Crypto cards work the same way as other reward credit cards: the more purchases you make with the card, the more you are rewarded. However, in the case of crypto cards, you receive digital currency for your purchase rather than fiat currency (euros, pounds or dollars).
These cards use digital currency to withdraw cash and make payments at online and in-person retailers.
You can also get a crypto card from a number of major cryptocurrency exchanges – both credit cards and debit cards.
Prepaid crypto debit cards are the most popular and easiest to obtain.
Many of these crypto cards allow you to earn different types of rewards and they don't charge annual maintenance fees. However, they have a few differences that you should be aware of before choosing a card.
How to Get Rewards Using Crypto Cards
As we've already mentioned, a crypto rewards card works the same as a traditional rewards card. Every time you swipe the card to make a purchase, you earn rewards.
But the main difference between crypto rewards credit cards and traditional rewards cards is that you can pay your balance in crypto. Additionally, you also earn rewards in crypto – mainly bitcoin, every time you spend with your crypto card. But you can also earn rewards with other types of cryptocurrencies.
The trick is to make sure you compare cards and choose the best form of rewards based on your spending habits. For example, if you like to travel, you can use a travel rewards crypto card and use the rewards toward a hotel or flight. If you are a fan of cryptocurrencies, you might find it very interesting to earn points in bitcoins or ethers.
Several retailers have started accepting crypto payments (mainly bitcoin). But even if they don't, consider spending your money abroad.
Crypto cards allow you to convert your fiat currency (euros or dollars) to complete the transaction.
Types of Cryptocurrency Reward Cards
When it comes to crypto cards, you either use a debit card or a credit card. Crypto debit cards are very similar to traditional bank debit cards. And some cryptocurrency wallets and exchanges tend to offer them in place of cryptocurrency credit cards.
By using a crypto debit card, money will be drawn from your account or wallet, meaning you will first need to have some cryptocurrencies to make a payment. Many tend to be prepaid debit cards, which also means you have to load the money onto the card first and 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 you will be responsible for repaying the balance.
So when you use a cryptocurrency debit card, you are using your own money to make purchases and if you do not have funds, you cannot use the card. Whereas with a crypto credit card, you use the credit to make purchases, and the issuing company pays the balance.
Crypto rewards cards available
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, which means 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 wallet of cryptocurrencies in which you are able to earn points. So, if you want to use certain cryptocurrencies, be sure to check if the card you want to sign up for supports them.
- Benefits: While the majority of crypto cards don't have many benefits, if you're an avid traveler, consider signing up for a travel rewards card or want to save money on your purchases, you'll find an attractive cashback crypto card.
If you are considering signing up for a crypto rewards card, the following options may be suitable for you:
Visa Crypto.com
One of the pioneering crypto cards, this Visa crypto card fits perfectly into your lifestyle. You benefit from full cashback on subscriptions such as Netflix, Amazon or Spotify.
For travelers, you get a 10% discount on Expedia and Airbnb,
For :
- Entertainment Awards
- Compatible with the majority of crypto tables
- No charges