Crypto credit card: Credit cards are considered a convenient way to make payments or make purchases. In the same vein, cryptocurrency credit cards are also being discussed loudly nowadays. The cryptocurrency market is booming today, so the era of crypto credit cards has begun. Just as you use bank credit cards as cash, you can also use crypto credit cards.
Now the question is, are credit card purchases the same as rewards and cashback, as are crypto credit cards? Is the interest we pay on credit cards the same as on crypto credit cards?
What is a crypto credit card?
A crypto credit card is a type of debit card and is similar to a bank credit or debit card. The only difference is that bank credit or debit cards use note currency or coin currency, but crypto credit cards are fully integrated with digital currency or cryptocurrency.
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Just as we do not pay cash in bank transactions with credit or debit cards and do not extend the card, in the same way we do not need to give Bitcoin, Etherium or Dodgecoin in our crypto credit card. With a crypto credit card, the cryptocurrency will first be converted into the currency of that country and then passed on to the issuer. The person who will pay will pay for the purchase of any product. This task will take the same amount of time as with bank cards because everything is equipped with online high-tech facilities.
Different crypto credit cards offer different rewards to the user. Gemini Credit Card offers up to 3% rewards on Bitcoin. It is immediately credited to the user’s Gemini account. BlockFi credit card users receive rewards of up to 1.5 percent for payments made with 10 types of cryptocurrencies, including Bitcoin and Etherium.
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You can also withdraw cash from here
With this crypto card you can withdraw cash like credit card. The first crypto credit card was issued by Coinbase as Shift Card. Bitcoin balances are credited to the shift card and the balance decreases as you make purchases. Shift Credit Card has a limit of $ 1,000 per day for transactions and a maximum withdrawal of $ 200 from ATMs.
How to get a crypto credit card
Crypto credit cards are created via Visa or MasterCard. For this, you need to issue a crypto credit card from any crypto company. Companies that trade on cryptocurrency exchanges issue such cards.
High interest on late payment
Crypto credit cards have high interest rates and late fees for late payments. Delayed payments also affect your credit score. Like a traditional credit card, it has an annual fee.
Foreign currency is not charged
The kind of extra charge that is charged on a regular credit card is not the same as in the case of a crypto credit card. For credit cards, the charges are levied by the banks, while the card charges are waived if the crypto credit card is used up to a limit. Also, there are no foreign exchange charges on crypto credit cards. This fee is taken on the bank card.
The value of reward points increases and decreases
The value of reward points and cashback earned on credit card purchases does not increase. No matter what price you get, you only pay for it. But with the rise of cryptocurrency, the value of reward points on crypto credit cards has increased. Although it can fall with the fall. It is just like the stock market where the value increases when the stock rises and the value falls when the stock falls.
Tags: credit card, Credit card limit, Crypto, Cryptocurrency, Cryptocurrency