It appears to be getting easier for consumers to buy cryptocurrency with a debit or credit card.
Crypto.com, a Singapore-based cryptocurrency exchange platform, is allowing its 50 million users to start buying crypto on its app using a debit or credit card linked to Google Pay, according to a recent press release.
Android users will be able to choose from over 250 cryptocurrencies to buy using smartphones, tablets or virtual wallets.
But as with anything with crypto, there are risks involved. Here’s what you should know.
What you should know before buying crypto with Google Pay
To get started using Google Pay for Crypto.com purchases, Android users should first ensure that a debit or credit card is linked to their Google Pay account. Then, when users make a purchase in the Crypto.com app, they simply select the Google Pay option. All that’s left to do is accept the card processing fee and complete your purchase.
Users’ crypto balance will be updated accordingly, and they will be able to see their transaction history in the app.
This move by Crypto.com speaks to a growing trend. Coinbase, a popular San Francisco-based cryptocurrency exchange, began allowing its nearly 98 million verified users to buy cryptocurrency via Apple Pay and Google Pay last year.
“Adding these payment types makes it more convenient for people to buy cryptocurrency in ways they’re familiar with,” says Kris Hansen, co-founder and chief technology officer at Synctera, a fintech startup that connects app builders with financial institutions.
“The ability to buy cryptocurrency from a checking account makes it easier for people to fit cryptocurrency into their overall financial life,” he adds.
Investors should remain cautious
But making it easier for consumers to buy cryptocurrency by using borrowed money via a credit card can be risky and get them into financial trouble down the road, warns Hansen.
Experts generally caution against charging more than you can comfortably pay off each month on your credit card.
And while the ability to easily buy cryptocurrency may be welcome news to some investors, it’s important to remember that these digital assets are subject to unpredictable fluctuations in value and price. Generally, experts recommend investing only as much as you are willing to lose.
Potential investors should also do their due diligence before buying in. Despite its ease, crypto is not something to buy on impulse.
– There have been many unfortunate losses linked to people posing as exchange representatives and getting away with funds, says Hansen. “Doing the research is important.”
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