Why did banks ban cryptocurrency purchases using their credit cards?

The wave of banks banning the purchase of cryptocurrencies using credit cards is growing because Wells Fargo is complying with these types of bans. Many other banks, such as Chase, Bank of America, Citigroup and more, are part of this new trend that is limiting the purchase of cryptocurrencies.

Debit cards still seem to be used to buy cryptocurrencies (check with your bank to secure their policy), but using credit cards to buy cryptocurrencies has taken a turn for the worse when these banks are banned from buying. until it becomes.

Apparently, overnight purchases began to be discontinued when credit cards were used to purchase cryptography, and people who had never had a problem with buying credit cards before began to notice that they were not allowed to make such purchases. The volatility of the cryptocurrency market is to blame here, and banks don’t want people to spend a lot of money, which will turn into a fight for a return if a major cryptocurrency crash occurs at the beginning of the year.

Of course, these banks will also lose money when people buy cryptocurrencies and the market is booming, but they have apparently decided that the bad ones outweigh the good ones with their credit cards for this bet. This also protects the consumer by limiting their ability to get into financial trouble by using credit to buy something that can leave them with little money and bad credit.

Most investors who used credit cards to make cryptocurrency purchases were probably looking for short-term profits and had no plans to stay long-term. They hoped to get in and out quickly, then pay off their credit cards before they could start a high interest rate. But with the constant volatility of the cryptocurrency market, many of those who bought it lost a huge amount of money considering this plan. assets with the market downturn. Now they are paying interest on the money they lost, and that is never good. This, of course, was bad news for banks, and led to the current and growing trend of banning crypto purchases with credit cards.

The lesson here is that you never have the largest line of credit to invest in cryptocurrencies, and use only one percent of your hard assets to make cryptocurrency purchases. These funds should be funds that you can block in the long run without compromising your budget.

So don’t put the money you need in the cryptocurrency soon to find out that a down payment has taken money out of your pocket. There’s an old saying, “Don’t play with money you can’t afford to lose,” and that’s a lesson that banks want people to learn as they enter this new investment limit.