There’s no question that cryptocurrency has really taken flight over the past few years. There have been a few rags to riches stories of ordinary people who spent their lunch money on a few bitcoins and now are worth millions. With bitcoins now carrying a value of close to $60,000 apiece, it’s almost impossible to believe that at one time, a single bitcoin was worth less than a penny.
With over a hundred million crypto traders around the globe, it’s become necessary over the years to make it easier for people to convert their bitcoins and altcoins into fiat cash or spend them in the physical world. As a result, one of the most popular new developments in cryptocurrency is crypto credit cards. Continue reading to learn more about these cards and why every trader should get one.
It takes too long to convert digital currency into fiat currency.
Bitcoin was created as a way to make online international transactions easier, but if we’re honest about it, the vast majority of people don’t purchase virtual currency to spend it online—they use it as an investment. That means traders are much more likely to want to redeem the cash value of their crypto assets than use them for online purchases.
As great as digital currency is, one common problem that many traders had with it is that it takes too long to convert cryptocurrency into fiat currency. It can take a couple of days to convert bitcoins into your local currency and three more to transfer it to your bank account.
Not to mention, you have to pay exchange fees for converting your coins into cash and a transfer fee to move the money. With as much time and money as it takes to make digital currency spendable in the real world, it’s understandable that crypto traders were getting frustrated. Wouldn’t it be much better if you could have your cryptocurrency as readily available for use as your fiat money?
Crypto credit cards let you use the funds in your digital wallet as collateral for loans.
If you’ve ever gone through the process of trying to get a traditional loan, you know it can be painstaking. One of the best things about cryptocurrency is that you can use it to secure a loan without even having to get a credit check. You’re issued a cash amount, and a certain amount of your crypto is used as collateral.
You can get a Bitcoin credit card to give you quicker and easier access to your funds. One thing you have to be careful about is making your payments, because if you default on your loan, you will lose the coins you put up for collateral.
Crypto credit cards are getting a boost.
As mentioned in the previous section, the current crypto cards can more accurately be viewed as hard money loan cards in that they represent money from a collateral-backed loan. However, there some new Bitcoin credit cards on the way, and they’re causing quite a stir. In fact, there’s already a waitlist for them.
In 2021, you should be on the lookout for the Blockfi card and the Gemini card. These new credit cards will work like traditional rewards credit cards except they will offer cryptocurrency as cashback. The Blockfi card even offers a signup bonus after you spend $3,000 in the first month.
Crypto debit cards are the definition of convenience.
Crypto debit cards are one of the best options for traders. In essence, crypto debit cards work like typical prepaid debit cards. You can use them at the ATM, and you also have to pay transaction fees at the cash register, but you can use your crypto debit card anywhere Visa and Mastercard are accepted.
As you can see, now is a better time than ever to get a crypto card. They make it quicker and easier to convert your crypto into fiat currency and may even earn you more crypto. What a time to be a cryptocurrency trader!