When you make a purchase, the card company provides the funds necessary and your balance increases. As with regular cards, crypto credit cards allow holders to earn rewards for their purchases. What sets crypto credit cards apart is that the rewards come in the form of cryptocurrency that the issuer purchases for the holder. One major benefit of using a crypto credit card is that it gives you a risk-free way to earn cryptocurrency just by making everyday purchases. This makes it a great option for hesitant, risk-averse newcomers to the world of crypto. The only significant drawback is the volatility of crypto markets, but at least cardholders will only be risking their rewards, rather than larger savings. Crypto Debit Cards ExplainedĪ crypto debit card is similar to a regular debit card in that the holder uses their own money to make purchases or withdraw cash from an ATM. Unlike regular debit cards, most crypto debit cards draw from the holder’s cryptocurrency accounts. This makes them a convenient way to convert cryptocurrency into fiat that you can use to make standard purchases. ![]() Other crypto debit cards allow you to preload fiat or digital currencies. In addition to converting crypto into fiat, crypto debit cards often allow you to reduce foreign transaction fees and easily spend money in multiple currencies. How to Choose the Best Crypto Credit and Debit Cards Potential pitfalls include geographical restrictions and the triggering of taxable events for using cryptocurrency. While there still aren’t as many crypto cards available as conventional credit and debit cards, new options are appearing every year. As the number of choices increases, consumers need to put more thought into their decision. There are a few key factors that you should consider before choosing a card. Types of Cryptocurrencies Availableįirst of all, you need to think about the type of cryptocurrency you’ll be using. Some crypto credit cards only let you earn rewards in a particular cryptocurrency, and some crypto debit cards can only connect with certain cryptocurrency accounts. If you’re new to the world of crypto and you don’t care which currency you end up using, this shouldn't be an issue. If, on the other hand, you already have a currency of choice, you’ll need to find a card that allows you to use it. When comparing the best crypto credit cards, you should weigh the rewards that each card offers. ![]() In general, a higher rewards rate will allow you to earn more cryptocurrency. Some cards offer a flat rate for all types of purchases, while others offer higher rates for buying products and services that fall within certain categories. If you happen to spend a lot of money in a particular area, you may want to look for a card that will reward you for your habits. While the best crypto credit cards are generally affordable, there are certain fees you should consider. Some cards charge an annual fee, while others are completely free. Foreign transaction fees are common, but you can find cards without them, which is an especially good idea if you often travel abroad. ![]() You should also look out for cryptocurrency sales fees, which are pesky charges that show up every time you sell the rewards you’ve earned in crypto. Ease of Useįor many users, the main point of owning a crypto credit or debit card is to optimize crypto-to-fiat conversions. Your Bitcoin debit card will hardly prove useful if it doesn’t allow you to quickly and easily convert crypto into fiat. Unfortunately, some issuers use experimental methods that confuse cardholders and complicate conversions.
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