There are many ways to earn free money from home. Some of them include surveys, playing games, watching ads, shopping, etc. One way to earn extra cash is through cryptocurrency. Cryptocurrencies are digital assets that are created using cryptography. They are also known as altcoins or virtual currencies.

With the rise of cryptocurrencies, there has been a surge in the number of companies offering rewards programs. These crypto credit cards allow you to earn cryptocurrency as your reward to help build your crypto assets without having to directly buy the cryptocurrency.

In todays post I will explore the different options available to UK investors in terms of debit and crypto credit cards

Crypto Card History

The first ever crypto card was launched by Revolut back in 2017. The company offers an app-based platform for its users, where they can manage their fiat currency accounts and make instant peer-to-peer transactions with other people who have installed the app on their phones. It allows users to convert their pounds into euros, dollars, and bitcoin instantly.

Since then, many more crypto credit cards have come out including both crypto credit cards and crypto debit cards. But what is the difference between these two? Besides the usual differences between a debit and credit card the following also applies

Crypto Debit Card

A crypto debit card is a plastic card that can be used for online purchases in stores that accept Visa cards. The card allows users to purchase products and services directly from their digital assets without having to sell the assets into their local currency.

Crypto Credit Card

A crypto credit card is similar to a regular credit card but with an extra bonus. Often these crypto credit cards will offer rewards in a specific cryptocurrency. For example, some cards may offer bitcoin rewards where some may offer another crypto asset as the reward.

The Pros and Cons of Crypto Cards

Pros:

One of the most obvious pros to using crypto credit cards is the rewards associated with them. Using these cards can provide a less risky way of getting involved in the crypto space than buying it directly. This is because you don't have to directly purchase the cryptocurrencies as you will recieve the crypto for your regular purchases assuming they're made on the card.

Some providers may offer welcome bonuses or referral bonuses to their crypto card program. This means you may get a financial reward immediately upon receiving the card. The best way to find out if your provider offers any type of bonus is by checking with them directly. 

Cryptocurrencies are not subject to regulation or centralized control by any government. This means they can have huge price swings where you could profit massively as their value can go up (or down) drastically over short periods of time.

Cons:

A downside of crypto debit cards (and credit cards) is their high interest rate (and fees). If you don't pay off your balance each month, then you'll be charged fees for late payments. If you get into too much debt, it can be hard to pay off. Pay off your balance in time to avoid incurring any fees.

Any cryptocurrency earned from a crypto credit card is subject to capital gains tax when you sell it. Unlike cash back and travel reward points. If you plan to earn a lot of cryptocurrency, you might consider what you’ll pay in taxes as it could potentially be substantial.

My Favourite Crypto Cards

1. Crypto.com Visa Card

This visa card by Crypto.com allows users to earn 1% cashback on all purchases. You initially get the reward through the CRO token and then can redeem this for Bitcoin, Ethereum, Litecoin, Ripple, Dash, Stellar Lumens, ZCash, Monero, Dogecoin, and more. To get started you need to open an account at the Crypto.com exchange.

The card offered by crypto.com also provides different tiers which can be unlocked by staking their own crypto token (CRO). For example, when you stake nothing you get the set 1% cashback on all purchases however the next tier up (staking £300 of CRO) will give you 2% cashback and you will get 100% of your Spotify subscription back as a reward in CRO. To use the Crypto.com visa card you simply transfer funds to your Crypto.com account to be used on the card. When you spend those funds through the card you will receive your CRO cashback

2. The Gemini Crypto Card

The Gemini crypto credit card allows users to earn up to 3% cash back on all purchases. This can be redeemed for bitcoin, etherium, litecoin, ripple, stellar lumens, zcash, dash, monero, dogecoin, ethereum classic, and more. In order to qualify for this crypto credit card, you must have an account with the Gemini exchange. Once you have done so, you will receive a $10 bonus after you make your first purchase.

3. BlockFi Rewards Crypto Card

The BlockFi crypto card is unfortunately not currently available in the UK. I have however decided to include it in this list as it is said to be coming to the UK and is currently the most popular crypto rewards card in the US. It offers 1.5% cash back on all purchases.

4. The Coinbase Card

The Coinbase card is a little different than the other rewards cards in this list. The main difference being that it doesn't pay rewards but allows you to spend your cryptocurrency directly from your card. This means you don't have to worry about selling and transferring your cryptocurrency to use it in GBP fiat currency. Just use the card as you would any other debit card and there you go.

Summary

There are many different types of reward cards available for people who want to start investing in cryptocurrency. Each one has its pros and cons so make sure you research each one before signing up. Of course check out the official websites for each of these cards as details listed within this article may change such as APR or reward types.

I hope you enjoyed reading my article and found it useful. Please share on social media and leave some feedback down below.

Thanks for Reading 😀

FAQ

What is a Crypto Debit Card?

Crypto rewards debit cards can be used at merchants just like a standard debit card is used, but instead of being backed by a bank account, it is backed by your own crypto wallet. Think of it as more of a prepaid debit card than a traditional debit card.

Source: (forbes.com)

Where Can I Use a Bitcoin Debit Card?

Bitcoin debit cards are issued in partnership with major credit card services (usually Visa) and can be used online or in-store wherever the major credit card is accepted. Cardholders can also withdraw cash at any ATM supported by the credit service.

Source: (investopedia.com)

Is Using a Crypto Credit Card Worth It?

Many investors that are interested in investing in cryptocurrencies would find it worthwhile to use a cryptocurrency credit card. These cards give you more flexibility and liquidity for your assets, so you can remain properly exposed to cryptocurrencies at any time. Plus, earning cryptocurrency rewards can be a great way to accumulate more coins passively. Since you'll be earning crypto rewards over time, you'll slowly be dollar-cost-averaging your way into the cryptocurrency markets.

Source: (benzinga.com)