Best Crypto Credit Cards | Ascension

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Crypto credit cards vs. crypto debit cards

Both crypto credit cards and crypto debit cards are popular and it is easy to confuse them. But just like traditional credit and debit cards, these are two different payment methods.

When you use an encrypted credit card, you are borrowing money from the credit card issuer. The card issuer pays for your purchases up front and you pay them back later. There may be interest charges, but if you pay off your total card balance before the due date, you will avoid interest on your purchases.

LEARN MORE: How Does Credit Card Interest Work?

When you use an encrypted debit card, you are spending your own funds. A cryptocurrency debit card is normally connected to your account on the card issuer’s crypto platform. Transactions are deducted from your cryptocurrency balance. There are also prepaid crypto debit cards that you can load with funds, crypto, or fiat currency (traditional currency, like the US dollar). Our choice, the Crypto.com card is essentially a prepaid debit card.

LEARN MORE: What is a debit card?

How to choose the best crypto credit card

Choosing the best crypto credit card can be very different from buying any other type of credit card. Here are the things to check to find the right one.

Card issuer

For the most part, crypto credit cards are issued by platforms that allow you to buy and sell cryptocurrency. They are also generally only available to users of this platform. For example, if you want the Signature BlockFi Rewards Visa® credit card, you will need an account with BlockFi to apply for it. This is a restriction that you wouldn’t need to consider with most of the best credit cards.

If you already have an account with cryptocurrency apps and exchanges, start by checking to see if they offer their own credit cards. This is the most practical option, since you are already a customer. However, if you are ready to open accounts with other platforms, it is also a good idea to compare all of your card options.

Types of cryptocurrency available

Each crypto credit card has different cryptocurrencies that you can earn as a reward. Most cards give you at least a few options, but the number varies widely.

If you are flexible about the cryptocurrency you receive, you can choose any crypto credit card. But if you want to earn a specific cryptocurrency, look for a credit card that offers it.

LEARN MORE: Types of Cryptocurrency

Reward rate

The reward rate is the amount a crypto credit card earns on purchases. Some crypto cards earn a flat rate for all categories of purchase. Other cards offer higher rates in bonus categories and a lower rate on purchases outside of those bonus categories.

The most important thing is to choose a crypto credit card with a good reward rate. Flat rate cards tend to work well for just about everyone, but if you have high spending in certain categories, you might benefit more from a bonus category card.

Costs

These can make a big difference in determining which crypto credit card is the best value. Here are the most common types of fees to look for when comparing credit cards:

Annual Fee: Annual fee charged for the card. The majority of crypto cards are credit cards with no annual fee, so you can find a lot of options that you can get for free. This is a big plus, because when your credit cards aren’t costing you money every year, you’re less likely to find yourself in a situation where you have too many credit cards. currencies or that are processed by foreign banks. Having a credit card with no overseas transaction fees is good, and if you’re a frequent international traveler, it’s practically a must.Cryptocurrency Selling Fees: Some cards charge a fee when you sell your crypto rewards. While that doesn’t necessarily mean you should exclude these cards, one without this type of fee might be a better deal.

LEARN MORE: How to Choose a Credit Card

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