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Cryptocurrency has had something akin to a “Where were you” effect on the entire world. As in, “Where were you when crypto took over the financial world?” Who knew that Silicon Valley was planning to take over Wall Street? Cryptocurrency has risen from obscurity to prominence and is only gaining popularity.
One could think of cryptocurrency as a thumb-bite at the establishment, but even traditional financial institutions are on board with digital currency. Furthermore, Bitcoin and some of the more prominent altcoins are launching crypto credit cards. Continue reading to learn what crypto credit cards are, how they work, and more.
What are crypto credit cards?
One of the main things people dislike about cryptocurrency is that it can be difficult and time-consuming to convert into fiat money. After all, what’s the point of having hundreds or thousands of dollars worth of digital assets you can’t use in the real world?
The process of converting cryptocurrency into fiat currency and putting it in your bank account where you can access it is a process that can take days. Crypto credit and debit cards were invented as a way to give people quicker access to their crypto assets.
Crypto debit cards allow cardholders to spend their cryptocurrency as if it were their local currency. Furthermore, cardholders can use these cards wherever major credit cards like Visa and Mastercard are accepted. However, you have to keep track of the amount of currency in your digital wallet because the value of your cryptocurrency can fluctuate even over the course of a day.
Whereas crypto debit cards allow cardholders quick and easy access to the crypto assets in their digital wallet, crypto credit cards are kind of like “loan cards” in a sense. If you borrow money against your crypto assets, your crypto credit card will give you instant access to that money. You can also use your crypto credit card to withdraw fiat money from ATMs.
There are also some new cryptocurrency cards on the way.
Not that Ethereum and Bitcoin debit cards aren’t something to get excited about, but there are some new cryptocurrency credit cards on the horizon. These new cards are going to be like traditional cards, except for there will be one seismic difference. Instead of getting cashback in fiat currency, the new cryptocurrency cards will offer cashback rewards in digital assets.
Blockfi is one of the driving forces behind these new credit cards. You can get your cashback rewards in different cryptocurrencies, including Bitcoin, Litecoin, and Ethereum. Plus, there’s a waitlist for the Gemini Credit Card, which is another Bitcoin credit card.
The Blockfi credit card will be available to anyone who has a funded Blockfi wallet and is set to offer 1.5% cashback on all purchases. Additionally, they’re offering a $250 bonus just for signing up after spending $3000 using your Blockfi card. The Gemini card offers 3% cashback on all purchases.
The major difference between the cryptocurrency cards that are already here and the ones on the way is that, as mentioned before, the new cards will work more like traditional credit cards. That means these crypto credit cards won’t represent a loan that’s using your digital assets as collateral. The fact that you get crypto rewards might actually bring even more people over to the digital side.
How will you know which crypto card is right for you?
As the digital coin craze continues to grow, you can expect there to be more cryptocurrencies, as well as crypto cards, coming to the market. You should do your due diligence on all these cards before choosing one as you would with traditional credit cards. The place to learn all the latest news on cryptocurrency and crypto cards is www.cryptovantage.com. They offer insight into the world of cryptocurrency that’s understandable for beginners and applicable for experts.