Buy Bitcoins With a Credit Card Online (and Get $400 Bonus!)

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5 posts
qwertyness
 
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Buy Bitcoins With a Credit Card Online (and Get $400 Bonus!)

Postby qwertyness » Sun Sep 15, 2013 1:26 pm

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.


Gamma
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Postby Gamma » Sun Sep 15, 2013 2:10 pm

Thanks for sharing, but there's a cheaper way of also meeting spending requirements. Buy visa gift cards denomination of 500 from supermarkets, drug store, etc, set pins to them, and use it to buy money orders in grocery stores, Wal-Mart.

cashback
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Postby cashback » Sun Sep 15, 2013 5:25 pm

Gamma wrote:Thanks for sharing, but there's a cheaper way of also meeting spending requirements. Buy visa gift cards denomination of 500 from supermarkets, drug store, etc, set pins to them, and use it to buy money orders in grocery stores, Wal-Mart.


No risk this way either...
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781


SClay
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Location: Topeka, KS

Postby SClay » Sun Sep 15, 2013 8:46 pm

Gamma wrote:Thanks for sharing, but there's a cheaper way of also meeting spending requirements. Buy visa gift cards denomination of 500 from supermarkets, drug store, etc, set pins to them, and use it to buy money orders in grocery stores, Wal-Mart.


This

However, not all places allow people to purchase gift cards from card issuers with their credit card. I guess it's to prevent fraud, but I do not know for sure.

DavidNY
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Postby DavidNY » Sun Sep 15, 2013 8:58 pm

Gamma wrote:Thanks for sharing, but there's a cheaper way of also meeting spending requirements. Buy visa gift cards denomination of 500 from supermarkets, drug store, etc, set pins to them, and use it to buy money orders in grocery stores, Wal-Mart.


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