- Crypto Credit Cards allow users to select the cryptocurrency of their choice as a reward.
- The future of credit cards is Web3 cards.
The development of digital currencies and the volatile nature of bitcoin have recently attracted a lot of media interest. After leaving a mark in the digital asset space, it is about to enter the banking and payment landscape by launching crypto credit cards.
Understanding Web3 Crypto Credit Cards
Irrespective of your prowess in the crypto world, it is pivotal to understand how crypto credit cards work and how to best use them to your advantage.
Different cryptographic credit cards have different pros and cons. Some credit cards allow you to convert your crypto assets to fiat currency instantly, however, they may not provide any interest on your crypto. On the other hand, some cards don’t have the facility to auto-convert the cryptocurrency but have a robust payment gateway.
Another benefit that crypto credit cards provide is that, as opposed to traditional credit cards, the rewards are limited to cashback, discounts from select retailers, travel perks, etc. crypto credit cards allow its user to select from a pool of cryptocurrency they want as a reward.
These rewards are not fixed and vary depending on different methods of distributing them. Generally, these cards offer 1.5% – 3.0% back in the form of cryptocurrency. The frequency of these rewards also varies; some cards follow a monthly-payout system, whereas others give rewards with every transaction.
This highly-customizable reward program allows users to spend and earn as per their own preferences while simultaneously enjoying the benefits of traditional bank-issued credit cards.
Top Web3 Credit Cards
SoFi Credit Card – This credit card boasts low risk and high reward. SoFi provides its cardholders with SoFi points, which can be redeemed for multiple purposes.
Moreover, these points can be converted into cashback points and utilized toward various SoFi accounts, such as SoFi money accounts, SoFi savings accounts, etc. These points can also be used toward the repayment of different types of loans, such as student loans, personal loans, etc.
Brex 30 Card – Tailor-made to cater to the needs of start-ups, Brex 30 boasts a points-earning system. Customers who use Brex’s cash deposit account to pay for credit card bills are entitled to receive generous rewards and benefits.
These benefits include earning 7 points on the expense of every $1 spent on rideshare services, 4 points on travel bookings through Brex Travel, 3 points for each dollar spent at restaurants, 2 points for each dollar spent on recurring software, and 1 point for all other purchases.
However, Brex 30 is not categorized as a crypto card, but it allows crypto operations such as redemption of Brex points for Bitcoin or Ethereum. 1000 Brex points can be converted into $7 worth of cryptocurrency.
Crypto.com (Monaco) – Crypto.com, aka Monaco, is coming up with its crypto credit card based on the loan-to-value model (LTV). Crypto.com offers exciting advantages through its proprietary currency, Monaco, which internally facilitates all credit card transactions.
The limit of Monaco credit cards is decided based on the deposit of cryptocurrency. These credit cards charge a competitive industry fee of 3.5%. However, in the long run, the cashback opportunities can offset this fee.
