Crypto credit cards work very similarly to normal debit cards. All transactions are debited directly from an account or wallet. Therefore, it is often more like a current card or debit card and less like a real credit card, where users buy something on credit and the sum is only debited from the account later. In this way, users keep better track of their spending and do not run the risk of spending more money than they actually have available.
There is also a choice of prepaid cards. These have to be topped up with a certain amount in advance, but are not accepted by all traders. Car rental companies, for example, often refuse such credit cards. In many cases, this also excludes debit cards and crypto credit cards.
Choose a credit card thoroughly
Not every credit card is suitable for every user and due to the numerous providers, users should compare the offers well, also in the crypto credit cards top 10. When choosing the right credit card with cryptocurrencies, it is particularly a question of
- the fees incurred
- possible additional offers and crypto credit card cashback
- limits on payments and withdrawals and
- how the payment works.
The fees are often the main focus and can vary. Often the costs depend on the user behaviour. For cryptocurrency credit cards there are
- issuing fees
- an annual fee
- transaction fees or
- exchange fees.
Some providers already charge a fee when the card is applied for, often up to ten euros. This also applies to replacement or second cards. However, more and more providers are waiving an issuing fee, no doubt also for advertising reasons. However, an issuing fee is a one-off payment and is therefore hardly significant when evaluating a credit card for cryptocurrencies.
Check regular payments
The focus should rather be on regular payments such as a possible annual fee. However, only a few providers charge such a fee. If it is a premium credit card, however, an annual fee is not unusual and is also known from large providers. Possibly the biggest differences can be in the transaction fees, which users should check very carefully. If the card is used only rarely, they do not play a major role. However, if the card is used frequently, transaction fees can be very significant.
Providers often charge a percentage of the transaction as a fee. In addition, transaction fees are often linked to limits. Exchange fees often promise the highest revenues for providers. This procedure is also known from crypto exchanges and regural CFD brokers like Exness deposit. If bitcoins are exchanged for euros, the provider charges a certain percentage of the sum as exchange fees. Often, the fee is then deducted directly from the sum in fiat money. With many credit cards, users can also withdraw money from ATMs. Many providers also charge fees for this. This is also often a percentage of the amount withdrawn. Especially with prepaid cards, a top-up fee may also be charged.