The world is quickly going digital, including how we spend our money. More and more cards are becoming available to consumers.
They operate just like the traditional cards; the difference is, crypto credit cards source for funds then pay rewards using digital currency, i.e., KSV 21, Bitcoin.
Since common card issuers support them, you as the client can enjoy spending with many rewards using cryptocurrency, and usually, there are no annual charges.
It is easy to sign up for prepaid debit cards, which has made them more popular and common.
However, you should know the advantages and disadvantages of using crypto cards before you decide to sign up for one
Pros of the KSV 21 enhanced crypto cards
1. No credit check
Normally, when you apply for a credit card, you have to hand in your personal information for the card issuer to do a credit check.
Without a good credit score, you do not qualify to get the best credit cards with great perks and rewards.
With cryptocurrency, this doesn’t apply because you’re not accessing credit. All you are required to do is top up your balance.
2. There are rewards
The majority of the people that sign up for crypto cards do it for the rewards. You get money rewards you spent yourself, so it’s a plus. The rewards are different for every platform and vary in percentage.
3. It’s easy to turn your crypto into money
You can use your cryptocurrency to top up your account. Sometimes it’s tough to withdraw money or transfer it to your account.
However, crypto users can spend their assets easily. You should know that taxes are involved every time you spend your crypto; therefore, you should keep track of each expenditure you make using your crypto.
Also, since you are an investor, you may want to consider not using your investments for everyday spending.
4. Additional perks
Crypto debit cards have additional just like those of rewards credit cards. In my case, my monthly subscription to Spotify qualifies me for a rebate.
However, the perks can be confusing, and you may end up picking the wrong card. If you won’t use the additional benefits fully, it is advisable to go for another platform with a better rewards rate.
Cons of crypto cards
Unlike a normal credit card, crypto cards are not issued by a credit card provider or a bank, most people usually assume they will get the protection they get with their credit cards, but that isn’t the case.
Crypto cards do not have an option of fraud protection. It simply says that you can file a chargeback for your money to be returned, and for that, you will have to freeze your card.
It will cost you in case you are required to get a new card.
2. Universal acceptance of the card
Many crypto cards are visa debit and are said to work anywhere. That has not been the case for me.
3. You will not build your credit history
Normally, when you use your credit card, you build your credit history, which in turn boosts your credit score.
If you have a history of making your payments on time, this shows that you are responsible, and it’s a big factor.
But if you use a crypto card, you are not borrowing money, so there’s no credit history. However, you can build a payment history on your card by using a secured credit card
KSV 21 Enhanced Crypto Card Conclusion
Crypto cards are here, and they are the future. With proper knowledge, you can make an informed decision on whether to use them or not