Outside Source
Although cryptocurrencies are still a relatively niche form of money, they have attracted millions of fans for their utility or as a speculative investment. Many users use crypto daily as an alternative exchange to fiat money.
But how do they do it? Unless you live in El Salvador or the Central African Republic, most merchants won’t directly accept crypto as a payment method. Fortunately, crypto credit and debit cards make it possible to spend your digital assets as freely as you can with your cash.
Crypto cards are a new payment solution that links digital currencies to real-world spending. With many options available today, they can also offer benefits. Unlike traditional credit and debit cards that offer cashback rewards, crypto cards provide reimbursement in tokens like Bitcoin, Ethereum (ETH), and other digital currencies.
How do crypto cards work?
Several companies provide cryptocurrency credit and debit cards in collaboration with traditional financial institutions like Visa and MasterCard.
These cards are directly connected to the user’s digital wallet. When a purchase is made, the corresponding amount in crypto is deducted from the wallet, converted to fiat, and then deposited into the merchant’s account, similar to traditional card payments.
If you’re considering obtaining a crypto credit or debit card, here are some options currently in the market:
Nexo
The Nexo Card uses military-grade 256-bit encryption and continuous fraud monitoring algorithms, ensuring the safety of users’ funds and transactions. The card can be easily ordered through the Nexo Wallet application, giving users global access to crypto funds.
Accepted by any merchant that takes Mastercard, it distinguishes itself from competitors whose cards are limited to specific countries.
The Nexo app offers additional advantages, allowing users to create virtual cards for secure online purchases. Users can manage their cards within the app, setting transaction limits, monitoring real-time spending, and freezing or unfreezing cards as needed. The app also sends instant notifications for every transaction.
As an incentive, Nexo introduces a new cashback promotion for the Nexo Card’s Debit Mode. For a limited period until Dec. 31, 2023, the cashback reward rate has tripled to an industry-leading 6%, provided in a combination of NEXO and BTC for all users.
Crypto.com card
The Crypto.com Card is a popular crypto debit card due to its rewards system.
Users can earn up to 8% cashback paid in crypto tokens and rebates from services like Amazon Prime, Netflix, and Spotify. Higher-tier cardholders can enjoy perks like airport lounge access at select airports.
To qualify for the best rewards, users must purchase and stake Crypto.com’s native CRO token.
The more CRO they stake, the better the bonuses they receive. While a free option is available, users won’t be eligible for the same rewards or rebates on certain services.
Wirex debit card
The Wirex Debit Card can be an option for spending their crypto at over 50 million businesses worldwide.
Users can earn up to 1.5% in BTC rewards when making in-store purchases. They can add funds to their account using a credit card, debit card, or bank transfer anytime.
This card is a central hub for buying, selling, storing, and using crypto.
However, users seeking cashback for online purchases may find better rewards elsewhere.
Venmo credit card
The Venmo Credit Card allows users to choose which cryptocurrency they want to receive rewards, such as Bitcoin, Ethereum, Litecoin, or Bitcoin Cash.
At the end of each month, the bonuses are paid into their wallet without any fees for converting to crypto.
Venmo assigns the highest cashback rate to the highest-spending categories to maximize rewards without users needing to strategize.
Users will earn 3% cashback on their highest eligible spend category, 2% on the second highest category, and 1% on all other purchases.
However, users cannot transfer their crypto funds to a different digital wallet, which may be a deal breaker for some.
Uphold Card
The Uphold Card is available to consumers in the U.K. and U.S. and can be an option due to its features.
It does not charge an annual fee and has 0% fees on foreign transactions.
The Uphold Crypto Exchange platform offers the card, which supports trading over 250 coins, precious metals, and fiat assets.
Investors with extensive crypto portfolios may find this card useful.
Users can spend whatever coins they have in their digital wallet and even support precious metal-based transactions through its partnership with MasterCard.
A cashback of 4% paid in XRP is given to users for each transaction.
Final thoughts on crypto cards
Crypto-based credit and debit cards are increasingly popular. They may become a permanent fixture in the consumer payments industry, especially if central bank digital currencies gain traction.
Major exchange platforms like Binance and Coinbase now offer Visa- or Mastercard-based debit cards, providing crypto users an easy way to spend their digital assets on everyday goods and services.
Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.
This article first appeared at crypto.news
