Crypto adoption is very close to going mainstream, and before that happens, a lot of trading will be commenced, many crypto exchanges will be closed and opened, and a lot of changes will be directed to the crypto market too. During this extensive time frame, most Americans have decided to give crypto trading a go by purchasing cryptocurrencies using their credit card.
They are willing to invest in digital assets by taking on consumer debt. According to careful analysis, more than 20% are ready to use their savings for that purpose. It seems like the American market is apprehending cryptocurrencies the same way they approach every other thing via consumer debt and using credit to buy things.
Is Using Credit Card for Acquiring Crypto a Sound Decision?
Crypto trading is a serious domain, but even here, millennials have the same attitude: taking on as many of it as they can on credit and never having an actual plan to return the debt when the time comes. According to a report, an average millennial holds close to $1800 worth of crypto assets, and almost 25% of these have used their credit cards or savings to purchase cryptocurrencies rather than using paper currency. It is a possibility that they might be using credit cards when they are low on fiat, and there is a sparkling opportunity in front of them they want to cash, a crypto trade maybe too glorified to turn down.
But in doing so, they are giving away their profit to the consumer debt they are in, and if some of them at the end of the day are to sell their crypto assets to clear the credit card debt, then in simpler words, they didn’t make any profit. In fact, it would be surprising if most of them got out of it at an even buying price. It could be a spur-of-the-moment decision but not an intelligent one. They are using debt to avail themselves of an investment opportunity that can backfire any moment, provided they can’t take care of the outstanding debt.