Cryptocurrency Credit Card: How is it Different from Bank Credit Card? Know How it Works

Cryptocurrency is one of the most discussed assets, even in conventional investment portfolios. The new buzz in town and probably the future of money, cryptocurrency, is emerging exponentially as the market of this digital token currently stands at roughly $2 trillion.

In India alone, the crypto investments have hiked up to $10 billion as of November 2021. The digital token almost mimics conventional cash, and hence, there are debit and credit cards available that can help you make transactions in cryptocurrency. So let us find out what exactly are crypto credit cards, and how do they work?

Cryptocurrency credit cards work like traditional credit cards. But the only difference is that the transactions made through crypto credit cards are fostered by cryptocurrency. These credit cards will also give you benefits on your purchases, either right away or at the end of every month.

The issuer may also devise a system where you can pay from crypto tokens available in your account rather than the tokens provided by the cards issuer. In these scenarios, the card works as a hybrid, wherein the card serves the purpose of both a credit and a debit card.

Crypto credit cards are currently issued by BlockFi, Brex, Venmo, SoFi, Gemini, among others. These credit cards are supported by MasterCard and Visa, currently the biggest financial network in the world.

How they work

If you want to make a transaction and buy something, you will use the crypto credit card and make the purchase. The card issuer will give the tokens on your behalf, which you have to pay at the end of the month. On your purchases, the issuer will grant you a reward. The rewards also function the same as a conventional credit card. Here, you are being rewarded in crypto tokens. Every issuer differs when it comes to granting rewards to the customer.

A crypto credit card does not transact directly in cryptocurrency. Actually, your cryptocurrencies are first converted into fiat currencies and then sent to the issuers. These cards can be in physical or digital form.


Rewards depend on the merchants. For example, BlockFi gives 1.5 per cent of the transaction back in crypto rewards. The reward is 3.5 per cent for the first 90 days. Gemini gives instant rewards on your transactions and directly deposits the digital token in your account.

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