Your guide: Will Citi Let You Buy Crypto with Credit Card?
Recently, the market for cryptocurrencies has been on a rollercoaster; Bitcoin and other digital assets have reached new all-time highs and then show notable volatility. The issue of utilizing credit cards to buy these assets becomes more pertinent as more individuals get in on the crypto frenzy.
One big participant in the credit card market is Citi, and many customers are wondering: can you purchase Bitcoin with a Citi credit card? So, if you’ve been wondering about this, you’re in luck. Today, we’ll cover this and more. Keep reading to find out more.
Also read: JPMorgan CEO Warns of US Economic Crisis as BRICS Power Grows
City’s Opinion Regarding Bitcoin Purchase
Like many other big credit card issuers, Citi has had a somewhat complicated and changing policy on letting consumers use their cards for Bitcoin purchases. Citi, noting the great danger and volatility of the market, has expressly forbade the use of its credit cards for Bitcoin transactions historically.
But in recent years, Citi has changed its stance and now lets some kinds of Bitcoin transactions on its cards, subject to some quite major restrictions. Specifically, Citi consumers may buy cryptocurrencies via recognized exchanges and platforms using their Citi credit cards; these transactions will usually be handled as cash advances rather than normal purchases.
Since cash advances usually come with less favorable conditions than regular credit card transactions, Citi consumers can thus anticipate paying more interest rates and fees on crypto purchases done using their Citi cards. Citi may also set daily or monthly caps on the number of cryptocurrencies one can buy using its cards.
Charges & Fees for Making a Citi Card Crypto Purchase
Regarding the expenses related to purchasing cryptocurrencies with a Citi credit card, there are many main fees to be aware of:
Fees for Cash Advancements
As discussed, Citi usually views purchases of cryptocurrencies as cash advances, so you should be ready to pay a cash advance cost. Usually costing either $10 or 5% of the transaction value, whichever is more, this charge is
Interest Rates of Cash Advancement
Besides the cash advance cost, Citi would charge more interest on any crypto transactions made using its cards. Usually well over 25%, the cash advance APR on Citi cards is far higher than the purchase APR norm.
Foreign Transaction Charges
Should the Bitcoin exchange or platform you are utilizing be situated outside of the United States, Citi might additionally impose a foreign transaction charge, usually ranging from about 3% of the purchase value.
Exchange Fees for Crypto Coins
Apart from the costs particular to the city, the Bitcoin exchange or platform you use might charge for handling the transaction. Depending on the supplier, they may go from 0.10% to 3% or more.
Also read: BRICS: 134 Countries Explore Digital Currencies, US Dollar in Jeopardy
Benefits and Drawbacks of Using a Citi Card for Crypto Buases
Weigh the possible advantages and disadvantages before deciding whether to purchase cryptocurrencies with your Citi credit card:
Cons:
- Using a credit card might be a more practical way to pay than choices including digital wallets or bank transfers.
- Credit card transactions might provide additional protections than certain alternative payment options, including fraud protection.
Negative aspects include:
- High costs and Interest Rates: Your investment may be seriously devalued by the cash advance costs and interest rates linked with crypto transactions on Citi cards.
- Usually, purchases of cryptocurrencies using Citi cards are not eligible for any credit card rewards or welcome incentives.
- Cash advances on Citi cards may have smaller limitations than ordinary transactions, which could limit your potential crypto investment.
- Potential Delays: Certain bitcoin exchanges could hold funds from credit card purchases under hold, therefore delaying your chances to profit from the market.
- Investing borrowed money via a credit card in extremely volatile bitcoin markets is usually seen as a bad financial choice.
Conclusion: Will Citi Let You Buy Crypto with a Credit Card?
It’s unclear if you can use a Citi credit card to buy digital goods because the world of cryptocurrencies is always changing. Citi now lets its cardholders buy some types of cryptocurrency, but most buyers don’t like this as a payment method because of the high fees and interest rates that come with it.
If you want to use your Citi card to buy coins, make sure to carefully look over the transaction records, understand the possible fees, and weigh the risks against the possible benefits. Also, don’t forget about other payment options that might be cheaper and better for the way you spend. Happy trading!