What is a Bitcoin Credit Card?
A Bitcoin credit card is nothing more than a normal credit card that supports the crypto currency. Bitcoins are still very popular with investors, so it may make sense to first charge your own credit card with Bitcoin. So you could also use it in everyday life to pay wherever Bitcoin is accepted.
In almost all cases, you need an app to manage your Bitcoin credit card. Here you get an overview of all transactions and transaction fees.
These apps can thus be imagined as a kind of online account through which you control all your financial transactions. Bitcoin credit cards are available in different versions, each of which has specific advantages and disadvantages.
Types of Crypto Credit Cards
There are now two main types of Bitcoin credit cards. On the one hand, a Bitcoin prepaid credit card can be used. This can be topped up with Bitcoin at any time.
The cryptocurrency is changed into a real currency to be selected. On the other hand, you can use a Bitcoin Wallet credit card. Here the credit card functions as a wallet and stores Bitcoins directly.
Bitcoin Prepaid Credit Cards
Bitcoin credit cards in prepaid format are the much more popular form nowadays. Here, you use your Bitcoins to top up your credit card. The cryptocurrency is converted into a real advertisement, such as euro or dollar, when the card is recharged at the current exchange rate.
There are therefore no Bitcoins on the credit card, but you can use them to load money onto the card. The advantage of this is that you can pay with such a card wherever you can pay with a conventional card. It is not necessary for the recipient of the payment to have a wallet.
Depending on the type of credit card, there are different fees for changing from a cryptocurrency to a real currency. One should therefore inform oneself very carefully before deciding on a Bitcoin prepaid card.
Here you find a full list of available prepaid cards: http://www.cryptodebitcards.com/.
Bitcoin Wallet Credit Cards
Bitcoin Wallet credit cards work differently. Here the cryptocurrency is not converted, but loaded directly as a token onto the credit card. The Bitcoin Wallet credit card thus represents a special form of a wallet that allows you to store Bitcoins there and pay with Bitcoin by credit card.
With most Wallet credit cards there is no way around using an additional app. This is used to manage the credit balance and also enables the transfer of the seed from the credit card to another platform.
This kind of virtual credit card is used much less often, because it can be difficult to pay with it in everyday life. However, with increasing acceptance of Bitcoin, this could soon change.
Where can I pay with BTC Credit Cards?
If you use a Bitcoin prepaid credit card, you can pay with it wherever you can pay with your normal Visa or Mastercard bills.
Because the Bitcoin prepaid credit card is topped up with Bitcoins, but these are converted directly into a real currency at the current exchange rate, the credit is available there in the form of dollars, euros or another selected currency. As a result, you can use it to pay anywhere without any problems.
With Bitcoin Wallet credit cards it behaves somewhat differently. For example, if you want to use them to pay by credit card at a gas station with Bitcoin, the station must also accept payments in Bitcoin.
Anyone who travels a lot knows that more and more stores have issued the Bitcoin logo next to the logos of the credit card companies. In most cases, this logo means that payments are accepted in Bitcoin and the recipient of the payment has his or her own wallet. This means that in such transactions one can pay with the Bitcoin Wallet credit card.
However, stores that accept Bitcoin payments are still the exception. The Bitcoin is still a long way from reaching the middle of society, so you may have to look for special stores that support payment with Bitcoin by credit card.
In summary, a Bitcoin prepaid credit card is therefore still the more sensible choice today. Even if one does not pay Bitcoins directly here, one still has the advantage that it is accepted wherever Visa or Mastercard are accepted.
The Bitcoin Wallet credit card on the other hand still suffers from a lack of acceptance of Bitcoin. Nevertheless, there are quite a few stores that accept it.
Bitcoin Prepaid Credit Card: How it works
Anyone who decides to use Bitcoins by means of a credit card must first select a provider. Once the card has been sent, it can usually be managed via an app.
One should first take a look at the different conditions of the various providers before deciding on the appropriate Bitcoin prepaid credit card. Each user has different needs, so that no clear recommendation can be made here.
While some want to benefit from as many bonus offers as possible, for others it is all about keeping fees as low as possible (in this case we recommend the Bitwala credit card). Once a decision has been made, it is necessary to register with the respective provider.
Using a credit card is no different from using a conventional credit card. For example, if you want to book a flight, you simply enter your credit card details on the booking page.
Now the payment is confirmed and the amount is simply debited from the Bitcoin Prepaid Credit Card. Depending on the provider, different fees are charged.
You should make sure that you never give sensitive data, such as the credit card number, to third parties. Even a Bitcoin prepaid credit card does not provide a higher level of protection against theft. The Bitcoin Wallet credit card can be considered somewhat more secure because it functions as a wallet and has additional protection mechanisms.
Anyone who already has a conventional credit card will have no problems making payments with a Bitcoin Prepaid Credit Card. This can therefore be a useful option for paying any bills.
Charge your Credit Card with Bitcoin
If you want to top up your Bitcoin Prepaid Credit Card, you should of course first own the popular Bitcoin. If you would like to know how to get your own Bitcoins, you will find instructions here.
So how exactly does recharging your own Bitcoin credit card work? Once the card has arrived, you should register with the respective provider. Once you have done so, you will be given access to a separate wallet that was designed for transferring the Bitcoins to the credit card.
So you send your seed from your own Wallet to the provider’s Wallet and select the time of transfer to the Bitcoin Prepaid Credit Card. It is advisable to choose a time when the Bitcoin rate is particularly high, so that you get as many euros as possible for your Bitcoins.
Now the Bitcoins are changed into a real currency and the Coins land as assets on the Bitcoin Prepaid credit card.
The Wallets, which are made available by the respective providers, are usually online Wallets. Even though they often have the reputation of being relatively insecure, in most cases the own coins do not remain there for long, but are transferred immediately to the virtual credit card.
Nevertheless, you have to make sure that the chosen provider is trustworthy, so that you do not fall victim to scams. With the established Bitcoin credit card companies, however, you can be sure in most cases that they work seriously.
As soon as the recharge is complete, you can use your credit card and make your first purchases.
Advantages and Disadvantages of a Crypto Credit Card
Is it worth using a Bitcoin prepaid credit card? If you want to use Bitcoin with a credit card, you can use the credit to pay bills quickly and easily.
A Bitcoin prepaid credit card could be worthwhile here. First of all you have a little more effort than with a normal credit card because you first have to transfer your BTC from your own Wallet to the provider’s Wallet and then load the credit card.
Nevertheless, you can make your own Bitcoins usable for daily use relatively quickly and pay indirectly with the popular coins. Thus the cryptocurrency is no longer completely uncoupled in such a way, as if it lies on the own Wallet.
It is recommended to always wait for a time when the exchange rate is favorable. Thus one receives more money on its card, if one loads up. The credit card Bitcoin Prepaid is a good way to integrate your Btc credit more into your daily life.