Many people erroneously believe that a credit card is free money. There is no such thing as a free lunch in our world and every single amenity or convenience that is provided will have to be paid for, with interest. The basic concept of a credit card involves providing disposable cash for a predetermined period of time at the promise of repayment and interest accrual upon surcharge. This concept is the underlying principle of financing giving the benefit of cash in return for interest.
Unsurprisingly, the concept of the credit card has successfully migrated into the crypto space as well, allowing millions of people to fulfill their dreams of acquiring digital assets for loaned funds. However, the luxury comes at a price, since few people think of the fact that they will have to repay what they borrowed using the credit card, and there are no guarantees that trading on the digital tradable units market will ever yield profits.
Buying digital assets in itself is a risky business, since few assets of the type have proven to be reliable from the standpoint of usability. And since usability is the cornerstone of demand, it is evident that only Bitcoin can stand up to the title of a quasi-means of payment. Not so many merchants and retail outlets accept Bitcoin, and those that do are either far and wide between, or regularly provide and recall the feature. This makes Bitcoin less reliable than a classical credit card as a means of payment.
Buying Crypto The Easy Way
There are a few ways of buying digital currencies that have become not only mainstream, but even common for those who are making entry into the digital assets space for the first time. Among the methods are: Exchanges; P2P platforms; PayPal; Over the counter trading desks.
These and some other venues allow users to buy cryptocurrencies with a credit card. Some platforms give instant connection of bank accounts and cards, making it easy to top up deposits using available funds in fiat and use them to purchase the selected assets of choice.
Buying crypto with PayPal is also a popular option since the service started acting as a gateway into the digital assets space two years ago. Since then, many users have stopped connecting PayPal to platform accounts, but rather prefer to buy the any kind of crypto instantly via the service with accrual to a designated wallet. In the UK, for instance, many users can buy cryptocurrencies using local fiat transfer gateways that act in much the same way as PayPal.
Buying crypto without ID is not recommended, since it is also next to impossible. The only remaining loopholes are decentralized exchanges and P2P platforms that do not request users to provide personal details. A cryptocurrency app is usually needed when using an exchange, and every exchange shall require users to undergo personality verification for KYX and AML reasons.
Conclusion
When buying crypto on credit card, one has to take into account a simple truth the risks are doubled. The amount spent on buying crypto with a credit card will be doubled if the assets purchased drop in price something that is quite common for any cryptocurrency. So, when buying crypto with a debit card, one has to weigh all the pros and cons and only then decide whether diving headlong into even more debt is worth the trouble. The given advice is especially relevant in light of the ongoing crypto winter, which has eroded the prices of most crypto assets and does not promise any considerable exchange rate revival in the coming year in light of the ongoing geopolitical tensions and financial market turmoil.
