Earlier this month, Mastercard and Visa made news by stating that any cryptocurrency purchases made on their credit cards would be billed as cash advances instead of charges. The main difference is that a cash advance incurs interest and costs the moment you make it, where as a normal credit card charge is interest free for 30 days.
Some of the major banks went a step further, and banned all bitcoin and cryptocurrency purchases completely. These banks include:
- Bank of America
- Capital One
I never think it’s wise to buy cryptocurrencies with borrowed money, but buying bitcoin with credit cards has been a quick and immediate way of buying cryptos, and easy for beginners – especially with CoinBase
If you still plan to buy bitcoin with a credit card, make sure you look into what the fees and interest will be on your particular card before you make the purchase. Sure, buying BTC on your credit card is definitely faster than a wire transfer, or ETF, but it can also cost way more in the end.
Anyone know if American Express still works?