Many times, people rely on credit cards to make payments for their purchases. And with the transition to digital currencies, people can now make payments for their purchases in-store and online using crypto cards. It is a convenient way to shop without carrying cash. And besides, when you make payments using a crypto card, you get to earn cashback in form of crypto.
In this article, you are going to learn what a crypto card is, how it works and eligibility and what to look for when selecting one.
What is a Crypto Card?
Crypto cards are a kind of credit card you can use to pay for your purchases and in return earn cryptocurrency rewards. They work just like other credit cards or debit cards and offer the same loyalty perks like cashback. The choice of your crypto card will be greatly determined by your spending habits.
How Do Crypto Cards Work?
Crypto cards work just the same way credit cards and debit cards work. You can swipe a crypto card while making your purchases in the store or you can use them to pay for goods and services online. At the end of the month, the cardholder receives a monthly statement with details of their purchases.
And just like traditional credit cards that gift the holder with cashback, the same case for crypto cards. The crypto card holder can be rewarded for their purchases but in the form of the cryptocurrency.
It is worth noting that crypto cards pay rewards differently and this should be a consideration while looking for one. Most crypto cards offer cardholders crypto rewards of between 1.5 and 3% after meeting the monthly or annual purchases threshold. Some cards offer crypto rewards on a monthly basis while others pay rewards for every transaction.
How to Apply for a Crypto Card
Just like a normal debit or credit card, you need to apply for a crypto card. The process is almost similar to that of applying for a credit or debit card. You need to fill in an application from an issuer. The issuer will then pull your credit report to determine if you are eligible. You need to have high credit ratings to qualify. As such, you need to consider your credit rating before applying.
What to Look for when Applying for a Crypto Card?
Some of the things you need to consider when applying for a crypto card include:
- Interest rates
- Annual fees
- Credit rating
- Rewards rates
- Membership fees
- Other fees
- Cryptocurrencies rewards offered
- Card limit
Types of Crypto Cards
A crypto card is either a crypto debit card or a crypto credit card. Some examples of crypto debit cards and credit cards include:
Crypto Debit Cards
- Crypto.com Visa Debit Card. It offers rewards in CRO and Crypto.com’s own currency
- Coinbase Debit Card. It offers rewards in 8 different cryptocurrencies like Bitcoin, Ethereum, and Dogecoin.
Crypto Credit Cards
- SoFi Credit card. It offers rewards points that can be redeemed for either Bitcoin or Ethereum when you make purchases.
- Venmo credit card. You can use the reward points you have earned to buy Bitcoin, Ethereum, Bitcoin, and Litecoin.
- BlockFi credit card. You can receive rewards in different crypto like Bitcoin and Ethereum.
- Brex business card. You can spend the reward points you earn to purchase Bitcoin or Ethereum.
Cryptocurrencies Supported by Crypto Card
The following are some of the most common cryptocurrencies supported by crypto cards:
Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), Dogecoin (DOGE), Dai (DAI), USD Coin (USDC), Wrapped Bitcoin (WBTC), Gemini USD (GUSD), Shiba Inu (SHIB), Litecoin (LTC), XRP (XRP), Binance USD (BUSD), ApeCoin (APE) and Euro Coin (EUROC).
Crypto Card Reward Currencies
You can receive crypto rewards in a number of cryptocurrencies including the following:
- Bitcoin (BTC)
- Ethereum (ETH)
- Litecoin (LTC)
- Dogecoin (DOGE)
- Gemini Dollar (GUSD)
Do Crypto Cards Impact Credit Scores?
Yes. When you make late payments towards your crypto card, it will impact your credit score. Besides, when applying for a crypto card, you need to have high credit scores. The issuer will have to pull your credit ratings to determine if you are eligible.
Summary of Crypto Cards
If you are a crypto user, to improve your shopping experience, you can use crypto cards to make online and in-store payments for purchases. Crypto cards support ATM withdrawals and are accepted widely in the world. If you are a fan of cryptocurrency, then consider getting the best crypto card; debit or credit card. Consider Interest rates, annual fees, credit ratings, rewards rates, and membership fees when choosing a crypto card.
