How Does A Crypto Credit Card Work

4 min readSep 17, 2021

The first Crypto Rewards credit card was launched in the United States. One of the significant benefits of the Crypto card is, it allows Cryptocurrency enthusiasts to spend their Cryptocurrencies just like fiat currency. If you own Cryptocurrency and make regular purchases, a Crypto credit card may be helpful for you. What Is A Crypto

If you own Cryptocurrency and make regular purchases, a Crypto credit card may be helpful for you.

What Is A Crypto Credit Card?

A Crypto credit card is a credit card that allows you to spend Cryptocurrency and earn Cryptocurrency rewards.

Cryptocurrencies are Virtual currencies and in recent years they have become increasingly popular. The most popular Virtual currency is Bitcoin, which launched in 2009. But there are more than 4,000 different currencies.

These digital currencies can spend, as you like, in US dollars, but they can also consider as investments. Cryptocurrencies are highly volatile and often do not have the same security as you do in a bank.

How Does A Crypto Rewards Credit Card Work?

Cryptocurrency Rewards Credit Cards work just like regular rewards cards. You will receive rewards when you swipe your card and make a purchase.

Crypto Rewards have a significant difference between credit cards that you will be able to pay off your balance through CryptoCrypto. In addition, you will be able to get rewards in Bitcoin and possibly other types of Crypto.

You can also make transactions through Bitcoin. To learn about Bitcoin transactions read this ( How Bitcoin Transactions Work) guide.

The trick is to compare credit cards and choose the right kind of rewards for your spending habits. For example, you can use a travel rewards card and set points for a flight or hotel if you travel a lot. If you are interested in Cryptocurrencies, Bitcoin rewards can appeal.

Some retailers have started accepting Bitcoin payments. Crypto Cards convert your Crypto into fiat currency (such as euros or dollars) to process transactions.

Crypto Credit vs Debit Card

In general, Crypto debit cards are like ordinary debit cards. Some Cryptocurrency wallets and exchanges offer them instead of some kind of special Crypto credit cards. If you would like to read about the digital wallets we have covered best Crypto wallets for Binance Smart Chain (BSC) in detail.

So when you use a Crypto debit card, funds will withdraw from your account or wallet. It means Cryptocurrencies are available for purchase. There are many prepaid debit cards, so load money on the card before you use it.

Conversely, when you spend with a Crypto credit card, you borrow money from the card issuer that you return. Both types of cards can offer Cryptocurrency rewards.

Crypto Debit Variables

Crypto debit cards are good to use. Some providers may require you to use Cryptocurrency to open the best card prizes. The spending limit varies on some debit cards means you can’t spend heavily with your debit card.

And then there are the fears of Bitcoin fluctuations, which often drag other Cryptocurrencies back.

For example, the BTC you use today to book an Airbnb for $100 may double in a few months. It can also crash, and you will consider your booking. A Crypto debit card does not have these flaws. It could be a crash, and you will feel your booking is a bargain.

When Can I Get A Crypto Credit Card?

The first two Cryptocurrency cards are available in the United States this year. If you want to get Crypto rewards for everyday purchases, you can already be on the waiting list for any of them.

Here’s what we know so far:

The Gemini Credit Card:

This card will pay back up to 3% on the purchase of Bitcoin or any other Cryptocurrency. Yet Gemini has not announced its prize category or annual fee.

This card does not promise any exchange fees on Crypto rewards.

BlockFi Bitcoin Rewards:

Cardholders can earn 1.5% cashback on Bitcoin on purchase. Bitcoin has a $250 signup bonus if you spend 3,000 in the first three months.

In addition, you can receive up to 3.5% additional rewards in four to six months of card ownership. Also, this Cryptocurrency rewards card lets you earn fraudulent rewards for achieving interest on your prizes and referring friends.

You can even earn Bitcoins from traders. It has a hefty annual fee $200. Learn more about how does Bitcoin work?.

Should I Get A Crypto Credit Card?

You should only take one Crypto credit card like any cashback card if it repays your spending habits. If you are interested in Cryptocurrency, being able to get Crypto rewards can work well for you.

But make sure you offer each card for its cost. There are few questions to consider:

What is the rewards rate?
Is there an annual fee?
Are there any other fees?
Do any other perks or benefits come with the card?
Can I Get Better Value With Another Card?

You can get multiple benefits and more valuable rewards from one of the top Rewards credit cards in the market. Don’t forget that you can buy Bitcoins with your cashback rewards with a regular credit card. It can be beneficial if one of the best credit cards pays a higher cashback rate for a lower annual fee.

You can also get many benefits with Bitcoin. We elaborated in details the benefits of Bitcoin (What Are the Benefits of paying with Bitcoin).

Conclusion

Cryptocurrency rewards may seem attractive, but they are also highly volatile. Like stock market investing, the price of a coin can go up and down. So Cryptocurrency is not an excellent way to keep money that you may need in the short term.

Originally published at https://decentralbuzz.com on September 17, 2021.