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In the guide below, we will speak on the crypto cards, their use, benefits, and the differences between the two major types of crypto cards: credit crypto cards and debit crypto cards.
More and more people are turning to cryptocurrency for reasons other than investment. One of them is domestic spending for everyday items and other bigger purchases. This has given rise to crypto cards, with dozens of their types flooding the market and being backed by multinational companies both within and outside of the space.
But what are crypto cards in the first place? Are they worth using and which ones should you get? As this topic becomes even more relevant to the average crypto holder, we will discuss the details in this guide.
First, it is worth explaining what crypto cards are. Crypto cards are payment cards associated with one or more financial institutions that let consumers spend their cryptocurrency, or the fiat equivalent with merchants. These crypto cards operate in a similar way to traditional bank cards and can come with various benefits. Some of them, for example, come with perks for users and can even give cashback rewards. And as they become more popular, these perks only seem to get better.
But not all crypto cards are the same and there are tangible differences between the two major types of crypto cards: credit crypto cards and debit crypto cards.
Crypto credit cards are payment cards that allow their users to spend their fiat currency as they normally would, along with monthly limits on how much they can borrow from the card issuer. The major difference between them and your usual credit cards is that they allow users to earn cryptocurrency while they make their purchases. This is usually done through a cashback program or by earning points, and customers can typically choose what crypto they want to earn cashback for.
To get a crypto credit card, a user has to apply to a financial institution that offers these cards to users. Just like with a traditional credit card, the institution will conduct a credit check on them and they might be approved or denied based on this. If they are approved, they can use their card to make purchases and will either earn crypto cashback or points based on their activities. Cashbacks tend to be between 1.5% and 3% of the purchase value.
Among the benefits offered by crypto credit cards are users’ ability to earn cryptocurrency or points for their spending, free upgrades at certain businesses, and access to a line of credit by using these cards.
However, some crypto credit cards have limits on how much you can earn in cashback and points. And of course, these credit cards may not be as widely accepted as traditional credit cards.
The crypto market is full of credit cards for users to apply to. While this is not exhaustive, here are some of the notable examples:
Crypto debit cards are another type of crypto card you can opt for and they work quite similarly to traditional debit cards. They are linked to an account that has your cryptocurrency and when you make a payment, the equivalent is deducted from this account. Unlike a crypto debit card, you don’t get a line of credit with this card and can only spend the crypto that you have on hand.
To get a crypto debit card, you have to open an account with an exchange or any other institution that issues them. Then, you need to fund your account with the cryptos that they support and apply for your debit card. The platform will not need to run a credit check on you to issue you this card and once you have it, you can begin spending at various merchants.
Notably, some crypto debit cards give you cashback and other rewards for your purchases. Besides, owning a crypto debit card means being able to spend crypto as easily as you would in fiat currency. If the card is used by a widely-accepted processor like MasterCard, you can spend your crypto almost anywhere.
However, some crypto debit cards require you to stake your tokens with the platform before you can access your debit card. Coming without a line of credit also causes inconveniences for a user.
Some of the examples of crypto debit cards on the market include:
A crypto card can be very much worth it for the benefits it brings. If you want to spend your cryptocurrency on a day-to-day basis, they can be a very convenient way to do so, while still getting cashback for your efforts. On top of this, many of the examples we’ve highlighted give you additional perks like access to airport lounges and reimbursement for your subscriptions. And in the case of a crypto credit card, you can get a line of credit for your troubles.
If these perks appeal to you, then a crypto card would be very much worth it.
Crypto cards have become immensely popular in the industry and more options seem to spring up each year. They allow crypto users to spend the tokens they already have and even access credit in some cases. Beyond allowing users to spend their cryptocurrency as easily as they would fiat currency, many come with cashback offerings and perks that rival even the best traditional bank cards. Needless to say, they offer a lot of benefits for users and should continue to be popular in the crypto industry for years to come.
A crypto card is a payment card that lets crypto owners spend their tokens the way they would fiat currency.
There are crypto debit cards and crypto credit cards.
A crypto credit card allows users to open a line of credit with the crypto they already have and spend with merchants.
You should consider the APR being offered by the issuer, the perks that come with the card, the tokens that are supported, and any annual fees attached to the card.
Crypto debit cards are linked to a pre-funded crypto wallet and allow their holder to spend the crypto that they already own.
A crypto card allows you to spend crypto with ease and many crypto cards also come with perks like cashback.