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Crypto Trading Cards – Crypto trading has become a very profitable business for many people. However, it is vital not to let your emotions take over if you want to achieve your desired goals. So, before we state to you how to prepare and adapt to the different situations you might face, let’s first look at what makes cryptocurrency trading so emotionally draining.
The Risks Of Crypto Trading
It is well known that small company stocks (penny stocks) present significant risks to investors. This is due to several reasons, including low liquidity, lack of market information, and their market capitalization, which is often negligible. It is the same for crypto trading.
The Strongest Cryptocurrencies
Except for the most prominent cryptocurrencies on the market, digital currencies often have small market capitalizations, and in most cases, their developers are anonymous or hide under pseudonyms. This can lead to price volatility within the crypto market. In addition, the codes of these cryptocurrencies can sometimes be copied, modified, and launched under other names. This is even how Dogecoin was created at the weekend, according to its founders Palmer and Markus.
On the other hand, many hard forks have taken place in the crypto market, including the move from Ethereum to Ethereum Cash and from Bitcoin to Bitcoin Cash, to name a few.
What Is A Crypto Credit Card?
Concretely, crypto credit cards are payment cards that credit cryptocurrency rewards. Indeed, it can be a debit or credit card. These cards facilitate crypto or fiat transactions, or even both simultaneously. What they have in corporate is that they give crypto rewards for your payments . He was looking for an electronic payment system that did not depend on intermediaries. However, due to market volatility, it took several years for people and businesses to grasp the meaning of this vision. On the other hand, crypto enthusiasts have started hoarding digital assets. They pushed the market to all-time highs, and soon after, everyone wanted to enter the crypto-sphere.
To cash in on the cryptocurrency boom, crypto debit cards like Shift Card were born, but they faced several hurdles before they could take off. First, a flexible payment system was not enough to penetrate the market. Also, the services offered were not worth their exorbitant prices . Later, several companies from all branches of fintech entered the market.
Why Use A Crypto Credit Card?
Below are some of the reasons that charm people to crypto credit cards. However, be aware that each card has characteristics that fulfil particular needs.
- First, cryptocurrencies are here to stay, and the exponential growth they have experienced over the past two years proves it. Over time, crypto rewards can become a substantial source of money.
- Second, credit cards greatly simplify the conversion of crypto to fiat currency.
- Third, some of the best crypto credit cards charge little to no fees on services.
- Finally, if your spending exceeds a certain threshold, a portion of the fee may be waived as a reward.
Should You Use A Crypto Credit Card?
With their features and rewards, crypto credit cards are encouraging more people to get into crypto. So if you believe in the perspective of crypto, these cards are probably for you.
As you can see from the list above, there is a wide range of crypto credit cards. While some are better in terms of convenience, others offer better rewards. Also, some give you credit, while others require you to top up your account. Finally, credit score requirements and fees vary from provider to provider. In the future phases, we may see various new features and upgrades in the industry. However, since these cards have only recently been introduces, it isn’t easy to decide on the best crypto credit card in 2021.
Ultimately, your preferences and requirements determine your choice. However, we mention that you think carefully before making your decision.
The Disadvantages Of Crypto Credit Cards
Be aware that the opportunity cost imposed on crypto payments can be very high. For example, suppose you have earned 100 points from your trades and have three months to redeem them. In the first month, the marketplace was bullish, so you preferring to wait for the market to climb even higher before trading them. However, contrary to your expectations, the market crashed, and the value of your rewards with.
Indeed, many crypto credit cards offer rewards in a limited number of coins or tokens, depending on the crypto companies they collaborate with. Of course, this is a significant downside, especially if the crypto in question is on a downtrend.
The decentralized crypto sector does not have this luxury. Therefore, every crypto asset should be viewed based on its unique value. Your assessment should consider the unique value proposition, team, history, and competition with many cryptocurrencies in the market. Finally, not getting into crypto trading can be a risk. Indeed, the US dollar will continue to lose value as the money supply increases in many countries.
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