Encrypted Credit Card Seems Like A Good Option
An encrypted credit card is a payment card that credits rewards in cryptocurrency. It can be a debit or credit card and facilitate crypto or fiat transactions, or both. The only rule of thumb is that it incentivizes you to pay with cryptocurrency. Compared with traditional credit cards, encrypted credit cards seem to be a more fashionable payment method this year. A survey reveals that 46% of encrypted credit card holders plan to use their card for all purchase. Moreover, 80% of respondents believe that Bitcoin will eventually replace traditional credit cards entirely.
Most encrypted credit cards offer digital cashback rewards for various purchases such as dining out, buying groceries or plane tickets. These rewards serve as the incentives that encrypted credit card companies use to lure in new users and encourage existing ones to keep using their platforms. It's hard to imagine that this emerging credit card will become a favorite of consumers. Among them, Bitcoin, ETH and Litecoin are the most popular. In just the past two years, this product category has seen an exponential increase in popularity.
So what are some of the excellent encrypted credit cards?
1. BlockFi Bitcoin Rewards Credit Card
This particular platform was one of the pioneers in offering encrypted credit card services, and it is open to individuals with good credit scores who wish to apply. There is no annual fee or foreign transaction fee, and users can earn rewards in the form of Bitcoin on every purchase made using the card. For the first 90 days of registration, users can receive a 3.5% Bitcoin reward on purchases, with a cap of $100, and then 1.5% after 90 days. Rewards are exchanged monthly and can be transferred to a BlockFi Interest Account to generate additional passive income. While it may be the first platform to introduce crypto rewards to credit cards, the interest rates are lower compared to similar products.
2. Nexo Card
This is one of the few credit cards that offers cryptocurrency backing. It offers the flexibility for users to exchange their rewards for NEXO tokens or Bitcoin. Available in almost all countries except for 22, this card allows payments to be made in local currency without any monthly or annual fees, nor any foreign exchange fees. Additionally, users can take out loans of up to $2 million, with an annual interest rate of 6.9%. It offers the security and convenience of any major banking enterprise, including features such as instant freezes and real-time monitoring.
3. Crypto.com Visa Card
The Crypto.com Visa Card enables easy and flexible top-ups with both crypto and fiat currencies, alongside its attractive crypto reward system. There are no annual fees to worry about, and users can enjoy rebates of up to 8% on their spending. Moreover, this platform supports up to 55 different cryptocurrencies, offering an extensive range of options for users. To apply for the Crypto.com Visa Card, individuals must have held the required amount of CRO tokens for a minimum of 180 days.
4. SoFi Credit Card
SoFi or Social Finance, Inc is a personal finance management platform devoted to assisting users from various professions in attaining financial independence. It launched the SoFi credit card as a tool to encourage users, especially young people, to diversify their portfolios into cryptocurrencies.
Spending habits and experience will determine the amount of points or rewards credited. Those with a good credit score residing in the United States are eligible to apply for a SoFi credit card. The SoFi card does not come with an annual or foreign transaction fee, and can earn up to 3% cash back on all eligible purchases. The rewards earned through the card have no expiration date. However, payment fees, interest charges, balance transfers, cash advances and prepaid card top-ups are not eligible for rewards.
From the above, it is clear that encrypted credit cards utilize various reward models to incentivize more people to adopt cryptocurrencies and expand their user base. As these platforms continue to enhance their capabilities, there is the potential to gradually replace traditional credit cards in the future. Users can select a encrypted credit card based on their specific requirements and receive corresponding cash back rewards.