By Eli Waldman
Senior Customer Success Manager
Bitcoin is risky, but buying crypto with a debit card can be safe with a regulated broker. If you need a chargeback or fund recovery, contact a financial service.
It seems that almost everyone is curious about cryptocurrency. Digital currencies have seen a resurgence in value and popularity in the past few years. However, along with the headlines about bitcoin rising in value are warnings about unscrupulous players who are looking for ways to trick customers through quick trades, fake bitcoin wallets and fraudulent crypto platforms and exchanges.
So is it safe to buy and trade bitcoin? The answer is “yes” as long as you deal with licensed brokers and platforms that have official oversight. Simply buying, selling and trading cryptocurrency with people on social media who can shift identities can increase the chances that your money will be lost.
If you have lost money through cryptocurrency and have a dispute with a platform, broker or merchant, seek fund recovery solutions, such as chargebacks and wire recalls, with a reliable financial services company that will guide you through the process of regaining your funds.
MyChargeBack provides guidance to consumers who are trying to recover their funds from merchant disputes, forex scams or other types of fraud. Talk to MyChargeBack professionals and get started on fund recovery.
The Popularity and Risks of Bitcoin
Bitcoin has been frequently seen in the headlines and its valuation has been on a rollercoaster that has lured risk-hungry traders. As of December 2021, bitcoin’s value hovered around $50,000, but it languished at $19,000 just one year before.
One reason bitcoin fluctuates so wildly is that unlike commodities, such as precious metals and raw materials, the source of its value is abstract. Bitcoin has been known to rise significantly on statements by high-profile investors such as Elon Musk or to drop on headlines. Cryptocurrencies rise and fall due to enthusiasm and skepticism and these can change rapidly.
On the one hand, many people enjoy the convenience provided by cryptocurrencies. Ideally, they can earn money, save, trade and make transactions all in one form without having to transfer money from a payment platform to a bank account or credit card.
Many traders see bitcoin as an opportunity to cash in on the enthusiasm for innovation, although given the volatility of the asset, they have to also sell at the right time.
However, others are concerned about the safety of bitcoin. Although blockchain technology uses encryption to keep out hackers, the pseudo-anonymity of the blockchain can make it a safe haven from illegal activities and unscrupulous parties. There is concern about the lack of regulation on the blockchain and the difficulty with solving disputes and getting refunds from crypto transactions.
The value of bitcoin seems to be wrapped up in the hopes and fears surrounding it. These are present in equal measure and can account for its fluctuation in price.
The Pros and Cons of Online Debit Card Transactions
One way to purchase bitcoin is through credit card or debit card purchases. Given the unease many people have with bitcoin, they may wonder if they can trust their debit card with a bitcoin seller.
Some consumers worry more about debit card transactions than credit card transactions because the former go right out of their bank account. If there is a lot of money available in the account, using a debit card can make these funds vulnerable if the people with the information are not trustworthy.
The main consideration when using a credit card or a debit card online is to make sure that the people handling the transaction are trustworthy. Given the suspicions many people have about cryptocurrency, they may wonder if their debit card information is safe with a crypto platform.
Tips for Buying Bitcoin Safely
The key to keeping your money safe online is to do research and due diligence to ensure the people you are dealing with are licensed, have credentials and operate on a secure website. The following tips are essential for using your debit card safely for purchasing bitcoin:
- Use a regulated broker or a licensed platform
- Ensure the site is secure
- Do your research
- Consider using a secure bitcoin wallet
- Check your account frequently
- File a complaint immediately if you notice unauthorized charges
- Seek fund recovery assistance
You can purchase bitcoin from a platform or a broker that deals with cryptocurrency. It is important that the broker or the platform should be licensed. Research the regulatory site to check any claims about licensing. This is important because if you have a dispute with the broker or platform, there is a third party that will help resolve it and may demand a return of your funds to you.
Do not make transactions outside of a secure website. You can recognize a secure website because its web address reads “https” instead of “http” and has a lock icon next to it. A secure website uses encryption to obscure any sensitive data you send through it. Never consider buying or trading bitcoin through deals advertised on social media.
Bitcoin wallets are optional and you should investigate carefully the wallet seller, but they can keep your bitcoin secure. Check your account frequently to ensure there are no irregularities. If you see that there are some unauthorized charges, file a complaint immediately and notify the issuing bank.
You may also need fund recovery assistance through a chargeback claim, especially if some of your money is still in cryptocurrency. Many banks deal with chargebacks and wire recalls, but you may also need experts that can pursue fund recovery cases with bitcoin and other cryptocurrency transactions.
Chargeback claims for debit cards may seem straightforward, but there has been an increase in the number of these claims, and issuing banks are becoming more selective when dealing with customer complaints. Therefore, it is worthwhile to enlist the aid of fund recovery services and talk to a financial company that can act as an advocate every step of the way.
Consult with MyChargeBack experts and get started with your fund recovery claim. We have extensive working knowledge and relationship with banks and can improve our prospects of getting your money back. Talk to our professionals today.