Cryptocurrency credit cards allow users to spend crypto and also reward with crypto
Credit cards are considered a convenient way to pay and shop if used with caution. What about crypto credit cards? Like their regular counterparts, the new kid on the block also rewards users but in crypto. However, they are a bit more complicated.
What is a crypto credit card?
Cryptocurrency credit card allows users to spend crypto and it rewards with crypto. There are also debit cards in the crypto world. Unlike crypto debit cards, crypto credit cards allow you to borrow from the card issuer and pay back later. Not much different from how a traditional credit card works. The big difference is that you also payback in crypto. The rewards, if any, will also come in cryptocurrencies like Bitcoin.
Reward
Different crypto credit cards reward users differently. Gemini credit card rewards up to 3% cashback in Bitcoin. It is immediately deposited into the consumer’s Gemini account.
BlockFi credit card users can earn 1.5% cashback rewards in over 10 cryptocurrencies, including Bitcoin and Ethereum.
In the case of SoFi credit cards, reward points can be exchanged for Bitcoin or Ethereum. The Venmo Credit Card, on the other hand, allows users to buy Bitcoin, Ethereum, Litecoin, or Bitcoin Cash with cashback earned on purchases.
With Brex Business Card, users can use reward points for Bitcoin or Ethereum.
See your spending
An important point to note is that crypto cards are like regular credit cards, and failed or delayed payments attract high interest rates and late fees. These cards will also have a certain effect on your credit score. The same annual fee as a traditional credit card.
Regardless of the reward, crypto credits, if not returned in a timely manner, could cost you. Understanding the terms and conditions of a crypto credit card is crucial to your finances.
