Introduction

Until recently if you wanted to use your cryptocurrency holdings for traditional transactions, you needed to convert them to fiat currency like USD and wait for the money to be credited to your bank.

This process took a lot of time and had some financial implications. The emergence of cryptocurrency cards has helped solve this problem to a large extent.

Cryptocurrency Cards

Crypto cards are a new type of credit card that offers the possibility of spending your crypto directly without the need to convert them into fiat currency.

Crypto cards are co-branded: that is they are issued by a bank but marketed by a brand. For instance, Evolve Bank and Trust issues the BlockFi Rewards Visa Signature Credit card. However, BlockFi markets it.

Just like regular credit and debit cards, cryptocurrency cards are of two types, the Credit (Reward) card, and the Debit card.

How the Cryptocurrency Card Works

Cryptocurrency cards generally function the same way as the regular debit and credit cards you get from a traditional bank. They only differ in the type of rewards you earn and how transactions are settled.

When you want to settle a transaction using the cryptocurrency debit card, the payment partner works with your crypto exchange to settle the transaction.

This means if you have the required amount of cryptocurrency in your wallet, the cryptocurrency is converted into fiat currency and the transaction is approved.

In the end, your cryptocurrency wallet or cryptocurrency exchange is debited instead of your bank account. Cryptocurrency debit cards can also be used to withdraw from supported ATMs.

As with your regular debit cards, you need to have adequate cryptocurrency in your wallet to approve this transaction.

The cryptocurrency credit card functions in a different way, it does not spend your current cryptocurrency. Similar to your regular credit card, the cryptocurrency credit card operates on a credit line in your local currency.

This essentially means you are borrowing money from your card issuer which you will eventually pay back when your bill is due. However, with every transaction you make using the cryptocurrency credit card, you are eligible for a reward or cashback in form of cryptocurrency which is then deposited into your connected crypto account.

Why do you need crypto cards?

If you use cryptocurrencies regularly, applying for a cryptocurrency card could come in handy for you. It is also crucial that you know the differences between both types of cryptocurrency cards so you can choose whichever best suits and rewards your spending habits.

There are a few reasons why you should own a crypto card.

Crypto cards make spending from your wallet tremendously easy. A crypto debit card makes it easy to make online or in-store payments in any country globally with the Cryptocurrency of your choice.

This means you can easily pay for anything at any time with your cryptocurrencies instead of sourcing physical fiat cash. It also makes you worry about one thing less whenever you want to travel anywhere in the world.

With crypto cards, you are guaranteed secure transactions. Crypto cards are protected with multiple layers of globally accepted security standard measures.

This is made possible by most crypto card partners including Mastercard and Visa which ensure that your funds are protected by international standards.

Reviewing Two Crypto Cards - BlockFi Card & Bitcoin Card

At this point, we will move forward to examine the two crypto cards that you might want to consider getting:

BlockFi credit cards

The BlockFi credit card offers more than 12 cryptocurrency reward options aside from Bitcoin. One key distinction that makes the BlockFi credit cards attractive and unique compared to other cards is the control it gives to their holders.

This means it allows its holders to move their crypto into their wallets.

This card provides a 3.5% cashback in Bitcoin (capped at $100) for the first 90 days as a welcome offer and then offers 1.5% back on all spending in your choice of cryptocurrency amongst available options.

This reward rate increases to 2% after spending $30,000 in a year. BlockFi credit cards also carry a variable Annual percentage rate of 15.74%-25.74% on balances on your account.

BlockFi credit cards do not require annual fees or foreign transaction fees. Other benefits attached to the BlockFi Card include special access to events and travel opportunities, concierge services, and privileges within the Visa Signature Luxury Hotel Collection.

Pros

• No annual fee
• No Foreign Transaction Fee

Cons

• No annual fee
• No foreign transaction fees
• Qualify with average credit

  Upgrade Bitcoin Reward Cards

The Upgrade Bitcoin reward card offers a cashback of 1.5% Bitcoin on every transaction made with the card. However, there are a few limits to the control you have over these rewards.

First, assets are controlled by NYDIG, hence holders can't move them to their wallet or a crypto exchange. Second, within 1-2 statement periods of holders paying down their credit balance, the Bitcoin they have earned as a reward is purchased.

When you finally decide to sell their Bitcoin holdings, they will have to pay a 1.5% transaction fee, which is deducted from the sale price.

Then holders will receive the amount from the sale as a statement credit. Bitcoin Rewards Cards do not charge annual fees, foreign transaction fees or late fees.

The Upgrade bitcoin reward card also offers a $200 welcome bonus in bitcoin on your Upgrade Card account after opening a Rewards Checking account and making 3 successful debit card transactions.

Depending on the holder’s creditworthiness, the card charges an Annual Percentage rate that ranges from 8.99% to 29.99%.

Pros

• No annual fee
• No foreign transaction fees
• Qualify with average credit Cons
• No new card bonus offer.
• Rewards have limited flexibility

  Conclusion

There are a lot of options when it comes to crypto credit cards. It is however important to select a card that suits your spending lifestyle for maximum cashback rewards.

Finally, impressive cashback rates, numerous cryptocurrency options and few fees charged should be considered when choosing a crypto card.