Investing in crypto is all the rage right now, but there are a few elephants in the room surrounding it. One of the most pressing questions that many crypto experts get is this one: can you invest in crypto by using your credit card? The answer is yes. But, you have to tread lightly. There are still several advantages to buying crypto with your credit card. According to the experts at SoFi Invest, most financial institutions will treat a credit card purchase of crypto as a cash advance rather than a regular purchase. Here are some of the advantages of buying crypto in this manner:
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You can invest in crypto without having cash on hand
One of the most notable advantages of investing in crypto with a credit card is that you don’t necessarily need to have cash on hand in order to do it. This means that if you are dead set on buying a particular coin because you think it has great potential to increase in value, using your credit card will let you make that purchase right away. Can you buy crypto with a credit card? That’s an emphatic yes!
You can benefit from your credit card’s rewards program
If your card doesn’t treat this as a cash advance, you will often be able to use a crypto purchase to add to your rewards account. With most rewards programs, you can reimburse them in the form of cashback, points or miles.
Your cryptocurrency purchase will be processed almost instantly
The best analogy for buying crypto is that it is sometimes like driving down a freeway. Yes, there are many occasions where the traffic is swift, and there are no problems. However, there are plenty of other times when there is a tremendous amount of congestion, and things are going slowly. Generally, the higher the number of crypto transactions, the slower the process might take. However, this is not so when you use a credit card for your crypto transaction. When you use a credit card, you won’t have to wait ten minutes to an hour for the transaction to process because the system will process it almost instantly.
This is the best option for those who are new to the field of cryptocurrency investing
Those who are “new to the game” or still “wet behind the ears” might want to buy crypto with a credit card while they are still learning the tricks of the trade. This is because the great majority of people are the most familiar with making transactions with their credit cards, and so that is a good way for them to start.
Either way now is the time for you to get into the crypto trading game, simply due to the fact that these investments are only expected to appreciate. Of course, buying crypto with a credit card does have its share of pitfalls, and you will want to graduate to different methods once you get more experienced, but it can be an excellent way to start. Platforms such as Coinbase and Coinex can be good places to start.