Bitcoin - % on risk to put on credit card...

[Ryancope123]

Hi guys,

I was thinking of buying a credit card and buying about 5 BTC with it.

Realistically given some of your guys personally experiences with over the years, on a % risk rating to actually make some money would you say this is quite low or quite high?

I appreciate it's a tough one to call, just trying to figure out if I will be safe making money on my investment.

I already mine and have more miners on the way, but only just considered this option.

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[bit-freedom]

Bitcoin fluctuate around 5 to 10% daily for the past week. For now, Bitcoin seems to be on the rise. If you are saying about buying Bitcoin for investment, I agree with you views. However buying Bitcoin with credit card, you have to consider the fees for buying bitcoins, interests charge by your bank, repayment days you have to hold the bitcoins. Are you looking to hold Bitcoin for a month or two?

[xskl0]

It's a very good moment to buy

[Iranus]

Going into debt to take part in a risky investment is never a good idea.

Sure, traditional investments aren't sustainable forever, but the most that the Dow Jones Industrial Average has ever dropped in a day was 22.61% and that has only ever happened once.  

You can always say "Bitcoin will recover" and you'll most likely be right, but Bitcoin is not mature enough for you to enter it knowing that you have obligations to pay back the money eventually.  If the price fell to about a fifth of its value like it did from 2013-2015, you would be completely fucked and incapable of paying it back.  That's extremely likely to happen as well considering that the price has risen several times higher than it was a year ago.

So no, not a good idea.

[BitcoinBarrel]

Personally I wouldn't recommend doing this, simply because of the risk involved.

In the long run, yes, you will probably come out ahead. But there is always the chance that we could enter a bear market and you're left upside down. A good example would be 2013. Let's pretend you bought $5000 worth of BTC in November 2013 when the price was around $1000. Even if the price stays the same at $1000 and you are paying $200 per month towards your credit card, it will take you over 2 years to pay off the debt and you will end up paying over $1000 in interest. If the price of Bitcoin drops in half during that time to $500, you end up paying $6000+ for only $2500 worth of BTC.

Instead of getting a credit card and paying the interest, fees, etc. It is BETTER in my opinion to just take that $200 monthly payment and buy $200 worth of BTC every month. After 2 years you will have invested $4800 into Bitcoin, and chances are the price will have multiplied and you are holding $10k+ worth of BTC. If the price drops, then it doesn't matter because you own the BTC and it will recover eventually.

Think of it like this, if you truly believe in Bitcoin then just work harder and longer to get extra funds to buy. If Bitcoin is going to multiply in value over time, then every dollar you invest may become 2 dollars or 10 dollars. It doesn't matter if you buy it all now or spread it out over time. In fact, the smart thing to do is spread it out over time to minimize your risk.

[Ryancope123]

The fee;s on the card are 0% for 36 months - with a minimum repayment of around £100 per month, which I would have thought 5 BTC would easily generate more than. there is a 2.9% handling fee on £15,000 so £450.... To me, it sounds like a no brainer safe investment. but I am just so not sure, I really think this time next year BTC will be 2X it's current value easily.

[BitcoinBarrel]

If it were me and I was a new investor looking to buy some Bitcoins, I would only spend about 10% of my credit limit during this bull market. I would work extra hours and try to buy more while saving my credit in case of a correction. The price of Bitcoin was $1900 just a few weeks ago, so why not save that Credit in case of a drop? You definitely don't want to get in debt during a huge price increase with some chance there could be a drop in price. How bad would you feel getting $5000 in debt only to have the price cut in half?

The key to becoming wealthy is NOT getting in unnecessary debt, saving and investing wisely. Many people want to be rich now so they make bad decisions. I've learned a long time ago that wealth can come OVERNIGHT so you don't need to get in debt just to own some Bitcoins. You could end up with $10,000 all of a sudden or even a $1,000,000 and just buy some Bitcoins. So it doesn't even matter.

[Sithara007]

I would advice against it. Not that I am not optimistic about the future of Bitcoin. But taking a loan of $20,000 at this point of time looks overly risky for me. If you have the money in your hand, then go ahead and invest in BTC. If not, wait for some more time.

[Papayer]

If you want to buy Bitcoin in order to make profit, anything below 10 000$ will be considered very cheap in two or three years, so make your choice if you want to earn money or stay a slave of the system.

Edit : I did not understand it was about taking a loan to buy bitcoins. That way, better not do it, because freeing you of the system mean having no loan. But still I think the returns would be big.

[maokoto]

It's too much risk. Too much money. It can go down not too hard and you'll lose a lot of money in the process. Perhaps a lower investment would be more advisable, something like 0.5 BTC or so. If it goes up, great. If it goes down, you can consider to buy more or quit. But 5BTC at once is too much risk.

[slackcryptoz]

The risk involved in the credit card for the buying of bitcoin is low compared to the use of conventional currency for the buying of bitcoin. Credit card is one among the commonly accepted payment gateway as well this serve as an trusted method for buying bitcoin.

[Ryancope123]

Hi guys,

Thanks for all your advice, you are all speaking from experience so I will take this on board.

I am currently mining with a few ASIC's and have more on the way so i will go the sensible approach  - debt free.

Although my post seemed "rushed" i have been watching BTC rise and rise, and thought why not jump in now with a not bad amount.

I will pass and do it the safe way, i currently have around 1 BTC from mining so will keep collecting

Thanks all

[Carlsen]

I would strongly advise against buying bitcoin with money you have to borrow first.
Nobody here can give you a risk ranking based on facts.
The main reason is that there are nearly no hard numbers on bitcoin.
Nobody knows how many users bitcoin has. Nobody know how bitcoin is spread, or how many whales there are left.
Even the mempool is most likely conterminated with 90% spam from time to time.