Pros and Cons of Using Cryptocurrency Credit Cards

. 3 min read

Over recent years, the popularity of cryptocurrency has been growing and many platforms are now making it more accessible to the public.

Previously, we discussed how P2P exchanges like LocalCoinSwap provide additional flexibility and accessibility when it comes to buying and selling crypto. In addition to this, credit card companies are also adapting to the cryptocurrency market and creating new products that can make it easier to purchase commodities through various forms of crypto.

However, before applying for a crypto credit card, it pays to do some research to determine if you really need one. An article on Petal Card explains that if you’re having a hard time keeping track of due dates and minimum payments on multiple cards, you may need to reconsider opening a new line of credit.

With that in mind, here are some of the pros and cons of using a cryptocurrency-enabled credit card:


They function as a normal credit card
Cryptocurrency-enabled credit cards work the same as any credit card you already own, usually operating through Visa, MasterCard or UnionPay. The difference is that they’re generally linked to a securely encrypted crypto wallet as opposed to a banking app. A guide to crypto credit cards on Blocks Decoded explains that some crypto credit cards even offer perks such as cash back on Netflix, Spotify, and Amazon Prime subscriptions and hotel bookings.

They can be accepted worldwide
Through a seamless process, crypto credit cards allow you to make purchases almost anywhere. When it comes to paying for groceries, coffee, food, or clothing purchases, all you have to do is swipe or tap your credit card at the point of sale. CryptoDigest describes how the amount of cryptocurrency you need is automatically converted to fiat currency and processed through the merchant. This will then be deducted from your crypto wallet afterwards, along with any fees.

They hold different currencies
Depending on the type of crypto credit card you decide to get, you can make transactions in various currencies. Nexo, for instance, was popularized due to their crypto-backed loans platform. It enables you to take out a line of credit in over 45 fiat currencies, and is backed by Goldman Sachs. It also accepts 23 different types of cryptocurrencies in its wallets, including Bitcoin, Ethereum, Stellar, NEO, and Ripple.


There tends to be area restrictions
One negative of crypto credit cards is that the particular card you want may not be available in your area. They tend to be limited to users in specific regions. Case in point: the TenX crypto credit card is currently limited to users living in the Asia Pacific region, Germany, or Austria, but they plan to increase availability in the coming months. Because of this, it pays to do your research and determine which cards can be issued to you depending on your geographic location.

Fees can be relatively expensive
Like any credit card, crypto credit cards come with potential fees. If you’re not aware of them, they can easily add up. There are a variety of fees, ranging from the issuance fee to the delivery fee, as well as conversion fees. If you’re not prepared to pay for added fees, you should reconsider your decision. To help you out, doing a cost comparison between different brands will help you make an informed decision.

Finally, you might be wondering why you can’t just use a regular credit card to purchase and transact with cryptocurrency. According to an article by Latoya Irby, it’s generally a bad idea to do so. As well as the cash advance fee, higher interest rates, and the potential to go into debt, it might not even be allowed by your provider. As a result, using a P2P platform or finding alternative methods might be a safer bet.