Manufactured spending is a method of spending wisely with your credit card in order to rack up air miles. The success of manufactured spending method is dependant on:
- purchases that allow you to accumulate points
- while breaking even on the purchases
- …or at worst make a small loss.
Using the same method mentioned in part two of this detailed peer to peer Bitcoin passive income guide, you can use your air miles credit card to purchase Bitcoin, and flip it (for profit!) and gain air miles at the same time!
It works like this:
- Purchase bitcoin on a cryptocurrency exchange such Coinbase, which accepts credit card payments.
- Send the newly purchased bitcoin to a peer to peer Bitcoin marketplace, which will automatically link you to bitcoin buyers. This step is automatic.
- Wait for the Bitcoin to be sold, you get paid in US dollars. This step is also automatic.
- Withdraw your dollars from Paypal, back into your bank account.
- Pay off your credit card bill, and return to step 1.
You can repeat these steps as often as you like, generating small profits when you sell bitcoins, and generating lots of air mile points along the way!
Reminder: Bitcoin is volatile and is capable of dramatic price swings at short notice. However, since this method involves holding bitcoin only for 1-2 days at a time (the time taken in step 2 above to sell the bitcoin), your risk is fairly small. You should never buy more than you can afford to lose.