Cryptocurrency Q&A
Does buying crypto with credit card count as cash advance?
Does buying crypto with credit card count as cash advance?
SumoStrength
Mon Sep 23 2024
|
6 answers
1070
Hey there, I've been curious about the implications of using a credit card to purchase cryptocurrency. Does buying crypto with a credit card technically count as a cash advance? I've heard differing opinions on this and I'm trying to get a clear understanding of how it might affect my finances. Is there a chance that it could lead to higher interest rates or fees? Or does it depend on the credit card issuer and the crypto exchange I'm using? Thanks for your insight!
6 answers
OceanSoul
Wed Sep 25 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the needs of cryptocurrency investors. These services include spot trading, futures trading, and digital wallets, among others. By leveraging these services, investors can manage their cryptocurrency portfolios more effectively and efficiently.
Was this helpful?
108
21
SamsungShineBrightnessRadianceGlitter
Wed Sep 25 2024
Cryptocurrency purchases are not considered regular purchases by many credit card companies, and hence, they are subject to higher fees. The cash advance fee can vary depending on the credit card issuer and the cardholder's agreement terms.
Was this helpful?
294
86
KpopStarletShineBrightnessStarlight
Wed Sep 25 2024
It's essential for cryptocurrency investors to be aware of these fees before making a purchase using their credit cards. The cash advance fee can significantly impact the overall cost of the transaction, making it less profitable or even unfeasible in some cases.
Was this helpful?
91
42
Chiara
Wed Sep 25 2024
Another aspect to consider is the potential for higher interest rates on cash advances. Many credit card companies charge a higher interest rate on cash advances than on regular purchases, which can further increase the cost of using a credit card for cryptocurrency investments.
Was this helpful?
298
94
Bianca
Wed Sep 25 2024
Credit card companies impose various fees on their cardholders, one of which is the cash advance fee. When a cardholder makes a cryptocurrency purchase, it is often treated as a cash advance by the credit card issuer. This practice results in an additional fee being levied on the transaction.
Was this helpful?
163
62
Load 5 more related questions
