Much has changed since Bitcoin was first introduced to the public in 2009. First of all, many more people now understand what cryptocurrency is and how it works. Many people are also becoming interested in the crypto market and investing cash into big-name cryptos. The crypto market is one of the fastest-growing investment markets in the world. Needless to say, cryptocurrency has completely shaken up the world of finance.
Crypto in the Mainstream
Cryptocurrency broke through to the mainstream during the late 2010s and early 2020s. Before 2019, Bitcoin had its ups and downs. However, it hit a record high exceeding $40,000 in early 2020. Naturally, this prompted more and more people to hop on the bandwagon, and cryptocurrency soon became a “hot-button topic.”
Nowadays, crypto is an accepted part of mainstream society. Big-name brands like Starbucks, Whole Foods, and many clothing shops accept crypto-based payments. The gambling industry, especially, has embraced crypto. Even some of the best credit card casinos have begun accepting crypto-based deposits. This brings us to our main point: Crypto and credit cards don’t need to be mutually exclusive.
What are Crypto Credit Cards?
Crypto credit cards are exactly what they sound like. They are credit cards that award you a small sum of crypto when used. Eventually, the crypto accumulates and allows you to trade or sell it. It is important to remember that crypto credit cards all work differently. So, here are the essential aspects you need to research before settling on a crypto card:
1. What crypto they award?
There are thousands of cryptocurrencies on the current market. And not all of them are great. Most of them are best avoided. So, before you purchase a credit card that rewards crypto, make sure the crypto you will receive comes with high returns, and is worth the trouble.
2. How much Crypto does the Credit Card award?
Different credit cards award different sums of crypto. Usually, it is anywhere between 0.5% and 2.5% of your purchase. However, this could change. So, do the proper research and find out just how much cash you will receive with each purchase.
3. When does the card award crypto?
Some, if not most, crypto credit cards award crypto on a purchase of a certain sum. You might only get something if you spend $10-$15. So, research the minimum sum you must spend before you are awarded your crypto.
Crypto Credit Card Benefits
Many will wonder what the benefits of a crypto credit card are. One of the main benefits is flexibility. For example, if you travel abroad a lot, you will not have to deal with trading currency, as your credit card will automatically convert crypto into fiat currency upon payment.
Another important benefit is that you will not have to pay the fees of converting crypto to FIAT before you make a purchase. In other words, you can use your credit card in any store, regardless of whether they accept crypto or not.
The Risk of Crypto Credit Cards
As with anything that involves cryptocurrency, the main risk of crypto credit cards is volatility, while some have argued that crypto volatility is ultimately a good thing, it sure does not feel like it when you see your funds tank due to a disruption in the market.
Where Can I Get a Crypto Card?
There are quite a few companies that offer crypto credit cards in 2023. However, you will likely have to deal with quite a lengthy waitlist, as plenty of people are interested in this new phenomenon. If you are interested, though, the following companies issue crypto credit cards:
- Venmo
- BlockFi
- Brex Business
You can get your hands on a crypto debit card if inclined. In 2023, only two companies offer crypto-based debit cards. And they would be:
- VISA
- Coinbase
If you are interested in the new “crypto-revolution,” these are the places to start. Remember the pros and cons, and weigh them against one another before you delve into the market.
FAQ
What are crypto credit cards?
Crypto credit cards are credit cards that award a sum of crypto with each purchase above a particular sum.
Are crypto credit cards reliable?
For the most part, yes. Crypto credit cards come with the same safety regulations as usual credit cards.
What is the main benefit of having a crypto credit card?
The main benefit of crypto credit cards is their flexibility and ease of use. You can use them abroad or at home without having to do any money exchanges.
What is the main risk of using a crypto credit card?
The main risk of using a crypto credit card is the same risk that all cryptocurrency has; the volatility of cryptocurrency.
