Crypto Credit Cards are the newest addition to world of Cryptocurrencies. In this article we’ll find everything about Crypto Credit Cards.
Who doesn’t love credit cards? They offer you an easy and convenient way for payments. There’s a new player in the Credit card market now. The one that offers gifts in Cryptocurrencies. However, with these new gifts, we see some new complexities.
So, what is a Crypto Credit Card?
In simple terms, a crypto credit card allows its user to use Cryptocurrencies as payment and gives Cryptocurrency as a reward. On the contrary, a debit card asks you to deposit the sum beforehand. Unlike debit cards, a Crypto Credit card allows its user to withdraw money and then pay it back later. Credit card users generally get a bill later which they’ve to pay.
Credit card business is a really profitable business for banks. However, with the profit comes tough competition. To allure more consumers, credit card companies come up with various ideas. One such ingenious idea is giving rewards to the user on spending a set amount. This works in two ways. First, the user to complete that set amount spends more money thereby giving the credit card business. Second, the attractive reward system lures more customers, expanding their business.
What are the rewards for these Crypto Credit Cards?
There are many players in the Crypto credit card industry. They all offer different rewards. A popular credit card company, Gemini rewards up to 3 per cent in cashback in BTC. The credit is directly sent to the Gemini account of the user.
One such company, BlockFi offers 1.5 per cent in cashback in various different Crptos. These include the famous Cryptocurrencies like Bitcoin and Ethereum.
Brex Business Cards allows users to exchange reward points for BTC or ETH. While SoFi credit cards offer reward points that can be exchanged for BTC or ETH.
One more famous player Venmo offers their Credit Cards. It allows consumers to exchange Bitcoin, Ethereum, Litecoin, or Bitcoin Cash with the payback from their purchases.
Credit Cards are famous or rather infamous for their association with uncontrolled spending. Delay in bill payments will be charged with a heavy fee and an increased rate of interest. Additionally, non payment of the bill will cause your Credit score to take a hit.
With such an interesting new application of Cryptocurrencies, we are headed to a crypto inclusive utopia or so it may seem. Let’s see how this new technology will play out and change the world. Also, non payment of bills will surely cost a lot, but that’s not a new thing to see. With wise usage of credit cards one can definitely take the most out of them without paying a lot.
Hopefully, you liked this article and learnt everything about Crypto Credit Cards. If you liked this article and want to read more such articles like this, do visit our website. If you want to learn about the basics of Cryptocurrencies and Blockchain Technology click here.