Debit or credit cards that support cryptocurrency are the latest trends in the digital economy.
Below we will learn more about crypto credit cards and if you should get one of them.
In other words, is it really beneficial to mix rewards credit cards with the crypto market?
The answer, in short:
- For the greatest flexibility, maybe not, as the separation between credit card rewards and cryptocurrency purchases gives greater options, and if you want to buy cryptocurrency, use the money earned from a cashback credit card or the equivalent value you earn from redeeming airline miles, at For example, this option also allows you to buy the cryptocurrency you want according to your terms and timing, and you can also accumulate more bonuses for investing in general.
- If you are interested in cryptocurrency and see rewards credit cards as extra money that you don’t mind losing and believe in and will matter in the future, then go for a crypto rewards credit card.
What Credit Cards Offer Cryptocurrency Rewards?
Crypto rewards on credit cards are a relatively new trend, with a number of these options already available.
Issuers that have offered cards or have advertised such plans include:
- SoFi Company.
- Queen Piece.
These crypto reward cards come in slightly different types.
For example, there are cards that offer rewards directly in cryptocurrencies such as Bitcoin or Ethereum.
Another type of card offers points that can then be converted into cryptocurrencies or fiat currencies.
Pros of Rewards Crypto Credit Cards:
An easy way to get started in the crypto market:
Credit cards that offer cryptocurrency as rewards are usually associated with a cryptocurrency trading platform.
Cryptocurrency exchange is a platform that provides the ability to buy Bitcoin, Ethereum and a range of other digital currencies.
Therefore, you do not necessarily need to exchange fiat currencies with the cryptocurrency you want, but the process is done directly from the rewards obtained in crypto directly to the trading platform.
Exposure to cryptocurrency volatility:
You may have heard about the volatility of the crypto market but you are not yet ready to enter with the money you may lose so you can feel the market with your toe instead of the whole leg, with these crypto rewards offered by crypto credit cards.
Possibility to benefit from rising value:
Cryptocurrency rewards have a chance to rise in value after receiving them.
Conversely, the value of these bonuses may also decrease as the market trend.
If you use rewards credit cards to purchase merchandise, the value of the merchandise will almost certainly go down if you resell them.
If you buy an airline ticket with miles or book a hotel room with points, you cannot resell it at a profit.
So cryptocurrency is one of the few rewards that has a chance to rise in value.
By leaving the rewards as they are and accumulating them and the possibility that their value will rise with time, it is one of the ways of passive indirect investment.
This is for the pros of crypto credit cards that offer rewards.
In the following, we will discuss:
Cons of Rewards Crypto Credit Cards:
Limiting liquidity compared to regular credit cards:
In regular cards, liquidity is available and goods and services can be purchased at any time, unlike cryptocurrencies that sometimes need to be converted before purchasing a product or service.
The value of the rewards is uncertain:
As is well known, cryptocurrency prices are volatile.
If you redeem 2% on a crypto credit card and the value of the coin quickly halves, you actually only earn 1% on purchases, which is a non-competitive reward rate.
Lack of flexibility
With some crypto rewards cards, you may be restricted to one currency or just a handful of cryptocurrencies and not others.
If instead you use a cashback card for rewards and use that money to buy cryptocurrencies, you can buy the currency you want.
Expenses and fees:
When considering a credit card, look for fees that may be included in the cryptocurrency transfer process.
It may seem like it’s not a big deal but it’s one thing to watch out for, there is usually a potential overprice of the coin or perhaps the inability to redeem cash or points in a 1:1 ratio.
If you buy cryptocurrency with cash from an exchange, you are likely to pay a transaction fee to the exchange, which reduces the value of the rewards received.
Not supporting wide geographic areas:
Perhaps one of the most important negative points in credit cards that offer rewards in cryptocurrency is that they are limited to geographic areas, for example, in our Arab region, few of the aforementioned cards support the region.