What are the potential risks of preauthorization holds on your card when dealing with cryptocurrencies?

3 answers

• May 03, 2022 · 3 years ago
  One potential risk of preauthorization holds on your card when dealing with cryptocurrencies is the possibility of fraud. Since cryptocurrencies are decentralized and transactions cannot be reversed, if someone gains access to your card information and makes unauthorized transactions, it can be difficult to recover your funds. It's important to ensure the security of your card details and only use reputable and secure platforms for cryptocurrency transactions.
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• May 03, 2022 · 3 years ago
  Another risk is the volatility of cryptocurrencies. The value of cryptocurrencies can fluctuate rapidly, and if a preauthorization hold is placed on your card for a certain amount of cryptocurrency, the value of that cryptocurrency may change by the time the hold is released. This can result in unexpected charges or discrepancies in the amount charged to your card.
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• May 03, 2022 · 3 years ago
  At BYDFi, we understand the concerns regarding preauthorization holds on your card when dealing with cryptocurrencies. While preauthorization holds are a common practice in the industry to ensure the availability of funds, it's important to be aware of the potential risks involved. We recommend regularly monitoring your card transactions, using two-factor authentication for added security, and keeping your card details secure to mitigate these risks.
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