Cryptocurrency Credit Cards: Understanding Your Options & Explaining the Benefits

The world of cryptocurrency is ever-evolving. In the past few years, there’s been a rise in initial coin offerings (ICOs), new platforms for trading and investing in digital assets, and an increasing number of merchants who are accepting cryptocurrency as payment. Now, a new development in the world of crypto is cryptocurrency credit cards. Here’s what you need to know. 

It's not at all complicated. A cryptocurrency credit card is like any other credit card, except that cardholders can spend different types of cryptocurrencies. They're similar to any other rewards credit card; cardholders are rewarded with cryptocurrency as they spend with the card.

However, a key difference between regular cards and crypto credit cards is that cardholders aren't actually sending cryptocurrency to merchants when they spend with the card. Instead, their crypto is converted into fiat currency, and that’s what’s sent to the merchant. 

Now, again like with regular credit cards, there are debit crypto cards and credit crypto cards. The former means your crypto wallet is deducted when you spend, and the latter means the card issuer extends you a line of credit that you use when you spend. 

Different cardholders offer different perks. By understanding the different types of cryptocurrency credit cards available, you can choose the best option for your needs. Here are some of your options:

As far as options go, this is one of the best ones. With the SoFi credit card, you get 2% cashback for every purchase that you can redeem for cryptocurrency. There are no annual fee charges or foreign transaction fees. Plus you get rewarded for spending on popular brands like Lyft and Doordash. 

BlockFi is a popular option, and for good reason. You get unlimited 1.5% cashback on every purchase. You have the option of earning rewards for a dozen types of crypto. Plus an interest in your wallet. 

If you have a ton of spare change, getting a Nexo crypto credit card is a viable option. Nexo offers up to a $2 million line of credit and a 2% cashback on all purchases. Plus there are no deposit or withdrawal fees. 

This one is a debit card. Depending on your level you can earn up to 8% cashback. There are no annual fees. Other benefits include reimbursement for Netflix and Spotify subscriptions.  

Whether you’re an early adopter cryptocurrency investor or you just jumped on the crypto bandwagon and you’re trying to get more involved, here are some benefits of cryptocurrency credit cards:

With a cryptocurrency credit card, you can use your crypto assets to make purchases anywhere that accepts these kinds of payments. This allows you to easily and quickly pay for goods and services with cryptocurrencies.

A cryptocurrency credit card gives you the flexibility to spend your cryptocurrencies in a variety of ways. You can use it to make online or in-store purchases, withdraw cash from ATMs, or even pay bills.

Cryptocurrency wallets are secure, and they offer a high level of protection against theft and fraud. Your funds will be safe when stored in a crypto wallet, and you won't have to worry about them being stolen or lost when you use a crypto credit card.

When you use a cryptocurrency credit card, your transactions are anonymous. This means that you can make purchases without revealing your identity if the things you’re buying are best kept confidential. 

Some cryptocurrency credit cards offer rewards programs, which allow you to earn points or cashback on your purchases. These programs can be a great way to save money on everyday expenses.

Cryptocurrency credit cards are a relatively new development, but they're already gaining traction among crypto enthusiasts. If you're thinking about getting a crypto credit card, be sure to do your research and compare the different options available. And remember, as with any form of credit, use responsibly!