Bitcoin Forum

Hi,

Just to use all the money in your credit cards to buy some BTC and then before the grace period pay them back and repeat. If I am not wrong, this should give you a very nice profit say for a total amount of $20k between 7-8 credit cards plus good credit and all the cachback and points each CC have.

Is this smart?

Anyone does this?

And more important which exchanges allow you to use credit cards? Or is it better to buy using paypal and fund it via the CCs?


Thanks in advance.

Yeah you can buy btc with your CC but i guess it have high fee. Anyway the price of bitcoin is unpredicable how if at that time when you buy btc have high price and when you want to sell it the price go down?
And when you use all of your CC limit to buy bitcoin what you gonna do with it ? Trade it or make an Investment to some ICO or what ?
So my point is, that not a smart move of you not have some special skill to do that. You still can do that but profit not guaranted

If Bitcoin price goes to the moon, then you are a genius, a rich genius.  But if Bitcoin price falls... well....then....   maybe not so much.  A more sound strategy would be just to put some money in little by little from every paycheck, it would certainly limit your risk exposure.  As they always say... Don't invest more money than you are willing to something... I forget... something like that.

They always say that buy only when you afford to lose. So by doing that, it already have shown that you are not a wise investor with proper cash flow management. However, having said that, i also have seen some examples where they did that but they end up super rich. Lol.

That actually sounds nice but not that really wise, as many people mentioned above, only lose what you can afford, using all these credit cards just if you lose will leave you debt and you will struggle to pay for it.
This plan also really risky considering at the current time the price of bitcoin fluctuating a lot. Just use some money that you don't really need only to invest to bitcoin.

I actually did that when i saw a really good ICO a while back and it payed off for me bigtime. There are a few places that take credit cards but they all have rather high fees. CoinMama was what i used when i did it, but if you live in the right country you can just use coinbase to do it ( i couldn't because they don't take customers from my country unfortunately ). Changing it back into fiat was the big hastle for me, using localbitcoin is a hastle.

It is also good to make profit in a Month if the bitcoin price rise but what if the bitcoin price fall down? I don't think it is still good to use your limit in your CCs just to buy some bitcoin to make profit. We will lose money if we are not careful to use our credit cards. Maybe if you have a lot of money that you can use to pay for the limit of your card then I think it is okay to sacrifice your limits but if there's none then just shut up. LOL.

I agree! It's much better if he keeps some money so that he will be able to buy more bitcoins than using credit cards that has a big charge fees and he wouldn't be in debt.

Of course not. The interest you have to pay while waiting for your purchased bitcoin to get a profit might be more. That the smartest of ideas.

Doesn't sound smart to me to be honest. More like being greedy! And the CC providers will thank you for all those nice payment fees.
Buy with spare money! Money you don't need and can afford to lose. Which won't wake up at night with heavy breathing when the price suddenly drops 50% and doesn't bounce back up immediately. We're in a territory where the air is already pretty thin. Expect some bigger correction sooner or later. I can assure we will see 4 digits still for quite some time. This is just a first taste of 5 digits for a short moment.
Buy in when we build some new solid basis. But again, with money you don't need for anything else!!!!

This is a terrible gamble that I wouldn't take; earn some money and invest it into bitcoin.. don't max out your credit cards, you might as well go buy chips at a casino and bet all on double-0 in roulette.

If it works, you're good to go! If it doesn't you're in tons of debt, could ruin your credit score and negatively affect your life for years..

Worse move ever.
You say 20k "between" 7-8 credit cards. That  leads me to think your credit line is around 3000$ per card.
That means you have either a low credit score or if you leave outside the US a low annual income of around 12k$.

Not a smart idea.
If the BTC price doesn't go up as planned the interest will deal a blow to your finances.

Well, I am always opposed to credits and debts but maxing your cc looks like the worse of all.

That's just real stupid and could run you into trouble and most likely will dont do this only buy what you can afford.

Maybe I might have a different opinion on this but I don't think that it is a wise idea to invest in the volatile market having wild behaviour by raising the loan. However, one can definitely try margin trading with comparatively high leverage because, in that way, one can restrict the loss within the limits unlike loan + interest amount payable to the credit card service provider. When it comes to the long-term investment, I would invest using a credit card without maxing out but will also re-pay the debt on a monthly basis to avoid huge burden.

I dont think that is a good idea, why you need to force yourself in a debt to buy bitcoin, how if the price go down significantly, are you going to be able to pay your credit card? Even though bitcoin seems very profitable but it cointain a very high risk of losing money, dont go on debt to buy bitcoin, bitcoin is unpredictable things

buy with your own money not with "loan" with credit card due to fee.
Every month you should be able to take some of your earning (without starving to death) to invest into BTC, in this way it will be kind of invisible to you and you will see your BTC wallet getting richer and richer besides the market value.

Yeah, that is not a bad idea, just make sure you study the charts and trends first before buying to make sure you can get a profit from it. It is always wiser to buy low and sell high.

Yes it is, because you just use other's people money to invest and earn. Compared to rate of credit card which is 3% per month, investing in bitcoin is much greater as I see it in the last few months. The only risk I see in this method is that bitcoin is volatile and you may not paid the dues of that credit card if there is bad news appears.

Maybe is a good idea, but always remember that is it an investment, and can be risky, nobody can give you the guarantee of success
So is better to have caution when you invest, don't invest your last money or savings

While it might play out well for you, this is almost akin to gambling with someone else's money. It's your life though.

We mind find some months to go forward and sometime we use to find the dump also in the price chart. I do not know why op is looking into buying bitcoins with the credit card. I am sure that this is completely risky idea of him.
Instead he can sell his any small asset to buy the bitcoin as much he can. Then there are many altcoins in the market you can any coins in that top rated coins list.

I think it won't be a good idea for me.If you really want to buy bitcoin,then you have to work for it,earn it through participating in signature and bounty campaigns.In this way,you can start earning all by yourself without touching any of your savings or credit cards.If you got enough funds already,then it's time for you to buy.

I think with you using a credit card to buy bitcoin is not a smart idea, by following a campaign signature campaign or something like that I think it will be safer and will be more able to minimize the risk of loss. If you use a credit card you may be able to get a very big risk.

I think this is unwise. Because if bitcoin goes up and you increase your income, then you are lucky. If bitcoin falls, then you're bankrupt. This is a very unwise choice. You are gambling. I do not recommend you to do this. :)

I will not do that because we all know that credit card interest are high.  Besides if you have the money why will you not pay it using debit card, your paypal or other payment methods that pays as good as cash.  Plus it will continue to add up the interest incase you will not be able to pay it.

It's not a smart idea mate. It's like you are suggesting to loan money with high interest and invest to btc, in which today's price are ridiculously high. Volality will oy make you worry. And there will be no such sure profits.
I say invest what you can only lose and not by loaning money. Always remember that when you are willing to invest in BTC try to wait for a dip. Assurance of a recovery and a pump will happen.

This might seem like a good idea, until bitcoin drops even a tiny bit. You'll have to fork ut fees to convert btc back to fiat to repay the bank, followed by more debts from btc price dropping. This will lead to more interest, and leads to financial difficulties from one minor slip up. Definitely not a wise idea to go maxing out our card. It might seem safer than using your own cash, but it is the same in the end.

What you are planning is quite risky but given the current demand of bitcoin now and the increasing price then your plan might just work. You may end up swimming in debt in the near future or might be the opposite in which you'll become debt free. You should invest only what you can afford to lose and obviously you can't lose in this situation because if such things happen then the creditors will just hunt you.

I actually read a post in facebook that he did something like this. He use his credit card to buy bitcoin months ago and we know what happen months ago. The bitcoin increase in such a crazy rate so he is very happy now with his decision and yes it is very risky but very rewarding as well. If you plan to do this, you can do so but at least maybe have some plan B if the plan doesn't work.

No strategy is good or bad in my opinion. However, the best is to divide your eggs in several baskets. The chance for loosing or winning is equal. Good luck

Well that would depend on the person if the bitcoin value goes up and you had bought it at a lower price that is a good thing but if the price goes down and you had bought it at a high price that is not a good idea. But if you feel you will earn a good profit go ahead with the investment and make sure you can pay the credit card you use in purchasing bitcoin.

It needs perfect timing if you have done that in November then you must have big profits out of this week when bitcoin price reach at 11400$.. This might not be done on daily basis or simultaneously,, it can be a big risked and that is to much to handle 7 credit cards means 7x the debt and that alone is alarming.. Take your time and do it when bitcoin price is in dip/decreased and that should work..

Not sure where you leave but in my country or in my local currency the charges and interest as per government regulations are too high to use the credit card that effectively. I mean there is no way I can actually think about this strategy and buy bitcoin immediately with it. For me it might happen that I may never reach the threshold with bitcoin profits or the price incriminations. This could be bad for me and I might end paying more interest rates than whatever profits I might be getting. So it’s better I will drop the idea of it in the first place.

Uh...I'll put it very bluntly:  It's fucking stupid to do that unless you can somehow buy the bitcoin with no interest, and even then you're taking a huge risk.  None of us have any idea where bitcoin is headed.  Yes, we're at a crazy-stupid all-time high, and yes we could go much higher--but we could easily crash, too.  Credit cards charge insane amounts of interest, and what it amounts to is straight up usury.  There's no way in hell I'd use a credit card to buy crypto. 

People were doing that in 2010-11 when precious metals were in a raging bull market, and a lot of them got burned badly.  You'd basically be buying on margin, and that's extremely risky.  And keep in mind that you'd be buying something that's currently at its peak.  That's how suckers get nailed, dude.

Obviously that's stupid. The whole point of bitcoin is to get out of that stupid old timey way of using money by having debt that you owe someone. It's not needed and it's a fabrication from banks and mostly actually central banks. Just buy what you can afford. Better yet, earn it. It's money.

A bit surprised to see this thread title because i just did it a month ago.


And it was exactly happened like you said :)

But to do that again, I'll think twice. I agree it is not very wise.

methods like these are considered highly risky. you need to be one of those people who love taking big risks like this in their lives in order to perform this, otherwise it will wreck you. this is something similar to going all in, in my opinion. you may earn a huge amount of money but also you may go bankrupt too!

additionally you need to be familiar with bitcoin price movements and also its market to be a good trader. you shouldn't be taking the money just because you hope price is going up or think it has gone up so far so it should continue to do so. instead you should be nearly sure based on your speculation and analysis.

there's nothing wrong if you have plan to buy bitcoin using your cridet card, i always suggest learn 3x before decide to avoid risk where is the best way for your investment become profitable, bitcoin investing for my opinion is great opportunity as investment especially today bitcoin keep increasing the price, continue the price into the moon.

This will only work when Bitcoin price is climbing. If you were to buy BTC on credit today and next week it were to drop down to around $8000, this strategy would not work so well.

Only invest what you can afford to lose. Probably best to use your own funds rather than the credit cards' funds.

i was thinking about doing this but the problem i had with it was paying the credit cards back. bitcoin goes up in value fast but the taxes you pay on the money would almost cancel out any gains you get if you were to pull out to soon. credit cards also charge crazy fees when buying cryptocurrencies.

Okay may be that’s not good idea to play with your CC like this, the fees are really high for the credit use and also interest rates are enough to kill your profits in the long term use of bitcoin. I know very well that bitcoin price is increasing somehow fast but we are not sure until when this will happen and what might be the future of it.

Ask yourself a question, what is your back up plan if the prices for bitcoin fell all the way down to 2-5k range from the current price of 11k or just consider it dropping by even 2K over 11k. What would be your plan then? You will loose lot of money in the process and you may need to pay more than what you invested and can afford to loose in first place. So make the wise decision and consider all the good and bad facts about it.

Risk is too high in this as continuous growth isn't guaranteed in case of bitcoin. If you see recently bitcoin took at dip from 11K+$ to around 10K$ but it recovered back in short time so there is a chance of it going down again but as seeing its growth its going crazy high since past month and we can see btc reach around 14K$ by the end of this month.

Just be aware of the facts if you couldn't pay all the amount you took from credit card then you have to face the consequences.

No, you will only waste your time, pay most for fee and may cause banned your card because banks have problem with bitcoin

Yes it is smart but it need a good sense of the bitcoin market and proper knowledge about the bitcoin value in the market and the other fiat currencies value in the market, so that you can make your decision what to max and what to not. The maxing is very beneficial but need a good sense

dont ever try to do that, i mean max all CCs limits to buy bitcoin ? nonsene, you know that the price of bitcoin him self very volatile, different thing if you a wizzard and can predict the price of bitcoin in the future and buy it at the right time

No it is not smart to max out your credit line for anything, let alone a speculative investment

#1 rule of investing is never to invest more than you can afford to lose, if you're investing the banks money via credit then I'm pretty sure you can't afford to lose it and so should not be touching it!

There's a lot of Bitcoin success stories, but there's also a lot of stories about people losing everything in the flash crashes

Might be a good idea actually, I am more inclined for doing this rather than buying Stuff or expensive gadgets with no returns, see the charts, you need a lot guts and bravery, it is better than doin nothing and useless spending.

I don't think it is a good idea. Maxing your credit cards just to invest into something is not a clever move. Though bitcoin gain its momentum every now and the, you cannot predict what will happen next. If you invest it in one shot and it doesn't go as planned then you will be stucked at holding or take the courage to cut loss. Have a good money management before doing so, and ask yourself what is your plan B if it doesn't work. Always have aback up plan and don't try to messed up because your emotions will hinder your trading plan. Always plan your trade then trade your plan.

Yes it is smart but it need a good sense od the bitcoin market and proper knowldage about the bitcoinvaule in the market and the other fiat cuurencies value in the market, so that you can make your decission what to max and what to not. the maxing is very beneficail but need a good sense.

I think it's not good because if something happens to bitcoin then you will not have a backup plan, my suggestion is to divide your bitcoin purchase time into sections in a month so if something bad happens you will not lose it completely

Profit is possible but too risky. You are dealing with a double risk on the interest of the credit card against the potential value of the profit you will earn in bitcoin. However, with the recent trend of the value of bitcoin, we can say that you can really pay your credit card in the shortest time possible but still you need to manage the exchange of paying little by little of the credit card interest and the outstanding capital debts.

Due to the unpredictable nature of the price of bitcoin it is not at all advisable to max out you credit cards to buy bitcoin.

I think both are good, but I would prefer to use paypal. why? because credit cards usually take advantage greater than paypal. and of course it makes me lose.

Number one rule for an investor would be to never gamble what you don’t even have, because if you do you not only would go broke but also in depth. It would be wise to only invest what you currently have right now.

Well it depends if you think you can profit from your trade as by doing so because as of right now Bitcoin is still on a uptrend and it is still unsure when it will correct. Keep in mind that you are making your credit rating on the line in which if you can't pay at the end will put you in a bad position, it is better of to only use what available money you have.

maxing your credit card it's never a good move because that's like a debt and trust somebody who's still paying his debts for years now it's a neverending story, putting on the table the volatility of BTC it adds another level of risks.. think always about long term and not just now, you never know whan can happen tomorrow, better be safe than sorry.

in my opinion, is too risky to buy bitcoin using money from debt like credit card. because bitcoin movement no one can predict it and not recommended for short-term investment for bitcoin and cryptocurrency.

I don't prefer doing this because just like stocks, BTC is still risky. A wiser thing to do is to put your EXTRA money to BTC for it to grow. Investments for me is for extra income only. When you invest to BTC using credit card,  BTC might fall down and you have 0 profit and a lot.of debt.

Now that is an example of gambling if I ever heard one. 

I wouldn't do it, but hey, to each his/her own.

Only an idiot would actually do this.

But there are many idiots in the world....!    :P

Not a wise move for me because what happens if the bitcoin failed to increase during the following day then what will happen to you you'll suffer a great amount of loss due to your loans. I am not saying it is wrong to loan some money to buy bitcoin but not to the point that you will maximize your credit in your credit card because you'll have to consider the worst case scenario.

You're too late to withdraw your balance in credit cards just to invest it in bitcoin. Bitcoin's price as of now would remain stable on it and might slowly breakdown because many would withdraw their bitcoins as they were scared that bitcoin is accused as a bubble. So dont ever convert it just for bitcoin.

.This.

Too late to get good ROI on bitcoin, maybe through altcoins, but thats an another story.

Nothing ventured nothing gained. It might be late for doing this with solely bitcoin it is a calculated risk only you can decide looking back I should have done that myself earlier this year but it could also have gone the other way.

Buying bitcoins with credit cards has never been a good idea and i am strictly against it in every regards. There are going to be a lot of charges from the bank and from the credit card. I honestly think you should just close your bank account and withdraw your savings to buy the bitcoins rather than max out your cards.

Actually it is the dumbest idea I have ever seen or heard, maybe with the exception of taking mortgage for the house you and your family live in and buying bitcoin with that money.

Ideas like this may me consider selling all the bitcoin I have...

Max out your credit history is no where good as per financial aspect. Maybe just my thinking as banks monitor your financial history and see you to be under credit all the time

I think max-all credit cards months to buy BTC is a bad thing, because bitcoin is something very unstable, and very volatile, we will never know what will happen with bitcoin in the future