The cryptocurrency segment has seen explosive growth over the past few years. Aside from Bitcoin, there are over 4,000 altcoins in circulation. Once a niche product, cryptocurrency is now part of the mainstream, and it is intersecting with credit cards.
Cryptocurrencies are more than investment assets. Today, you may get a Monero loan or buy Bitcoin at a special ATM. Such kiosks accept debit cards, credit cards, and cash. As of this writing, there are over 20,000 Bitcoin ATMs across the United States. So, how do these systems work?
Functions of Bitcoin ATMs
Despite their name, these machines have limited functionality. Unlike conventional ATMs with a cash dispensing option, they have just one purpose — to let you purchase a limited amount of crypto coins in exchange for cash. Users pay fees for the transactions, and the price for crypto has not always the best possible rate.
Buying Cryptocurrency With a Credit Card
New opportunities for buyers have emerged. A limited range of cryptocurrencies may be bought with a credit card. Only some platforms support these transactions, and the fees are quite high.
The biggest concern is that financial institutions often regard cryptocurrency as a cash equivalent. This means that your purchase will entail the same fee as withdrawal from an ordinary ATM. The interest will also be higher starting from day one.
Credit Cards With Bitcoin Rewards
Recently, credit cards with cryptocurrency bonuses have become available. In December 2020, one of the lenders announced the introduction of a