What Are Crypto Credit Cards and Why Should You Own One?

By Kriss
Published on: August 5, 2021

Crypto credit cards are helpful and rewarding.

As a growing kind of asset, cryptocurrency has become mainstream. Did you know, though, that you may also use them as money? We now have more options than ever before when it comes to paying for goods and services using Bitcoin, which we can do with both crypto credit and crypto debit cards.

Credit cards are a convenient and lucrative method of payment. Furthermore, you will not be charged interest as long as you do not have a debt. Is the same true for cryptocurrency credit cards?

What are Crypto Cards?

Credit and debit cards in the crypto currency are the same as regular credit and debit cards. The main difference is that you’re paying for goods and services using Bitcoins.

Nonetheless, you should be aware that paying with Bitcoin, Ethereum, or other cryptocurrencies is not straightforward. Your cryptocurrencies are converted into local fiat currency and then sent to the payer when you use these cards.

Visa and MasterCard, two of the world’s most well-known financial networks, back crypto credit cards. Following the organizations’ approval, a crypto organization will issue you a crypto card, which you can use at any retailer that accepts Visa or MasterCard payments.

Coinbase’s Shift Card was one of the first cryptocurrency credit cards. The sum of your purchase was subtracted from your Bitcoin balance’s total value. However, your daily spending was limited to $1,000 and ATM withdrawals were limited to $200.

This year, the first Bitcoin rewards credit card will be launched in the United States. One of the key advantages of these cards is that they allow Bitcoin enthusiasts to spend their coins. A crypto credit card is a must-have if you possess cryptocurrency and frequently buy it.

Should You Own Crypto Credit Cards?

With the rise of Bitcoin, it may be advantageous to have crypto credit. One of the most significant advantages of a crypto credit card is the ability to pay for goods and services without having to pay high conversion costs.

Banks typically impose fees for credit card services. With crypto cards, though, the cost is removed if you spend less than a certain amount in a given year. Furthermore, there are no FX fees with crypto credit cards (foreign exchange).

Credit cards that accept cryptocurrency are also beneficial. You can earn extra coins in the same way that you can get cashback when you make a certain quantity of purchases. Some benefits can amount to 3% or more of your entire transaction value.

Although cryptocurrency rewards look to be tempting, they are also quite volatile. The value of the coins might fluctuate dramatically, much like a stock market investment. So, if you’re searching for quick profits, Bitcoin isn’t the ideal option.

Kiara Sofia Smith

My current focus is blockchain technology and cryptocurrency. One could even call me a blockchain “enthusiast.” I have worked for almost a decade on several financial projects related to the stock market news, fundamental research and technical analysis for several blogs.