It seems to be getting easier for consumers to buy cryptocurrency with their debit or credit cards.
Crypto.com, a Singapore-based cryptocurrency exchange platform, is allowing its 50 million users to begin purchasing crypto on its app using a debit or credit card connected to Google Pay, according to a recent press release.
Android users will be able to select from over 250 cryptocurrencies to buy using their smartphones, tablets or virtual wallets.
But, as with all things crypto, there are risks involved. Here’s what to know.
To get started using Google Pay for Crypto.com purchases, Android users should first make sure a debit or credit card is connected to their Google Pay account. Then, when users make a purchase within 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 the purchase.
Users’ crypto balances will update accordingly, and they will be able to review their transaction history within 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 purchase cryptocurrency via Apple Pay and Google Pay last year.
“Adding these payment types makes it more convenient for people to purchase cryptocurrency in ways that they are 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 purchase cryptocurrency from a checking account makes it easier for people to fit cryptocurrency into their overall financial lives,” he adds.
However, making it easier for consumers to purchase cryptocurrency using borrowed money via a credit card could be risky and get them into financial trouble down the road, Hansen warns.
Experts typically warn against charging more to your credit card than you’re able to comfortably pay off each month.
And although 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. Typically, experts recommend only investing as much as you are willing to lose.
Potential investors should also do their due diligence before buying in. Despite the ease, crypto is not something to buy on impulse.
“There have been many unfortunate losses related to people posing as exchange representatives and making off with funds,” Hansen says. “Doing the research is important.”