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Cryptocurrency is quickly becoming an incredibly valuable ‘asset’ in investment portfolios around the world. According to CoinMarketCap, the value of all available cryptocurrencies is over $2 trillion — and it’s only getting bigger.

Traditional and startup financial service companies have taken notice, and they’re looking to attract new customers with crypto. And rather than a having a credit card that gives travel rewards or cash back on purchases, they’re now cards doling out rewards in cryptocurrency.

Select details how these new type of credit cards work, what to expect and how to evaluate if a crypto credit card is right for your wallet.

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How crypto credit cards work

Crypto credit cards work exactly the same as any other rewards credit card on the market: you’re rewarded as you spend on the card. But in this case, you’re given cryptocurrency for your purchases. However, keep in mind that each card differs in how they process and award the cryptocurrency for their cardholders.

For example, the BlockFi Rewards Visa Signature Credit Card gives cardholders the following:

• 1.5% back in crypto on all eligible purchases
• 3.5% back in crypto rewards during in the first 90 days of card membership
• 2% back in crypto on all eligible purchases over $50,000 of annual spend

But since there are thousands of cryptocurrencies that you can hold, the card actually rewards you with BlockFi Cryptocurrency Rewards Points. Once the points are deposited and the cardholder account is in good standing, BlockFi will let you convert the points into the cryptocurrency of your choice.

Conversely, the Gemini Credit Card deposits cryptocurrency directly into your Gemini account every time you swipe your card — giving you instant access to your rewards — rather than having to wait for the monthly statement to cut.

So when you’re researching crypto credit cards, be sure to find out what the process is for rewarding cardholders. It may require an additional step or two compared to more traditional credit cards, but it could be worth it if you have interest in cryptocurrency investing.

Also keep in mind that not all of these are solely credit cards, as there are several debit cards available such as the Coinbase …….

Source: https://www.cnbc.com/select/how-crypto-credit-cards-work/