Crypto Credit Cards: How Is It Different From Bank Credit Card. All You Need To Know

Much like the conventional credit and debit cards, the crypto credit card, too, rewards users, but in cryptocurrencies

Several companies have started accepting cryptocurrencies or digital currencies as a mode of payment. Image: Getty

New Delhi: Credit cards, which are regarded as a most convenient method to make payments, could be a thing of past in the coming years.
Now, several companies have started accepting cryptocurrencies or digital currencies as a mode of payment since digital currency is steadily becoming a valuable asset in several investors’ portfolio.

Much like their conventional counterparts, the crypto credit card, too, rewards users, but in cryptocurrencies. The process, however, is a bit more complicated for users.

What is a crypto credit card?

A crypto credit card allows user spend cryptocurrency, and it rewards in cryptocurrencies also. In the crypto world, there are debit cards too.

Unlike crypto debit cards, a crypto credit card allows you to borrow from the card issuer and payback later. Not much different from the way traditional credit card functions. The main difference is that you also pay back in crypto. The rewards, if any, will also come in cryptocurrencies such as Bitcoin, Ethereum, and etc.

Rewards system

Different crypto credit cards reward users differently. A Gemini credit card rewards up to 3 per cent in payback in Bitcoin. It is instantly deposited into the Gemini account of the consumer.

BlockFi credit card subscribers can earn 1.5 per cent cashback in rewards in more than 10 types of cryptocurrencies, Bitcoin, and Ethereum included.

In case of SoFi credit cards, rewards points can be redeemed for either Bitcoin or Ethereum.

Venmo Credit Card, on the other hand, permits users to purchase Bitcoin, Ethereum, Litecoin, or Bitcoin Cash with the cashback earned from purchases.

With Brex Business Card, users can spend reward points on either Bitcoin or Ethereum.

About user spends

One important point to be kept in mind is that crypto cards are much like conventional credit cards and failure or delay in paying back will attract high interest and late fees. These crypto cards will have some weight on your credit score as well. Annual fees are also applicable like the traditional credit cards. No matter the rewards, crypto credit if not paid back in time, can cost you, dear. So, understanding the terms and conditions of crypto credit cards is crucial to your finances.