This guide explains what crypto prepaid cards and crypto credit cards are, how they work and how to choose the right one for your needs.
A crypto prepaid card is much like a regular prepaid card. You can use both for everyday spending. The main difference between them is that a crypto prepaid card lets you seamlessly turn cryptocurrency into fiat to top up the card.
In either case, these cards are typically issued in partnership with major payment networks like Visa or Mastercard, which means you can use them almost anywhere in the world.
You can use a crypto prepaid card for everyday expenses like coffee, groceries, travel bookings or online subscriptions. Many crypto prepaid cards also support multiple cryptocurrencies for top-up.
Another useful feature is that some crypto prepaid cards offer cashback-style rewards that are paid out in cryptocurrency instead of cash or points. For example, a purchase at a retailer might earn you a small amount of Cronos (CRO) or another supported coin.
In addition to prepaid cards, there are crypto credit cards.
Crypto prepaid cards work like any other prepaid cards. You choose which cryptocurrency to sell, and the fiat proceeds are loaded onto your card for spending. They’re similar to topping up a gift card. You can only use what you’ve already added, which makes it easier to control spending.
Crypto prepaid cards may support multiple cryptocurrencies, letting you choose which one to use to top up your account. They don’t involve borrowing and are easier to qualify for, but they also generally come with fewer perks. These cards may suit someone who already holds crypto and wants a straightforward, low-risk way to spend it.
Crypto credit cards let you spend on credit up to a set limit, then repay later – typically in fiat currency. Instead of earning traditional points or cash back, many offer rewards in cryptocurrency.
Using this type of card can be a way to accumulate crypto gradually through everyday purchases or convert your crypto to fiat to pay off your account balance. Compared to crypto prepaid cards, most crypto credit cards require a credit check and may have stricter eligibility requirements with availability limited to certain regions.
The bottom line: Prepaid cards are about spending funds you already hold, while credit cards are about using credit for purchases. |
Crypto credit cards | Crypto prepaid cards | |
Spending model | Credit line, repay later in fiat | Prepaid with crypto, converted to fiat before spending or at purchase |
Funding | Issuer’s credit | Your crypto balance |
Rewards | Often in crypto instead of points | Sometimes in crypto |
Crypto support | Usually one reward coin | Multiple coins |
Eligibility | Credit check required | ID check only |
Availability | Region-limited | Broad global reach |
Use case | Earn crypto from purchases | Easy way to spend held crypto |
Best for | Building crypto via rewards | Low-risk spending |
Here’s the simple process:
Crypto.com offers a prepaid Visa Card, designed to make spending crypto as seamless as using cash. With our prepaid card, cryptocurrency is converted into fiat before being loaded for spending. It offers tiered CRO rewards on everyday and travel purchases, along with perks like subscription rebates, airport lounge access and higher ATM withdrawal limits. With both cards, your CRO stake or lockup determines your Level Up tier programme, which unlocks greater rewards and lifestyle benefits directly through the Crypto.com App. |
A crypto prepaid card can be useful for people who already hold cryptocurrency and want a simple way to use it for everyday spending. It may also appeal to those who like the idea of earning rewards in cryptocurrency instead of traditional points or miles.
On the other hand, someone who rarely uses crypto or prefers to hold it purely as a long-term investment might not see much benefit in having a crypto prepaid card. For these users, the potential rewards or convenience features may not outweigh the effort of setting up an account.
Note: This piece is for informational purposes only and shouldn’t be taken as financial advice. Always do your own research and consider your personal circumstances before making any decisions about financial products.
What’s the difference between a crypto prepaid card and a credit card?
A prepaid card is topped up with fiat that can be funded from cryptocurrency and can only spend what’s loaded on the card. A credit card lets you borrow up to a set limit and earn rewards in cryptocurrency.
How do crypto card transactions work?
When you make a purchase, some cards convert your crypto to local currency instantly and the merchant receives payment in that currency. Others require that you convert your crypto to fiat first before spending it.
Are crypto cards safe to use?
Yes. Crypto cards are safe if issued by reputable providers. They include standard card security features, such as encryption and fraud monitoring.
Are crypto card rewards taxable?
In many regions, yes. Check your local tax laws or consult a tax professional.
Is a crypto card worth it?
If you spend crypto regularly or want to earn rewards in cryptocurrency, it can be. If you mainly hold crypto as an investment, you might prefer the accumulation benefits of a crypto credit card's rewards programme.
Important information: This is informational content sponsored by Crypto.com and should not be considered as an investment recommendation or advice. Staking rewards, fee reduction, and other benefits referenced in this article may be subject to eligibility requirements, token holdings, and may change at the discretion of Crypto.com. The Crypto.com Visa Card is subject to approval.
