Cryptocurrencies emerged due to the financial crisis back in 2008 because people fell out of love with banks, and the first of them was bitcoin. This is a decentralized currency, a currency that doesn’t have borders.
The first step when you want to buy cryptocurrencies, creating a wallet, and with that, you can transact in the cryptocurrency. You can buy bitcoin with debit card, and you can buy bitcoin with credit card. And in this article, we will look at why it’s better to use a debit card.
A debit card is not a credit instrument
The debit card is connected to the buyer’s bank account, but the credit card has a certain amount attached to it. When participating in the cryptocurrency business, you have to ensure that you are financially stable. Both cards have their advantages and disadvantages, but they all depend on how you use them.
Lower transaction fees
If you buy bitcoin with debit card, there is the assurance of lower transaction costs. Credit cards have other underlying charges such as processing fees. If you buy bitcoin with credit card, your credit history has to be checked thoroughly. The background check on your credit line does not come free hence the processing fees charged to ensure a healthy credit line properly backs the purchase.
The cash crunch that has been experienced in the last few years, especially due to the pandemic, has brought a wave of solutions to try and cut costs to a minimum. The costs associated with credit cards have initiated moves that will phase out the cards and use the new model.
A debit card purchase has no interest fee whatsoever because there is no money borrowed from the bank. A credit card purchase will charge interest at the end of every month, depending on your loan structure.
Late payment on your borrowed money will result in heavy penalties. Credit card purchases have the more attractive packages that lure people who don’t have the money for a purchase to be caught on this web. That is the whole business model that is associated with credit cards.
It is accepted by PayPal
PayPal is popular worldwide, and it is used to receive payments and purchase goods online. Debit cards have a major advantage over credit cards in this respect. It is impossible to use a credit card to buy anything on PayPal. PayPal uses the money that is deposited through a bank account or money received from another user.
Credit cards are not good for budgeting
The main reason why we buy cryptocurrencies is to ensure that we gain a profit. Living within our means has been a hard task to come by ever since purchase crypto with credit was made possible.
People are maxing out their credit cards because they believe that they will make returns on their investment. Impulse is an emotion associated with shopaholics, and this emotion should not be associated with cryptocurrency traders. You can be impulsive while buying gift cards but not with cryptocurrencies.
It is alright to buy bitcoin with debit card because the market is not stable. If you buy lots of bitcoin with credit and the next day or week the masses decide that it doesn’t suit them, you are the one who gets stuck with all the debt.
The market has no real value because the prices fluctuate at any time. The big players in the industry, that is, the billionaires, decide where the tide will flow, and you being a small-time entrepreneur, may suffer the consequences of their indecision.
We have had various instances that show why a debit card would be more useful than credit cards when purchasing cryptocurrency but let us not overlook safety. Both of these cards have safety issues, and one way of ensuring that your card details are safe from online hackers is to buy gift cards with cryptocurrencies.
For future reference, we hope that newbies in this venture can take a long hard look at the disadvantages before they can buy bitcoin. It is good to note that the rich have only gotten richer because of how they measure risk with how much they have in their bank accounts not with their credit cards. Newbies must consider what they have before investing in cryptocurrency.