What Types of Cryptocurrencies Can I Purchase With These Cards?
Cryptocurrencies Can I Purchase With These Cards
Cryptocurrency cards are credit cards that let you earn and spend cryptocurrency rewards, or “crypto.” The most popular are cryptocurrencies like Bitcoin and Ethereum, but many newer cards support other cryptocurrencies as well. Crypto cards usually operate on one of the major card networks, such as Visa or MasterCard. Many of these cards offer a variety of benefits and features that make them an attractive alternative to traditional credit card rewards, such as cash back or points.
Many crypto rewards cards allow you to earn cryptocurrency directly through your spending, while others can convert your rewards into cryptocurrencies. Some of these cards also let you choose what type of crypto you want to earn, giving you the ability to switch between different digital assets as the market changes. The Gemini credit card, for example, lets you redeem rewards for Bitcoin and Ethereum, as well as dozens of other digital assets available on the Gemini exchange platform. This card also has an attractive sign-up bonus and low interest rates.
Other buy crypto cards can provide access to specific cryptocurrencies, such as XRP or Bitcoin Cash, through a cryptocurrency exchange. These cards typically require you to complete identity verification and address verification, as well as a minimum amount of spending to unlock your account and establish new limits. This is an important consideration because most cryptocurrencies are highly volatile, and any investments you make with them can lose value quickly.
What Types of Cryptocurrencies Can I Purchase With These Cards?
While crypto cards can make it easier to buy cryptocurrencies, they do come with fees and drawbacks that you should consider. For one, using a credit card to buy cryptocurrency can damage your credit score if you carry a balance. Credit card companies typically report your payment history and credit usage to the major credit bureaus, so making on-time payments and keeping your utilization low will help your score over time.
Using a credit card to buy cryptocurrency can also hurt your wallet by increasing the amount of money you have in debt. Some crypto cards charge a credit card transaction fee, while others can add an exchange transaction or withdrawal fee to the total cost of your purchase. These fees can significantly increase the price of a purchase, and they may also exclude you from promotional APR offers.
Another drawback is that crypto purchases made with a credit card may be treated as a cash advance by the card issuer. This can have negative effects on your credit score, as cash advances don’t typically come with a grace period and start incurring interest immediately. Finally, if you sell your cryptocurrency for more than you bought it for, you might be required to pay tax on the profit. In addition to these issues, you should also note that cryptocurrencies are considered assets by the IRS. If you sell them for a profit, you might be required to pay capital gains taxes, depending on your state’s laws.