How to Buy Bitcoin With a Credit Card

How to Buy Bitcoin With a Credit Card

We live in a world that has gotten the knack of living in debt. Debt allows anyone to acquire the thing they need instantly with a prolonged repayment date. This very convenience is also a curse that has its own economic repercussions. Living on a promise of repayment of the debt is not a figment or risk that only financial institutions face. Governments also have the habit of living in debt by issuing bonds and debt obligations with coupon repayments.

However, debt is a double-edged sword that has been hanging over the head of the global economy for decades. The fact that the world is living on the use of the United States Dollar that is not backed by anything is the best illustration of unsecured debt. With trillions of dollars in government debt, the United States is literally living on the promise of repayment that may never even reach a maturity date. Such a means of living off debt has grown from the state to average citizens who have grown accustomed to taking out credit loans for virtually every purchase – from cars to groceries.

Crisis is an inevitable part of any economic cycle and its impending arrival heralds the time when debts have to be paid. The crisis knocks on every debtor’s door and demands that debts be paid at earlier dates than had previously been agreed. Whether it is fear of losing savings, or the fear of illiquidity and failure of repayment on the part of the debtor, the reason matters little in a crisis that results in losses for every party.

The global economy experienced its most sobering first shakeup in 2008 when the Freddie Mac company and other mortgage giants collapsed and people were unable to repay their obligations. The aftermath of the collapse sent ripples across multiple industries, making institutions doubt not only the foundations of the global financial system, but also the underlying infrastructure based on the United States Dollar and the blind faith in its dominance and indomitable nature as a safe and reliable means of value storage.

The next major shakeup came in 2020 with the pandemic, which suddenly revealed just how fragile the so-called economic system of globalization really is. As states scrambled to gain some manner of edge in the battle of the vaccines, the global financial system received its most powerful blow as payment channels were suddenly doubted and states abandoned the globalization approach in favor of ruthless protectionist measures.

The recent events in Eastern Europe and the ensuing illegal sanctions regimes have landed the final blow to the global economy and the foundation of the United States Dollar as its basis. As SWIFT was severed from gigantic countries and international payment channels succumbed to political pressure, it became clear that such a system could not be trusted any longer. National fiat currencies, no matter how weak or demeaned, became viable alternatives to a global reserve currency with no collateral backing it.

The global decentralized industry is just as affected by credit, since many users who are new to the market and are just entering it simply search queries, such as “How to get Bitcoin with credit card” in their engines. Indeed, it is possible to buy BTC with a credit card easily and seamlessly on any of the global exchanges operating on the market.

When users search the query “Can I buy Bitcoin with credit card”, they are instantly bombarded by a deluge of suggestions in search engines that offer them to register on the websites of exchanges and connect their credit cards. Users should be very careful when deciding which exchange to register on, since phishing attacks have been growing in number and the scammers are adept at copying legitimate websites in the tiniest of details to dupe unsuspecting users.

However, exchanges like Binance, KuCoin, Bybit, AAX and others all have legitimate connections to VISA and MasterCard through on-ramp services. Any crypto exchange willing to attract substantial trading volumes has to have operational on-ramps to make sure that users can connect their credit or debit cards and start purchasing cryptocurrencies for fiat.

But before connecting a credit card to an exchange, users have to learn what a wallet is and make the choice between a custodial or non-custodial solution. In order to pay with a credit card, users will have to pass a Know Your Customer procedure on the selected exchange and only then connect the credit or debit card. This way, the exchange will be able to validate the identity of the user and abide by international regulations that require all user data to be verified and stored in order to prevent any money laundering or financing of criminal or illegal activities.

When deciding to buy Bitcoin or any other cryptocurrency for credit, users must realize that they are taking an enormous risk. Any trading operations made using loaned funds are extremely risky and may result in the loss of investments. Considering the extreme volatility of cryptocurrencies, including Bitcoin, the likelihood of not being able to return loaned funds is just as high as the possibility of making a profit on price gains in case of the appreciation of the asset.

In summary, it is possible to conclude that credit is both a blessing and a curse. On the one hand, it allows people to make needed and even unnecessary purchases using loaned funds in exchange for interest. The risk of losing said loaned funds on cryptocurrencies is extremely high, even without taking into consideration the fact of leverage that many traders resort to in their trading operations. However, the ease with which users can connect their credit or debit cards to exchanges allows them to purchase Bitcoin and other cryptocurrencies in a few clicks.