Bitcoin Forum

I have always seen the Internet advise against it. Although I have made profit in this way.

You mean going into debt to buy bitcoin?
If you do, then the price might fall, then you won't have the funds to pay back the credit.

Or you pay back slowly over time, then end up paying lots of interest.  It isn't just Bitcoin that is bad to buy on credit cards, everything is bad if you don't pay it off at the end of the month.

Yes  that is a general disadvantage when buying anything with Credit card though. Anyway, while trying to buy Bitcoins, all credit card options are either extremely sparse or overpriced. It's extremely difficult to buy with Credit, why though? Is there a economic reason to this?

Well, that is simple to explain, most "digital thiefs" use bitcoin for launder the money, so they steal credit cards, banks accounts, and they do all their stuff in order to buy bitcoin with that money, and once that they have the bitcoins, they make a proccess and the money is fully-laundered. That is why buying bitcoin with credit cards is so difficult, and if you find one, you are not going to be able to buy more than 0.02 every 24 hours.

You were lucky, that the price has not fallen by the end of the repayment period...
Just imagine, that you have no funds to buy bitcoin, just a credit card, with the credit line of e.g. $1,000
You have bought 0.33 bitcoin on 1st August, (price was ~$2,900), so you paid $957 with your credit card.
To make it easier, let's say you have 1 month period, when you can pay back your credit without interest.
On 1st September, bitcoin price was $4,850, it means you had $1,600 worth bitcoin. When you have paid back your credit, the net profit was $643. (nice profit for one month investment...)
But if you have bought 0.2 bitcoin on 1st September (paid $970 by credit card), and let's assume that on 1st October the price of the bitcoin will be about ~$3,500, that means that you have to pay back the $970 credit, but your bitcoin worth only $700 the net loss is $270. You have to pay this back from your own funds, or, if you have no funds available, bank starts to calculate interest from the 1st September, and on 2nd October, your $270 net debt starts to increase because of the ~30% interest rate (p.a.) of the credit card.

Buying bitcoins is very hard and you will need to do a lot of verification before they can even allow you, with the taxes and charges by your credit card company, it's really not worth it in the end. You will even end up spending about 10% more than the actual price of the bitcoin.

Still.. It's good long term isn't it? For now atleast when crypto is in its early years?

I mean I am salaried and I can just pay off the credit to encash a better amount a few months/year/decade later.

Are you referring to it being bad? or it being difficult?

The latter, I think has to do with the credit card chargeback system. If the credit card owner disputes the transaction there is a practically non-existent possibility of the bitcoin seller getting their BTC back.

This I agree with. Alphabay had credit card autoshops lol.

The financial part can be OK, but from the technical point of view, you won't find a seller, who wants to sell you bitcoin (with credit card payment) on a decent price (price is the key, you will find sellers, but they will calculate some extra % on the market price, because of the risk of the possible chargebacks)
The same applies for Paypal payments, because Paypal always decides the dispute in the favour of the buyer (in connection with bitcoin), so sellers take huge risks if they accept credit cards or Paypal.

I can vouch for that, all credit options are extremely overpriced. Except VirWox/linden, but my credit card doesn't allow it for some reason.

Buying with a credit card is a very hard option, doesn't work for me

Typically it comes down either to do with interest on the credit that you take out when you use your credit card, or it has something to do with the chance of their being a refund/chargeback if someone is trying to scam you by taking the Bitcoin and the money. Not that's something that is more common with paypal and less of an issue when it comes to most credit card companies. If you have made a profit then good for you, don't overuse it and get into serious debt.

What kind of card have you got? Can you use PayPal?

I have a visa card and I am able to transact at almost any exchange albeit at extremely high price.

bitcoins are 100% irreversible. once they're gone, they're gone. there's no way of getting them back. credit cards are often stolen or can be charged back.

bitcoin merchants who sell to credit card holders either have to be extremely diligent or put up with a significant amount of theft. i presume that's why fees are so high as they're taking a regular hit.

if i was in the bitcoin selling business there's no way in hell i'd ever accept them. 

Interesting, my bank or country hardly supports this chargeback option I think. I use PayPal which has the chargeback option though I have never used it to buy bitcoin.

are you sure? i guess it depends on who issued your card but i'm pretty sure it's an intrinsic feature of all visa and mastercard cards, but of course there are other credit card issuers in other parts of the world.

It's because bitcoin payments are irreversible and the seller can't be sure if the credit card owner will not file chargeback.It also does not help credit card owner too because your credit card company will know what you spend your money on(in this case bitcoin) so you won't be anonymous with bitcoins.

You should avoid credit cards to avoid inflected interest charging in which will decreased your possible gaining in bitcoins. If you have earnings already in bitcoin then you must pay immediately the credit cards to avoid interest charging. Why you want to use credit cards if you have alreay created a capital from bitcoins earnings?

It is bad to buy Bitcoin with a credit card because credit card companies don't like Bitcoin and maybe they will block your card or something? Actually, I don't think this would happen.

I have heard of plenty of bank accounts being closed because of bitcoin buying. i have never, ever, ever heard of a credit card account being closed because of it but that's probably because buying bitcoin with a credit card is extremely rare.

Who says it is bad to buy Bticoins with a credit card? Not me! I think it is smart.

I agree  :D

Mostly many are afraid due to the credit card fraud and we dont want the same issue with us in the future. There are many such scam sites which would stole your credit card numbers abd wont give bitcoins in returns. We should keep away from such sites.

Also credit card purchasing takes a lot time for the confirmations and we get the amount of bitcoins after a huge time. In that time the price for bitcoins can go down or can go up and could prove to not be profitable. This is what keeps peoples away from purrchasing bitcoins with their credit cards. Instead it is good to purchase bitcoins with cash from a dealer.

I am confused, why credit card companies don't like the purchase of bitcoin?
They must have good reason to refuse the purchase of bitcoin

That is not true. I haven't had such experience and don't know anyone who did. Some bank accounts could be closed because of connection with bitcoin activities but this will not happen to credit cards. Actually buying bitcoins with credit card is very convenient and easy and the only probem I can thik about is the problem with fees. But you have to be very careful where you leave your credit card data.

Just another thing that came into my mind recently:
In my country, I've heard about a lot of problems wiring back fiat from exchanges to bank accounts. Not the accounts themselves are the problem, because they're not closed, but the transactions. Banks are sending back EUR or USD transactions to the exchanges and they doesn't credit it to your bank account. This could lead to problem, if you want to pay back the credit you have used to buy the bitcoins. There's no use if bitcoin gains $1,000 in a month, if you can't send your funds back to your bank account to pay back the credit card debt. Maybe you can pay it back from your own funds, but next time if you buy bitcoin again with credit card, you will need additional funds to cover your debt again, and again next month, etc.

That's why I said it doesn't work for me, you'll be buying a pint of milk for the price of a cow.

It is expensive. Just because of that. Cripto will eventually kill credit card.

That's a risky thing to do with your Credit Card. What if the price of Bitcoin goes down? How would you pay for your debt?  But, still risking is the best thing to do with investments. I personaly would buy bitcoin for fiat rather than CC. Always think twice when making an investments. :)

Because the fees are insane. In most cases it will be better to wait until you have the money in hand and buy it in the conventional way.

Because Banks that issue your credit card has its processing time before it pays, I think 2-3 days is the minimum and most of the exchanges that allows it will confirm it first before they will release your bought coins so it means that the processing itself will take days and those exchanges is making sure that those card is real and will not reverse its payment.

And I think those banks that are issuing credit cards is surely monitoring to where and when will you spend your balance as it is not fully paid, maybe when they know that you will buy some cryptocurrencies they will delay it and will give you more hidden fees. We know that banks really hate cryptocurrencies though.

It is not bad, its just that it is not that advisable, since credit cards have fix payments, that being how much you have used, and the interest rate, since bitcoin is highly volatile, therr may be a time that tou bought your bitcoin at a high price and it will take time for it to gain profit for you, and if you haven't paid the credit card company,  they will charge for interest, fot that case you need to take risk and be responsible on your debt. However, if you have a lot of cash with you and still opted to use a credit card, better pay your yiur debt at once to avoid any additional fees, since that is hiw the banks will create money out of thin air, and will just collect money from you. I think you should reconsider using your credit card, you sould also remember not to use your savings if you are planning to invest, since the best way to start an investment, first is by studying it, then if you are willin to do it, use your extra cash to buy bitcoin, just don't let it all out, one of the fundamentals in investing is, not putting all your eggs in one basket, i am not saying that bitcoin will fall, not that it would happen, you need to remember that bitcoin is volatile, and you still need savings for you to feel secure, if you you already have ample bitcoins now, that will be a different story, but for starters, use your extra cash to buy bitcoin, rreconsider using your saving and especially your credit card.

Yes, buying bitcoins with credit card is usually rare and also scam many times. If you used credit card to purchase bitcoins and your card gets blocked then for sure the site may be a scam site and may misuse your credit card details in many ways. I have read a lot articles about it. It is nothing like the bank dose not like bitcoins. Bank just cant block the card because bank dose not like bitcoins.

There might be many several reasons for doing so and even the bank may block the card to secure your account as the bank detects a scam.

The price of bitcoins is not stable and if you think about taking a loan from the bank (* essentially thats what the credit card does*) you will have to pay a lot of interest if the price fell down and you are left with nothing
Bitcoins aren't like normal stabilized currency .. it does inflate and deflate with time with respect to its market value therefore if you happen to be unlucky and suddenly if the value decreased for a long time you will be paying interest for all those days... And also... If finally the value went up the money you would earn will be equivalent to all the interest you paid.. thus good for nothing.

Forgot to add... What if the price went up ? That will be extremely Amazing its more like a bet.. but don't overdo it.. everything else is just fine...also its a great way of earning for people who don't have investment or aren't able to invest their funds into bitcoins.

it isn't really bad though! it mostly depends on the options that your credit card offers. in some countries the banking system is not as horrible as you see in US for example ;)
besides you have to find a way to get the money to exchanges to buy bitcoin with, if you have better options of course you should be using those option to buy bitcoin but if you don't have then you are left with only 1 option.

There is a reason why people advises against that. Surely it is not good to rely on other’s opinions when making your decisions but there are times when you have to make an exception and look into their suggestions for some might actually be real or useful to you. After doing some research, consider analyzing all the informations at hand properly so you what to believe and what not. Hmm. Seems like common sense ain’t really that common.

Everyone should be able to assess the situation and then to answer for their actions. I am not a supporter of loans. I know many people who destroyed their lives in this way. I can absolutely free to use the loan for 50 days, but I try not to do it even when I know that I can make money on it.

Look if you bought Bitcoin using a creditcard few weeks ago at the rate $5000 what will happened? If you bought worth 1btc but Bitcoin dropped to 3k. You end up having a 40% loss and while you wait Bitcoin to reach 5k again you are paying 3.5% interest to your creditcard. That's why its not good to borrow money to invest something.

Even if I was in selling bitcoins, I would have never accepted credit cards to sell bitcoins. Most of the scams occurs in the credit cards. Also they charge a heavy fees which cant be affordable by bitcoiners as we think a lot about the fees. It is good to purchase bitcoin with any other option. Purchasing bitcoin with paypal maybe perhaps safe rather then buying bitcoins with credit card.

Bitcoin is a anonymous currency and cant be traced. So even if someone uses our credit card to purchase bitcoins, we cant do nothing so it is good to not to use creditcards to purchase bitcoins.

I don't like buying bitcoin with credit cards because big fees and interest. Also because it's really hard to buy bitcoin with credit card because of verifications and money laundering risks. For the risk notification maybe because banks and credit card issuers don't want to involve in cryptocurrencies.

Mainly because there's so many phishing site around that offer you to buy bitcoin with credit card while infact they're just pishing site to steal your credit card information and probably sell it out to the deepweb or using it themselves.
No reason to buy bitcoin with credit card for me, better use bank transfer.

A lots of people has the knowledge of bitcoin or any other coins said that it is bad to use credit card to buy a Bitcoin. Well just think about it, if you're buying a thing that u think well double your investment but there's no guarantee that it well double or get a higher or lower your capital in return, your just risking it and your toast to that. But if well look at in the positive side, if you're a risk taker then go for it. Get gamble to it because that is business, you need to take the risk for you to have your success. :)

I think the right term is dangerous not bad. Well, everything you done online involving money is dangerous and risky. I think there are a lot of digital thief that corrupts your information and bank accounts everytime you use it online. Also, some people use bitcoin to launder money. They might use your credit card information when you use it online.