The cons of buying Bitcoin using your credit card include fees for Foreign transactions. However, they are irreversible and take just a few hours to complete.
Foreign transaction fees apply whenever you buy a Bitcoin with a credit card.
You may notice that foreign transaction fees apply when you buy Bitcoin with a credit card | Coin Cloud. This fee is charged when you purchase from a retailer or company outside the U.S. This fee is not confused with currency conversion fees..
Most credit cards will tell you the number of foreign transaction fees you will have to pay. These fees will range between 1% to 3% of the purchase price. Your credit utilization ratio will reflect the cost you pay, which makes up 30% of your credit score. This means that every time you purchase with your credit card, you will be using up some of your credit. As a result, your credit utilization ratio will remain the same even if the price of Bitcoin falls.
Transactions are completed within a few hours.
Using a credit card to buy Bitcoin may be convenient, but it has many disadvantages. First, you’ll incur fees that reduce the amount of money you can earn. Second, cryptocurrency purchases are assessed differently than traditional purchases. Third, your credit card issuer may lower your limit or cancel your account if you make too many transactions.
When you buy Bitcoin using a credit card, you’ll pay a foreign transaction fee of 1% to 3% of the purchase amount. This fee is reflected on your credit utilization ratio, which accounts for 30% of your overall score. So while buying bitcoin will not deplete your credit limit, your transaction will use up a portion of it and cause your credit utilization ratio to go up. And if the value of Bitcoin declines, you’ll continue to pay that high fee.
Transactions are irreversible
When buying Bitcoin using a credit card, you’ll never be able to cancel a transaction. The transaction is irreversible, meaning you can’t reverse it. In addition, transactions using a credit card are not easy to prove. That’s why you’ll need a PayPal account to purchase cryptocurrency. But if you’re comfortable using PayPal, you can buy cryptocurrency using your credit card without a credit card.
An easy target for online fraudsters
Purchasing Bitcoins with a credit card makes you an easy target for online fraudsters. Many online scammers use low charges to validate your details. If you’re concerned about fraud, you can freeze your credit. This will prevent new accounts from being opened, but you can easily unfreeze them again if necessary. Keeping your credit card details safe is essential to keep your Bitcoins safe and secure.
Always be suspicious of unsolicited phone calls and emails from online scammers. Never provide personal information or credit card numbers over the phone. Scammers may pose as financial experts to obtain your financial information. If you receive such an email, immediately terminate it and check out the company’s customer service department. You should also avoid using unusual methods of payment for Bitcoin