Buying Bitcoins with credit cards can be very rewarding, but there are a few things to bear in mind before getting started.
Bitcoins are bought and sold via online marketplaces called exchanges." Since there are so many exchanges out there, new Bitcoin buyers need to be careful and ensure that they are not falling victim to a scam. History shows that it's not always easy to tell a potential scam from the genuine article. Mt. Gox was a Tokyo-based Bitcoin exchange which at one point handled nearly 70% of all Bitcoin transactions. Except the owners were playing a double-game, quietly lining their own pockets by emptying out their clients' accounts to the tune of $450 million.
Reputable, reliable Bitcoin exchanges do exist, but there are still plenty of fly-by-night operations to avoid. With that in mind, we recommend choosing an exchange that is insured against employee theft and hacking and that submits to independent auditing of its books. As an added security measure, choose a service that features two-factor authentication to protect your account.
It's also important to choose a company based in the United States to ensure that it complies with all U.S. regulations of the virtual currency. To get the best price at any given moment, choose a service that buys and sells Bitcoins through multiple exchanges.
To start buying Bitcoin with credit cards, first you'll need to verify a bank account and a credit card with a few small charges. Once your accounts have been verified you can start buying Bitcoins.
Buy Bitcoins To Rack Up Rewards
The best part about buying Bitcoins with credit cards is that you can use the transactions to meet minimum spending requirements to get rewards and bonuses offered by your credit card provider.
Say you just signed up for a shiny new card that offers a $100 bonus if you spend $500 within the first 3 months of opening an account. Simply open an account with a reputable Bitcoin exchange, use a credit card with a signing bonus to purchase enough
Bitcoins to meet the minimum spending requirement, and, hey presto, you've just made $100 without actually spending any money.
The same goes for airline miles, bonus points and other rewards programs that require a minimum spending amount. Bitcoin is a great way to rack up rewards without breaking the bank. Buy Bitcoins to earn rewards and sell them to pay off your credit card balance.
Keep in mind that Bitcoin is a speculative investment and its value changes by the minute. The global Bitcoin market is open 24 hours a day, 7 days a week, 365 days a year. Be sure to sell your Bitcoins quickly—preferably as soon as the transaction clears—to avoid losing money because of a sudden price change. Bitcoin transactions typically take a few days to go through, but you're guaranteed to get the price at which you bought or sold your Bitcoins, regardless of any price changes that take place while you're waiting for the transaction to clear.