With the popularity of bitcoin rising in the market, more and more people are using it for safe, private, and convenient transactions. The biggest advantage of buying bitcoins with your credit card is you can earn a lot of reward points. However, check with your credit card company when it comes to earning reward points with your card. If the purchase becomes a cash advance, you might not earn reward points on your credit card.
Buy bitcoin with credit card online – An insight into cash advances with your credit card
You can buy bitcoin with credit card online seamlessly. When you buy bitcoin with your card, the transaction is treated as a purchase, and you can effectively resort to using bigger credit lines to profit from price swings that take place in the market. However, experts caution that the above should never be your sole motivation to buy bitcoin with a credit card, or else you land up spending more than one can afford. The situation is potentially dangerous as you tend to build up huge credit card debts.
Should you invest in a new credit card for buying bitcoin?
There are no credit cards available in the market to help you earn additional rewards when it comes to the purchase of bitcoin or for that matter other crypto-currencies. You can earn a good bonus for signing up for a new card only if you own excellent credit as well as the rewards you accumulate when you start spending with your new credit card. As mentioned above, you should note that transactions for cash advance do not give you introductory bonuses. Check whether your card issuer does not treat the purchase of crypto-currencies as a cash advance or else you will lose out on earning reward points with your credit card.
What about credit scores- are they affected?
Note that opening a new credit card does increase the available credit you own however if you use your credit card to spend heavily on bitcoin, the above will not have a very big impact on your credit score. You can, however, ask your card issuer for an increase in your credit limit instead of opting for a new credit card for making bitcoin purchases.
Before you buy bitcoin with credit card online, make sure that you are sure about the above points listed above in case you use a new card for the purchase. If you still wish to get a new credit card for purchasing bitcoin alone, choose one within your budget after you receive the introductory bonus. For instance, you can apply for a travel rewards credit card and earn reward points on your flight tickets and hotel stays. Last but not least, buying cryptocurrency with a credit card is a good option for safe, convenient, and private transactions. However, measure all your options and ensure you spend wisely so that you do not get into huge debts with your purchases. Be informed so that you can make smart choices and remain debt-free with success!