Visa Cryptocurrency

Where Credit Cards Meet Cryptocurrency

Where Credit Cards Meet Cryptocurrency
Written by publishing team

The cryptocurrency sector has experienced tremendous growth over the past few years. Apart from bitcoin, there are more than 4,000 altcoins in circulation. Cryptocurrency, once a niche product, has been a part of the mainstream, and it’s intersecting with credit cards.

Cryptocurrencies are more than just an investment asset. Today, you can get a Monero loan or buy Bitcoin at a special ATM. These kiosks accept debit cards, credit cards, and cash. As of this writing, there are over 20,000 Bitcoin ATMs located across the United States. So, how do these systems work?

Bitcoin ATM Jobs

Despite their name, these machines have limited functionality. Unlike traditional ATMs with a cash exchange option, it has only one purpose – to allow you to purchase a limited amount of cryptocurrency for cash. Users pay transaction fees, and the price of crypto is not always the best possible.

Buying cryptocurrency with a credit card

New opportunities appeared for buyers. A limited range of cryptocurrencies can be purchased with a credit card. Only some platforms support these transactions, and the fees are quite high.

The biggest concern is that financial institutions often consider cryptocurrency to be a cash equivalent. This means that your purchase will incur the same fee for withdrawing from a regular ATM. The interest will also be higher starting from the first day.

Credit Cards With Bitcoin Rewards

Recently, credit cards with cryptocurrency rewards have become available. In December 2020, a lender announced the introduction of a unique Visa card that pays out rewards in bitcoin. The product was launched publicly on July 6, 2021. Here are its main features.

  • Customers get 1.5% cashback in bitcoins on all purchases.
  • You also get $250 for spending $3,000 within the first 3 months.
  • Since the rewards are paid in bitcoin, you can take advantage of its volatility.

This is a great example of the overlap between credit cards and cryptocurrency. On the downside, the package includes a high service fee. The relationship between rewards and the price of bitcoin is both a benefit and a drawback.

  • The annual fee is $200, which is higher than the annual fee for regular cards.
  • If the value of Bitcoin drops, so do the rewards.

let’s summarize

The cryptocurrency industry is developing by leaps and bounds, and it has begun to overlap with traditional products such as credit cards. First, you can buy virtual currencies at tens of thousands of Bitcoin ATMs. Secondly, cryptocurrency can be purchased with a credit card on digital exchanges, although the fees can be significant.

Finally, the unveiled Visa credit card offers rewards in bitcoins. Its holders may benefit from its fluctuating rate and earn generous rewards for transactions. More such products are expected in the future.

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publishing team