Why Did Banks Ban Cryptocurrency Purchases Using Their Credit Cards?

The wave of banks that have banned the acquisition of cryptocurrency using their credit cards grows as Wells Fargo is now on board with this kind of ban. A number of other banks, like Chase, Bank of America, Citigroup, and more, are also a neighborhood of this new trend that’s limiting the acquisition of cryptos.
Debit cards, it seems, can still be used to purchase crypto (check with your bank to be sure of their policy), but the use of credit cards to purchase crypto has taken a turn with these banks leading the way with these purchasing bans, and it probably won’t be long before this ban becomes the quality.
Seemingly overnight purchases started being canceled when credit cards were used to buy crypto, and people who never had any trouble before buying crypto with their credit cards began to notice that they weren’t being allowed to form these purchases anymore. Volatility within the cryptocurrency market is that the culprit here, and banks don’t need people to spend plenty of cash which can become a struggle to pay back if a major cryptocurrency downturn happens as it did at the beginning of the year.
Of course, these banks also will be missing out on the cash to be made when people purchase cryptocurrency and therefore the market has an upswing, but they need apparently decided that the bad outweighs the great when it involves this gamble with their credit cards. This also protects the buyer because it limits their ability to urge into financial trouble by using credit to shop for something that would leave them cash and credit poor.
Most investors who used credit cards to make cryptocurrency purchases were probably looking for short-term gains and had no plans to stay in for the long haul. They had hoped to urge in and out quickly, then pay off the credit cards before the high interest kicked in. But with the constant volatility of the cryptocurrency market many that had bought, with this plan in mind, found themselves losing an incredible amount of assets with the downturn of the market. Now they’re paying interest on lost money, which isn’t good. This, of course, was bad news for the banks, and it caused the present and growing trend of banning crypto purchases with credit cards.
The lesson here is that you simply should never reach a line of credit to take a position in crypto, and only use a percentage of your hard assets to form crypto purchases. These funds should be funds that you simply can have locked up for the end of the day without it hurting your budget.
So, don’t get caught putting money into cryptocurrency that you will be needing soon just to find that a downturn has taken money out of your pocket. There is an old saying that goes, “Don’t gamble with money you cannot afford to lose,” which is that the lesson that banks want people to find out as they venture into this new investment frontier.

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