Today in this article, We will talk about Crypto credit cards. Also, we’ll cover some questions related to this such as what are crypto credit cards, how does a crypto credit card work, Benefits of crypto credit cards and difference between crypto credit card and traditional credit card.
You all must have heard about cryptocurrency as it has become the most popular digital asset in the world. According to coinmarketcap the total market value of all Cryptocurrencies is over 1.8 trillion dollars. With crypto, one more thing is in trend now and that is crypto credit cards. Earlier people had to face a problem, they couldn’t use cryptocurrencies. But now crypto credit cards have solved this problem. If you’re Cryptocurrency enthusiasts and do regular trading in it then Crypto credit cards can help you. To know in detail let’s see – what are crypto credit cards.
What are crypto credit cards?
Crypto credit cards allow users to spend cryptocurrency for making payments to buy products or services.
Crypto credit cards are mostly similar to credit cards. Like traditional credit cards we can make payments by spending our money. The only difference in Crypto credit cards is the payments made through crypto credit cards are done by using Cryptocurrencies like bitcoin, ethereum, Dogecoin, etc. Also, we receive rewards whenever we make any payment through a crypto credit card. The rewards we receive will be in cryptocurrency.
How does a crypto card work?
Crypto credit cards work similarly to credit cards. Just like credit cards, it also has a spending limit.
When you pay with a crypto credit card you don’t directly pay cryptocurrency. First it converts Cryptocurrency into fiat money (regular Currency like rupees) then it makes payment. And as I mentioned above, it offers you rewards whenever you use a particular card to make a purchase. The rewards you get will be in cryptocurrency. But every card issuer has their own reward offerings.
Also read: What is Blockchain? How does it work and what are its types?
Crypto credit card reward
There are many card issuers who give different rewards to their card users. I’m mentioning some of these:
1. BlockFi Credit Card – It gives you 1.5 % cashback on every transaction. And the plus point of using this card is that you can withdraw your reward in 10 types of Cryptocurrency(including Bitcoin and Ethereum).
2. SoFi Credit Card – SoFi credit card gives 2% cashback on all eligible purchases plus 2 points after spending 1 dollar. You can redeem rewards in either Bitcoin or ethereum.
3. Gemini Credit Card – Gemini offers instant rewards upto 3% in Bitcoin.
4. Venmo Credit Card – It gives cash back which you can use to purchase Bitcoin, Ethereum, Litecoin, or Bitcoin
Benefits of using crypto credit card
Below I have listed some benefits of using crypto credit card:
0 to low annual fee
Banks charge very high annual fees for their credit cards. Crypto credit cards, on the other hand, charge very low annual fees or some card issuer doesn’t even charge a rupee from you.
Many card issuers offer rewards to their card holders like BlockFi gives 1.5% cash back, Gemini offers instant rewards upto 3%, etc. The price of rewards may grow in the future with the rise of the price of a Cryptocurrency or vice versa.
Crypto credit cards permit you to do transactions of $1000 a day or let you withdraw $200 of cash from ATMs.
Famous Crypto credit cards
1. Gemini crypto credit card
2. SoFi crypto credit card
3. Nexo credit card
4. BlockFi bitcoin rewards credit card
5. Crypto.com visa card
Things to note
As crypto credit cards are much similar to traditional credit cards the delaying or failure in paying back may lead to high interest. Also, it will impact your credit score.
Difference between Crypto credit card & Traditional credit cards
Annual fee – Crypto credit cards charge very low annual fees or even zero in some cases. On the other hand, Banks charge higher annual fees for their card holders
Reward – Crypto credit card issuers give rewards which can be redeemed in cryptocurrency. Hence, the price of rewards may rise with the rise of that particular cryptocurrency or vice versa.
Hope You like this article in which we have explained about what are crypto credit cards, how does a crypto credit card work, Benefits of crypto credit cards and difference between crypto credit card and traditional credit card. To support me don’t hesitate to share with your friends or people who are cryptocurrency enthusiasts.
Disclaimer: The information provided in this article is for education purposes only and doesn’t constitute investment advice. So, if you want to invest or trade in any Cryptocurrency, invest at your own risk. CoinGyani will not accept liability on loss or damage, which may arise directly or indirectly using such information.
Which was the first Crypto credit card?
The first Crypto credit card was launched by the popular crypto exchange coinbase named Shift card.
Can we withdraw money from a Crypto credit card?
Yes, We withdraw money from a crypto credit card. It allows you to withdraw up to $200 dollars per day.
Is Crypto credit card a credit card?
Crypto credit card is very similar to credit card but it is not a Cryptocurrency.