Whether this statement is justified or not will be clarified in the course of this blog.
Definitions and explanations
First, what is a crypto-covered credit card anyway, who offers it and how and where can you use it?
A credit card, i.e. a cashless means of payment by credit, is combined with cryptocurrencies.
For this purpose, the credit card is connected to both a conventional account and a crypto wallet. If you then pay with this card, the credit will be covered at the end of the month, with the sale of cryptocurrencies. There are also various bonuses that vary from card to card. So the cards are an easy way to use your cryptocurrencies. Examples of such cards are:
- BlockFi Bitcoin Rewards Credit Card
- Gemini Credit Card
- Crypto.com Visa Card
- Coinbase Card
There is also more about in this article:
https://www.cryptovantage.com/best-crypto-credit-cards/
Considerations
Let's imagine we have such a card and have also shopped well with it. At the end of the month, the loan will be covered for x shares of the respective cryptocurrencies. What happens if these cryptocurrencies have drastically lost value at the end of the month?
This would not be a problem as long as it can still be hedged with fiat currencies or by repurchasing. It only becomes problematic when this is no longer possible. If most of your money is in crypto, you should be careful because of volatility. In addition, it should be borne in mind whether you want to use your crypto investment as a means of payment or just want to keep it. By the second cause, such a card is not worth it.
In addition, the advantages and disadvantages of credit cards obviously apply, including the possible applications. Here is a website:
End
Are these credit cards dangerous now? - Not much more than normal credit cards. So safe in the right hands and rather unsuitable in others.
In general:
Crypto-covered credit cards are only worthwhile if you own a certain amount in cryptocurrencies and also want to use them as a means of payment. In addition, you should consider the same as with a credit card and take into account the volatility of the crypto market in your considerations.
Now at the end you will find some helping websites.
