Crypto cards work similarly to any other reward credit card – you are rewarded the more you purchase using the card. However, in the case of crypto cards, you are given digital currency for your purchase rather than fiat currency (Euros, Pounds, or Dollars).
These cards use digital currency to withdraw money and make payments at both online and in-person retailers.
You can also get a crypto card from a number of top cryptocurrency exchanges – both credit cards and debit cards.
Prepaid debit crypto cards are the most popular and easier to get.
Many of these crypto cards earn different kinds of rewards and they don’t charge annual maintenance fees. However, there are a few differences that separate them that you should know before choosing a card.
How to get rewards using crypto cards
As we have already mentioned, a crypto rewards card works the same way as a traditional reward card. Whenever you swipe the card to make a purchase, you earn rewards.
But the main difference between crypto rewards credit cards and traditional reward cards is that you can pay off your balance using crypto. Moreover, you also earn rewards in crypto – mainly Bitcoin, every time you spend with your crypto card. But you can also earn rewards with other kinds of cryptocurrencies.
The trick is to ensure you compare the cards and pick the best form of rewards for your shopping habits. For instance, if you love traveling, you might want to use a travel rewards crypto card and use the rewards towards a hotel or flight. If you are a crypto aficionado, you may find earning the points in Bitcoin or Ether pretty appealing.
Several retailers have started to accept crypto (mainly Bitcoin) payments. But even if they don’t, look at it as spending your money overseas.
Crypto cards allow you to convert your fiat currency (euros or dollars) to process the transaction.
Types of crypto reward cards
When dealing with crypto cards, you either use a debit or credit card. Crypto debit cards are very similar to traditional bank debit cards. And some crypto wallets and exchanges tend to offer them instead of cryptocurrency credit cards.
Using a crypto debit card, the money will be drawn from your account or wallet, meaning that you will first need to have some cryptocurrencies to make a payment. Many tend to be prepaid debit cards, which also means you need to first load the money onto the card then use it to make purchases.
If you sign up for a cryptocurrency credit card, you will make payments on credit through the credit line authorized by the issuing company and are accountable for paying the balance back.
So when you use a crypto debit card, you use your own money to make purchases and if you don’t have funds, you cannot use the card. While with a crypto credit card, you use credit to make purchases, and then the issuing company pays the balance.
Available crypto reward cards
While crypto rewards cards are still new, there is already a huge pool of debit and credit cards on the market. To find the best cards, you look at various factors such as:
- Taxes: Crypto is considered an asset, meaning it is taxable if you sell it. Therefore, if you want to earn a lot of rewards and then sell them in crypto exchanges, you should consider talking to a tax professional.
- Flexibility: These crypto cards come with a different portfolio of crypto coins you are able to earn points in. So if you want to certain cryptocurrency, make sure you find out if a card you want to sign up for supports it.
- Benefits: Although the majority of crypto cards don’t have plenty of benefits, if you are an ardent traveler, consider signing up for a travel reward card or if you want to save money on your purchases, you will find a cashback crypto card appealing.
If you are thinking of signing up for a crypto reward card, the following options can be suitable for you:
Crypto.com Visa
As one of the pioneering crypto cards, this crypto card from Visa fits seamlessly into your lifestyle. You receive full cashback on subscriptions such as Netflix, Amazon, or Spotify.
For travelers, there is 10% back on Expedia and Airbnb,
Pros:
- Entertainment rewards
- Compatible with the majority of crypto table
- No fees
