The bank wave that has banned the purchase of Cryptocurrency using their credit cards to grow as Wells Fargo is now on board with this type of ban. A number of other banks, such as Chase, Bank of America, Citigroup and many more, are also part of this new trend that limits the purchase of Crypto.
Debit card, it seems, can still be used to buy Crypto (check with your bank to ensure their policy), but the use of a credit card to buy Crypto has turned with these banks leading with this purchase ban, and may not be long before this ban Being standard.
It seems that the overnight purchase began to be canceled when a credit card was used to buy Crypto, and people who had never experienced problems before buying Crypto with their credit card began to note that they were not allowed to make this purchase again. Volatility in the Cryptocurrency market is the culprit here, and the bank does not want people to spend a lot of money that will be a struggle to pay back if the main cryptocurrency decline occurs as done at the beginning of the year.
Of course, these banks will also lose money to be made when people buy Cryptocurrency and the market has an increase, but they seem to decide that the bad exceeds good when it comes to this gamble with their credit card. It also protects consumers because it limits their ability to enter into financial problems using credit to buy something that can make them cash and poor credit.
Most investors who use credit cards to make Cryptocurrency purchases may look for a short-term increase, and have no plans to stay for the long term. They hope to enter and come out quickly, then pay off a credit card before the high flower kicks. But with the constant volatility of many Cryptocurrency markets who have purchased, with this plan in mind, finding themselves losing an extraordinary number of assets with market decline. Now they pay interest to lose money, and it’s never good. This, of course, is bad news for banks, and it causes the current trend and develops from the purchase of Crypto with a credit card.
The lesson here is that you should not maximize credit pathways to invest in Crypto, and only use the percentage of your hard assets to make Crypto purchases. This fund must be funds that you can collect for the long term without hurting your budget.
So, don’t get caught putting money into the Cryptocurrency that you will need immediately just to find that the decline has taken money from your pocket. There is an old saying that happens, “Don’t bet with money that you can’t afford to lose,” And that’s the lesson that the bank wants people to learn when they roam to this new investment border.