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Trading in cryptocurrencies is all the rage lately, but information technology's not without take chances. In fact, the risk is substantially higher than just nigh anything else you lot can do with your coin. Banks are starting to put the brakes on the crypto hype train, though. Over the final several days, several major banks have announced their credit cards will no longer support purchasing cryptocurrency.

Starting on Friday evening, Bank of America, Citigroup, and JPMorgan Chase began blocking transactions to known cryptocurrency marketplaces. As the new week got underway, users of cards backed by the UK'south Lloyds Cyberbanking Group institute they, too, were prohibited from buying cryptocurrency on credit.

When reached for annotate past PCMag, all the banks told unlike versions of the same story: The banks don't want customers charging crypto purchases because it's volatile and a high credit hazard. I'1000 sure banks are also concerned there's no way to repossess virtual coins if they've been stashed in an anonymous wallet.

The volatility argument is certainly holding water right at present. Bitcoin, the most widely known and used cryptocurrency, has been dropping like a rock lately. It peaked at around $xx,000 per i Bitcoin in December, but it'southward now hovering around $seven,000. Other coins similar Ethereum and Litecoin are post-obit Bitcoin on a downward trend for the last few weeks. Anyone who bought near the top of the market equally crypto hysteria was taking over is probably pain right now.

Bitcoin cost over the final month.

This ban won't stop adamant individuals from buying Bitcoin. The banks take just instituted the prohibition on credit cards. So, you can notwithstanding do whatever you want with your debit card or with a direct link to your bank account. It'south also possible to buy gift cards with a credit card similar you would earlier a altogether party for someone you don't know very well. Instead of giving it to your friend of a friend, you lot sell it to i of the many online services that substitution gift cards for Bitcoin. The banks are just calculation a few barriers that brand information technology harder to buy virtual money on credit.

The largest sellers of virtual currency are in the process of notifying customers of these changes. They advise adding a debit bill of fare to accounts in order to continue ownership and selling. Although, some people who have been losing large every bit cryptocurrencies drop might take this as a sign to cutting their losses. One result: maybe we'll exist able to buy GPUs again soon.