Bitcoin which is a cryptocurrency made its debut in 2009 is a cryptocurrency that is neither supported by the government nor by any authority in the country. It has gained a lot of fame as an investment for the past few years.

  • People who may not have the budgets for purchasing bitcoin are aiming at buying them using credit cards. 
  • A bitcoin can be bought with the help of a credit card if your credit card issuer and the exchange allow the same. There are some drawbacks of purchasing bitcoins using credit cards. 
  • A broker might charge you extra while purchasing bitcoin with the help of a credit card. The fees and charges related to credit cards are very high and thus they might not be in the budget of the individual.
  • There may be an additional foreign exchange fee that is levied on the purchase of bitcoin.
  • If you buy bitcoin, your credit utilization ratio increases and thus it may affect your credit report. The volatility of bitcoin is very high. It is a risky investment.
  • There are some credit cards that are offering rewards to customers who purchase bitcoins from the credit card issuers.
  • You may choose to buy bitcoin with a credit card but it is not an advisable decision and thus you may lose on some of your investment in this process.