Why did banks ban cryptocurrency purchases using their credit cards?

The wave of banks banning the purchase of cryptocurrencies with their credit cards is growing as Wells Fargo now adopts these types of restrictions. A number of other banks, such as Chase, Bank of America, Citigroup, etc., are also part of this new trend, which limits the purchase of cryptocurrencies.

Debit cards can still be used to buy cryptocurrencies (check with your bank to make sure of their policy), but the use of credit cards to buy cryptocurrencies has taken a turn for the worse as these banks are ahead of the curfew. : It probably won’t be long before this ban becomes standard.

As if overnight shopping were being canceled when credit cards were used to buy cryptocurrencies, people who had never had a problem before buying cryptocurrencies with their credit cards began to notice that they were no longer allowed to make those purchases. The instability in the cryptocurrency market is to blame, և the banks do not want people to spend large sums of money, which will be a struggle to repay if the cryptocurrency falls sharply, as it did at the beginning of the year.

Of course, these banks will also lose the money they need to make when people buy cryptocurrencies, և the market is booming, but they have probably decided that the bad outweighs the good when it comes to playing with their credit cards. This also protects the consumer, as it limits their ability to get into financial trouble by using a loan to buy something that can make their cash or loan worse.

Most of the investors who used credit cards to make purchases in cryptocurrency were probably looking for short-term profits, but did not plan to stay there for long. They hoped to get in quickly, get out, and then pay off their credit cards before high interest rates. assets with market decline. Now they pay interest for the lost money և it is never good. This, of course, was bad news for banks, sparking the current growing trend of banning cryptocurrencies with credit cards.

The lesson here is that you should never maximize your credit line to invest in crypto, use only one percent of your assets to make crypto purchases. These should be funds that you can close for a long time without hurting your budget.

So do not get caught up in investing in cryptocurrency, which you will soon need to find out that the downturn has taken money out of your pocket. There is an old saying that says: “Do not play with the money you can not lose” – this is the lesson that banks want people to learn as they enter this new investment frontier.