NFTs, unlike cryptos, are digital assets, not currency. They can be standard images, GIFs, audio clips, or videos linked to the crypto blockchain. Some common examples are Ethereum (ETH), Klaytn (KLAY), and Solana (SOL). The transfer of the assets is possible due to the blockchain.
The NFT market is changing quite a bit to encourage faster adoption. Yet, the challenge lies in how to access NFT. Before, you had to use a fiat ramp platform to convert, say dollars, into ETH, KLAY, or SOL. You then need to transfer the currency to your wallet of choice. Only then would you purchase or mint an NFT.
But now, there is a faster route through using credit cards. So how does the whole process work?
Buying NFT With Crypto Credit Cards
Credit cards are convenient because all you need to do is swipe them at a POS. The other option is to input your credit card details into an online eCommerce platform.
The lenders provide a credit limit. It gives you access to the cash you may not have at that particular time. But, remember it is a loan you will need to pay back. Skipping balance payments on your card can impact your credit score.
You must also keep a close watch on your credit report to check for mistakes or inaccuracies. In case of any, you can seek the services of cheap credit repair companies to correct them. Top-rated credit repair companies can also monitor the reports to avoid such mistakes in the future.
Purchasing NFTs with credit cards has made the process much easier. You don’t have to convert currency on fiat ramps and transfer the amounts to your digital wallet. Credit card NFT purchases can happen in two ways.
- Use credit facilities to buy cryptocurrency, enabling you to buy the NFT.
- Use your credit card on NFT platforms that allow direct use of crypto credit cards.
That way, you get the cryptocurrency right at the point of purchase. The payment provider will automatically convert your cash into ETH. It occurs in real-time using the current conversion rates.
Make sure you read the credit card lender’s terms and conditions well. There could be applicable fees and interest on the cash advances.
Use Crypto Rewards Credit Cards
Do note that there are rewards that lenders give for using credit facilities. If the NFT buying transaction goes down as a cash advance, you will not be eligible for these. But there is a viable solution in the form of crypto rewards. The rewards come in the form of Bitcoin instead of points or cash-backs.
Learn Everything There Is to Know About Buying NFT with Your Credit Card
By now, you should have a pretty good idea about some advantages of using your credit card to buy crypto. We can summarize them as:
One of the biggest selling points of credit cards is convenience and expediency. The transactions occur immediately, meaning zero waiting time. And that is what you get with buying NFT with credit cards. Indeed, what happens behind the scenes is not your concern.
No Learning Curve
If you buy NFTs traditionally, you have to search for converting platforms and educate yourself on everything there is to know. Indeed the learning curve can be rather steep. It can be quite tough, especially for beginners. The only thing you need to know about using a credit card is swiping or inputting your information.
No Trading Involved
Transacting in cryptos requires knowledge of trading and exchange. Further, to trade on whatever platform, you must have cryptocurrencies first. In essence, it is very much like operating with a debit card. You must have money in your account to buy anything. Credit cards avail credit facilities to users.
But, please remember the point we made earlier on credit card use. The money you get is a loan you must pay back to the lenders. You ruin your chances of getting the perfect credit score if you don’t keep up with payments.
Credit Cards and Market Volatility
Market volatility is a huge issue when dealing with cryptocurrency. Bitcoin responds to supply and demand, much like assets and commodities. A market dip will have a significant impact on the value of the cryptocurrency.
However, the same situation does not apply to credit cards. Market fluctuations will not impact the credit facilities you get from the lenders. Indeed, if you don’t keep up with the stock market, the credit card will still hold.
Please note that using credit cards to buy NFTs is still quite a new development. One of the largest players, MasterCard, only jumped on board in June 2022.
Visa entered the scene earlier in the year with the launch of an NFT creator program. The company, through the program, started to help small businesses boost income generation with NFT technology. The same platform aimed to support independent artists using NFTs.
Like any new development, there will be growing pains or challenges. The industry players are still in the experimental stages. That means they must overcome implementation challenges.
As of 2022, many credit card companies have yet to board. But users have the option of crypto credit cards. As we shared above, there is the option of using such to buy NFT.
The topic of NFTs is quite fascinating. You can buy or sell digital assets, opening up many money-making avenues. Before, it wasn’t easy to buy NFT because you needed cryptocurrency. But now, credit card companies are coming on board. It removes the complexity of the processes that can deter greater adoption of digital assets.
Credit cards offer real-time access, thus hassle-free transactions. Like any other credit card transaction, keep up with balance payments. Not doing so will hinder your ability to achieve a perfect credit score.
Also, check the report for any errors. Correcting such mistakes is easy with the help of cheap credit repair companies.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.