As we all know the amount of people investing in crypto has increased substantially over time. Set to launch this year in the U.S., crypto cards will finally enable all the crypto users to actually spend their crypto. If you are a regular crypto investor, these cards are a reasonable option for you.
What is a Crypto Card?
A crypto card enables you to deal in both cryptocurrency and earn cryptocurrency rewards. These are are digital currencies like Ethereum, Bitcoin etc. amongst the thousands of their kind. These can be treated both as a currency as well as an investment. But they have one downside to them that they are not protected by banks or other institutions as other currencies are.
How does a Crypto Rewards Card work?
The reward system in crypto cards works in the same manner as any other card. You earn rewards on making a purchase. This enables you to pay off your balance with crypto. The next step will be to choose the appropriate crypto card that suits your needs. Since a few retailers have now started to take crypto payments, the transactions have become even more easy.
Crypto Credit vs. Debit Card
Just like Crypto credit cards, crypto debit cards are also quite similar to the regular debit cards. A lot of crypto exchanges offer the option of crypto debit cards rather than crypto credit cards. Every time you make a purchase, crypto will be taken from your account through these crypto debit cards. And just like a regular credit card, in case of crypto credit cards also, you borrow crypto from the issuing body and pay later. But both the debit or credit options earn you crypto rewards.
When can I get a Crypto Card?
The crypto cards are set to be available this year in the US this year and in the coming years in the rest of the countries. One of the types is the Gemini Card that can pay up to 3% back on purchases. The rewards and fees has still not been disclosed. But it comes with zero exchange fee on rewards. The other kind of card is BlockFi Bitcoin Rewards which can earn you a 1.5% back on purchases and a registration bonus of $250 on $3,000 purchase. You can also earn rewards through referrals.
Should I get a Crypto Card?
The decision of getting a crypto card or not depends largely on you and your spending routine. If you are already a crypto investor, the idea of earning rewards on it might seem lucrative. Although you must consider a few things before deciding to get a crypto card like the rewards rate, annual fee, any other fees, any other benefits etc. You might have to weigh in on all of these factors before making a decision to actually get a crypto card or not, and further which one.
When Cryptocurrency entered the market, the buyers were a little apprehensive and found it risky. But a lot of them actually managed to earn great profits out of it. Similarly, crypto cards offering cryptocurrency rewards might seem extremely volatile from afar but can actually earn you great benefits once you make a calculated decision about which card to get. The value of your crypto investment can fluctuate a lot and can prove to be a good investment in long term. For short term, it would be advisable to invest differently. But if you are looking to earn greater benefits on your investments, crypto cards are one good option.