Topic: Using credit cards to buy bitcoin in the bull run - page 6. (Read 8114 times)
I wouldn't really suggest doing this as this might cause you a lot of troubles once the credit card company found out you're buying bitcoins using their service. Also for all I know, banks have since blocked access for exchanges since the latter part of 2017 due to a lot of credit card purchases on bitcoins, so I don't know how would you complete such purchases in the first place. Anyhow, this is just asking for more trouble than having a debt on a bank so don't do it if your pocket can't bear it.
Interesting. Thank you for the intelligence. I fully agree it is too risky for my investing principles.
It is still tempting because a lot of credit cards now have 0% interest for 18 months. So if you purchased $1,000 worth of Bitcoin using a credit card, the price of Bitcoin can go up quite fast in this bull run. A person can buy $1,000 worth and then cash out in a matter of days or weeks and could profit.
It is still tempting because a lot of credit cards now have 0% interest for 18 months. So if you purchased $1,000 worth of Bitcoin using a credit card, the price of Bitcoin can go up quite fast in this bull run. A person can buy $1,000 worth and then cash out in a matter of days or weeks and could profit.
Don't do that, this is the receipt for big losses
Invest only money you really have and you should be prepared to loss
A lot of people bought BTC with credits or even sell cars and houses, (yes houses) here in my country in 2017 and then BTC crashed...you know the end of story
I think there used to be a whole lot, but then banks started tightening their positions, and regulations also tightened. Nowadays you'll need to check with whoever you're banking with, I know for sure that there are a few American banks that don't allow it.
If you are going long, then I'd suggest either maintaining a position within your own means (without credit), or simply using leverage to your advantage instead of taking out a credit card debt.
Obviously this is a possible scenario for credit card companies, but the risk of default is actually quite low in a bull market in my opinion. People are more aware of their credit scores, and legal standing than you'd suggest. Plus, they are making bank by charging high interest rates.
The biggest risk for them is a bear market, or a downturn, where default rates will skyrocket. Hence, there are certain companies that don't support BTC transactions.
If you are going long, then I'd suggest either maintaining a position within your own means (without credit), or simply using leverage to your advantage instead of taking out a credit card debt.
I am surprised credit card companies allow it at all.
Think if somebody bought a bunch of Bitcoin with credit cards and they now own and control that bitcoin. The bull run will continue and their coin will be sitting in a high profit area and they can now cash out and trade it for fiat through their bank. Then they do have the credit card bill to deal with but what if they just disregarded the credit card company? They make no payments to them at all. If they did not pay the credit cards back the person can then negotiate with the credit card company for penny on the dollar payments from what they owe, or they can even just totally not pay them anything at all and they will just have a damaged credit ranking. Since the bitcoin is de-centralized, the person doing all of this owns the bitcoin, and they will own any fiat it if the bitcoin is transferred to cash through their bank. In a scenario like that the whole threat that a credit card company can dish out is not that big of a deal. In the example described above the person made out like a bull run bandit.
Think if somebody bought a bunch of Bitcoin with credit cards and they now own and control that bitcoin. The bull run will continue and their coin will be sitting in a high profit area and they can now cash out and trade it for fiat through their bank. Then they do have the credit card bill to deal with but what if they just disregarded the credit card company? They make no payments to them at all. If they did not pay the credit cards back the person can then negotiate with the credit card company for penny on the dollar payments from what they owe, or they can even just totally not pay them anything at all and they will just have a damaged credit ranking. Since the bitcoin is de-centralized, the person doing all of this owns the bitcoin, and they will own any fiat it if the bitcoin is transferred to cash through their bank. In a scenario like that the whole threat that a credit card company can dish out is not that big of a deal. In the example described above the person made out like a bull run bandit.
Obviously this is a possible scenario for credit card companies, but the risk of default is actually quite low in a bull market in my opinion. People are more aware of their credit scores, and legal standing than you'd suggest. Plus, they are making bank by charging high interest rates.
The biggest risk for them is a bear market, or a downturn, where default rates will skyrocket. Hence, there are certain companies that don't support BTC transactions.
Where I'm at in the UK most credit card issuers stopped allowing customers to use credit cards to buy crypto. The next bull run will even more manic so if there are any card issuers left they'll probably stop it too.
Despite that all of them let you deposit to gambling sites...
Despite that all of them let you deposit to gambling sites...
think this has something to do with the chargebacks , in crypto they are irreversible
some of the companies mitigated it through the third party services , anti-fraud companies , that is the reason to charge extra 3-5%
Coinbase charges additional 3.99% for example , but think they offer 10$ on purchases over 100 , at least they have been doing it in 2017
have you tried Cex.io with a credit card ? once you link your card you can withdraw USD/EUR directly to it
not sure how much do they charge now , but it had to be one of the best options with 2.99% +5 euros/usd
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?
Do any credit card companies have restrictions on bitcoin purchases?
Which cards offer incentives and bonus dollars for purchases?
High fees. However, if you are able to bought it using your credit card around November - December of 2018, I'm sure by now you have enough profits to covered the fees. I don't think they're restrictions, as cc is universal as well. I'm not sure if there are cards that offer incentives though, I mean banks are against crypto you are lucky if they would allow you to make purchases.
I am surprised credit card companies allow it at all.
Think if somebody bought a bunch of Bitcoin with credit cards and they now own and control that bitcoin. The bull run will continue and their coin will be sitting in a high profit area and they can now cash out and trade it for fiat through their bank. Then they do have the credit card bill to deal with but what if they just disregarded the credit card company? They make no payments to them at all. If they did not pay the credit cards back the person can then negotiate with the credit card company for penny on the dollar payments from what they owe, or they can even just totally not pay them anything at all and they will just have a damaged credit ranking. Since the bitcoin is de-centralized, the person doing all of this owns the bitcoin, and they will own any fiat it if the bitcoin is transferred to cash through their bank. In a scenario like that the whole threat that a credit card company can dish out is not that big of a deal. In the example described above the person made out like a bull run bandit.
Think if somebody bought a bunch of Bitcoin with credit cards and they now own and control that bitcoin. The bull run will continue and their coin will be sitting in a high profit area and they can now cash out and trade it for fiat through their bank. Then they do have the credit card bill to deal with but what if they just disregarded the credit card company? They make no payments to them at all. If they did not pay the credit cards back the person can then negotiate with the credit card company for penny on the dollar payments from what they owe, or they can even just totally not pay them anything at all and they will just have a damaged credit ranking. Since the bitcoin is de-centralized, the person doing all of this owns the bitcoin, and they will own any fiat it if the bitcoin is transferred to cash through their bank. In a scenario like that the whole threat that a credit card company can dish out is not that big of a deal. In the example described above the person made out like a bull run bandit.
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?
Do any credit card companies have restrictions on bitcoin purchases?
Which cards offer incentives and bonus dollars for purchases?
It used to be easier, but I think that most banks across the world now have much stricter controls when it comes to buying coins with credit cards. Most of them will charge you the cash advance rate straight away with no interest free days, and that is assuming that buying crypto is within their ToS which for a lot of them is not.
Not only that, there is a serious lack of exchanges that will take your credit card funds because how easily you can chargeback on your transactions, meaning that the little that will accept it will have significantly higher spreads.
I think it's intrinsically risky to speculate on BTC on credit, especially on credit cards, because of the high interest rates and fees, and a lack of liquid markets that allow you to transact from CC to BTC. If you are willing to take on this risk, you might as well trade on margin.
Where I'm at in the UK most credit card issuers stopped allowing customers to use credit cards to buy crypto. The next bull run will even more manic so if there are any card issuers left they'll probably stop it too.
Despite that all of them let you deposit to gambling sites...
Despite that all of them let you deposit to gambling sites...
Interesting. Thank you for the intelligence. I fully agree it is too risky for my investing principles.
It is still tempting because a lot of credit cards now have 0% interest for 18 months. So if you purchased $1,000 worth of Bitcoin using a credit card, the price of Bitcoin can go up quite fast in this bull run. A person can buy $1,000 worth and then cash out in a matter of days or weeks and could profit.
It is still tempting because a lot of credit cards now have 0% interest for 18 months. So if you purchased $1,000 worth of Bitcoin using a credit card, the price of Bitcoin can go up quite fast in this bull run. A person can buy $1,000 worth and then cash out in a matter of days or weeks and could profit.
legendary
Activity: 2884
Merit: 1115
Leading Crypto Sports Betting & Casino Platform
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.
Bitstamp has 5% fee on credit card purchase, Coinbase 3.99%. If you top up your account via Bank transfer, it's zero fee on both mentioned exchanges.
The only scenario in which I would consider purchasing with credit card is when bank transfer takes too long (deciding to buy on Friday but bank is closed so bank transfer will be done on Monday) or I expect Bitcoin price to increase more then 6% in a day so it's better to pay 5% fee than buy Bitcoin at 6% higher price the next day when bank transfer arrives.
Bitstamp has 5% fee on credit card purchase, Coinbase 3.99%. If you top up your account via Bank transfer, it's zero fee on both mentioned exchanges.
The only scenario in which I would consider purchasing with credit card is when bank transfer takes too long (deciding to buy on Friday but bank is closed so bank transfer will be done on Monday) or I expect Bitcoin price to increase more then 6% in a day so it's better to pay 5% fee than buy Bitcoin at 6% higher price the next day when bank transfer arrives.
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?
Do any credit card companies have restrictions on bitcoin purchases?
Which cards offer incentives and bonus dollars for purchases?
Jump to: