Everything You Need to Know About Purchasing Cryptocurrency with Credit?Cards

What’s in your wallet? If it’s not a form of cryptocurrency, you might be missing out!

With cryptocurrency being all the rage in recent years, everyone is looking for a way to buy into Bitcoin or Ethereum . And, it could be as easy as whipping out your credit card Or is it?? Let’s take a look at the multiple factors to consider if you want to use a credit card as the first step to becoming a crypto millionaire.

Check Whether Your Card Issuer Allows It

The first thing you need to figure out is whether your credit card provider allows for cryptocurrency purchases on your credit card. Some providers have fleshed out terms about such purchases, while others might treat the purchase as a cash advance, subjecting you to fees. It helps to know what your credit card provider’s stance is on buying cryptocurrency before attempting it.?

Card providers outright ban the purchase of cryptocurrency due to its erratic nature. Citibank, for example, has outright banned its customers from purchasing cryptocurrency amidst questions about the safety of dealing with cryptocurrency, citing the potential for fraud. Information might not be readily available about whether a credit card issuer allows the purchase of cryptocurrency. Bank of America will issue a cash advance for the purchase, fees included - although their official stance on purchasing cryptocurrency is not clearly defined. Contact your provider in order to get up-to-date information about any rules pertaining to buying cryptocurrency.

Crypto Exchange Rules

Your card issuer isn’t the only one setting rules for purchasing cryptocurrency. Exchanges make their own rules to help protect themselves and others. Some exchanges don’t allow credit card purchases at all (like eToro and Coinbase ) while others do (like Coinmama, CEX.io, and Paxful ). It also depends on what the individual vendor chooses to accept as well, as each transaction involves a unique vendor with its own acceptance rules.

Another thing to be aware of is what a cryptocurrency exchange will charge you for making a purchase by credit card on their platform. This charge can also extend to the individual vendor, potentially doubling your fees. While this might not be an outright banning of cryptocurrency purchasing, it can be dissuasive enough to deter potential buyers from doing so.

State Regulatory Laws

As cryptocurrency becomes more commonplace, the need to build out concrete regulations is becoming more of a concern within individual states. While some states are more readily able to conceive regulations for cryptocurrencies (New York and California due to the number of crypto-based businesses operating in those states) other states have been slower to set any concrete rulings. These late-to-the-party states have issued either guidance, opinion letters, or other information from their financial regulatory agencies regarding whether virtual currencies are "money" under existing state rules. And yet others have enacted only piecemeal legislation amending existing definitions to either specifically include or exclude digital currencies from the definition.?

Buying cryptocurrencies with a credit card can create a cornucopia of complications. Luckily, this list should help lighten your load.