Is a crypto rewards credit card a good idea? – Forbes Advisor

The rise in the popularity of cryptocurrencies has created a need for cryptocurrency holders to have quick access to funds for spending. Until recently, the only options for cryptocurrency owners were to invest and hold for the long term or trade speculatively.

In order to cash out a purchased cryptocurrency, holders need to convert their cryptocurrency into available fiat currency and then wait for their funds to be deposited into their bank account. Without effective means of immediate use, cryptocurrencies have little value in day-to-day transactions.

To meet this need, issuers have created crypto debit cards. Their introduction revolutionized the sport, helping to increase interest and public adoption. Now, the Crypto Rewards Debit Card can be used at merchants just like a standard debit card. But instead of being backed by a bank account, it’s backed by your own crypto wallet. You can think of it as a prepaid debit card rather than a traditional debit card.

how it works

Crypto debit cards allow cardholders to convert their cryptocurrencies into the fiat currency of their choice for daily transactions. Some cards may require you to make a one-time redemption up front before you can start using your cash balance to make purchases. But for other cards, the conversion may occur at the point of sale.

Many crypto debit cards also offer rewards in the form of cryptocurrency on your daily spending. Some cards can even offer generous rewards, depending on how you value digital currencies.

Crypto financial cards are similar to crypto credit cards and other traditional payment options, operating on major payment processing networks such as Visa and Mastercard. If your crypto rewards debit card is issued by Visa, the card can be used anywhere Visa is accepted, and you can even use your crypto debit card to withdraw cash from ATMs around the world.

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