Topic: Can anyone explain why it is bad to to buy Bitcoin with Credit Card? (Read 1240 times)

I think the right term is dangerous not bad. Well, everything you done online involving money is dangerous and risky. I think there are a lot of digital thief that corrupts your information and bank accounts everytime you use it online. Also, some people use bitcoin to launder money. They might use your credit card information when you use it online.

A lots of people has the knowledge of bitcoin or any other coins said that it is bad to use credit card to buy a Bitcoin. Well just think about it, if you're buying a thing that u think well double your investment but there's no guarantee that it well double or get a higher or lower your capital in return, your just risking it and your toast to that. But if well look at in the positive side, if you're a risk taker then go for it. Get gamble to it because that is business, you need to take the risk for you to have your success.

Mainly because there's so many phishing site around that offer you to buy bitcoin with credit card while infact they're just pishing site to steal your credit card information and probably sell it out to the deepweb or using it themselves.
No reason to buy bitcoin with credit card for me, better use bank transfer.

I don't like buying bitcoin with credit cards because big fees and interest. Also because it's really hard to buy bitcoin with credit card because of verifications and money laundering risks. For the risk notification maybe because banks and credit card issuers don't want to involve in cryptocurrencies.

Even if I was in selling bitcoins, I would have never accepted credit cards to sell bitcoins. Most of the scams occurs in the credit cards. Also they charge a heavy fees which cant be affordable by bitcoiners as we think a lot about the fees. It is good to purchase bitcoin with any other option. Purchasing bitcoin with paypal maybe perhaps safe rather then buying bitcoins with credit card.

Bitcoin is a anonymous currency and cant be traced. So even if someone uses our credit card to purchase bitcoins, we cant do nothing so it is good to not to use creditcards to purchase bitcoins.

Look if you bought Bitcoin using a creditcard few weeks ago at the rate $5000 what will happened? If you bought worth 1btc but Bitcoin dropped to 3k. You end up having a 40% loss and while you wait Bitcoin to reach 5k again you are paying 3.5% interest to your creditcard. That's why its not good to borrow money to invest something.

Everyone should be able to assess the situation and then to answer for their actions. I am not a supporter of loans. I know many people who destroyed their lives in this way. I can absolutely free to use the loan for 50 days, but I try not to do it even when I know that I can make money on it.

There is a reason why people advises against that. Surely it is not good to rely on other’s opinions when making your decisions but there are times when you have to make an exception and look into their suggestions for some might actually be real or useful to you. After doing some research, consider analyzing all the informations at hand properly so you what to believe and what not. Hmm. Seems like common sense ain’t really that common.

it isn't really bad though! it mostly depends on the options that your credit card offers. in some countries the banking system is not as horrible as you see in US for example
besides you have to find a way to get the money to exchanges to buy bitcoin with, if you have better options of course you should be using those option to buy bitcoin but if you don't have then you are left with only 1 option.

Forgot to add... What if the price went up ? That will be extremely Amazing its more like a bet.. but don't overdo it.. everything else is just fine...also its a great way of earning for people who don't have investment or aren't able to invest their funds into bitcoins.

The price of bitcoins is not stable and if you think about taking a loan from the bank (* essentially thats what the credit card does*) you will have to pay a lot of interest if the price fell down and you are left with nothing
Bitcoins aren't like normal stabilized currency .. it does inflate and deflate with time with respect to its market value therefore if you happen to be unlucky and suddenly if the value decreased for a long time you will be paying interest for all those days... And also... If finally the value went up the money you would earn will be equivalent to all the interest you paid.. thus good for nothing.

Yes, buying bitcoins with credit card is usually rare and also scam many times. If you used credit card to purchase bitcoins and your card gets blocked then for sure the site may be a scam site and may misuse your credit card details in many ways. I have read a lot articles about it. It is nothing like the bank dose not like bitcoins. Bank just cant block the card because bank dose not like bitcoins.

There might be many several reasons for doing so and even the bank may block the card to secure your account as the bank detects a scam.

It is not bad, its just that it is not that advisable, since credit cards have fix payments, that being how much you have used, and the interest rate, since bitcoin is highly volatile, therr may be a time that tou bought your bitcoin at a high price and it will take time for it to gain profit for you, and if you haven't paid the credit card company,  they will charge for interest, fot that case you need to take risk and be responsible on your debt. However, if you have a lot of cash with you and still opted to use a credit card, better pay your yiur debt at once to avoid any additional fees, since that is hiw the banks will create money out of thin air, and will just collect money from you. I think you should reconsider using your credit card, you sould also remember not to use your savings if you are planning to invest, since the best way to start an investment, first is by studying it, then if you are willin to do it, use your extra cash to buy bitcoin, just don't let it all out, one of the fundamentals in investing is, not putting all your eggs in one basket, i am not saying that bitcoin will fall, not that it would happen, you need to remember that bitcoin is volatile, and you still need savings for you to feel secure, if you you already have ample bitcoins now, that will be a different story, but for starters, use your extra cash to buy bitcoin, rreconsider using your saving and especially your credit card.

Because Banks that issue your credit card has its processing time before it pays, I think 2-3 days is the minimum and most of the exchanges that allows it will confirm it first before they will release your bought coins so it means that the processing itself will take days and those exchanges is making sure that those card is real and will not reverse its payment.

And I think those banks that are issuing credit cards is surely monitoring to where and when will you spend your balance as it is not fully paid, maybe when they know that you will buy some cryptocurrencies they will delay it and will give you more hidden fees. We know that banks really hate cryptocurrencies though.

Because the fees are insane. In most cases it will be better to wait until you have the money in hand and buy it in the conventional way.

That's a risky thing to do with your Credit Card. What if the price of Bitcoin goes down? How would you pay for your debt?  But, still risking is the best thing to do with investments. I personaly would buy bitcoin for fiat rather than CC. Always think twice when making an investments.

It is expensive. Just because of that. Cripto will eventually kill credit card.

That's why I said it doesn't work for me, you'll be buying a pint of milk for the price of a cow.

Just another thing that came into my mind recently:
In my country, I've heard about a lot of problems wiring back fiat from exchanges to bank accounts. Not the accounts themselves are the problem, because they're not closed, but the transactions. Banks are sending back EUR or USD transactions to the exchanges and they doesn't credit it to your bank account. This could lead to problem, if you want to pay back the credit you have used to buy the bitcoins. There's no use if bitcoin gains $1,000 in a month, if you can't send your funds back to your bank account to pay back the credit card debt. Maybe you can pay it back from your own funds, but next time if you buy bitcoin again with credit card, you will need additional funds to cover your debt again, and again next month, etc.

That is not true. I haven't had such experience and don't know anyone who did. Some bank accounts could be closed because of connection with bitcoin activities but this will not happen to credit cards. Actually buying bitcoins with credit card is very convenient and easy and the only probem I can thik about is the problem with fees. But you have to be very careful where you leave your credit card data.