Maxing Out Credit Cards to Buy Bitcoin

[Jcabudx]

A recent survey of Bitcoin investors found that 18% purchased their cryptocurrencies with the use of credit cards, according to the consumer group LendEDU.

It gets even worse. Of those investors that used credit cards to purchase Bitcoin, 22% had not paid off their card balances. What’s more, 70% argue that the interest they’re paying on that credit card debt is worth the price of owning Bitcoin.
Even more concerning, 88% of the survey respondents say they plan to pay off their credit card by selling their Bitcoins. In other words, to free themselves from their cryptocurrency-induced credit card debt, these investors have to see the value of Bitcoin rise considerably—since they’re also likely looking for investment gains.

Of course, these investors are ignoring one big thing: the significant risk that bitcoin could fall in price, which it has—dropping almost in half since its peak in December.

With the average credit card APR at 16.67%, borrowing $5,000 to buy Bitcoin could add potentially thousands of dollars in debt if they’re paying back the credit card bill with monthly minimums while awaiting that Bitcoin to boom.

http://time.com/money/5117306/buying-bitcoin-investors-crazy/

[akdperry]

this is really troubling.  I had some coworkers who wanted in back in december. I told them it was likely going to drop/burst at some point, but they invested a small amount.  However, they only invested money they were willing to use.  hopefully they'll be even at some point this year, but nobody did anything crazy.  So many of us got lucky and got into it back when it was affordable.  I feel bad for those trying to break in, even when it's only at 10.5k right now

[RNC]

blaspheme this is and long term we all know that bitcoins can only ever go up and you know that story about
tulips crashing ? Well it was a lie from the devil.

My religion forbids me from gambling out the credit card and being a christian we prefer to call it investing if you
don't mind please so as proof of the powers vested in me I will sink this post down to the bottom of the forum using one of my
lead weights.

[Isolation]

People should only invest what they can afford to lose. Unfortunately people always ignore this advice.


I think credit cards are just an easy way to buy Bitcoin in general. Before VISA and MasterCard started considering buy BTC a cash advance, the fees to buy from credit cards weren't too high. It was quick, and most people have a reward plan on their credit card anyway so they got a bit of a bonus. Its not an issue as long as you're paying off the card right away. The article you linked said 22% of people didn't, which to be honest is lower than I expected but still not good enough. People should not be going into debt to buy Bitcoin.

[Walrus1]

I used my credit card at the beginning as I only wanted to put a little in at a time. I never would borrow to buy btc but then again I don't think it will make me rich anytime soon if at all. If you have pipe dreams of getting btc rich you may do stupid things

[RNC]

even when it's only at 10.5k right now

Tulips got as high as $200,000 in today's terms and "Right now" they are about $0.50 three hundred years later
so when you say "Only at $10.500" for a small bit of digital real estate are you sure that you are being logical.

I got out at $18,000, nice profit too and it would had gone as high as $50,000 was it not for the miners getting
greedy with transactions fees but never did I try to sell anything to friends or family and selling to co workers
could soon put you out of a job so it was a wise decision you made.

[cpfreeplz]

I've only bought small amounts of bitcoin with credit cards because I pay mine off. People that keep balances on credit cards are the people that should have a bank look after their money since they don't understand it hahah. They'll pro ably end up losing their private keys because they are safe with their money and don't know wtf they're doing.

[RNC]

TV-TWO - Connect Your TV to the ETH Blockchain

Pay as you go IPTV using ETH would suite me fine but I suspect your selling something that me and my TV don't need like number
23,321 ICO so hows the balance going on the ICO and please send me details if your actually advertising something that's needed
outside crypto gambling land.

[rommelzkie]

using credit cards to buy bitcoin is not a great idea. We all know that the interest on credit card are a little bit high. why dont you make a loan directly to bank and make it payable for 1 year. That is the best way i think.

[no0dlepunk]

In my case, I will definitely do the same thing - I will max out my credit card during a huge dip, then I would run away from my debt. 

[jaocoincrypto18]

A recent survey of Bitcoin investors found that 18% purchased their cryptocurrencies with the use of credit cards, according to the consumer group LendEDU.

It gets even worse. Of those investors that used credit cards to purchase Bitcoin, 22% had not paid off their card balances. What’s more, 70% argue that the interest they’re paying on that credit card debt is worth the price of owning Bitcoin.
Even more concerning, 88% of the survey respondents say they plan to pay off their credit card by selling their Bitcoins. In other words, to free themselves from their cryptocurrency-induced credit card debt, these investors have to see the value of Bitcoin rise considerably—since they’re also likely looking for investment gains.

Of course, these investors are ignoring one big thing: the significant risk that bitcoin could fall in price, which it has—dropping almost in half since its peak in December.

With the average credit card APR at 16.67%, borrowing $5,000 to buy Bitcoin could add potentially thousands of dollars in debt if they’re paying back the credit card bill with monthly minimums while awaiting that Bitcoin to boom.

http://time.com/money/5117306/buying-bitcoin-investors-crazy/

For me going to credit cards, salary loan, and to lending establishments  just to have a money to buy Bitcoin is not a good idea or an unwise strategy just to pour capital for investments because the credits interest, fees and late charges are predictable in which Bitcoin price is not.Better you sell your valuable things to have a capital at least in time of earnings you could buy a new replacement but thru debt there is possibilities you might go to jail because of unpaid obligations.

[Beefcake]

This is what happens when you let idiots have credit cards.  But seriously, unless you are lucky enough to invest with someone else's money (ha!), only put in what you are willing to lose.  Maybe this is why I am 100% indifferent to short term market fluctuations.  It could go to zero tomorrow and it wouldn't affect my life at all.  Well my wife would be pissed, but I don't care.  The crazy thing is that we have so much historical data from so many markets, that simple mistakes like buying bitcoins with a credit card should not be common place.  But I guess most people never heard of google?  Whatever.  If you look at the markets as a zero sum game, then say thanks next time you see a moron because they are the ones making us gains.

[vendy86]

purchase BTC using Credit Card is a bad idea.
you cant predict BTC price even for next month, and if BTC price falling down, are u gonna sell loss your BTC to pay your Credit card bill?
invest should be using the free money, so even the price down,u still can hold it for a moment.

[gotminer]

Yeah fuck the credit cards.  BOA and Chase won't even allow it anymore.  I've never purchased crypto with a credit card.  You can easliy do it from your bank account that you have "real" money in on Coinbase.  If might take a week for the funds to transfer, but you're still locked in on the price.

[aardvark15]

A recent survey of Bitcoin investors found that 18% purchased their cryptocurrencies with the use of credit cards, according to the consumer group LendEDU.

It gets even worse. Of those investors that used credit cards to purchase Bitcoin, 22% had not paid off their card balances. What’s more, 70% argue that the interest they’re paying on that credit card debt is worth the price of owning Bitcoin.
Even more concerning, 88% of the survey respondents say they plan to pay off their credit card by selling their Bitcoins. In other words, to free themselves from their cryptocurrency-induced credit card debt, these investors have to see the value of Bitcoin rise considerably—since they’re also likely looking for investment gains.

Of course, these investors are ignoring one big thing: the significant risk that bitcoin could fall in price, which it has—dropping almost in half since its peak in December.

With the average credit card APR at 16.67%, borrowing $5,000 to buy Bitcoin could add potentially thousands of dollars in debt if they’re paying back the credit card bill with monthly minimums while awaiting that Bitcoin to boom.

http://time.com/money/5117306/buying-bitcoin-investors-crazy/

I don’t think anyone should borrow money to invest especially with a high interest rate on the loan and also considering that cryptocurrencies are a high risk investment anyone.

However, buying with a credit card doesn’t necessarily mean that someone is borrowing the money. Some people use credit cards that give cash back on purchases and they pay the balance before interest is due. This way you could actually make a little extra money by using a credit card for the purchase. It could cover the fee to buy the coins.

[Rabblerah112]

Horrible idea.  These are high risk investments, people forget that.

[gotminer]

A recent survey of Bitcoin investors found that 18% purchased their cryptocurrencies with the use of credit cards, according to the consumer group LendEDU.

It gets even worse. Of those investors that used credit cards to purchase Bitcoin, 22% had not paid off their card balances. What’s more, 70% argue that the interest they’re paying on that credit card debt is worth the price of owning Bitcoin.
Even more concerning, 88% of the survey respondents say they plan to pay off their credit card by selling their Bitcoins. In other words, to free themselves from their cryptocurrency-induced credit card debt, these investors have to see the value of Bitcoin rise considerably—since they’re also likely looking for investment gains.

Of course, these investors are ignoring one big thing: the significant risk that bitcoin could fall in price, which it has—dropping almost in half since its peak in December.

With the average credit card APR at 16.67%, borrowing $5,000 to buy Bitcoin could add potentially thousands of dollars in debt if they’re paying back the credit card bill with monthly minimums while awaiting that Bitcoin to boom.

http://time.com/money/5117306/buying-bitcoin-investors-crazy/

I don’t think anyone should borrow money to invest especially with a high interest rate on the loan and also considering that cryptocurrencies are a high risk investment anyone.

However, buying with a credit card doesn’t necessarily mean that someone is borrowing the money. Some people use credit cards that give cash back on purchases and they pay the balance before interest is due. This way you could actually make a little extra money by using a credit card for the purchase. It could cover the fee to buy the coins.

Quite possibly.  But you need to look at the fee to pay with a cc on cb or where ever as opposed to a ACH transfer or what ever they call it in Europe and compare that to the cashback percentage on your cc.  CB currently charges 3.99% to purchase crypto with a cc in the USA.  Most people get 1%, maybe 2% cash back for that type of transaction, so you've already lost money by paying with a cc.

[gotminer]

If you're using CB and GDAX ... Let's compare ... CB has fees ... GDAX, I pay nothing if I put in a limit buy order and tell it to fill in one shot.  Easy Peasy.  Market makers don't pay fees on a lot of exchanges if they can specify that they only want their order filled in one shot.

And in addition to that, but don't quote me on it, because I haven't looked it up ... But I think if a limit sell order is filled in one shot on GDAX, you may not pay a taker fee.

[pooya87]

A recent survey of Bitcoin investors found that 18% purchased their cryptocurrencies with the use of credit cards, according to the consumer group LendEDU.

there are a lot of idiots in the world that jump off a cliff, that doesn't make their actions right. the first rule of investment is to not take bigger risks that you are comfortable with, or in other words invest what you can afford to lose.

Of course, these investors are ignoring one big thing: the significant risk that bitcoin could fall in price, which it has—dropping almost in half since its peak in December.

not necessarily true. there are investors that have these very high risk strategies, the maximize their investment and with it take a lot of risks. big risks. and try to make the most out of that.
i would never use such strategies but i can't say they are wrong to do it either and they certainly don't ignore anything, they are well aware of the risks and also the rewards.

[allycn]

I am guilty of using my credit card to invest in bitcoin, as Coinbase was the only option I found in order to get started with crypto currency. However, I only invested what I could afford to pay at the end of the month, and an amount I could afford to lose.  I wouldn't trust something so volatile / risky to pay off my debts.