The popularity of Bitcoin continues to rise and 1 in 10 people currently own some form of crypto assets. Some crypto investors have even started using a Bitcoin credit card for transactions.
But is a crypto credit card actually legitimate and safe? What are the benefits and are they really worth using?
The following guide will explain how crypto cards work, their advantages, and how to use them. Read on and discover if they’re right for you and your tokens.
What Is a Bitcoin Credit Card?
Bitcoin credit cards, or crypto debit cards, let users make purchases with the cryptocurrency they own. They work similarly to traditional prepaid debit cards.
They allow cardholders to convert their assets like Bitcoin and other tokens into common fiat currencies. Most crypto cards use payment networks accepted worldwide such as Visa.
Keep in mind that customers must already own Bitcoin for the cards to work. The cards can also be used at Bitcoin ATMs like traditional debit cards. ATM providers like Byte Federal have several kiosk locations to choose from.
Traditional Cards vs Crypto Cards
A standard debit card transfers funds directly from your checking account to the seller’s account for purchases. But the issuer of a crypto card acts as a custodian and holds assets like Bitcoin for cardholders.
Then, a cardholder’s crypto assets get converted at the time of payment. The conversion changes the asset into the appropriate currency for the purchase.
Earning Crypto Rewards
A crypto earning credit card offers Bitcoin rather than points or miles like traditional credit cards. The amount of Bitcoin rewards you receive depends on the amount you spend on purchases.
There are many crypto rewards cards available to choose from. The BlockFi rewards card offers cashback on every purchase. Then, the cash reward converts to Bitcoin and transfers to your account.
The Gemini exchange has its own rewards card that offers similar benefits with no transaction fees. However, there is a wait list to use their card services.
You can use crypto cards just about anywhere nowadays because of their connection to major networks. On top of that, their frameworks offer extensive security for cardholders.
Crypto cards also operate on very user-friendly platforms. Most companies offer easy-to-use mobile apps to pair with their crypto cards.
Rewards are a great way to invest in crypto instead of shelling out large sums from your bank account. The value of the Bitcoin rewards you receive might also increase substantially over time.
There are also no credit checks required for approval so they’re accessible to everyone. You also don’t have to worry about fees if you meet the minimum spending requirements.
Ready to Try Crypto Credit Cards?
Now you know how a bitcoin credit card works and why they’re beneficial. It’s a great way to utilize your crypto assets and also gain more through rewards.
Remember this guide and start using a crypto credit card with confidence. Check out our site for more great tech tips and fascinating information.