Using a credit card is second nature to most people today. After all, it is so easy to whip out a card when making purchases, even if it’s just a $5 coffee from Starbucks.
If you are planning to purchase bitcoin or altcoins with a credit card, however, there are a few things you should know.
We have compiled the most commonly asked questions about buying bitcoin and altcoins with a credit card here to help you get the coin you want in the easiest way.
Do all banks allow the purchase of bitcoin with credit cards?
Not even close. There was a wave of big and smaller banks that banned bitcoin purchases early in 2018. While the sector is becoming more accepted, there’s a very good chance this situation will remain until regulations begin to emerge. Here’s a table of banks that do allow bitcoin purchases with their credit cards, along with those that do not.
|Does Allow Bitcoin Purchases with Credit Cards||Does NOT Allow Bitcoin Purchases with Credit Cards|
|American Express||Discover (since 2015)|
|Credit One||Bank of America *|
|Simple Bank||Wells Fargo|
Can you use a prepaid credit card to purchase bitcoin?
You can use a prepaid credit card from any popular exchanges, and some people prefer this method since the prepaid cards are not linked to their checking account.
Can you use a credit card to purchase bitcoin instantly?
Bitcoin purchases aren’t instant, simply because it can take up to 10 minutes for the network to validate the transfer. So, the answer is no, but unless there is an excessive amount of network volume you won’t wait longer than 10 minutes to receive your bitcoin when paying with a credit card.
Does buying bitcoin count as a cash advance on your credit card?
The determination of whether or not a purchase counts as a cash advance is made by Visa and Mastercard. In some cases, it will, and in others, it won’t. Check your credit card agreement or contact your credit card provider to be certain.
Is it safe to buy bitcoin with a credit card?
It is safe to buy bitcoin with a credit card, but it is also important that you pay off the charge immediately. Some users have been known to purchase bitcoin with a credit card with the expectation of paying it off with the profits made on the bitcoin. You should never count on that. Markets are volatile, and as 2018 has illustrated, bitcoin and altcoins do not only go up, they also come down.
Should you buy bitcoin with a credit card?
If you’re going to buy bitcoin with a credit card, be sure to pay off the charge the same month. With many banks disallowing credit card purchases, and some exchanges ending support for credit cards (Coinbase no longer allows new credit cards to be linked to accounts), you may be better off sticking with other payment methods.
The Bottom Line
If you plan to purchase bitcoin or altcoins with a credit card, be sure to check the interest rate that will be charged to determine if the purchase is wise.
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