Have you thought of investing in bitcoin (BTC)? BTCs have been on the web scene for over ten years now and continue to attract investor uproar. If you’re a BTC investor, then there’s no question that you’ll eventually need to buy some BTCs with fiat currency. There are two ways to do this: either by using your debit card or purchasing them with your credit card. While each has its benefits, most people prefer to use credit cards instead of debit cards. Here are the top reasons you should use your credit card to buy BTC.
1. Lower Transaction Fees
Most BTC exchanges charge transactions fees. However, these are usually based on the percentage of each transaction levied against your buying price. For debit cards, this fee is 3% to 6% which may only be 1% or 2% for credit card transactions. The net effect is that you get more BTCs per dollar spent when you buy bitcoin with credit card.
2. Progressive Spending Limits
BTC exchanges have monthly spending limits for each user or account. This means that you cannot get optimum value from your fiat currency after you reach this limit. On the other hand, credit cards have dynamic spending limits directly proportional to your credit score. The better your credit score, the higher your limits. This means you can spend more and receive more BTCs for your dollar with credit cards.
3. Faster Transactions
Credit cards are known to be faster than debit cards because of the security they provide. Debit cards allow users to draw funds directly from their bank accounts, making them an easy target for hackers and other cybercriminals. On the other hand, credit cards store information in a centralized system that makes it almost impossible to hack without authorization from the corresponding authorities. In addition, transactions can be completed within minutes as opposed to days for those using debit cards.
4. No Personal Deposit Information Required
A large majority of BTC exchanges ask for personal deposit details before you can start trading. This is because they use the same deposit system as traditional e-commerce sites making it easy to buy goods online. However, these details must be kept confidential at all times because there are many cyber thieves out there. These criminals will do anything to get hold of this information and sell it on the black market. When you buy cryptocurrencies with credit cards, you don’t need to enter all this information. It makes it easier to buy cryptocurrencies such as bitcoin anonymously.
5. Higher Spending Limit on Goods and Services
BTC exchanges only allow users to trade at a specific price limit. If you want to spend more, you have to change the limits or look for another exchange that will work with your local currency. On the other hand, credit cards have a higher limit if you can use them to make purchases from online stores. Some of the most popular sites that accept credit cards as a mode of cryptocurrency payment include eGifter. While on this site, you can buy gift cards with cryptocurrencies and use them later. It’s easier to buy BTCs with your credit card than it is with a debit card.
6. No Taxes
If you buy bitcoin with fiat currency, it means that your government will treat this as taxable income. This means that you’ll have to pay the corresponding capital gains tax on the dividends you earn from these investments. However, if you buy BTCs using a credit card, there is no way for your government to know about it. This is because cryptocurrencies are unregulated by any financial institution. You’ll enjoy all the benefits of trading on these exchanges without having to pay taxes.
7. Instant Verification and Deposits
Credit cards provide users with an instant deposit and verification process. All you need is to enter your credit card details and wait for a few minutes to verify it by the site’s compliance department. After verification, you can proceed with your deposit and start trading BTC immediately. For debit cards, the process will take days before you can use them for deposits.
Conclusion
The advantages of buying BTCs using credit cards over debit cards are numerous. The most important advantage is that it is easier to buy cryptocurrencies anonymously when using a credit card. This will encourage more people to trade BTCs and other cryptocurrencies because they know their investments are secure. The good thing about this is that BTC exchanges never disclose your personal information; however, if you buy online using your credit card, it may be possible for the government to track you down.
