bitcoin with a credit card, it’s wise to ensure you have the funds to support a loss. Since bitcoin pricing can fluctuate, there’s a possibility that the value of the bitcoin you purchase originally will decrease and leave you in a bit of a hole. For instance, if you buy $10,000 worth of BTC, and the bitcoin price decreases by 10% , you’ll be out $1,000. Just like any investment, BTC values can rise or fall, so the funds you use to purchase these assets should be able to compensate. If you’re not sure that your credit card can endure random gains and losses, it may be wiser to save your funds and pay traditionally through a bank account or debit card.
Certain platforms may charge you more fees.
Because credit cards aren’t as easy to withdraw funds from as bank accounts, some platforms that charge fees may increase these fees to compensate for anything they have to pay in processing. While these fees may seem marginal, they can add up if combined with an increase in required transactions. Other platforms like the one here at BitLeague won’t charge you anything for transactions, and can be an excellent way to confidently pay for BTC with a credit card. When deciding whether or not to buy bitcoin with a credit card, read the fine print and see if you’ll be penalized with extra fees before making your decision.
Bitcoin can certainly be purchased via credit card, but it’s wise to make sure that you know what to expect before purchasing. To avoid pesky fees and transaction limits, open an account with BitLeague today, and start buying BTC in minutes!