Cryptocurrency has become more popular than ever with new forms of crypto popping up daily. From Bitcoin to Ethereum, and Dogecoin to Shiba Inu, the cryptocurrency market is rapidly expanding. Now, this ever-growing market is branching into the credit card industry and offering customers a chance to combine both industries for their financial benefits. Here are some of the characteristics to look out for to make sure that you are capitalizing on a high-quality crypto credit card.
1. Crypto cards are easy to use.
If you’re in the market for a crypto credit card, you’ll want to make sure that you are signing on for a card that isn’t limiting your capabilities. After all, the whole point of bringing cryptocurrency and the traditional financial system together is that it makes it easier to put your crypto assets towards everyday expenses. While some cards may try and bring you into a different digital currency rather than where you feel most comfortable, there are crypto cards available that simply allow for the conversion of Bitcoin into a spendable prepaid Visa card.
It’s important to remember that most crypto exchange providers are still trying to get the formula just right when it comes to converting assets, as to not devastate customers with fees or leave them struggling to get the currency conversion down into U.S. dollars. Thankfully, there are several cards currently on the market, such as the Gemini Mastercard or the Crypto.com Visa card, that are adaptable to a variety of financial situations that suit a customer’s specific needs.
2. These cards can be used safely and securely.
Just like a standard credit card, safety and security are paramount when dealing with cryptocurrency through any transaction. Crypto assets work differently from traditional payment methods, particularly in that transactions made with Bitcoin and other blockchain formats are irreversible. This means there is no phone number or website you can reach out to for help if you’re hacked. The Celsius Network, for example, is working to make sure that customers’ crypto credit cards are allowed to store their funds securely.
Reliability is a huge concern when dealing with any transaction within the cryptocurrency space. Much like a traditional debit card, crypto credit card companies are looking to make spending money easy regardless of the service provider and the cryptocurrency. The last thing that anyone wants is to scan their card at the grocery store and get declined for payment. Customers can have some peace of mind in seeing that brands like Visa and Mastercard are embracing digital coins, and are working to accommodate real-world use of credit cards.
3. Crypto cards offer up rewards just like regular credit cards.
Credit card rewards are especially attractive to crypto customers who want to be able to translate their spending into rewards over time. The same works for the crypto credit card marketplace. While the availability of these rewards programs is limited for now, some crypto cards are offering cashback rewards of 5% or more. This is usually packaged with a requirement to buy and hold a large amount of a proprietary token that you may not be accustomed to.
More programs that allow cashback rewards in Bitcoin are continuing to come online, but it may make more sense to think deeply about other factors for now. You may want to see how a crypto exchange will handle a total transaction. While you may not be able to find the right crypto credit card for your financial situation right now, innovators are making strides in this venue constantly. Be sure to wait and see what popular options may be able to change how you deal with both cryptocurrency and credit cards.