Selling your crypto every time you need cash defeats the point of holding it. A crypto credit card solves that problem. It lets you borrow against your digital assets, spend in traditional currencies like dollars or euros, and still keep your crypto invested.

What is a crypto credit card?

A crypto credit card works a lot like a secured credit card. But instead of locking away cash, you use cryptocurrency as collateral — the digital assets that guarantee your borrowing.

That crypto stays in your account; it isn’t sold. It’s just temporarily locked.

When you make a purchase, the card provider lends you traditional currency, such as USD or EUR, or stablecoins. You’re spending these borrowed funds, not your Bitcoin or Ethereum. Once you repay it, your crypto collateral is released back to you.

It’s a simple way to access funds without giving up your investment.

Think of it in this way: If you’d held on to your Bitcoin since 2017, its value would’ve multiplied many times over. A crypto credit card helps you spend when you need to, without giving up your future gains.

How do crypto credit cards work?

1. Let’s go through the process in plain terms.

Start by registering with a platform like Nexo.
You can add crypto you already own.
Or, you can add funds via your bank account to buy Bitcoin, Ethereum, or stablecoins directly on the platform, and use that as collateral.
That collateral is what backs the credit line you’ll use when you start spending.
The credit line is the amount you can borrow against your crypto — basically, funds you can use anytime as long as your assets stay in place.

2. The platform sets your borrowing limit using a measure called a Loan-to-Value (LTV) ratio.

Here’s what that means: if you hold $100,000 worth of Bitcoin and your LTV is 50%, you can borrow up to $50,000. You always borrow less than your total holdings to minimize the impact of price swings.

3. You can use a virtual card for instant online payments or order a physical card for in-store purchases. You can also connect it to Apple Pay or Google Pay for contactless use.

4. Swipe or tap anywhere Visa or Mastercard is accepted. The merchant receives fiat currency while your crypto stays untouched.

5. Enjoy flexible repayments. This is where crypto credit cards stand out. Usually, there’s no fixed due date or minimum payment. You choose when and how to repay — with fiat*, crypto, or stablecoins.

6. With crypto credit cards like Nexo’s, you manage everything yourself — no need to call a bank or wait on hold to change limits or freeze your card. You can set spending limits, pause or unpause your card instantly, and add extra security with two-factor authentication.

Why use a crypto credit card?

Keep your crypto working

If you sell your crypto every time you need cash, you lose potential upside. A crypto credit card retains your assets while you spend, allowing you to benefit from potential price increases.

Avoid taxable events

Selling crypto often triggers capital-gains tax. Borrowing against it doesn’t, which can make this approach more efficient.

Earn crypto rewards

Many crypto credit cards reward you with digital assets instead of miles or store points. For instance, with the Nexo Card in Credit Mode, you can:

Earn up to 2% in NEXO Tokens if you want the highest return.
Or up to 0.5% in Bitcoin if you’d rather stack BTC.

Enjoy global use

You can use your crypto credit card anywhere Visa or Mastercard works — online, in stores, or through mobile wallets.

Risks and considerations.

Crypto credit cards are powerful tools, but you still need to watch market movements.

Let’s say you hold $100,000 in Bitcoin and borrow $50,000. If Bitcoin’s price drops by 30%, the value of your BTC holdings falls to about $70,000.

Now your LTV rises from 50% to roughly 71%. If it keeps climbing and hits around 83.3%, you would have to repay part of the loan or add more collateral to bring the risk back down.

That’s why it pays to borrow conservatively — leave breathing room in case the market turns.

Other things to keep in mind:

Interest rates: They vary by provider, asset, and Loyalty Tier. With the Nexo Card, rates start as low as 2.9% if you’re a Platinum Tier client spending in Credit Mode.
Platform reliability: Always pick a regulated and transparent company.

Choosing the right crypto credit card.

Picking the right crypto credit card comes down to how you use your crypto and what matters most to you.

Loan-to-Value (LTV) ratio

This controls how much credit you get compared to your collateral. Platforms usually assign lower LTVs to more volatile assets to create a wider buffer during price declines and higher LTVs to more stable assets.

Interest rate

Compare base and variable rates. Even a small difference adds up over time. Nexo offers rates starting at 2.9% per year, depending on your Loyalty Tier and LTV.

Repayment flexibility

You can repay in fiat*, crypto, or stablecoins with no fixed repayment schedules.

Supported assets

Make sure your crypto credit card supports the crypto assets you actually hold — not just Bitcoin or Ethereum.

Rewards

Look for transparent and consistent programs. Nexo offers up to 2% cashback, paid in NEXO Tokens or up to 0.5% in Bitcoin, so you decide which way you want to earn.

Transparency

Choose a provider that’s that works in alignment with regulations on a global and local level.

Key takeaways.

Crypto credit cards turn your holdings into usable credit without forcing you to sell. You borrow funds, keep your crypto invested, and even earn rewards while spending.

The Nexo Card gives you up to 2% cashback in Credit Mode, flexible repayments in fiat*, crypto, or stablecoins, and global usability with Apple Pay and Google Pay.

Frequently asked questions.

What is a crypto credit card?

A crypto credit card lets you borrow stablecoins or traditional currency while using your digital assets as collateral. Instead of selling your Bitcoin or Ethereum, you open a credit line backed by your assets and repay later in fiat, crypto, or stablecoins.

How does a crypto credit card work?

You add crypto into your account, which becomes your collateral. The card provider issues a credit line based on a Loan-to-Value ratio (LTV). You spend traditional currency online or in stores while your crypto remains locked but unsold. When you repay, your assets unlock.

What is the Loan-to-Value (LTV) ratio in crypto credit cards?

The LTV ratio shows how much you can borrow compared to the value of your collateral. For example, with a 50% LTV, having $10,000 worth of Bitcoin allows you to borrow up to $5,000. Lower LTV means lower liquidation risk if the market drops.

Can I repay with crypto?

Yes. With providers like Nexo, you can repay with fiat, crypto, or stablecoins, giving you control over when and how you settle your outstanding balance. Interest is charged only on the amount borrowed, not your entire available credit.

Do crypto credit cards offer cashback or rewards?

Yes. The Nexo Card, for example, offers up to 2% crypto cashback on purchases in Credit Mode. You can choose your reward type:

up to 2% in NEXO Tokens for a higher yield
up to 0.5% in Bitcoin if you prefer to earn BTC rewards

These rewards work like airline miles or store points, but instead of discounts, you earn actual digital assets that can appreciate in value.

Is using a crypto credit card safe?

Crypto credit cards are generally secure when issued by regulated providers with strong custody and collateral management systems.

What if my crypto drops in value?

If your holdings fall and your LTV rises near the limit (usually around 80–85%), the platform may ask you to repay part of what you borrowed or add more crypto as collateral.

Can I use a crypto credit card with Apple Pay or Google Pay?

Yes. Most modern crypto cards work with Apple Pay and Google Pay. This allows you to make instant contactless payments in stores or online.

Do crypto credit cards impact my credit score?

Typically, no. Most providers don’t perform traditional credit checks because your borrowing is secured by your crypto collateral. However, always read the terms, as reporting practices can vary by region and platform.

Why use a crypto credit card instead of selling crypto?

You keep your assets invested, avoid potential taxes from selling, and still pay for everyday expenses with your borrowed amount.

These materials are accessible globally, and the availability of this information does not constitute access to the services described, which services may not be available in certain jurisdictions. These materials are for general information purposes only and not intended as financial, legal, tax, or investment advice, offer, solicitation, recommendation, or endorsement to use any of the Nexo Services and are not personalized, or in any way tailored to reflect particular investment objectives, financial situation, or needs. Digital assets are subject to a high degree of risk, including but not limited to volatile market price dynamics, regulatory changes, and technological advancements. The past performance of digital assets is not a reliable indicator of future results. Digital assets are not money or legal tender, are not backed by the government or by a central bank, and most do not have any underlying assets, revenue stream, or other source of value. Independent judgment based on personal circumstances should be exercised, and consultation with a qualified professional is recommended before making any decision.

*Repayments on the Nexo platform are executed using FiatX currencies (e.g., USDx, EURx, GBPx), which are digital representations of fiat.