If the idea of using crypto to pay for your everyday groceries has ever crossed your mind, you will be amazed to know that it’s entirely possible.
With the aim of making decentralized currency a part of day-to-day life, the emergence of crypto cards was the natural next step of the blockchain movement. These crypto cards, akin to traditional banking cards, enable users to carry out cashless transactions seamlessly. Essentially, there are two types of crypto cards: debit and credit cards. In this article, we will walk you through the best crypto card options and their role in the broader adoption of crypto in everyday life.
Crypto Debit Cards
A crypto debit card works much like your usual debit card—you spend your own money or withdraw cash. But here’s the twist: instead of dipping into your regular bank account, most crypto debit cards tap into your cryptocurrency stash.
It’s a handy way to turn your digital coins into traditional money for everyday spending. Crypto cards are rapidly gaining mainstream, with a growing number of banks issuing them and crypto-focused companies providing exciting features.
Some of these cards may also reduce foreign transaction fees and make spending in various currencies easier. This, however, is subject to geographical restrictions and tax implications.
Crypto Credit Cards
Like traditional credit cards, using crypto credit cards means you’re essentially borrowing money from the card issuer when you buy something. The card company covers your purchase, and your card balance goes up. However, what makes crypto credit cards unique is that instead of typical rewards like cashback or points, these cards give you rewards in the form of cryptocurrency.
A major advantage of crypto credit cards is that they offer a way to earn cryptocurrency without taking big risks. You earn these rewards by simply using the card for your regular spending. This feature makes them especially appealing to people who are new to the world of crypto and want a safe entry point.
However, it’s important to remember that cryptocurrencies can be pretty volatile. So, while you’re earning rewards risk-free, those rewards themselves might go up and down in value. Still, it’s a way to dip your toes into the crypto world without risking your entire savings.
Choosing the Right Card
The ideal crypto card depends on an individual and their priorities. In general, one should consider the following factors when choosing the right card:
- Rewards
- Fees
- Availability/Ease of Use
In the overfull market of crypto cards, here are the top 5 cards that are the best ranked overall:
1. Coinbase Visa Card
For those with a Coinbase (one of the most important crypto exchanges today) account, this might just be the most fitting card. Purchases and withdrawals are drawn directly from your Coinbase account. Additionally, for those already using Visa, the card can be used anywhere within the Visa network.
The Coinbase Card is a Bitcoin debit card. There is no annual, sign-up, or monthly fee. Crypto cards automatically convert all your digital currencies into USD, enabling seamless purchases at merchants and cash withdrawals from ATMs bearing the Visa logo.
A mobile app is available for easy management, providing transaction receipts, spending summaries, and real-time transaction alerts. Plus, you earn a generous 4% back in crypto rewards when you use the card for spending.
2. Crypto.com
Crypto.com supports the buying and spending of over 100 cryptocurrencies and has a global reach of over 80 million users. The card is ideal for merchants and regular shoppers.
You can make free ATM withdrawals up to $1,000, depending on the card tier you choose. These cards also offer cashback rewards ranging from 1% to 8% on your spending and provide an opportunity to earn from staking CRO, the platform token of crypto.com.
There are five different card designs to choose from, each offering variable CRO staking rewards and maximum withdrawal limits. The staking requirements for these card tiers range from $0 to $400,000. There are no monthly or annual fees for cardholders, and you can conveniently manage your card through a mobile app.
3. Gemini Crypto Credit Card
The Gemini Card is known for its instant reward system. Users receive immediate cashback of up to 3%, deposited directly into their Gemini account. There’s a convenient iOS and Android app for managing the card, allowing features like instant card freezing, expense tracking, and in-app access to credit card details, along with Apple Pay or Google Pay approval.
While you don’t need to be a current Gemini user to apply, a Gemini crypto exchange account is required to receive rewards. Plus, you’ll get near-instant access to the card after your application is approved.
Along with the fact that there’s no annual fee, there are no fees to exchange, and acquiring the card incurs no expenses.
4. Wirex card
The Wirex Card is believed to be ideal for altcoin holders. Using this card, you can earn a 2% cashback on your purchases, which is paid to you in WXT, the platform’s native token. You have the flexibility to convert WXT to any cryptocurrency you prefer.
For daily ATM withdrawals, you can access up to SG$1400, and you can top up your card with up to $2500, either as a debit or credit card. The card comes with an app that provides in-app alerts and allows you to track your transaction history. It’s quite versatile, supporting 36 different cryptocurrencies and over 150 national currencies.
One unique feature is the ability to convert your cryptocurrency to local currency instantly at merchant stores and ATMs, which can save you up to 3% on overseas transactions.
Additionally, if you refer a friend, you can earn a commission of 10 USD in WXT. Withdrawing at an ATM is free up to 400 SGD per month, charged 2% thereafter. There are no exchange fees when converting crypto to fiat and no maintenance charges.
5. Blockfi Bitcoin Card
Especially rewarding for BTC holders, you receive a 1.5% cashback in Bitcoin on transacting with the Blockfi card. Additionally, there is a $250 Bitcoin bonus when you sign up and spend $3,000 in the first three months.
There exist extra rewards of up to 3.5% after 4 to 6 months of using the card. During the initial 90 days after approval, you’ll earn a high 3.5% Bitcoin reward rate. And if you spend over $50,000 annually, you’ll receive 2% back in Bitcoin for every dollar spent. These rewards are credited to your BlockFi account on a monthly basis.
This card offers the flexibility to pay bills, make purchases, and withdraw any cryptocurrency as fiat currency at any VISA-accepting merchant, store, or ATM. It’s worth noting that there are no credit score checks required for qualification. Also, there is no annual fee or foreign transaction fee.
Also Read: Nexo Partners With Mastercard For Dual Mode Crypto Payment Card
Conclusion:
Cryptocurrency is undergoing a major transformation and is becoming a valuable ‘asset’ within the investment portfolios of individuals worldwide. As traditional financial service companies and crypto startups alike take notice of this evolving landscape, crypto cards are being introduced as a means to attract new customers. Crypto cards with the goal of integrating the decentralized currency into the traditional financial system, represent a novel venture in the financial domain.
While these cards make crypto more convenient and accessible to a broader audience, it’s crucial to stay informed about the associated fees, security measures, and regulatory compliance. Ultimately, the best crypto card for you is the one that aligns most closely with your financial goals and lifestyle.
