Using credit cards to buy bitcoin in the bull run

[The Sceptical Chymist]

I would avoid buying bitcoin with credit card - not because of restrictions, but because all exchanges have extra fees on crypto purchases with credit cards. I know for Bitstamp, Coinbase and Crypto.com app.

Not only that, but you usually pay exorbitant fees with credit card purchases, and buying crypto with them is basically buying on margin except with a much higher rate of interest.  There's no way in hell I'd use a credit card to buy crypto, not even in the hottest of bull markets.  A debit card, yes.  A credit card, absolutely not.

Unfortunately there are doubtless many folks who think bitcoin's price can outpace whatever interest the CC companies charge, and those are the people who end up buying bitcoin at the top.  That kind of thing happens in every bull market.  I recall in 2017 there were people selling household possessions (including their house) to buy bitcoin, and I found that crazy.  My philosophy has always been that if I can't pay cash for something, I'm not buying it.  But hey, good luck to those speculators who are doing this--but I think it's not a great thing for bitcoin in general if it pushes the price up too high too fast.

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[FanEagle]

Credit card is something weird that I have never really understood, I have seen people spend it like a regular debit card and I never understood why.

I mean I know someone who literally spends all month from their credit card making themselves a debt and then pays it when he gets his paycheck, even have some leftover for cash needs. He could literally stop using credit card and live with his pay check, he does make enough for it, he doesn't need credit card at all, it is just that he uses it because he has some installments on it for couple of stuff and it is easy for him to pay with card than cash so he continues using it. So for people like him, if its not going to make any dent in your economy at all, maybe its not a bad idea at all, maybe it would work for them to invest with credit card.

[BitHodler]

Credit card is something weird that I have never really understood, I have seen people spend it like a regular debit card and I never understood why.

I mean I know someone who literally spends all month from their credit card making themselves a debt and then pays it when he gets his paycheck, even have some leftover for cash needs. He could literally stop using credit card and live with his pay check, he does make enough for it, he doesn't need credit card at all, it is just that he uses it because he has some installments on it for couple of stuff and it is easy for him to pay with card than cash so he continues using it. So for people like him, if its not going to make any dent in your economy at all, maybe its not a bad idea at all, maybe it would work for them to invest with credit card.

I think credit cards give people peace of mind in the way that they know there is money available to them at any time of the day. I know someone who uses his credit card just for that reason.

It has gotten more difficult for the average person to make ends meet with how the income hasn't seen an increase in the last couple of years, and that while due to inflation there is like 2% less purchasing power every year.

I also know that certain people tend to use their credit cards just to buy cool things such as a new smartphone. They can't afford one directly but buy one on credit hoping to pay it all back before the 12 month period.

I personally have never used a credit card. My current debit card has an option to unlock credit card features, but that's something I will not touch. I am against spending money I don't have.

[alphaboon]

For me I have been using credit cards for bitcoin for a while now and facing no prob

[Pipdips]

For me I have been using credit cards for bitcoin for a while now and facing no prob

What price did you buy using a card?  How do you service the credit card fees?

[Lawrenzoo]

If you were going to do this, what card would you use?

Do any credit card companies have restrictions on bitcoin purchases?

Which cards offer incentives and bonus dollars for purchases?

why would any credit card offer incentive for purchase?

[jrrsparkles]

For me I have been using credit cards for bitcoin for a while now and facing no prob

What price did you buy using a card?  How do you service the credit card fees?

It may hit one or two times but buying bitcoin every month will make us to be in very risky stage.So don't invest the money which need to be repaid soon to someone on cryptocurrencies.

[TheCoinGrabber]

Not an option where I live but considering the already high charge to just cash in using FIAT and then taking a hit from the spread to convert that bitcoins, if credit card purchases are possible, it's probably gonna be much more expensive.

Another problem with this is it's credit. What if the price tanked? I'd still have to pay my credit card whether I've already sold my btc or not so that means I'd still need to have savings to cover it in case it don't turn out like how I wanted.

Credit card is something weird that I have never really understood, I have seen people spend it like a regular debit card and I never understood why.

I mean I know someone who literally spends all month from their credit card making themselves a debt and then pays it when he gets his paycheck, even have some leftover for cash needs. He could literally stop using credit card and live with his pay check, he does make enough for it, he doesn't need credit card at all, it is just that he uses it because he has some installments on it for couple of stuff and it is easy for him to pay with card than cash so he continues using it. So for people like him, if its not going to make any dent in your economy at all, maybe its not a bad idea at all, maybe it would work for them to invest with credit card.

Credit cards are OK as long as you have money coming in or just in case, have enough in savings to cover for payments. I use it for my monthly groceries, there are no interests, I just pay for it a month later with money I already have anyway and I get to accumulate points on my account.

The only issue is the membership fee but I got around that by agreeing to have some people "ride along" for their purchases and then charge them an interest. They got to buy stuff they'd never be able to buy installment, I had my annual fee practically "waived".

[michellee]

For me I have been using credit cards for bitcoin for a while now and facing no prob

What price did you buy using a card?  How do you service the credit card fees?

It may hit one or two times but buying bitcoin every month will make us to be in very risky stage.So don't invest the money which need to be repaid soon to someone on cryptocurrencies.

If our target to buy bitcoin is for the future and we are not going to sell bitcoin if the price is not reached the price we want, we could buy bitcoin in every month. I think that will worth to us to do that, especially if we believe that the bitcoin price will increase so high in the future. But to buy bitcoin with a credit card, I don't think that will be a good idea because I am worried for the stolen our data on the internet and in the store because I heard that would be too risky to use a credit card to buy something.

[Pipdips]

why would any credit card offer incentive for purchase?

If you search around you will find that some credit card companies offer sign-up bonuses and other perks that are sometimes significant. An example is: if you spend $2,000 in the first 30 days of having the new card you receive $500 cash back. It is super tempting but that is the nature of the CC beast.

it is really very risky to use credit card or lend money to buy any cryptocurrency including bitcoin and and any altcoins. you may make profit with it but there is a very huge risk to loose everything.

I agree! The temptation is still there though?

Also if a person used the card to buy Bitcoin with no intention of every paying back the credit card debt, that is another thing. Once the credit card company starts hounding them, they will forward the debt to a collection service. If a person knew how to haggle with the collection service they could then pay back what they owe, but the payment could be for as little as pennies on the dollar. They would still own the Bitcoin while of this is going on. Everyone else here is paying top dollar for their Bitcoins but if you were a total trouble maker I could see using credit cards to acquire a significant stash of Bitcoin in scrupulous ways.

[sana54210]

Well, as you can see that would have been one of a horrible scenario. I have been earning bitcoin for a long time and not even spending a single dime on bitcoin yet I spent my own time and efforts for it which is a trade off, and I can honestly tell you right now I have wasted some of my time because of bad waiting period.

If I had cashed out earlier (during 13k times) then I would have good amount of money, maybe more than I actually earned, right now though since I waited too long I have lost some of my time, literally earned money but 10% of it gone because of the fall, which is not as bad as losing actual money but your efforts and time all gone to waste is also a bad feeling. Now if I feel horrible with my time being spent for nothing then think about how horrible would have been if I lost actual money that I put into crypto.

[fullhdpixel]

If you were going to do this, what card would you use?

Do any credit card companies have restrictions on bitcoin purchases?

Which cards offer incentives and bonus dollars for purchases?

why would any credit card offer incentive for purchase?

I clearly do not get that aspect too, because any credit card issuer also do so to make profit from its operation, and any credit card who would even take the risk of allowing payment of cryptocurrency would slam high charge on user for doing so against the government permission, and moreover, I am not sure any financial institution offering credit card services under government would ever allow cryptocurrency payment.

Most of the ones we can use are third party related companies with high fees, and if we consider the fee and lots of fees we will still have to pay for cryptocurrency usage, we will see that it is really not worth it to engage credit card services in our little purchase, otherwise, we might have useless the value of what we are purchasing.

[ccryptopark]

I had a few friends who did this and found success from it. I believe they used Amex but also be super cautious. The rules may have changed since 2017

[Pipdips]

I had a few friends who did this and found success from it. I believe they used Amex but also be super cautious. The rules may have changed since 2017

Any other info on what they did? Any numbers? More info?

It would be interesting to have a current list of credit cards that allow this in the USA.

When a person buys Bitcoin with a credit card do any risky purchase alerts go to the credit company?

[South Park]

If you were going to do this, what card would you use?

Do any credit card companies have restrictions on bitcoin purchases?

Which cards offer incentives and bonus dollars for purchases?

The first rule of investing is to only invest what you can afford to lose, if you are thinking in using credit cards or any other kind of credit then it means that you cannot really afford to lose that money and if you do lose it, something quite likely taking into account that you are violating such a common sense rule, then you will be in deep trouble, I know that people are excited about the current price of bitcoin but that is not an excuse to take bad decisions with your money.

[Pipdips]

There are credit cards offered in the USA that are 0% interest for the first 18 months. The minimum payment for these is around $25 per month for those first 18 months.

The chances would be decent for making profit from the BTC halving coming soon. One could buy Bitcoin a couple months before the halving occurs and then sell shortly afterwards for profit, then pay off the cards.

The credit card companies themselves are probably beginning to buy Bitcoin or preparing to. They are probably preparing to make Bitcoin-credit cards...

[carodupuis]

If you were going to do this, what card would you use?

Do any credit card companies have restrictions on bitcoin purchases?

Which cards offer incentives and bonus dollars for purchases?

I don’t think there is any restrictions. You can even make use of paxful.com. If you’re making use of paxful, all payment methods are being accepted on their platform and you don’t really have to worry about any kind of restrictions. Then you can also make use of other exchanges, if you have the Coinbase wallet you can use your card to purchase any amount of Bitcoin you want. When I started making use of Bitcoin I started with Coinbase and the other wallet that is called Xapo. Both allows me to use my cards to purchase Bitcoin from their platform.

[Pipdips]

What exactly happens if a person buys Bitcoin with a credit card and they do not pay any of it off?
Is there a bounty hunter that comes looking for them? I doubt it.

I am thinking all that happens is the card company damages their credit report and then forwards the debt to a collection agency, and that's it. That is really all they can do. Meanwhile if that person can live their life with damaged credit, they can just hold onto that Bitcoin until the price is higher, sell for fiat, and then go back to the collection agency and bargain to pay off the debt for pennies on the dollar. As long as they can make a big profit from the Bitcoin they bought, it is like both parties did well.

Their excuse to tell the credit collections is to just admit they bought Bitcoin with the cards, and they are waiting for it to go up in price. They can just say sorry can't pay this bill until my Bitcoin is of higher value. Later alligator. They own the Bitcoin, not the credit company, so really the dishonest client wins over the company. It puts the client in the drivers seat for a change?

If you remove the whole fear of having a collection agency calling you and mailing you stuff to your mailbox then you are good to do this. It is like the credit card companies are running a racquet that is powered by fear of damaging the customers credit. Isn't that their only recourse? In reality, a credit check is unfair. Requiring anyone to build a credit history and have at least one credit card, is insane. Where did credit history ratings come from in the first place? They were probably invented by the credit card companies doing all of this because a credit check was never a real thing until credit cards came out.

Those credit card companies look at the money the same way collection agencies do. If they can get back pennies on the dollar they'd be happy. The percentage of honorable credit card clients probably far outweighs the dishonest ones who would purposely buy tons of Bitcoin with no intention of paying the company back, so those credit card companies are making out like bandits already. Heck the credit card companies are probably planning to pour billions into the Bitcoin markets.

It is highly unethical and I would never do it myself but it is something to think about for the upcoming Bitcoin halving..

[coinfinger]

I had a few friends who did this and found success from it. I believe they used Amex but also be super cautious. The rules may have changed since 2017

Any other info on what they did? Any numbers? More info?

It would be interesting to have a current list of credit cards that allow this in the USA.

When a person buys Bitcoin with a credit card do any risky purchase alerts go to the credit company?

I usually would not buy into the idea of using credit card for cryptocurrency as it would still leave the system of cryptocurrency opened to being monitored by banks and government. All credit cards companies are licensed government agents, except few that are privately run, and if those credit card company accept the use of cryptocurrency through their system, it means they must have signed an agreement with the government first that the user data’s and transaction over crypto will be known, and this will enable the government slam tax on such person. Credit cards too will have their percentage fee that they charge for their services and this might be much too for cryptocurrency, just like was PayPal is quite high.

[Pipdips]

If big banks and institutional investors plan to buy big amounts of Bitcoin, what funds will they use?   Will they buy Bitcoin with pure cash?  Probably not. They will possibly leverage using some form of credit or a mixture of secure and unsecured debt.

Big businesses all run lines of credit in one form or another. Are any big corporations completely debt-free meaning that they never use credit in any way and they are pure cash-only or debt-free businesses?  Probably none.

Why should this be any different for us normal people?