There are many rewards for using a crypto credit card but they have to be used judiciously just like a credit card. Financial discipline will remain very important in this case as well. There are a lot more complexities involved so we have to be more mindful.
What is a crypto credit card?
A user can spend cryptocurrency using a crypto credit card. There are debit cards too in the crypto world. Unlike crypto debit cards, a crypto credit card allows you to borrow from the card issuer and pay them later as per terms and conditions. Payment and rewards – everything comes in the form of a bitcoin.
Different crypto credit cards reward users differently. A Gemini credit card rewards up to 3% in payback in Bitcoin. It is instantly deposited into the Gemini account of the consumer. BlockFi credit card users can earn 1.5% cashback in rewards in more than 10 types of cryptocurrencies, Bitcoin and Ethereum included.
In the 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.
Annual fees are also applicable as in traditional credit cards.
No matter the rewards, crypto credit if not paid back in time, can burn a hole in your pocket. Please read terms and conditions carefully before embarking on a crypto credit journey.
Any misadventure may give eat up all your savings in a flash.