Topic: Maxing Out Credit Cards to Buy Bitcoin (Read 229 times)
The first rule of investment is, always and only use your extra money - no loan or no mortgage. If someone buys Bitcoin with Credit Card that he/she can pay back in next payday is alright, but going in credit to make investment is not supported, even for Bitcoin.
This show how clever people are when it comes to money, surely just in case these people who purchase bitcoin thru credit card will not pay their debt in case the value of bitcoin will fall and did not recover anymore.
Good thing at the moment the price of bitcoin is appreciating again and there's really a possibilities it can reach $19500 soon.
Good thing at the moment the price of bitcoin is appreciating again and there's really a possibilities it can reach $19500 soon.
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/
Wow,this is quite a news and this is the first time that I have heard of such strategies. Though, I find this quite risky since you are using debts to get into something that can actually fail if not done right. But if these people mentioned in the article are experience traders then I think they have calculated the risk reward ratio. So in the end it whether good or bad it would only depend if who is performing such strategies.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 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.
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.
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.
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.
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/
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.
Horrible idea. These are high risk investments, people forget that.
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/
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.
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.
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.
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.
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.
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/
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.
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. 
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.
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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.
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.
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.
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
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.
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.
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