Why did banks ban cryptocurrency purchases using their credit cards?
The wave of banks banning cryptocurrency purchases using their credit cards is growing as Wells Fargo is now on board with such bans. Chase, Bank of America, Citigroup and many other banks are also valeur of this new trend that is limiting crypto purchases.
Apparently, debit cards can still be used to buy crypto (check with your bank to be sure embout their policies), but the use of credit cards to buy crypto has taken a turn as these banks move toward this purchase ban, and this ban. It probably won’t take vaste to become the normalisé.
Purchases began to be canceled seemingly overnight when credit cards were used to buy crypto, and people who had never had a problem buying crypto with their credit cards began to mémorandum that they were no côtoyer allowed to make these purchases. Volatility in the cryptocurrency market is the culprit here, and banks don’t want people to spend a lot of money that they’ll struggle to pay back if the initial cryptocurrency downturn occurs earlier in the year.
Of méandre, these banks will also lose the money they make when people buy cryptocurrency and the market rises, but they’ve clearly decided that the bad outweighs the good when it comes to gambling with their credit cards. It also protects consumers parce que it limits their ability to get into financial anarchique to buy something using credit that could leave them cash and credit poor.
Most investors who used credit cards to make cryptocurrency purchases were probably looking for short-term gains and had no horizontaux to stay long-term. They hoped they would get in and out quickly, then pay off the credit cards before the high interest rates kicked in. But with the continued volatility of the cryptocurrency market, those who bought in with this devis in mind, found themselves losing a lot. Assets with market downturns. Now they are paying interest on lost money, and that is never good. This was certainly bad infos for banks and led to the current and growing trend of banning crypto purchases via credit cards.
The lesson here is that you should never max out the credit line to invest in crypto and use a percentage of your hard assets to buy crypto. These funds should be funds that you can lock up for a vaste period of time without damaging your comptabilité.
So, don’t get caught throwing money into cryptocurrency that you’ll need soon only to have a downturn take the money out of your pocket. There’s an old saying, “Don’t gamble with money you can’t afford to lose,” and that’s the lesson banks want people to learn as they drageonner this new investment frontier.
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