Running Points by Buying Cryptocurrencies
Dec 31, 2017, 3:14 pm
#1
Original Poster
Join Date: Jul 2017
Posts: 7
Running Points by Buying Cryptocurrencies
Fair warning, this type of mileage run involves risk that is tied to the volatility of the cryptocurrency you choose to run the strategy with. I have confirmed now with Barclays, Chase, and Bank of America credit cards that purchases on coinbase.com count towards minimum spend. Right now the lowest fee currency available on coinbase is ether, which has been averaging $0.30 - $0.50 per transaction (this is regardless of the total transaction amount) for the past 1-2 weeks; ether transactions clear within a few minutes. There are two mileage run strategies I have employed to run up minimum spends:
(1) Simply buy ether through Coinbase (https://www.coinbase.com/join/), and turn around and sell it immediately. Ethereum is the 3rd highest market cap cryptocurrency, so the price is relatively stable over the course of a few minutes.
(2) Buy ether through Coinbase, and then buy an undervalued cryptocurrency and hold for a week before cashing out. Monitor the markets; you have a break-even margin that is equal to how you value the minimum spend reward. In my case, I am bullish on $XRB raiblocks, which has been consistently going up through volatile markets over the last month.
(1) is the relatively safer option. You will lose roughly 3% of your transaction total to coinbase fees for processing a credit card transaction (eg lose $90 on a $3000 transaction for ether). (2) is for someone who has some insights on the market and wants to potentially offset the 3% credit card fee loss with gains in the underlying asset.
Coinbase is one of the two major US exchanges for fiat to cryptocurrency (gemini is the other major competitor). Both fiat and cryptocurrency holdings on coinbase are insured.
edit: the reason I suggest using ether is that bitcoin transaction fees are at $20. Both BTC and LTC transactions take closer to 10-30 minutes to clear which means there is a greater chance the price may swing against you before you can sell. That said, coinbase may allow instant buys and sells if it matches you with someone else holding BTC or LTC on exchange. I have not tried, so I do not know.
(1) Simply buy ether through Coinbase (https://www.coinbase.com/join/), and turn around and sell it immediately. Ethereum is the 3rd highest market cap cryptocurrency, so the price is relatively stable over the course of a few minutes.
(2) Buy ether through Coinbase, and then buy an undervalued cryptocurrency and hold for a week before cashing out. Monitor the markets; you have a break-even margin that is equal to how you value the minimum spend reward. In my case, I am bullish on $XRB raiblocks, which has been consistently going up through volatile markets over the last month.
(1) is the relatively safer option. You will lose roughly 3% of your transaction total to coinbase fees for processing a credit card transaction (eg lose $90 on a $3000 transaction for ether). (2) is for someone who has some insights on the market and wants to potentially offset the 3% credit card fee loss with gains in the underlying asset.
Coinbase is one of the two major US exchanges for fiat to cryptocurrency (gemini is the other major competitor). Both fiat and cryptocurrency holdings on coinbase are insured.
edit: the reason I suggest using ether is that bitcoin transaction fees are at $20. Both BTC and LTC transactions take closer to 10-30 minutes to clear which means there is a greater chance the price may swing against you before you can sell. That said, coinbase may allow instant buys and sells if it matches you with someone else holding BTC or LTC on exchange. I have not tried, so I do not know.
Last edited by tcook052; Jan 1, 2018 at 8:29 pm Reason: to clarify why I encourage using ether over BTC or LTC
Jan 1, 2018, 2:23 am
#2
Join Date: Jun 2017
Posts: 39
Fair warning, this type of mileage run involves risk that is tied to the volatility of the cryptocurrency you choose to run the strategy with. I have confirmed now with Barclays, Chase, and Bank of America credit cards that purchases on coinbase.com count towards minimum spend. Right now the lowest fee currency available on coinbase is ether, which has been averaging $0.30 - $0.50 per transaction (this is regardless of the total transaction amount) for the past 1-2 weeks; ether transactions clear within a few minutes. There are two mileage run strategies I have employed to run up minimum spends:
(1) Simply buy ether through Coinbase (https://www.coinbase.com/join/), and turn around and sell it immediately. Ethereum is the 3rd highest market cap cryptocurrency, so the price is relatively stable over the course of a few minutes.
(2) Buy ether through Coinbase, and then buy an undervalued cryptocurrency and hold for a week before cashing out. Monitor the markets; you have a break-even margin that is equal to how you value the minimum spend reward. In my case, I am bullish on $XRB raiblocks, which has been consistently going up through volatile markets over the last month.
(1) is the relatively safer option. You will lose roughly 3% of your transaction total to coinbase fees for processing a credit card transaction (eg lose $90 on a $3000 transaction for ether). (2) is for someone who has some insights on the market and wants to potentially offset the 3% credit card fee loss with gains in the underlying asset.
Coinbase is one of the two major US exchanges for fiat to cryptocurrency (gemini is the other major competitor). Both fiat and cryptocurrency holdings on coinbase are insured.
edit: the reason I suggest using ether is that bitcoin transaction fees are at $20. Both BTC and LTC transactions take closer to 10-30 minutes to clear which means there is a greater chance the price may swing against you before you can sell. That said, coinbase may allow instant buys and sells if it matches you with someone else holding BTC or LTC on exchange. I have not tried, so I do not know.
(1) Simply buy ether through Coinbase (https://www.coinbase.com/join/), and turn around and sell it immediately. Ethereum is the 3rd highest market cap cryptocurrency, so the price is relatively stable over the course of a few minutes.
(2) Buy ether through Coinbase, and then buy an undervalued cryptocurrency and hold for a week before cashing out. Monitor the markets; you have a break-even margin that is equal to how you value the minimum spend reward. In my case, I am bullish on $XRB raiblocks, which has been consistently going up through volatile markets over the last month.
(1) is the relatively safer option. You will lose roughly 3% of your transaction total to coinbase fees for processing a credit card transaction (eg lose $90 on a $3000 transaction for ether). (2) is for someone who has some insights on the market and wants to potentially offset the 3% credit card fee loss with gains in the underlying asset.
Coinbase is one of the two major US exchanges for fiat to cryptocurrency (gemini is the other major competitor). Both fiat and cryptocurrency holdings on coinbase are insured.
edit: the reason I suggest using ether is that bitcoin transaction fees are at $20. Both BTC and LTC transactions take closer to 10-30 minutes to clear which means there is a greater chance the price may swing against you before you can sell. That said, coinbase may allow instant buys and sells if it matches you with someone else holding BTC or LTC on exchange. I have not tried, so I do not know.
"In my case, I am bullish on $XRB raiblocks, which has been consistently going up through volatile markets over the last month."
Lol. Raiblocks went from being valued at $.10 (a dime) to more than $20 as of earlier today. That's right, a 200x increase. Oh, the timespan? Something like 3 weeks.
Stop trying to pump and dump on FT.
Last edited by tcook052; Jan 1, 2018 at 8:30 pm Reason: edit quote
Jan 1, 2018, 4:59 am
#3
FlyerTalk Evangelist
Join Date: Sep 1999
Location: New York, NY, USA
Posts: 12,482
Jan 1, 2018, 1:19 pm
#5
Original Poster
Join Date: Jul 2017
Posts: 7
"In my case, I am bullish on $XRB raiblocks, which has been consistently going up through volatile markets over the last month."
Lol. Raiblocks went from being valued at $.10 (a dime) to more than $20 as of earlier today. That's right, a 200x increase. Oh, the timespan? Something like 3 weeks.
Stop trying to pump and dump on FT.
Lol. Raiblocks went from being valued at $.10 (a dime) to more than $20 as of earlier today. That's right, a 200x increase. Oh, the timespan? Something like 3 weeks.
Stop trying to pump and dump on FT.
Jan 2, 2018, 7:28 am
#6
Join Date: Dec 2016
Programs: Southwest, SPG, Marriott, UR & Amex
Posts: 79
I'm active in crypto day trading - I really wouldnt count on crypto for Manufactured spending.
If you are willing to do so Manufactured spending in something volatile, dont do Crypto.
Stick to Gold, even then gold is volatile.
But at least you end up with precious metals vs a digital asset.
My .02
If you are willing to do so Manufactured spending in something volatile, dont do Crypto.
Stick to Gold, even then gold is volatile.
But at least you end up with precious metals vs a digital asset.
My .02
Aug 3, 2020, 1:45 pm
#9
Join Date: Jun 2020
Posts: 7
Hey, guys. I've been investing in cryptocurrency for 3 years and I want to advise you something good. When you buy a bitcoin or something else I'm 100% sure that you will make transactions, and I want you to know that you need to use crypto mixers, this is the sites which will hide all data about you while you will be making transactions, which is very important. If you don't know what to do with them, I advise you to read this article, there you can find how to use bitcoin mixer. This article helped me to understand everything so you will be able to figure everything out too.
Last edited by JWatsn89; Aug 16, 2020 at 1:42 pm
Aug 3, 2020, 2:54 pm
#10
Join Date: Dec 2013
Posts: 81
It's essentially gambling (if you have no use for it). High risk, high reward. A lot of poker players/sites use BTC, and some businesses take it, but it's just a gamble if you're looking to invest. Look at a stock chart of BTC over the last year. It's break even, but went as low as $5k and as high as $12k. Potential to make money if you're lucky, but also the potential to lose a lot.
Aug 4, 2020, 1:30 am
#11
Join Date: Jul 2014
Location: London, UK
Programs: Nandos Chillis
Posts: 196
But certainly not worth just ploughing money randomly into a coin hoping it will appreciate in value.