How to buy cryptocurrencies has become a global trend, every day there are hundreds of thousands of people who join the crypto market with the purpose of earning money online or in search of the long-awaited financial freedom.
Despite the fact that in the beginning the large credit card processors blocked transactions through the different exchange platforms. Its growing boom in recent years has made them change their minds.
We know that this friction between the traditional market and the cryptocurrency market is surprising. Although many might think that their finances could be controlled by large corporations, this type of tool makes it easier to manage our cryptocurrencies and in turn expands the use of cryptoactives in new investors.
Cards in the cryptocurrency market
The use of credit cards in the cryptocurrency market has always been a sensitive issue, due to constant restrictions and blockages by payment processors.
Although at present, there are still card processors that indicate in their terms and conditions that they prohibit the purchase of cryptocurrencies with their credit or debit cards. Users continue to search for the various ways to buy cryptocurrencies in Venezuela.
Nowadays, due to the increasing boom of cryptocurrencies worldwide, the exchange of FIAT money for cryptocurrencies has been greatly facilitated. Complicated outsourced processes are no longer needed to acquire them.
The expansion of payment methods for the purpose of buying cryptocurrencies has diversified, users can choose between bank transfer, mobilization from one wallet to another or fiduciary deposits.
However, some banks are still reluctant to allow their funds to be used to buy cryptocurrencies, because some unknowing users may be victims of phishing when making their first transactions.
That is why, to protect users against any type of fraud, losses or market volatility, some banks have decided to warn their users and in turn update the conditions of use.
Therefore, it is vitally important that before buying bitcoin with your credit or debit card you review the conditions of use with your bank or neo-bank, although the latter are usually more flexible when it comes to allowing this type of investment.
Cryptocurrency platforms that facilitate the acquisition of credit or debit cards
Binance: With more than 365 cryptocurrencies available for purchase, it has a 0.10% commission for trading and allows various payment methods such as: debit card, credit card, transfers, P2P, Cash Balance, among others. In turn, residents of Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden can apply for a debit card that offers them up to 8% cash back in BNB for each purchase.
Gemini: This cryptocurrency exchange platform has partnered with Mastercard to create a credit card that contains rewards for its use. It offers its users up to 3% return on each purchase made, in addition to all the benefits offered by Mastercard worldwide, they have no annual commission.
Revolut: This fintech is a renowned bank that offers more than 30 available cryptocurrencies. You can use Debit Card, Credit Card and Transfers to acquire them. Commissions for trading start at 1.3%. These in turn offer debit cards for their users. One of the disadvantages is that credit cards are only available for Lithuania and Poland.
Coinbase: It is a popular cryptocurrency exchange platform in the United States with more than 201 cryptocurrencies available for investment. The payment methods available are debit card, credit card, transfers and PayPal. The commission for trading is 1.49%. It offers a Visa card that allows you to choose the cryptocurrencies for your payment and make the conversion in the local currency.
Wirex: is a cryptocurrency exchange platform, without commissions and also offers rewards to its users for the use of their card. Although it charges 1.20 EUR maintenance fee for its use.
Crypto.com: Offers rewards for the use of your card up to 1% on purchases and exclusive discounts on streaming platforms such as Netflix.
Although these options, in some cases they may seem expensive because staking or issuance amount plus commissions are requested. They represent for active users within the crypto market a portal to use their earnings in the traditional world that has not yet adapted to the use of cryptocurrencies.
Advantages and disadvantages of crypto cards
The growth of crypto cards represents innumerable advantages for its users, however, it also puts them at risk of falling into unscrupulous hands and therefore a high possibility of loss.
Among the main advantages of cryptocurrency credit cards are:
They offer additional services for credits
Some do not have an annual commission like the Gemini
You can pay for products and services using the stablecoin of your choice and even your bitcoins
They allow you to create a savings plan
Most do not charge maintenance cost
Some platforms offer physical and virtual card
Allows cash withdrawal with low commissions.
Easy access for beginners
Return rewards for your purchases. When purchasing a product or service, the platform could reward you with the return of up to 8% of a cryptocurrency or total amount.
They can be used all over the world for purchases, trips, among others.
On the other hand, the most frequent disadvantages are the following:
You must keep in mind that the processors of this type of credit card, although they are recognized exchanges, many others are replicas. Entering your data on this type of platform could compromise the security of your card and put your credit line at risk.
Banks and credit card providers may control the amount of cryptocurrency you buy in a day. That is why active investors are recommended to use crypto banks to apply for credit cards, since they have more extensive coverage in the purchase of crypto assets.
However, the most recurring disadvantage that users may encounter is that due to the high volatility of the crypto market. Banks and card providers during sensitive seasons restrict the use of these in order to avoid massive scams or millionaire losses.