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Crypto Purchases with Credit Cards: Maximizing Rewards and Minimizing Risks

December 20, 2023 Biljana Kuprešak 0 Comments

The intersection with traditional finance, particularly credit cards like Milestone, has become increasingly prominent. The prospect of using credit cards for cryptocurrency purchases brings both enticing advantages and potential risks, requiring a careful balancing act to navigate this financial terrain.

Advantages

Convenience and Accessibility

Using credit cards for cryptocurrency purchases offers a familiar and convenient payment method. It allows users to seamlessly integrate digital asset investments into their everyday financial transactions.

Rewards Programs

Many credit cards offer rewards programs, and some have extended their benefits to include cryptocurrency purchases. This means users can earn cashback, points, or other incentives while venturing into the world of digital assets.

Instantaneous Transactions

Credit card transactions are typically swift, providing users with immediate access to their purchased cryptocurrencies. This real-time aspect can be advantageous in volatile markets where timing is crucial.

Building Credit History

Making cryptocurrency purchases with a credit card contributes to building or strengthening credit history. Responsible use can positively impact credit scores, potentially benefitting users in future financial endeavors.

Potential Risks

High Fees

Credit card companies may charge high transaction fees for cryptocurrency purchases. Users should be mindful of these fees, which can significantly impact the overall cost of acquiring digital assets.

Volatility Risks

Cryptocurrency markets are known for their volatility. If the value of the purchased digital assets fluctuates after the transaction, users could potentially face losses or gains. Understanding and being comfortable with this inherent risk is crucial.

Interest Charges

Unlike traditional purchases, credit card companies may classify cryptocurrency transactions as cash advances. This distinction can subject users to higher interest rates, especially if they do not pay off the balance promptly.

Security Concerns

The security of cryptocurrency transactions with credit cards is a critical consideration. Hacks and fraud in the crypto space are not uncommon, and users must prioritize the security of their credit card information and digital assets.

ALSO READ: Mastering Risk: Strategies for Success in Crypto Trading Across Platforms

Strategies for Mitigating Risks

Research and Choose Wisely

Select credit cards that offer favorable terms for cryptocurrency transactions. Look for low fees, competitive rewards, and robust security features.

Understand Terms and Conditions

Familiarize yourself with the terms and conditions of both the credit card issuer and the cryptocurrency platform. Be aware of any additional fees, interest rates, and security measures in place.

Monitor Market Conditions

Stay informed about the cryptocurrency market to make informed decisions. Regularly monitoring the value of digital assets can help users make timely moves to mitigate potential losses.

Use a Secure Wallet

Consider using a secure cryptocurrency wallet for storage rather than leaving digital assets on an exchange. This adds an extra layer of protection against potential security breaches.

Conclusion

In conclusion, the prospect of making cryptocurrency purchases with credit cards presents exciting opportunities for users to maximize rewards and seamlessly integrate digital assets into their financial portfolio. However, it comes with inherent risks that demand careful consideration, research, and a proactive approach to security and financial management. Users should weigh these factors diligently to strike a balance that aligns with their financial goals and risk tolerance.

Government Warnings And Restrictions On Cryptocurrency Trade And Investment

November 2, 2019 Petteri Selin 0 Comments

Many crypto traders follow crypto signals as they give ideas or suggestions for trading, the buying and selling of a certain cryptocurrency at a given time and value. These signals typically come with a Take-Profit as well as a protective Stop-Loss to cover you from different angles.

The advent and evolution of cryptocurrency has been thought to be an innovative alternative to the existing financial system.

Even if one of the trademarks of crypto is it being decentralized, effectual regulation makes certain its legitimacy. Moreover, although the blockchain technology is very secure, still people are included in trading, exchanges, as well as international coin offerings.

Regulations build trust and permit individuals to identify genuine and legit ICOs from Ponzi schemes and other frauds and scams. Below are some existing rules and regulations for the market of cryptocurrency across the world:

Warnings from the Government

Majority of regulatory initiatives and efforts begin with government warnings, which are usually released by central banks, concerning the drawbacks of investing or trading cryptocurrency. These warnings are intended to enlighten the public regarding the main differentiations between digital currencies and fiat currencies that are released and assured by the state. The warnings rope in the following:

Volatility of the value of cryptocurrency
Unregulated organizations that facilitate crypto transactions
No available legal recourse for individuals who have invested in crypto and unfortunately lost their money
Cryptocurrencies open opportunities for crooks engaging in activities that are against the law like terrorism and money laundering

Investment and Trading Restrictions

Most nations around the globe still lack regulations and laws purposely intended to govern crypto markets as well as its transactions. Majority of them have merely magnified prevailing laws on money laundering, counterterrorism, as well as other organized criminalities to conceal actors and undertakings that involve digital currencies.

Others on the other hand have moved further and formed laws that deal with crypto trading and investment. Below are a few examples:

All crypto transactions, including the trade and investment of crypto, are forbidden in Algeria, Bolivia, Morocco, Nepal, and Vietnam.
Bahrain and Qatar have outlawed every domestic undertakings involving crypto, however citizens are permitted to engage in such undertakings outside their borders.
China, Bangladesh, Colombia, Lesotho, Iran, Lithuania, as well as Thailand implicitly ban domestic undertakings by stopping any financial institution within their boundaries from facilitating or making possible all forms of transactions involving cryptocurrency.
Australia permits transactions on crypto, however necessitate exchanges to get a market license or a licensed on clearing and settlement facility.

It is then crucial to do your in-depth research to make certain which undertakings you are lawfully allowed to carry out in your jurisdiction. There are available tools that could aid you with your research, and in automating particular activities making trading easier for you as well as boosting your returns.

Why Companies Are Withdrawing Support From Facebook Libra Project

October 13, 2019 Petteri Selin 0 Comments

Checking out websites like https://coinpunk.com/bitcoin/trading/best-crypto-trading-bots/, trading bots allow crypto holders and investors to continue to trade as well as manage their crypto at any time. Such software were set up for the aim of making trading crypto a lot simpler and less difficult. Knowing that the market of crypto is extremely unstable, these bots carry out the trade making sure it matches the market.

Despite the volatility of cryptocurrency, many still acknowledge its potential. Recently, Facebook publicized its plan to release its new cryptocurrency, Libra. Facebook users will be capable of sending this cryptocurrency from one user to another, and will likewise be capable of utilizing it to purchase goods and services over Facebook as well as through other platforms that support the digital currency.

So as to draw up support on Facebook’s new venture from its initial stages, it has solicited the financial support of over a dozen companies and corporations across the industries of finance, e-commerce, technology as well as and telecommunications.

Libra’s Corporate Supporters

Among the numerous companies who enlisted to invest in Libra of about 10 million US dollars each are credit card titans Mastercard and Visa, and ridesharing giants Uber. The cash raised by these enlisted members will help to finance the Libra’s launch. As per report, Facebook has worked toward raising about 1 billion US dollars to fund the crypto project.

Afraid of the inquiries by regulators not only with their association with Libra but also with their businesses itself, many of these companies who have expressed their support are withdrawing for now. None of them had made detailed commitments to incorporating the new crypto into their products, but have mentioned that they can yet later on get involved. Nonetheless their departure from Facebook’s venture obscures the future of the project leaving Facebook to take in more of the drawbacks.

Paypal, a company for payment service, had been aboard up until it revealed on the 4^th of October 2019 it was withdrawing from the project. As per report from the Wall Street Journal, credit card titans Mastercard and Visa are likewise reevaluating their connection with Libra.

What Does This Imply

Libra has seemingly been being developed by Facebook for over a year, and limited information regarding the venture has been made available to the general public. However, one thing is known, Facebook Libra will be attached to a basket of currencies that are government-issued in an attempt to proactively counteract and deal with the extreme volatility of cryptocurrencies.

Libra has a way in on other coin offerings, since Facebook could tap into its massive user base that consists of billions of accounts. But, challenges in regulations in the United States as well as in other corners of the globe continue to be an imperative barrier. Moreover, there is the continuing matter regarding the utilization of crypto for money laundering as well as the funding of organizations related to terrorism.

Funding Business-Related Needs With Business Loans Collateralized By Cryptocurrency Assets

September 3, 2019 Petteri Selin 0 Comments

Loans could be very helpful and useful to many, especially when the right form of loan and term taken is tailored to your specific needs. For example, the American Pride Car Accident Loans have aided many individuals needing financial support subsequent a vehicular misfortune by providing car accident loans fitted to their needs.

Many take out loans for business-related purposes, whether it’s kick starting a business, purchasing inventory or equipment, or growing business operations. Whatever the purpose may be, a sizeable amount of money is probably needed. Loans or a certain type of financing is the go-to of many business owners, especially when there’s no or insufficient available money on hand.

Expanding Business With Loans Collateralized By Cryptocurrency

One of the most traditional options of financing is securing a loan from the bank. Such loans come with particular tax breaks as well as lesser interest rates as contrasted to overdrafts and credit cards. But, one need to conform to a series of requirements to qualify for a loan and the weight of paying off the loan could be burdening.

With the development of fintech, there are now other convenient and cost-effective ways to obtain financing, particularly cryptocurrency holders. Business proprietors who welcome cryptocurrency as a method of payment or have possession of cryptocurrency as an asset or investment have the opportunity to utilize this asset to acquire funding (fiat money) which is directly transferred to their bank accounts. By making the most business loans collateralized by cryptocurrency, business owners could finance their business-related needs without selling their crypto assets.

Finance New Business Services or Products

Adding a new and different service and product is one great way of expanding a business. This opens an opportunity to draw in new patrons as well as provides a motive for current patrons to return. This is an efficient approach to progressively grow revenue. But, it could be costly to institute these new services and products. By making use of digital currency for a loan, business proprietors have the potential to obtain funding sent directly to their current account without selling their crypto.

Expand Outreach Operations and Marketing

One main priority for any rising business is making best use of the quantity of possible new patrons that set eyes their eyes on their brand. This may encompass hiring a new company PR as well as getting your brand endorsed by personalities and social media influencers. But, these promotions could be costly, depending on who you affiliate with. The solution is to be tactical with your financial plan. Financing your expansions on marketing with a loan backed by crypto is an excellent approach to access the worth of your crypto, again without selling them.

Businesses that hold cryptocurrencies are beginning to utilize these assets to obtain funding. By means of leveraging these digital assets, businesses could directly be given funds into their accounts without the need of selling their crypto. This retains their capacity to maximize the potential of the value of crypto investments.

Applications for Cryptocurrency

Teemu Viinikka 0 Comments

In layman’s term, cryptocurrency is a form of digital currency. It’s not centralized or in other words, there’s no government or financial authority controlling or regulating its circulation. These coins rely on encrypted codes in verifying transactions. An extremely popular cryptocurrency is Bitcoin. Since the time it becomes mainstream, there are more than 700 kinds of cryptocurrency that’s been introduced.

Uses of Your Crypto

To make use of crypto, you have to buy from online exchange or get your personal tradelines packages link and then, select a digital wallet where you can store your coins. The coins can be used much like paper money. It can be used for transactions like:

Paying for services and;
Buying goods

Your Path for Getting and Investing in Your First Coin

After getting through the initial steps, your next course of action is deciding what type of crypto to get. As mentioned, there are over 700 kinds of it today and finding what’s right for you will depend on the things you like to do with it. However, let me inform you that newly introduced cryptocurrencies are more volatile and few may accept it as payment for services and goods.

When all is set and done, now’s the time to pick your cryptocurrency exchange. Different exchanges are offering different cryptocurrency, has different fees and varying payment methods. It’s under your discretion what to choose. Your best bet is to do thorough research on your prospective exchange. The only way you can make exchange on your chosen platform is by making a trading account. Much like when creating accounts for other platforms, you have to verify your identity and other info required by the exchange.

Rest assured that you have a valid ID for swift and smooth verification.

Once you’re verified, you should connect your desired payment method. If this is the first time buying crypto, you’ll have to use fiat currency. This is a national currency like Euro or Dollar.

As soon as everything settled, you have to place your very first order for crypto. Most of the time, you will have to specify the currency you like and also, the amount of coins you’d like to buy. You may be given the option of specifying the money you wish to spend. As for the amount of cryptocurrency you acquire for the money you spent, it will largely depend on the cryptocurrency’s value.

Quick Overview of Cryptocurrency

August 29, 2019 Gilly Proudfoot 0 Comments

What is Cryptocurrency?

Etymologically, cryptocurrency is composed of two words, namely crypto which refers to cryptography or a coding language in the computer world and currency that refers to the value of a currency. From the definition can be drawn that cryptocurrency is a digital currency mechanism that can be used to transact virtually or via the internet protected by complex computer coding.

So what distinguishes it from currencies that are currently commonly used, such as the Dollars, which has also been widely used for digital transactions? Cryptocurrency is decentralized. What is a decentralized system of transaction? Read further below.

The following explanation of the differences between the two properties in a case study.

Centralized Transaction

The centralized nature is exemplified in the transaction model that has often been used by the community. For example, in this case, the parents who want to send money to their children overseas are exemplified, so what they do is use banking services (ATM, Mobile Banking, or come directly to the relevant bank) and then transfer some money to the child’s account number. The transaction is basically done through a bank intermediary and a trusted service.

So the process is that the money transferred is actually entered into the bank first, then forwarded to the recipient. The process is real-time so the displacement is not felt. However, what is felt is precise because the process is through an intermediary, there are rewards that must be paid, namely in the form of administrative costs, both incurred immediately (if sending to a different bank account) or in administration fees charged every month.

Decentralized Transaction

While the decentralized nature means that no one is an intermediary or special party is the intermediary. Transactions are carried out peer-to-peer from sender to recipient. All transactions are recorded on a computer in the network, worldwide, or called a miner (miners who help secure and record transactions on the network). The miner himself will get a commission with the virtual money used, but not everyone can become a miner because it requires special expertise with complex computational processing to solve the cryptography used. This is one of the reasons why cryptocurrency miners generally use high-specification and special computers.

The nature of decentralization is the DNA of the Blockchain system. Basically Blockchain is a platform that allows cryptocurrency digital currencies to be used for transactions.

Bitcoin In The Midst Of Present Economic Setting

June 30, 2019 Gilly Proudfoot 0 Comments

In 1999, in an interview with Milton Friedman, American Nobel Prize winner in Economic Sciences, he has somewhat predicted the birth and surge of digital currencies. In the interview, he mentioned, “the one thing that’s missing but will soon be developed, a reliable e-cash…” His words resonated when the first digital currency was introduced, the Bitcoin.

“The one thing that’s missing, but that will soon be developed, it’s a reliable e-cash. A method where buying on the Internet you can transfer funds from A to B, without A knowing B or B knowing A. The way in which I can take a 20 dollar bill and hand it over to you and there’s no record of where it came from. And you may get that without knowing who I am. That kind of thing will develop on the Internet.”

Bitcoin is the world’s first decentralized digital currency that was first launched in 2009 as an open source application. It functions without the need of a central administrator or repository. According to a research report released by Cambridge University in the year 2017, there are approximately 2.9 to 5.8 million cryptocurrency wallet users worldwide, most of which report using bitcoin.

Bitcoin as Investment and Medium of Exchange

Like the US dollar, Bitcoin is essentially worthless, both being fiat currencies. The coexistence of two legal currencies and their exploration is absolutely nothing different. If the two are employed being a medium of exchange throughout the market, their exchange rates are uncertain, as shown by Kareken and Wallace (1981).

On a side note, Bitcoin or Cryptocurrencies generally cause new problems. In particular, there is no central bank in Bitcoin and the supply of Bitcoin increases but introduces new and potentially significant elements. The random fluctuations in bitcoin rates have elevated and are missing in the Kareken-Wallace research.

Traders may treat bitcoin (and various other cryptocurrencies) as investments much like investments in world oil trade and assume that prices are rising instead of treating it as a medium of exchange. Given these novel aspects, what does bitcoin prices mean, and what does the monetary policy of the existing currency imply?

The Role Of Bitcoin In Economic Setting

The double role of Bitcoin (or any other cryptocurrency) being a medium of exchange and being an object of speculation (investment), we visualize another world in which both dollars and Bitcoin function as entirely recognized, frictionless way of payment to acquire perishable consumption goods.

Significantly, we presume that dollars and Bitcoin are needless to say worthless. Contrary to other assets, keeping both of these currencies produces no dividends or utility. The sole use of these fiat currencies is to acquire goods. We imagine there is a central bank attaining an estranged given random inflation aim for the dollar while there is not any central organization governing the worth of Bitcoin.

Ramifications of Bitcoin for Dollar Economic Policy

The levels of competition between the dollar and Bitcoin gives a spike to a Bitcoin dependent on inflation rates formulation. As a result, Bitcoin rates connect to dollar economic policy. This has effects on both traditional and a non-traditional dollar central bank. The market clearing state then signifies that the central bank for dollars could control the Bitcoin value. Even more possibilities may occur.

The Striking Properties of Crypto Finance Products

June 23, 2019 Petteri Selin 0 Comments

Need Money Now provide bad credit loans for NZ citizens. This is one of the numerous financing preferences that involve the use of traditional legal tender. Because of our highly (and continuing to be) digitized world, cryptocurrency, similarly known as virtual currency or digital money, is now also continually rising to be part of the financial system.

Properties of Crypto Finance Products

In the crypto economy, crypto finance is a speedily developing sector that largely involves the use of financial protocols as well as applications that is Ethereum-based. At great scale, these applications and protocols aim to copy prevailing products from the financial system that is traditional, however with bettered functionality as well as divergent properties of risk that is intrinsic in the systems of crypto.

So what are some of the generally appealing and striking properties of products in crypto finance that makes it a desirable choice? Here a few:

Crypto Finance Products are Inbuilt to the Internet

Beyond a standard connection to the internet, networks on crypto don’t necessitate any added structure or set-up for users to join in the system. The absence of proprietary or exclusive payment as well as networks for messaging indicates that products on crypto finance revel in worldwide distribution as well a footmark that embraces most of the people.

Borderless and Accessible 24/7

Products on crypto finance could be offered and accessible across borders without any glitch as they operate on an infrastructure layer that is universal. Moreover, networks on crypto are available and accessible 24 hours a day, all year round.

Economic Sovereignty

Since crypto finance products could greatly be censorship resistant, users have full control over their finances and their transactions couldn’t be blocked or impeded by anybody.

Counter-party Risk is Minimized

The majority of products of crypto finance are non-custodial. This signifies that there is no third party entity that is given control or authority over your finances. Moreover, a third party can’t singly make transactions for you.

Cost is Low and Settlement is Swift

Transactions could be settled or completed within minutes or seconds, wherein every cost of transaction ranges from 0 to 50 cents but would rely on the network as well as the capacity demand.

Better and Smarter Underwriting and Auditing

As the financial data of an individual or unit exists on the chain, leveraging is possible when effecting or carrying out credit settlements that are unsecured or if not risk of underwriting. This may possibly and ultimately be likely whilst preserving and safeguarding privacy.

Accessibility of the Developer

Compared to financial services that are traditional in nature, technology on crypto finance is unrestricted and accessible. Although it is challenging for creators to incorporate with systems on banking as well as legacy payment, there is no difficulty or stumbling block for developing an app that would leverage other apps and protocols on crypto finance. The effects of the system are substantial.

These are a few of the major and striking properties of crypto finance products that individuals, whether entrepreneurs, developers and others, could leverage when taking a product on crypto finance to the market. However, a few of these may require a certain amount of time to develop and mature prior to granting any significant edge.

Make it and Break it! The technology of Codes

June 14, 2019 Ephraim Landry 0 Comments

[embedyt] https://www.youtube.com/watch?v=-yFZGF8FHSg[/embedyt]

Security is a very important part of trading, especially in the 21st-century setting. Financial transactions are now becoming purely digital and with it, newer and smarter threats are also ever rising. With this growing digital financial transfers versus hackers lurking around waiting for some unsecured transaction to fall on their bait, intellectuals and techno-geeks are working on ways to secure these transactions from pirates of the digital world. These people are “Cryptographers” and here is a quick video about the science of Cryptography.

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