If you have been following the news a bit lately, you know that the value of the bitcoin is doing very well. Bitcoins are digital currencies with which you can pay online, for example. It is therefore a form of electronic money and you can use bitcoins just like you pay with the euro, for example. For example, you can buy products and goods with it, you can exchange them for euros and so on. The advantage of this ‘money in the cloud’ is that you can always access it and that payments are always safe and fast. But how do you get bitcoins and can you buy these digital coins with your credit card? With the help of cardinsider.com, let’s find out.
THE MYSTERY OF BITCOINS
Many people find bitcoins a vague concept and do not know what they can do with them. As mentioned above, you can compare it with ‘regular’ currency. The only difference is that you pay online with it. For example, you can buy a cheap credit card and easily purchase bitcoins. Due to the increasing popularity of virtual money, more and more people are opting for this simple way of paying. What is the best way to buy it? Of course with another simple way of paying and that is with your credit card. For example, this is a lot faster than a normal transaction via the bank. You can use the bitcoins almost immediately after purchase and that is exactly what many users like about this currency.
WHAT CAN YOU PAY WITH IT?
Once you have requested the bitcoins with your credit card, you can start using them as money. The same applies when you buy Bitcoins with iDeal. Because the value of the price of bitcoins is in an increasing line, it is very attractive for people to purchase bitcoins. You can eventually ‘earn’ a larger amount for a low amount when you invest in bitcoins. View the current price of the bitcoin here. That way, an investment you make with your credit card is a very good idea. But what can you actually buy with your bitcoins in the Netherlands? Think, for example, of ordering food at various restaurants via Thuisbezorgd. When you pay with a credit card, you often have to pay high transaction costs. When you pay with bitcoins, this is not the case! On this website with shops and webshops you can see where you can go with bitcoins.
BITCOIN CREDIT CARD: XAPO
It even goes a step further in the field of bitcoins and credit cards: provider Xapo has launched the first credit card especially for bitcoins. Xapo is an international company based in Hong Kong and is a very active player in the financial market. With the bitcoin credit card you can use bitcoins in places where you would normally only be able to pay with a ‘normal’ credit card, such as a MasterCard credit card or a Visa card. For only 15 dollars you can buy a physical pass with which you can do this. The bitcoins must of course first be purchased and put on the card. As a result, the bitcoin credit card works as a kind of prepaid credit card; you must first put digital money on it before the card can be used. Bitcoins are deposited in your online wallet where it is safely stored for you.
BAN ON PURCHASING BITCOINS WITH CREDIT CARD?
This month it was announced that many American banks no longer allow their customers to purchase bitcoins with their credit card that belongs to the bank in question. When we look at the varying value of this cryptocurrency, it is not very strange. Read on to learn all about many U.S. banks’ ban on buying bitcoins with your credit card.
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NO SECURE FUTURE
Several U.S. banks, including Bank of America, stopped access to bitcoins with your credit card last month. They consider the risk of the means of payment too great. Various cryptocurrencies have recently dropped considerably in value, the banks are afraid that people will no longer be able to pay off their debts that they have built up with, for example, bitcoins in the future. It may be that bitcoins will be worth little to nothing in a while. Bank of America immediately introduced the measure at the beginning of February: since then, people can no longer buy bitcoins with their credit card. With a regular debit card, this is possible. The big disadvantage of a credit card in this case is that people can spend money that they do not have, so this also applies when buying bitcoins.
DUTCH BANKS VS. THE BAN
So far, there is no ban in the Netherlands on purchasing bitcoins with your credit card. Banks such as Rabobank and ABN Amro still let their customers do their thing with the cryptocurrency. In all cases, this is completely at your own risk. If something happens to the value of the bitcoin, the problem lies with the customer, according to the banks. If you would like to get started with purchasing bitcoins, but do not want to be on the blisters later when the value drops considerably and you build up a debt through your credit card, you can opt for a prepaid credit card. With a prepaid credit card you spend the money immediately and you do not spend money that you do not have.
MASTERCARD VS. CRYPTOCURRENCY
And then there is another story, namely buying bitcoins with your Mastercard credit card. It is now not unknown that Mastercard is the largest provider in the field of credit cards, next to Visa credit card. Mastercard is encouraging this whole process and so far is not even thinking about banning bitcoins. Why? Very simple: since the whole hype about this cryptocurrency, the transactions at the credit card provider have increased enormously. Last year even by a whopping 22%, which is almost a quarter of all transactions that year before. It is therefore not surprising that this multimillion-dollar company supports the purchase of bitcoins.
BUY BITCOINS WITH YOUR CREDIT CARD
So you can still buy bitcoins in the Netherlands with your credit card. Not sure if you should do this? Then keep an eye on the exchange rate of the bitcoin for a while. Although it can of course always happen that the value suddenly rises sharply or suddenly drops considerably, it does not hurt to first delve into the world of cryptocurrency. You can view the exchange rate of the bitcoin on this website. Only participate in ‘the game’ when you have money that you can miss for it. Buying Bitcoins with your credit card can be done within a few steps.