Crypto credit cards are a relatively new addition to the cryptocurrency ecosystem. Still, they provide an exciting opportunity for users to spend their crypto holdings wherever accepted. Unfortunately, while many use cases for cryptocurrencies like Bitcoin (BTC) and Ether (ETH), the lack of easy liquidity has limited mainstream adoption.
What is a crypto credit card?
A crypto credit card works like any other credit>write about the card. However, instead of using a fiat currency like the Japanese Yen or US dollar, it uses cryptocurrencies. The card issuer takes your cryptocurrency and immediately exchanges it for USD (or other fiat currencies) at the time of purchase. It ensures that you receive the exact amount charged by the merchant in traditional fiat currency. You can then pay off your credit card balance later or spend it before the exchange rate moves in the market.
Crypto credit cards are available from several providers, which only accept specific cryptocurrencies like bitcoin and Ether. You can also get to see an extensive list of all currently available crypto credit card offers both for cardholders and non-cardholders on their websites.
You have online exchange platforms for buying, selling, and storing cryptocurrencies like Bitcoin (BTC) and Ether (ETH). Some of them also offer commerce services to enable e-commerce stores to accept cryptocurrency payments.
Crypto credit cards are one of the most valuable additions to the list. Using your crypto credit card, you can make payments in terms of the cryptocurrencies specified by the service provider.
How does a crypto credit card work?
A crypto credit card works the same as any other credit card in many ways. You can spend your cryptocurrency holdings with ease and confidence, knowing that you’re protected from market volatility. Your card will be issued as a Visa or Mastercard debit card in most cases. These cards also offer cashback rewards or have introductory offers to encourage spending.
Furthermore, crypto credit cards usually come with many benefits that standard credit cards offer. For example, they include extended warranties on purchased items and price protection (in case of a sudden price drop, they can reimburse you for the difference).
Many cryptocurrency holders would like to know: “Where can I use my cryptocurrency?” or “How and where can I spend my BTC and ETH?” The best way to find places near you that accept cryptocurrencies is through coinmap.org. Alternatively, some merchants offer a search function on their website, enabling you to specify the coins they accept at checkout.
Card providers have the added benefit of offering you a worldwide payment solution. As long as merchants accept their cards, there is no limit on how you spend your crypto anywhere in the world.
The SoFi crypto credit card, for example, comes with noteworthy features and benefits and helps you achieve maximum financial freedom like never before. According to the experts at SoFi, the credit card “now lets you redeem points straight into crypto.” If you require more information about their services, feel free to contact them today.