Blockchain & Crypto

How credit cards work in the bitcoin system

Jean Nichols



You already know that the bitcoin debit cards are booming these days because people who have crypto coins can use or spend their bitcoin or crypto coins for making any purchase because there is no issue of bitcoin or crypto acceptance. But do you know about the bitcoin credit cards? And how does it work? Well, this guide will help you explore how the bitcoin credit card works and also help you decide whether you should go with it or not. That is also available here


How credit cards work in the bitcoin system. Source:

What are bitcoin credit cards?

Bitcoin credit cards are similar to the standard credit cards because their working is the same but the only difference between the currency system. You know that credit cards give a lot of cashback offers or rewards so that more and more people can take advantage and fulfill their dreams. Still, bitcoin debit cards also offer cashback rewards in the cryptocurrency such as bitcoin ethereum, dogecoin, and many other coins. You do not have to spend money from your pocket, but your card issuer or provider will give you the money through the card to spend and take back from you on a future date. It is also the best way to earn rewards in crypto because crypto constantly fluctuates. You can take advantage of fluctuations if the price rises after getting the crypto into your account. Then, again, you can spend that money to buy more things.

How does the bitcoin credit card work?

For example, you ordered a bitcoin credit card and will buy the clothes for your children. After doing the shopping, you swiped your bitcoin credit card with the vendor’s machine and paid the amount. Do you know what happened behind the credit card? When the vendor swipes your bitcoin credit card, the provider’s system gets a notification for approval, and after the approval, the money gets transferred to the vendor’s account. However, you do not have money in your wallet or account, but the issuer will send money from his end. Now you get a reward for your shopping, and you have to pay the amount later to the care provider who is paying the amount for your shopping on your behalf. In the case of a debit card, you can only spend the amount you have in your account, but a bitcoin credit card will give you the option to spend now and pay later and reward your spending in cryptocurrency.

Available Bitcoin credit Card

The bitcoin credit cards are not as popular as the bitcoin debit cards because few people show interest. After all, it is complex for them to understand the process. But there are the following two bitcoin credit cards that are available in the US market given below:-

  1. Gemini Bitcoin Credit Card:– Gemini bitcoin credit card is popular in the US because it gives three per cent cash back on the spending available in the fifty states of the US. But the Gemini card doesn’t clear the annual fees or maintenance charges for using this credit card that you have known before buying any card; otherwise, it will increase your expense instead of rewards. It also promises that you do not have to pay the fees for your rewards.
  2. BlockFi Bitcoin Credit Card:– BlockFi is also a popular bitcoin credit card that gives the one point five per cent (1.5%) cashback on your spending through this card and gives the bonus of two fifty dollars on signup charges the two hundred dollars as annual fees.

Should you use a bitcoin credit card?

It all depends upon your choice whether you want to use it or not, and if you are interested in cryptocurrency and want to earn a reward and are already a credit card user, then you can go with it, but there are the following things that you should ask yourself before buying crypto or bitcoin credit card given below:-

  1. Will the credit card that I will choose give me a higher percentage of reward than the credit card that I am currently using? If the reward percentage is low, you should not prefer to go with it, and you can also compare the different cards.
  2. If there is annual fee. Do I pay every year for using this card? Like in the case of the BlockFi bitcoin credit card, the annual fee is around $200.
  3. Do I need to pay any hidden or other fees for using this crypto credit card? Calculate your spending and deduct all these fees to know the potential
  4. Are there any other benefits I will get after using or ordering the card?


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