Cryptocurrency Credit Cards also work exactly like normal credit cards. One big difference is that the cardholder also makes payments in cryptocurrencies and he gets rewards in crypto only.
Credit cards are an important part of the modern payment system. Maintaining a credit card has its issues, but having a credit card sometimes proves to be very helpful. But did you know that cryptocurrency credit cards also work in the cryptocurrency ecosystem? Cryptocurrency credit cards also work exactly like normal credit cards. One big difference is that the cardholder also makes payments in cryptocurrencies and he gets rewards in crypto only.
What are crypto credit cards?
Crypto credit cards are similar to normal credit cards, but everything is in crypto. Let us also tell you that there are also crypto debit cards in the crypto world. But unlike a crypto debit card, a crypto credit card allows you to borrow from the card issuer and repay it later, just like a normal credit card. Yes, all transactions are done in cryptocurrencies.
What are the rewards?
Different crypto cards offer different rewards. The Gemini credit card pays users up to 3% in bitcoins, which are immediately credited to the user’s Gemini account. Users holding a BlockFi credit card can receive up to 1.5% cashback across 10 types of cryptocurrencies.
SoFi credit card users get reward points that can be redeemed in Bitcoin or Ethereum. Venmo credit card users get cashback, from which they can buy Bitcoin, Ethereum, Litecoin, or Bitcoin. Brex is a business card, in which the user gets reward points on Bitcoin or Ethereum.
Crypto credit cards are also similar to normal credit cards and while using them, you should take care of all the things that the normal credit cardholder has to keep in mind. That is, one should not be completely dependent on credit cards. Payment should be made on time, otherwise the burden of interest rate and late fees may increase. These cards can also affect your credit score. In this, you also have to pay annual fees, so you should take it only after considering the complete system of crypto card, your need and benefit. Otherwise, if you focus on crypto rewards, but not on crypto credits, then you may be at a loss.