I have a little secret strategy I've been using in 2013 of using a credit card to buy Bitcoins. If you live in the USA like me, it's almost like instantly receiving free money. Here's what I have been doing.Step One:
I signed up for a new credit card that offered 40,000 points (that was essentially worth $400 in statement credits) after spending a minimum amount within the first 3 months from opening the account. The problem is I normally wouldn't spend enough to fulfill that spending requirement, and that's where buying Bitcoins comes in handy...Step Two:
You can buy Bitcoins with a credit card on a plethora of websites. Some websites are a ripoff and charge up to a 7.5% fee on small orders but others are more reasonable and charge around 3.0% if you make a large purchase like $2,000 worth in one transaction. Alternately, some take Paypal and their fees are along the lines of 2.9%.Step Three:
Shortly after buying them, I turn around and sell them. The longer you hold them the more risk there is with price fluctuation and that's why I recommend cashing out ASAP. When you sell them, you can get the money back in the form of an ACH deposit to your bank account or a paper check depending on the website.
When all is said and done, you might have spent $100 on the buying/selling fees for a couple thousand dollars worth, but then you qualified for your credit card new account bonus - I'm still ahead a few hundred bucks for doing very little work! I got 40,000 pts and I actually love the credit card so I am going to continue using it because it has a good rewards program. But in addition to it, I am planning to do it with two other new cards because I need some airline mileage bonuses
to visit my family who lives 2,000 miles away.
This is an awesome strategy and I just wanted to share it with this forum. This seems like a useful place and a lot of like-minded individuals on here such as myself that are smart spenders and know how to maximize our rewards.