New Delhi: Credit cards, which are considered the most convenient way to make payments, may be a thing of the past in the coming years.
Now, many companies have started accepting cryptocurrencies or digital currencies as a method of payment as digital currency continues to become a valuable asset for many investors’ portfolios.
Crypto credit cards, like their traditional counterparts, reward users, but in cryptocurrencies. However, the process is a bit more complicated for users.
What is a crypto credit card?
The crypto credit card allows the user to spend cryptocurrency, and it also gives rewards in cryptocurrency. In the crypto world, there are debit cards as well.
Unlike a crypto debit card, a crypto credit card allows you to borrow from the card issuer and pay later. Not much different from the way traditional credit cards work. The main difference is that you pay back in crypto as well. Rewards, if any, will also come in cryptocurrencies like Bitcoin, Ethereum, and etc.
reward system
Different crypto credit cards offer different rewards to users. The Gemini Credit Card rewards up to 3% payback in bitcoin. It is immediately credited to the Gemini account of the consumer.
BlockFi credit card customers can earn 1.5 percent cashback in rewards from over 10 types of cryptocurrencies, including bitcoin and ethereum.
< p>In the case of the SoFi credit card, the reward points can be redeemed for either bitcoin or ethereum. Venmo credit card, on the other hand, allows users to purchase bitcoin, ethereum, litecoin or bitcoin cash. Cashback earned from purchases.
With the Brex Business Card, users can spend reward points on Bitcoin or Ethereum.
About user costs
One important thing to keep in mind is that crypto cards are like traditional credit cards and failure or delay in paying back will result in high interest and late fees. These crypto cards will also have some weight on your credit score. Annual fees apply, just like with traditional credit cards. No matter the rewards, crypto credits can cost you dearly if not paid back on time. Therefore, understanding the terms and conditions of a crypto credit card is vital to your finances.
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