In a previous post on ‘Cryptocurrency in a Pill’, we talked about some of the most popular kinds of cryptocurrency such as Bitcoin, Ethereum, Ripple and ICO.
The growing number of cryptocurrencies, which include these four, is said to be highly indicative of the growing popularity of cryptocurrency as a medium of exchange. In fact, a recent study by Kaspersky, a Moscow-based cybersecurity firm, revealed that 19% of the global population purchased cryptocurrency before 2019. As a response to the developing interest of the public towards cryptocurrency, multiple firms – both established and new ones – have released credit and debit cards compatible with cryptocurrencies. In this article, we will talk about some of the debit/credits cards that let you use your crypto balance:
Nexo gained popularity as one of the first companies to offer instant crypto-backed loans, allowing users to access the value of their crypto without having to sell their assets. Blocks Decoded explains that this crypto credit card lets users take out a credit line in 45 currencies, requires no applications, credit checks or review process, thus guaranteeing that every application will be a success. Aside from offering an easy application process, Nexo also has no minimum repayments as it automatically debits interest from your available balance and provides instant cash back on all purchases, free additional virtual cards and payments in local currencies. Nexo credit card is issued by MasterCard and accepts around 23 cryptocurrencies in its wallet, including Ethereum, EOS, Stellar, NEO, Ripples, Cardano, Bitcoin Cash, Litecoin and Bitcoin.
Formerly known as Monaco, Crypto offers five different Visa cards of varying levels. The entry-level one doesn’t require any deposit while the other four options are available at 50, 500, 5000 and 50,000 MCO tokens. This crypto credit card is able to rise above the rest by offering great perks such as 100% cash back on your Netflix, Spotify and Amazon Prime subscriptions, 10% cash back on Expedia and Airbnb bookings, and cash back that can go up to 5%, depending on the card you have. To take the benefits to another level, high-end cards offer free ATM withdrawal limits every month and competitive exchange rates. As a rough guide, $10,000 of MCO tokens is enough for a loan of around $6,000, which is $2,000 higher than what you can loan from the same amount with Bitcoin. For greater flexibility, this MCO Visa card can be used in more than 40 million shops and stores all around the world.
Last year, Coinbase launched its Visa debit card in six European countries: Spain, France, Italy, Ireland, Germany and the Netherlands. This year, credit card giant Visa granted Coinbase principal membership, making it the first cryptocurrency company to have the power to issue debit cards for other cryptocurrency companies and firms. Although Coinbase clearly stated that they have no plans of issuing cards for others anytime soon, this new status can open up a new revenue stream for the company that has served over 30 million users since its launch in 2011.
At the beginning of last year, the United States-based firm Ternio launched its crypto debit card called the Blockcard. At first, Blockcard only supported four cryptocurrencies, namely Bitcoin, Ether, Stellar and Lumens and Ternio. Now, users can spend 13 coins, including Bibox Exchange and Ternio, Bibox Token (BIX) and Ternio (TERN). As an answer to the growing demand from their client base for a lower minimum balance, Ternio decided to reduce the necessary amount to keep an account active from $100 to $10. This move delighted many as it automatically gave all active Blockcard account holders $90 worth of additional cryptocurrency spending power.
The steady growth of cryptocurrency as an industry and as a medium of exchange makes it extremely easy to understand why many people are taking an interest in cryptocurrency. However, while it might be tempting to sign up to some new cards right away and reap the benefits, it might adversely affect your credit score over time. To prevent this from happening, an article by Petal recommends paying the minimum balance before the statement due date to avoid late fees. Keeping track of your spending and bills can be more of a challenge, so you should only have as many cards as you can handle.
For more ways to use your cryptocurrency, explore the many strategies compiled by the Comparic team here!