Exploring Credit Cards That Allow Cryptocurrency Purchases in May 2019

In May 2019, the world of cryptocurrencies and finance intersected in a significant way. Many credit card companies began to explore the integration of cryptocurrency into their payment systems, offering new opportunities for users to purchase goods and services with digital currencies. This article delves into the various credit cards that allowed cryptocurrency purchases during that time, highlighting their features, benefits, and limitations.

1. The rise of cryptocurrency credit cards

The rise of cryptocurrencies, particularly Bitcoin, has sparked a revolution in the financial industry. As more people embrace digital currencies, the demand for convenient and secure ways to use them has increased. Credit card companies have recognized this trend and started offering cards that allow users to make purchases using cryptocurrency.

2. Credit cards that allowed cryptocurrency purchases in May 2019

a. BlockFi Visa Credit Card

One of the first credit cards to allow cryptocurrency purchases was the BlockFi Visa Credit Card. This card was exclusively available to BlockFi customers, who could use their credit card to make purchases in USD. The card offered a 1.5% cashback on all purchases, with the cashback rewards being paid in USD. Users could also convert their cryptocurrency rewards to USD at a competitive rate.

b. Celsius Network Visa Credit Card

Celsius Network, a leading cryptocurrency platform, also launched its own credit card in May 2019. The Celsius Visa Credit Card allowed users to make purchases using their Celsius account balance, which could be in USD or cryptocurrency. The card offered up to 4% cashback on purchases, with the rewards being paid in Celsius's native token, CEL. Users could also earn additional rewards by referring friends to the platform.

c. Wirex Visa Card

Wirex, a UK-based fintech company, introduced the Wirex Visa Card, which was available in both physical and virtual formats. The card allowed users to load it with cryptocurrency or fiat currency and use it to make purchases worldwide. The Wirex Visa Card offered a competitive exchange rate and a 1% cashback on all purchases made with cryptocurrency.

3. Benefits of using cryptocurrency credit cards

a. Increased convenience

One of the main benefits of using cryptocurrency credit cards is the increased convenience they offer. Users can make purchases using digital currencies, eliminating the need to convert their cryptocurrencies into fiat currency every time they want to spend.

b. Potential for higher cashback rewards

Many cryptocurrency credit cards offer higher cashback rewards compared to traditional credit cards. This can be a significant advantage for users who frequently make purchases using their credit cards.

c. Enhanced security

Using cryptocurrency credit cards can provide enhanced security compared to traditional credit cards. Since cryptocurrencies are decentralized, they are less susceptible to fraud and hacking attempts.

4. Limitations and considerations

a. Limited acceptance

While the number of merchants accepting cryptocurrency payments has been growing, it is still relatively limited compared to fiat currency. Users should ensure that their chosen cryptocurrency credit card is accepted by their preferred merchants.

b. Exchange rates and fees

When using cryptocurrency credit cards, users should be aware of the exchange rates and fees associated with converting their cryptocurrency into fiat currency. These rates and fees can vary between different credit card providers.

c. Regulatory risks

Cryptocurrency is a highly regulated industry, and the regulatory landscape can change rapidly. Users should stay informed about the legal and regulatory implications of using cryptocurrency credit cards.

5. Frequently asked questions (FAQs)

Q1: Can I use my cryptocurrency credit card to withdraw cash from an ATM?

A1: No, most cryptocurrency credit cards do not offer cash withdrawal services. However, you can use them to make purchases at participating merchants.

Q2: Are there any annual fees associated with cryptocurrency credit cards?

A2: Yes, some cryptocurrency credit cards may have annual fees. It is important to review the terms and conditions of each card before applying.

Q3: Can I earn rewards on purchases made with my cryptocurrency credit card?

A3: Yes, many cryptocurrency credit cards offer cashback rewards on purchases made with cryptocurrency or fiat currency.

Q4: Are there any restrictions on the types of purchases I can make with my cryptocurrency credit card?

A4: Most cryptocurrency credit cards have the same restrictions as traditional credit cards. You should review the card's terms and conditions to ensure that your preferred purchases are allowed.

Q5: Can I use my cryptocurrency credit card to pay off my credit card balance using cryptocurrency?

A5: No, most cryptocurrency credit cards do not allow users to pay off their credit card balance using cryptocurrency. Users must settle their balance using fiat currency.