Topic: Using credit cards to buy bitcoin in the bull run - page 2. (Read 8135 times)

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....

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.

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.

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.

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.

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.

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?

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.

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..

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.

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...

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.

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 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

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.

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.

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.


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.

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.

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 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".

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.