Using credit cards to buy bitcoin in the bull run

[STT]

A credit card can do a money transfer and that money can be used for anything, it is an unsecured loan after all.    It seems a very bad idea to introduce leverage into a proposed Bitcoin holding, its not the rules or fees you should be wary of but the nature of Bitcoin itself is poor when mixed with debt.
   Your idea is a gamble or bet, I would suggest you just head with a small amount to a casino and take part there.   If you are thinking well I only want to bet on Bitcoin price, I know there are places which allow a simple bet on the Bitcoin price for 2019 or even beyond.   Then you have winnings if right or a fixed loss if wrong, using the credit card to directly buy would be a worse choice.

[Naida_BR]

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?

Try to avoid buying cryptocurrencies with credit cards.
You will fall in the trap of spending money without controlling the amount of it. Also, I think that their not any current card that gives you bonus and incentives for buying crypto. Given that, there is no point in making buys with them.

[jrrsparkles]

Credit cards are loans from banks without using collateral, and will be different for everyone who has a limit on credit cards. it seems easy to withdraw money from a credit card to invest in cryptocurrency, but we have bills every month, and the amount is as big as the money we attract plus interest. are we ready for that?

people think that they can make profits in that very short time but most of the time it can backfire on them and they will stuck at the more debts to pay their credit to their banks.So we never have to take that kind of risk, because first thing to become rich is never get huge debts which put you at risk.

[SquallLeonhart]

Credit cards are loans from banks without using collateral, and will be different for everyone who has a limit on credit cards. it seems easy to withdraw money from a credit card to invest in cryptocurrency, but we have bills every month, and the amount is as big as the money we attract plus interest. are we ready for that?

people think that they can make profits in that very short time but most of the time it can backfire on them and they will stuck at the more debts to pay their credit to their banks.So we never have to take that kind of risk, because first thing to become rich is never get huge debts which put you at risk.

I know that some risk are actually worth taking, risk like investing in bitcoin is really worth it, especially when you invest at deep, but the highest risk I can take for bitcoin in as much as I love it is to risk investing with money that I know is not tied to anything, not money tied to loan, school fees or even my feeding.

I am only out money that I know is spare which I can also afford to lose. The market of cryptocurrency generally and especially that of bitcoin is too volatile to use credit card to purchase it, the only time it may be tried is when the market is already in bull run, because I believe that credit card usage will also have limit and time attached to it, and bitcoin may not have become profitable before the time the banks gives elapses.

[redsun114]

I think credit card is still something, you can calculate how much you want to buy and how many installments you want to pay it for and calculate if you can afford it and so forth, however line of credit is a lot bigger than that, it is thousands of dollars gone in seconds if you are not lucky.

Credit cards (depending on the level of your credit card) can't be that big, you can't just spend all of the limit and suddenly have to pay right away, you can put it in 24 month installments and usually your limit is like 9 times your monthly salary so even though it is a huge risk you are taking it is not as big as loans. I would suggest everyone to spend 5% of their salary as soon as they receive it to buy bitcoins each time they get their salary and then spend the rest instead of making a debt.

[Pipdips]

The majority of replies in this topic have urged extreme caution for buying Bitcoin with credit cards. It is extremely logical to think that it would be totally stupid to risk buying Bitcoin with credit cards. However I keep challenging the notion because I'd like to explore what could be beyond the herds thoughts. For some reason I think that big businesses and also whale investors do things differently and they buy Bitcoin on credit or secured and unsecured debt....

[davinchi]

Credit card policies are not similar in every country, sometimes fee's and interest rates of credit cards are not high in the developed world and you can get to buy a bunch of bitcoin with your credit card and increase your bitcoin holding a lot.

For example, if a guy from USA wants to buy bitcoin at 1200 dollars with his credit card he is going to buy it now and going to have to pay 101 dollars a month for example (from 15% max thanks to Bernie and AOC hopefully that is a bit over 101, like 101.5 or whatever) and that would mean that in the end you would be paying 101 per month and that is not too much money, many Americans can afford such expense and in the end you are going to have 1200 dollars worth of bitcoin and in a year it could drop or increase but you can wait until it goes up.

However, in some other countries the rates are super expensive and they make way too much money from it.

[wxxyrqa]

Now I understand why there is such a question, where there are certain risks of buying Bitcoin using credit cards.  If you buy Bitcoin in this way, then with the help of the banking system, the state captures all all user and cryptocurrency market relations.  I consider it unacceptable and dangerous.

[alexforneus]

There are extremly high fees on paying btc via credit card unfortunately

[STT]

Mixing leverage with Bitcoin is like using oil on water, it only makes a mess of what you are doing and obscures your vision.     Use the credit card to buy goods, to buy food and petrol even but then use the money you saved by that credit to purchase the Bitcoin separately.

This is still leverage but its more controlled, less likely to incur fees and be as unbalanced

[Pipdips]

For example, if a guy from USA wants to buy bitcoin at 1200 dollars with his credit card he is going to buy it now and going to have to pay 101 dollars a month for example (from 15% max thanks to Bernie and AOC hopefully that is a bit over 101, like 101.5 or whatever) and that would mean that in the end you would be paying 101 per month and that is not too much money, many Americans can afford such expense and in the end you are going to have 1200 dollars worth of bitcoin and in a year it could drop or increase but you can wait until it goes up.

This is more like it. Nice work.

Another example: A woman in the USA takes out two new lines of credit from credit cards. Each card has $5,000 and they are both 0% interest for the first 18 months. So the woman goes ahead and uses the cards to buy $10,000 worth of Bitcoin. Bitcoin is worth about $10,000 right now, so she now owns 1 full Bitcoin! She has to service those credit card bills and it is $35 per month for each of the cards, so that is costing her $70 per month to own 1 Bitcoin. The bright side is she literally has 18 months to wait for a profit, and her profit chances probably increase because of the Bitcoin halving coming early next year.  Also another bright side is that as she makes $70 payments each month, what she owes to the credit company begins to shrink.  Even brighter, she continues to own that 1 Bitcoin regardless of anything else that happens (so whether she pays the credit card bills or not, she outright owns that 1 Bitcoin).  It is at this point where she can decide to either play by the rules and continue paying her credit card payments while keeping her 1 Bitcoin, or just blow her creditors off and stop paying but still keeping her 1 Bitcoin. She may lose her morals and get greedy or crazy and say to herself, screw this, holding onto this 1 Bitcoin is worth more than faulting on the credit card debit.

Believe it, the Tax Man has read these brilliantly evil ideas presented in this post. LOL. Don't worry I am not divulging all of the sinister possibilities and truths.

So anyways she decides to play by the rules: to make the $70 payments, she could just make a few safe scalp trades using the $10,000 worth of Bitcoin, and those quick scalps can allow her to easily make the monthly payments with just minutes of her time per month is all it would take. Of course it takes a lot of practice to successfully scalp, and many do not have that skill but if she knew how to scalp really good, she could use that 1 Bitcoin to scalp for just a few hours per week and by the end of the 18 months the whole $10,000 would be paid off. She now owns 1 Bitcoin and she never paid a dime for it, she just used her trading skills and her time for scalping her way to making small crypto riches - by using someone else's money! She used the credit cards money, her skills, paid all of the loan back on time and in full, she played by all the rules, and made off clean, legal and like a bandit.