🔥 Bitcoin credit card test: best cards in comparison 2021
It doesn't matter whether you are interested in crypto currencies or not: Bitcoin, the mother of all crypto currencies, has been a term for everyone who is interested in finance or the financial world - there is really no getting around this digital currency . Due to the fact that there are now so-called Bitcoin credit cards, interest will continue to grow. But what should you watch out for when planning to use a Bitcoin credit card?
The most important thing about Bitcoin credit cards at a glance
- Bitcoin credit cards are already made available by some well-known crypto exchanges
- There are two different types of Bitcoin credit cards
- The credit card is usually managed with an app
- Most of the Bitcoin credit cards are free of charge
What is a Bitcoin credit card?
In order to find out what a Bitcoin credit card is, you should know that there are different models.
What credit card models are there for Bitcoin?
At the moment there are two types of Bitcoin credit cards. The prepaid credit card may, so to speak, be the "simpler" variant. Here, the prepaid credit card is loaded with the currency Bitcoin, so to speak - the amount loaded onto the credit card is then available. Due to the fact that Bitcoin is very volatile, the exchange rate used is exactly that which was valid during the loading process.
This means that although you cannot access your cryptocurrency via your credit card, you are still able to access the selected amount. A conversion of Bitcoin into another currency can take place at any time. It is important to wait for a correspondingly favorable exchange rate here.
The alternative to the prepaid credit card? A credit card that offers the same functions as a wallet, so to speak. This means that there is a direct transfer from the cryptocurrency to the credit card.
Depending on the provider, there are different options for how the conversion is handled. However, one can say that in the end two options have come to the fore: Some providers use the exchange rate that was valid at the time of purchase - so if you pay your Amazon bill with your credit card, the euro price is used, which was valid at the current time. However, there is also the option of the cardholder himself deciding when to exchange the digital coins on the credit card. This means that a certain amount can be exchanged in advance and then saved on the card. This process can easily be carried out via the app.
How do Bitcoin credit cards work?
Classic credit cards differ in how the credit is deposited:
With the revolving credit card, the provider carries out pre-financing. This means that the cardholder then has to pay off the debts by bank transfer. If the arrears arisen are not paid on time, the loan interest arises.
Pre-financing is also carried out by the provider for the charge credit card. However, the debt incurred is automatically deducted from the credit card owner's specified reference account - for example on the 1st of the month. If there is insufficient funds in the account, meaning that the debt cannot be paid in full, interest will also accrue.
The debit card can be compared to the classic bank card. The resulting debt is debited immediately - i.e. from the reference account.
The prepaid credit card is an increasingly popular variant. In this case, a certain amount must first be loaded in advance in order to be able to use the credit card. This means that there is no pre-financing from the credit card provider.
The prepaid model is also usually used for Bitcoin credit cards. Only Bitwala offers customers a debit card - the debit is then made directly from the IBAN account according to the load.
The real Bitcoin credit card
This credit card has its own wallet. The credit card owner can decide here that the payments in the fiat currency (US dollars, euros) are converted at the current rate immediately after the debit. However, the exchange time can also be determined by yourself - so you have the chance to get a cheaper rate.
Of course, you can also pay directly with Bitcoin. But only if the cryptocurrency is accepted. So whenever crypto currencies such as Bitcoin or Ether are accepted by the recipient, direct payment by credit card is also possible.
The fake Bitcoin credit card
If a "fake" Bitcoin credit card is used, it is necessary to top up the credit card with the cryptocurrency in advance. Immediately after recharging, the change to the selected fiat currency takes place. The fact is: This is the most common form of working with a Bitcoin credit card today - this also suddenly increases the number of acceptance points. Because the number of those entrepreneurs or online shops that accept crypto currencies is still low. However, if you change to the desired fiat currency while you are charging, you can shop anywhere where credit cards are allowed.
Is a Bitcoin credit card worth it?
Crypto or Bitcoin fans will probably ask the legitimate question whether it is worthwhile to opt for a Bitcoin credit card. A question that cannot be answered across the board because it is ultimately decisive whether the advantages or disadvantages are sufficiently informative for you to be able to make an appropriate decision.
The number of those who accept Bitcoin credit cards is large - and will continue to grow. Because whenever MasterCard or VISA is accepted, you can also pay by credit card if you opt for the “fake Bitcoin credit card”.
It should be noted that the majority of the Bitcoin credit cards offered are free. Fees are only assessed in very few cases - although these are very low. On average, the Bitcoin credit card costs 1,20 euros / month.
A cashback program is offered with some Bitcoin credit cards. That means, if you use the Bitcoin credit card, you can look forward to a credit here. This is between 0,5 percent and 2 percent of the purchase price. The amount of the credit depends on the provider.
Probably one of the biggest disadvantages of choosing a Bitcoin credit card: You can only withdraw small amounts at the machine - usually an average amount of a maximum of 250 euros is available here. Another disadvantage: with some providers, the credit is immediately saved in the fiat currency of the euro and not as Bitcoin. Curse and blessing at the same time - primarily depending on how the price of the cryptocurrency develops.
Bitcoin credit cards compared in 2021
If you are interested in the Bitcoin credit card, it is important to get an idea of the current market situation in advance. That means, who offers Bitcoin credit cards and how satisfied are the customers in the end? Before making a comparison, however, you should know which points have the highest weight. And in the end, it's also about personal ideas - that is, what is particularly important to you?
At the beginning it is about the question of seriousness. This means that you have to check whether the company behind the Bitcoin credit card is reputable. If there are indications that fraudulent activities are being pursued, it is advisable to keep your hands off it and look for another provider.
Due to the fact that there are already different Bitcoin credit card models, you should clarify for yourself which card model suits you personally. Based on the decision made, the comparison with the respective card model can then be continued. This means that you also have to check whether the shortlisted provider even provides the desired card type.
When it comes to topping up the prepaid credit card, the question of which Fiat currency should be used will have to be answered. Usually the companies work with US dollars, British pounds and euros. Other currencies are of course possible - but you have to go into depth in the course of the comparison.
If you want to use a Bitcoin credit card, you also have to obtain information about the costs. Because time and again, special types of credit cards can ensure that high fees arise. For this reason, it is important to deal with the fee model in advance - and also to clarify for yourself whether you are willing to pay money for the Bitcoin credit card and, if so, what the maximum fees can be.
Bonus offers are tempting, but should play a subordinate role in the course of a comparison and only really get paid attention if two providers present the same offer and you are undecided.
Binance is one of the largest and most famous crypto exchanges. The Exchange was founded in China; today the headquarters of the platform for the cryptocurrency exchange is in Malta. Binance started launching its own credit card in December 2020. The card is supported by VISA. The administration of this Binance Card is done via the own card wallet, which automatically converts the payment transactions into the selected fiat currency. Direct payment with the Binance credit card is not possible.
The crypto currencies Bitcoin, Ether, Binance Coin, Swipe and Binance USD are accepted. For the time being, the credit card should remain free of charge. Linking to Samsung Pay such as Google Pay is possible.
The headquarters of the digital currency exchange Coinbase is located in San Francisco. Bitcoin, Ether, Bitcoin Cash, Ether Classic, Tezos, Litecoin and many other digital currencies are mediated here. German customers have been able to use the Coinbase VISA credit card since 2019. The available credit line is linked to the available credit. The difference between this credit card and a classic credit card? The card is not linked to the euro account, but to a crypto wallet deposited with Coinbase.
The account holder then uses the app to decide how the pending payment should be processed - i.e. with which cryptocurrency. When withdrawing cash or in the course of the payment process, the fiat amount is offset against the crypto credit at the Coinbase rate.
Bitpanda, the Austrian neo broker based in Vienna, who specialized in crypto assets, is now also providing its own credit card, which was created in cooperation with VISA. Eric Demuth, co-founder and CEO of Bitpanda, wants, according to his own statement, to develop products that have not yet been available on the market in this way in order to subsequently be able to break down financial barriers so that everyone can use the diverse financial world individual person can be provided.
There is no issuing fee; Bitpanda also waives account fees. With the card it is possible to pay with all available asset classes that can be found on Bitpanda. In addition to crypto currencies, this also includes fiat currencies and precious metals. There are also no fees for payments - exceptions: payments in non-euro currencies or cash withdrawals from machines. The "Main Asset" defines the currency to be used for payment when the credit card is used. This setting can be changed in the app at any time.
A connection to the mobile payment systems for Samsung Pay and Google Pay is currently available; Apple Pay is to be implemented in the future, so it is not yet available at the moment.
Bitwala is a Berlin-based financial service provider that offers a product so that users can manage Bitcoin and the euro in one place. Bitwala offers the bank account in a bundle with the debit credit card from MasterCard - Solarisbank has been won as a partner for the issuance. The offer thus combines a classic banking service, the Bitcoin wallet and ultimately crypto trading directly on the platform.
A special advantage: account management and card usage are free of charge - there are no costs here. However, currency trading is not free. In this case, 1 percent of the transaction volume is charged - this is the network fee, so to speak. When executing a Bitcoin transfer, however, no further fees will be charged.
The crypto currencies Bitcoin and Ether are accepted. This means that you can store these two digital currencies in your digital wallet.
Crypto.com is an extremely successful startup based in Hong Kong. The vision here is to significantly accelerate the transition to business with cryptocurrencies. All kinds of services are offered that are in any way related to cryptocurrencies. Above all, Crypto.com convinces with a broad product portfolio for credit cards. The MCO VISA credit card has been available in Europe since May 2020.
Since Crypto.com covers the market in Europe, the USA and Asia, it is currently the most widely used credit card in the world. The credit card is issued by PayrNet Limited. PayrNet Limited holds a Lithuanian e-money license.
The payment cards are managed via the app. Here you can then “buy”, “sell”, “trade” and “invest” - and that with all available cryptocurrencies. Even borrowing is possible.
It should be noted that the credit card from Crypto.com is provided free of charge. Cash withdrawals are also offered free of charge - and that is absolutely not a matter of course. Other points that speak clearly in favor of the credit card from Crypto.com: There is a cashback system and attractive discounts for streaming services (e.g. for Amazon Prime, Netflix or Spotify). The plastic card is also available in different designs and in platinum metal.
Test winner: the best Bitcoin credit card!
Due to the fact that the Bitcoin credit cards currently available on the market are all very good, it may often be a subjective decision as to who has earned the title of “test winner”.
However, it should be noted that it is mainly the credit cards from Binance such as Coinbase that have collected a lot of plus points:
- Binance scores primarily with the fact that it is the largest and best-known crypto exchange. That said, the company behind the credit card already has a very good reputation in this industry. The credit card is also available free of charge and can be linked to Google Pay and Samsung Pay.
- Coinbase also scores with the level of awareness. But of course the credit card is also convincing - especially because there is a direct link to the Coinbase crypto wallet.
How expensive is a Bitcoin credit card?
As a rule, Bitcoin credit cards are provided free of charge. Cash withdrawals may incur fees. In order not to experience a nasty surprise in the end, it is advisable to take a look at the fee model of the respective provider.
How do I manage my Bitcoin credit card?
Bitcoin credit cards are usually managed via apps. This means that in order to use the credit card in full, it is necessary to install a corresponding app on your smartphone. With this app it is then possible that the Bitcoin credit card can be used to the fullest extent. But it is also about protection - such as ensuring that the credit card owner is always informed when the credit card has been used. So you keep the overview.
There are also a few providers who make it possible to have access via the computer - this is offered by Wirex, for example.
How to top up the credit card!
If you want to use your Bitcoin credit card, if it's a prepaid credit card, you have to top it up in advance. First of all: Charging will not pose any difficulties even for beginners - that is, the entire process is not only done in a few moments, but is simple and self-explanatory.
- If you have the Bitcoin credit card, it is now necessary to register with the provider.
- After logging in, you will have access to the separate wallet. This wallet is used to subsequently transfer Bitcoin to the credit card.
- This means that you send the seed from the wallet currently in use, in which the cryptocurrency is stored, to the provider's wallet.
- Since you have an influence on when the transfer should take place, it may be advisable to wait for a good Bitcoin rate.
- After the transfer, the exchange into the real fiat currency follows automatically. Thus, the Bitcoin credit card was charged with Bitcoin.
Are Bitcoin credit cards sustainable?
Due to the fact that interest in cryptocurrencies is increasing, and Bitcoin in particular may be the focus of events, interest in Bitcoin credit cards will probably also increase.
At the moment there are already some providers of such Bitcoin credit cards. With the increasing demand, however, it can be assumed that not only the major players in the industry such as Coinbase or Binance will provide credit cards, but also sometimes smaller crypto exchanges and it cannot be ruled out that larger financial institutions, such as well-known banks, will get on the train will jump up.
Bitcoin credit cards are therefore very future-proof and will probably have reached the middle of society in a few years.
Our conclusion: That's why a Bitcoin credit card is worth it!
A Bitcoin credit card may score points with a few advantages. Above all, crypto fans will be thrilled to be able to use a credit card that can be charged with the crypto currency Bitcoin, for example.
Due to the fact that Bitcoin credit cards are issued by the well-known Coinbase crypto exchanges such as Binance, whereby the credit cards of other providers, such as Bitpanda, may not be disregarded, it may be worthwhile to accept such an offer today.