From cool rewards to easy crypto-to-fiat conversion, these are the best crypto credit and debit cards to own.

In the early days of crypto, holders generally used currencies like 

 (P2P) transactions. Now, crypto debit and credit cards make it much easier to convert cryptocurrencies into fiat to use for payment. Whether you’re new to crypto or a long-time investor, a crypto card can help you access and use your digital holdings.

This article lays out the best crypto credit and debit cards currently available to consumers. It also explains how you can decide which is the best card for you.

A crypto credit card allows you to earn cryptocurrency as a reward for spending, while a crypto debit card converts cryptocurrency into fiat when you make a purchase or use an ATM.

As with regular credit cards, using crypto credit cards involves borrowing money from the issuer. When you make a purchase, the card company provides the funds necessary and your balance increases. As with regular cards, crypto credit cards allow holders to earn rewards for their purchases. What sets crypto credit cards apart is that the rewards come in the form of cryptocurrency that the issuer purchases for the holder.

One major benefit of using a crypto credit card is that it gives you a risk-free way to earn cryptocurrency just by making everyday purchases. This makes it a great option for hesitant, risk-averse newcomers to the world of crypto. The only significant drawback is the volatility of crypto markets, but at least cardholders will only be risking their rewards, rather than larger savings.

A crypto debit card is similar to a regular debit card in that the holder uses their own money to make purchases or withdraw cash from an ATM. Unlike regular debit cards, most crypto debit cards draw from the holder’s cryptocurrency accounts. This makes them a convenient way to convert cryptocurrency into fiat that you can use to make standard purchases. Other crypto debit cards allow you to preload 

In addition to converting crypto into fiat, crypto debit cards often allow you to reduce foreign transaction fees and easily spend money in multiple currencies. Potential pitfalls include geographical restrictions and the triggering of taxable events for using cryptocurrency.

How to Choose the Best Crypto Credit and Debit Cards

While there still aren’t as many crypto cards available as conventional credit and debit cards, new options are appearing every year. As the number of choices increases, consumers need to put more thought into their decisions. There are a few key factors for you to consider before choosing a card.

First of all, think about the type of cryptocurrency you’ll be using. Some crypto credit cards only let you earn rewards in a particular cryptocurrency, and some crypto debit cards can only connect with certain cryptocurrency accounts. If you’re new to the world of crypto, and you don’t care which currency you end up using, this shouldn't be an issue. If, on the other hand, you already have a currency of choice, you’ll need to find a card that allows you to use it.

When comparing the best crypto credit cards, you’ll want to weigh the rewards that each card offers. In general, a higher rewards rate will allow you to earn more cryptocurrency. Some cards offer a flat rate for all types of purchases, while others offer higher rates for buying products and services that fall within certain categories. If you happen to spend a lot of money in a particular area of goods or services, you may want to look for a card that will reward you for your habits.

While the best crypto credit cards are generally affordable, there are certain fees for you to consider. Some cards charge an annual fee, while others are completely free. Foreign transaction fees are common, but you can find cards without them, which is an especially good idea if you travel abroad. Also, look out for cryptocurrency sales fees, which are pesky charges that show up every time you sell the rewards you’ve earned in crypto.

For many users, the main point of owning a crypto credit or debit card is to optimize crypto-to-fiat conversions. Your Bitcoin debit card will hardly prove useful if it doesn’t allow you to quickly and easily convert crypto into fiat. Unfortunately, some issuers use experimental methods that confuse cardholders and complicate conversions. By avoiding these types of issuers, you can ensure you get a card that truly serves your crypto needs.

A crypto card is only beneficial if you can actually use it. The world of crypto is evolving rapidly, and every month seems to bring a new set of regulations. Amid this dynamic environment, you need a card that’s currently usable in your preferred location. That way, you can make sure you maintain constant access to your digital assets.

As cryptocurrencies gain popularity, the number of crypto credit cards available is steadily increasing. This means consumers need to be especially discerning before making a choice. Here are six of the best crypto credit cards currently on the market. While each individual has their own needs and expectations, and should choose a card accordingly, you can’t go wrong by picking any of the cards on this short list.

 is one of the best crypto credit cards for anyone looking to take out large loans in cryptocurrency. You can use the card for 

 worth up to $2 million, with your current crypto holdings acting to secure the financing.

Even if you’re not interested in large-scale loans, the Nexo Mastercard is still an appealing option. One major perk is its availability, with the card usable anywhere Mastercard is accepted. You can also earn up to 2% rewards in NEXO or up to 0.5% in BTC, a competitive rate that many cardholders are happy with. The associated smartphone app makes the card incredibly user-friendly, allowing you to easily set notifications, change your pin and freeze the card if it’s been lost or stolen.

If you already have the Venmo app, then the 

 will be easy and convenient to use. With the Venmo app, you can track purchases and monitor your rewards. The card itself is customized with a special QR for easy syncing.

With no annual fee and rewards of up to 3%, the card is financially favorable. Converting your rewards into crypto through the 

 feature allows you to fatten your digital wallet without taking on too much risk. The combination of financial payoff and convenience makes this one of the premier crypto Visa cards on the market.

The distinct rewards structure and wide compatibility of the 

 make it one of the best crypto credit cards available. Cardholders receive 3% back on all annual dining purchases up to $3,000 per year, 2% on groceries and 1% on all other purchases. These rewards are automatically paid in BTC or one of the other 40 cryptocurrencies compatible with the card.

Gemini Mastercard is usable anywhere that accepts Mastercard. A user-friendly app makes it simple to monitor transactions and manage your account. In addition, there’s no annual fee.

4. Upgrade Bitcoin Rewards Visa Signature Card

This Bitcoin credit card provides an easy way for beginners to enter the world of crypto. Its terms are simple, and the barrier to entry is negligible. Even if you only have fair credit, you should be able to get pre-approved almost immediately. From there, you’ll earn 1.5% percent on all purchases, paid directly in BTC. You’ll also receive a $200 bonus when you open a Rewards Checking account and make three consecutive payments.

The one significant downside to this crypto Visa card is that it doesn’t allow cardholders to transfer Bitcoin, something that’s especially likely to bother experienced crypto enthusiasts. All the same, the 

 represents one of the best crypto credit cards for beginners and people with average credit.

Unlike the rest of the crypto credit cards featured on this list, the 

 is a charge card primarily meant for U.S. venture-backed start-ups and mid-market businesses. This means that Brex card owners won’t be able to carry over their credit balance, since fees get deducted automatically from the assigned checking account. However, the benefits of using the Brex Mastercard clearly outweigh this slight inconvenience.

For starters, Brex offers no annual fee and a generous reward structure, as long as you exclusively use their card. The Brex Mastercard gives you bonus points for most company essentials, ranging from ridesharing and company meals to air travel and software reimbursements. Identify as a tech company and reap even more points from Apple purchases and lab supply buys. Keen to max out on those rewards? Fully convert the Brex card to a daily charge card, and Brex further amplifies your point rewards. Once you've racked up the points, cash out by conveniently converting them to Bitcoin or Ether.

With decent reward rates, widespread usability and a set of unique perks, the 

 deserves its place on any list of the best crypto credit cards. The 3% cashback offer makes the card a great way to add to your savings. Also, reduce your APR by 1% just by meeting payments on time for a year.

You can use the Bitcoin credit card throughout the Mastercard network, giving you the flexibility to make most purchases without any hassles. There’s no annual fee, and you can easily manage your account and redeem rewards through the SoFi app. Additional perks include free cell phone insurance and discounts with Lyft, Boxed™ and other popular brands.

While crypto credit cards are great for earning cryptocurrency in the form of cashback rewards, crypto debit cards are the better option for people looking to use the cryptocurrency they already own. With so many fantastic cards on the market, it’s never been easier to convert crypto into fiat and use it for everyday purchases. Here are 15 of the best crypto debit cards on the market, each of which has its own set of favorable properties.

Take your crypto on the go with the latest and greatest crypto debit card to hit the crypto space. The 

 takes crypto convenience to the next level, as it allows for hassle-free transactions without compromising on the all-important aspect of security. By partnering with Mastercard, Bybit ensures the widest array of merchant support and top-of-the-line security, thanks to 

To distinguish itself from other top crypto debit cards, the Bybit card makes the off-ramping process flexible and easy, especially if you’re an experienced Bybit trader. By allowing for off-ramping via Spot, Derivatives and Margin trading, you might even be able to earn a tidy profit while converting your crypto into your preferred form of fiat currency. Combined with the Bybit card’s multi-asset spending feature, this grants users the ultimate freedom in managing their cryptocurrency balance and spending it to their heart’s desire.

Bybit also offers a Loyalty Reward program where users can earn a point for every 1 GBP/EUR spent with a cap of 12,500 points each month. The points can then be used to redeem exclusive merchandise at Bybit’s Rewards Market. 

Bybit will be rolling out more perks for the Bybit Card in the near future. You can stay up-to-date with the latest Bybit Card news by following the 

If you’re looking for a crypto debit card to sink your teeth into, then this is one of the best cards to consider. The 

 Visa is the world’s first free metal- and crypto-linked debit card. With no fees, a straightforward top-up model that makes it easy to load your account with Bitcoin and other digital currencies, and an aggressive marketing campaign that's involved the likes of LeBron James and Matt Damon, it’s easy to see why many investors are owners. Once you’ve got the currency loaded, you’ll be able to instantly spend or withdraw it wherever Visa is accepted.

The card offers users with up to 5% cashback rewards in CRO with no minimum spend. However, note that you would need to stake CRO in order to receive cashback rewards. The 

 Visa also provides holders with reimbursements from subscription services such as Netflix, Amazon Prime and Spotify. About to jet off on a holiday? Make sure you pay the 

 airport lounge a visit. Alongside the obvious benefit of making it easier to spend your cryptocurrency, these perks make the 

 one of the best crypto debit cards available.

This is among the best crypto debit cards for anyone already using Coinbase, one of the world’s most important crypto exchanges. You can use the card anywhere within the Visa network, and purchases and withdrawals are drawn directly from your Coinbase account. Crypto rewards are also significant, with cardholders receiving crypto back at a 1% rate for Bitcoin and a 4% rate for 

. You will be charged a flat fee of 2% if you choose to borrow USD from Coinbase and it sells your BTC collateral. There’s also a daily spending limit, which you can view directly from your account, and a $1,000 withdrawal limit. All the same, most experts consider the 

 card to be one of the best crypto debit cards for regularly using digital currencies.

If you’re a frequent Brave Browser user, you’ll likely come across the 

 wallet app that’s used to store your hard earned 

 tokens. Recently, Uphold has announced their very own 

. By featuring no annual fee and zero foreign transaction fees, this UK-based crypto debit card is already leagues ahead of its traditional finance counterparts.

To further incentivize usage of the Uphold Mastercard, crypto cashback rewards are doled out in XRP at a generous 4% cashback rate. While there’s a £50 cashback cap on rewards per month, this amount ensures all your purchases up to £1,250 are duly rewarded.

 card is one of the best crypto debit cards for international transactions. International ATM withdrawals are completely free, and you can use the card with more than 80 million global vendors. Compatible with over 150 different currencies, this is the crypto Visa card that every globetrotter needs.

Wirex offers cardholders rewards through its 

 subscription service, where you can receive up to 8% in cashback rewards in the form of WXT tokens. You do, however, have to pay a monthly fee up to $29.99 if you wish to receive the highest tier of cashback rewards. The free version only enables you to earn up to 1% cryptoback rewards. 

While there’s no annual fee, the 2.5% transaction fee will take a small chunk out of your total rewards. As far as convenience is concerned, the associated app makes it simple to set a budget, track spending and receive alerts.

For users just starting out with crypto, Choise, previously known as Crypterium, might be perfect since it offers consumers a crypto wallet with the 

 attached to it. This ultimately makes it easy for shoppers to access and use their crypto funds effortlessly as Choise seamlessly bridges fiat and crypto.

The Choise Visa is a prepaid crypto card, and largely appeals to the European market with its easy signup process. By offering users the choice of owning either virtual or plastic Choise Visa cards, Choise allows users to quickly convert their digital assets to cash at any ATM, while charging a minor fee for withdrawals. This is all the more useful when taking into account Choise’s various high-interest-rate crypto savings accounts.

Binance is one of the largest cryptocurrency exchanges in the world, and the 

 card gives holders constant access to digital funds. While it’s not available in the U.S., it remains one of the best crypto debit cards for global consumers. Once you’ve got a card, it can be used internationally, and the combination of low spending fees and generous withdrawal limits makes it a user-friendly option.

This crypto Visa card only works if it’s linked to a Binance account. If you’ve already got an account, and you’re based outside of the U.S., then this is probably the perfect crypto debit card for you.

Not only is this Bitcoin debit card one of the best crypto debit cards available today, but it’s also linked with an especially reputable player in the crypto industry. Since 2011, BitPay has been helping traders get the most from their Bitcoin. The 

, which works in concert with the BitPay Wallet, helps holders use their Bitcoin holdings in daily life.

There are no monthly fees, and it’s completely free to load more Bitcoin onto the card. As the card has partnerships with numerous merchants, such as Adidas and Costco, it remains an excellent option for simple spending. 

From one of the largest cryptocurrency exchanges in Spain, the 

 is a no-brainer if you live in Spain and are open to receiving your cashback in cryptocurrencies. This is because the Bit2Me Mastercard charges no monthly fee or maintenance fee, and features zero ATM withdrawal fees when you withdraw within the European Union. This low barrier to entry makes Bit2Me’s Mastercard an ideal choice for those new to crypto. 

Thanks to its established reputation as an entity registered with the Bank of Spain, the Bit2Me Mastercard can instantly deliver to users a virtual crypto debit card upon registration. Additionally, if you’re a Tier 1 user, you’ll be able to earn up to 9% cashback if you pay with B2M tokens. With cashback rewards ranging from BTC and ETH to USDT and SOL, you’ll be spoiled for choice with the flexibility offered.

This is an excellent crypto debit card for both beginners and experienced crypto investors. While the starting fee of $129 is higher than most Bitcoin debit cards, and the $35 monthly fee is unusually steep, the perks of the 

 might well make up for the high cost of entry.

Club Swan’s concierge service helps holders book travel, order products and take care of mind-numbing administrative tasks. The cashback rewards can rise to an incredible 22%, allowing some holders to make back much of what they spend in fees. The card is also usable wherever Mastercard is accepted. If you’re on the lookout for an upper-tier Bitcoin credit or debit card that really provides superior service, then this is probably the card for you.

Formerly known as the Ternio BlockCard, the 

 retains all of its previous benefits and is rebranded with a snazzy new name that certainly matches the hype behind the rest of the best crypto debit cards on this list. Pegged as one of the best crypto debit cards in the finance space, thanks to its incredible cashback bonus, the Unbanked Card stands out because of its attractive 6.38% reward in UNBNK tokens. While this is conditional, as you have to first stake a minimum of 145,000 UNBNK tokens, this amount of cashback reward will unsurprisingly catch the eye of any value seekers looking to get the most out of their purchases.

One thing that can often drive users away from the prospect of earning crypto cashback rewards is the potential paperwork involved. Fortunately for newcomers to the crypto cashback space, the Visa crypto debit card from the Canada-based Shakepay exchange takes this entire registration process and streamlines it to be suitable for newcomers. 

To remove the hassle of card application processes, Shakepay waives the credit check phase so anyone can essentially be fully set up within minutes. Once users are fully registered and apply for their 

, they can look forward to earning up to 2% of their purchases in BTC, instantly credited to their Shakepay BTC balance. 

Dealing with crypto can be challenging if you’re new to the peer-to-peer (P2P) on-ramping and off-ramping scene. From exchanging your fiat for the right currencies to the nerve-wrecking moment of checking whether your transactions have gone through, it was certainly no easy feat to pull transactions off before the introduction of centralized exchanges. 

Thankfully, e-wallet corporations like Advcash have dedicated their business model to making such swaps easy, as users can quickly buy and sell while effortlessly switching between fiat and cryptocurrencies.

Once the swaps are done, users can then load their funds onto 

 — which function like prepaid crypto debit cards — and use them to spend their balance worldwide. With access to major markets around the world, users will have no trouble swapping and exchanging their funds to their desired currency for their personal use.

 card instantly distinguishes itself because of its funky visual style that guarantees your fund’s safety in the event of an apocalypse. That’s because of Monolith’s decentralized nature. Being a decentralized financial (

) platform built on the Ethereum ecosystem, Monolith has a different approach to crypto custody. 

By letting users retain control of their crypto assets, they’re essentially fully in control of their funds — and won’t need to fret about their assets going missing if Monolith goes under due to lack of liquidity. It’s this focus on reminding users, “Not your keys, not your crypto” that makes the Monolith Visa a frontrunner when it comes to the best crypto debit cards operating in the space.

Besides granting users custody to their crypto, Monolith also imposes a 1% fee that goes towards Monolith’s community chest, and is meant for improving the ecosystem. Fortunately, users can circumvent this by topping up their Monolith Visa with Monolith’s proprietary TKN tokens. For those interested, make sure to check out how Monolith’s 

 work, in order to learn more about their 0% transfer fees.

Plutus (along with their Visa card) is one of the few platforms on this list that’s focused on empowering users with noncustodial cryptocurrency rights. That focus on security alone makes it easy to recommend the Plutus Card as one of the best crypto debit cards in this space. 

 does all this and more to earn the spot. For starters, you’re able to link your personal crypto wallet to your Plutus Card without ever revealing your private keys. This allows users to ​​retain complete control over their assets while making whatever swaps necessary for their balance.

Moreover, Plutus offers up to 3% crypto cashback rewards when users sign up for the paid subscription plan. From €4.99 a month, users can enjoy 0% fees while trading on their decentralized exchange, and two bonus subscription service perks that range from Disney Plus to Amazon Prime. 

Willing to stake PLU tokens? Plutus will reward users who do so with up to 8% crypto cashback and eight bonus subscription service perks.

Beginner

2302-T1135_BL_Crypto_Cards_3200x1800_(1).png

21 Best Crypto Credit and Debit Cards For Crypto Beginners and Veterans in 2023

Crypto is an ever-growing industry with new projects being introduced that captured VCs' interest in pooling their money to invest in these early projects. Find out who they are! 

Venture capital firms in the crypto space seek to invest in high-potential blockchain projects and companies. They typically invest in early-stage startups and provide capital, advice and resources to help these companies grow. Venture capital firms play a vital role in the blockchain ecosystem, providing valuable resources to support projects’ growing and scaling quickly. 

In addition, crypto VCs provide training and guidance to startups as they navigate the often complex world of blockchain technology. By helping entrepreneurs understand the nuances of blockchain technology, they can ensure that their investments are well-positioned for success. The preferred sectors and stages of investment vary, depending on the firm. Still, these firms prefer to invest in startups building blockchain-based products, services and platforms that solve real-world problems. The most popular in the crypto scene include:

Need more help understanding how it works? Let's dive right into the mechanics. 

Crypto venture business funding is a form of financing that’s used to invest in early-stage blockchain projects. This type of investment typically involves the purchase of equity or tokens in the project, which gives investors a stake in the future success of the business.

The process begins with the project founders seeking venture capital firms specializing in blockchain projects. These companies usually have a portfolio of investments and will evaluate the potential success of each project before deciding whether or not to invest.

The venture capital firm will then negotiate terms with startup companies, such as how much money they will invest, what kind of equity or tokens they will receive, and how long their investment will last.

Once both parties reach an agreement, funds are then transferred from the venture capital firm to the company's bank account. Depending on the fund type, the startup can use the investment capital for various purposes, such as hiring new team members, developing new products or services, and marketing campaigns. These include different rounds of series funding including Pre-seed funding, Seed funding, Series A, B, C or D funding to solidify their operations.

The venture capital firm also provides guidance and advice to help ensure that the company is successful. This includes assisting teams in developing their business plan and connecting them with other industry experts who can provide additional resources and advice.

Finally, once a certain period has elapsed (usually 5–7 years), investors may have an opportunity to cash out their investments by either selling off their equity or tokens on an exchange platform (if applicable), or negotiating with the project founders directly for an exit strategy.

Top Criteria of a Good Crypto Venture Capital Firm

You can determine whether a crypto venture capital fund is effective or not. Here’s a list of criteria to consider:

: Assets under management (AUM) measures the total value of all the investments managed by a venture capital firm. It includes all the assets that have been invested in companies, funds and any cash or liquid investments held by the firm. AUM is used to measure the size and performance of a venture capital firm, and can indicate its success in attracting investors and making successful investments.

2. Number of successful investments (track record)

: The number of successful investments (track record) is vital for determining the success of a venture capital firm because it serves as an indicator of its ability to identify, invest in, and help grow promising businesses. It provides a measure of the firm's performance over time. and allows potential investors to gauge the quality and success of the investments made. A track record of successful investments can also provide valuable insights into a firm's investment strategy, risk management approach and overall value-add to its portfolio companies.

: Reputation in the industry is crucial for determining the success of a venture capital firm. It can be a major factor in attracting potential investors. A good reputation helps build trust, which is essential for successful fundraising and investment. Additionally, a solid reputation can help to create relationships with the most promising entrepreneurs and startups. This can lead to more successful investments and higher returns for the firm. Finally, a good reputation can also increase the firm's visibility, leading to more opportunities and better deals.

: Networks and resources are essential for determining the success of a venture capital firm because they allow the firm to identify potential investments, conduct due diligence and provide ongoing support to its portfolio companies. Having access to resources such as industry contacts, financial advisors, legal counsel, and other specialized professionals can help a venture capital firm make informed decisions, maximize investment returns and protect its interests. Additionally, having an extensive network of investors can provide a venture capital firm with additional funding sources for new investments and support existing portfolio companies.

: The quality of a venture capital firm's team and staff determine the firm's success, since it plays a significant role in the decision-making process. The team and staff must be knowledgeable about the industry, have a good understanding of the market, and be able to identify and assess potential investments accurately. Additionally, they must have strong relationships with entrepreneurs and other investors to make well-informed decisions that benefit the firm. A strong team and staff can help ensure that a venture capital firm makes sound investments that generate high returns for its investors.

: The quality of portfolio clients directly affects a crypto VC's return on investment. Venture capital firms invest in companies expecting to generate a significant return. If the portfolio companies are unsuccessful, the venture capital firm won’t be able to generate a profit, and will ultimately fail. Additionally, having high-quality projects and clients allows venture capital firms to attract more investments from other investors, which helps them grow and expand their operations.

How Do Crypto VC Firms Support Blockchain Startups?

Crypto VC firms typically provide capital to blockchain startups in exchange for a stake in the new business. In addition to providing capital, crypto VC firms offer support and guidance to these startups, assisting with developing their product/service, identifying potential customers and partners, and navigating the legal and regulatory environment. Crypto VCs also provide access to their network of industry contacts and resources, which can help the startup succeed.

Number of successful investments (track record)

: Coinbase Ventures isn’t directly backed by Coinbase, but is a separate entity. It has made investments in several successful projects and has also been involved in industry events and initiatives such as the ChainXChange conference, Decentralized Web Summit and Token Summit.

: Coinbase Ventures looks to collaborate with partners who share their mission of creating an open financial system for the world. It utilizes Bitcoin, Ethereum, Ripple and Litecoin.

: Avalon, Diagonal Finance, Magic Eden, Sardine and YOZ Labs.

: $4.1 billion in blockchain-related assets

: Pantera Capital is widely known as one of the top venture capital firms in the world. It has invested in some of the most successful crypto companies, including Circle, Coinbase and Ripple. It has also been credited for helping to launch the ICO boom in 2017. The firm is well-respected for its expertise and experience in the blockchain and cryptocurrency industry, and is seen as a reliable source of investment advice.

: Pantera Capital also utilizes its network of over 1,000 investors and strategic partners to provide access to resources such as capital, talent and market intelligence. Additionally, Pantera Capital has an extensive research team that offers insights into the blockchain ecosystem and helps identify opportunities for investment.

: BitDAO, Korbit, Prism, SynFutures, Zcash

: Sequoia Capital is one of the top venture capital firms in the world. It has an excellent reputation for its track record of investing in some of the most successful tech companies, such as Apple, Google and LinkedIn. Its reputation for spotting and nurturing early-stage startups has earned it a great deal of respect from entrepreneurs, investors, and the tech industry in general.

: Caldera, Handshake, Multis, Privy, Strips Finance

: Polychain Capital has a generally positive reputation worldwide. It has proven to be one of the best venture capital firms in cryptocurrency and blockchain, and industry experts have widely praised its investments and partnerships. The company has also received numerous awards for its work, including being named one of the top 50 venture capital firms of 2018 by 

: Bitcoin, Ethereum, Tezos, Polkadot, and Cosmos

: Ava Labs, Kollider, Orca, River Financial

: Binance Labs is a blockchain incubator and venture fund created by Binance, one of the world's leading cryptocurrency exchanges. It has a major following in the industry for its commitment to helping startups succeed in the crypto and blockchain space.

: Aptos Labs, Improbable, Sky Mavis, 1inch Network, CertiK

Intermediate

2301-T663_15_Crypto_Venture_Capitalists_(VCs)_That_Are_Active_In_Crypto_Projects_Investment_3200x1800.png

15 Crypto VCs Active in Crypto Projects Investment (2023)

These Ethereum Layer 2 solutions which include Polygon, Mantle and Loopring, are some of the most promising projects that you should take a look at post-Ethereum Merge. 

 mainnet completed its transition from the proof of work (

) consensus mechanism to proof of stake (

," the transformation of Ethereum from the PoW to PoS consensus layer was a highly anticipated event. The transformation has positively affected the price of various Ethereum-based Layer 2 projects. The price of Polygon, one of the most popular Ethereum Layer 2 solutions, rose by 36%. Meanwhile, Optimism registered an increase by over 60%. Investors are also awaiting subsequent developments such as the 

, which would likely push the price of Layer 2 projects further.

So, what are some of the top Ethereum Layer 2 solutions you should consider investing in post-merge? Let's find out.

 protocols are solutions designed to solve the scalability issues related to the main Ethereum base blockchain. Layer 2 is attached to the Ethereum 

 blockchain, which enables it to perform blockchain operations and report them to the main chain.

You can think of these Ethereum Layer 2 solutions as roads leading to the main Ethereum highway. When the Ethereum network gets congested due to high traffic, Layer 2 helps by offloading the traffic to the roads. Ultimately, the congestion is reduced. 

Since Ethereum has reached its capacity of one million transactions per day, the various Layer 2 protocols help Ethereum increase transaction speed without sacrificing decentralization or security. Among other benefits, they also contribute to lowering gas fees and letting developers create new applications with improved user experience. 

In the last two to three years, various Ethereum Layer 2 solutions have emerged. State channels, plasma and rollups are some of the well-known techniques. Each of these has its advantages and limitations. Following is a brief overview:

 allow users to transact with one another outside of the blockchain, enabling instant peer-to-peer Ethereum transactions. While state channels offer high transaction throughput, instant withdrawal and low fees, they suffer from cross-chain interoperability. However, the advent of 

 is another popular Layer 2 solution that uses 

 to create almost unlimited sidechains. Since the transaction and the computation takes place inside sidechains, it helps Ethereum handle much larger data sets. Unfortunately, the withdrawal time can range between 7 and 14 days.

Blockchain rollups are somewhat similar to plasma; however, rollups keep some of the data on Ethereum. The unique mechanism helps elevate security and reduce centralization. You can even run an 

 (EVM) inside a rollup. There are two kinds of rollups: 

. In the long run, ZK rollups may prove more practical due to their shorter withdrawal time.

Investing in Ethereum Layer 2 projects makes sense because Ethereum is the most highly anticipated cryptocurrency that may potentially cause the 

 and overtake Bitcoin as the king of crypto. Ethereum Layer 2 blockchains help to quickly solve scalability issues related to Ethereum which may hasten the Flippening process. The recent hike post-Ethereum Merge in the price of native tokens associated with some of the Ethereum Layer 2 projects is a testament to this theory. 

If you're looking for opportunities, consider these 11 well-established and upcoming Layer 2 projects:

 values are as accurate as of date of publishing (Feb 13, 2023). 

One of the largest Ethereum Layer 2 scaling solutions in the cryptosphere, 

 is a sidechain running in parallel to the Ethereum blockchain. Among its main functions are faster transactions and lower transaction costs. You can "bridge" some of your cryptos to Polygon, enabling you to interact with a wide range of decentralized apps (

) that are exclusive to the Ethereum network.

Polygon's main chain is a PoS sidechain, which is used to validate transactions and vote on network upgrades. Developers can easily build additional sidechains using the Polygon software development kit (SDK). At this time, Polygon supports the development of sidechains using plasma, optimistic rollup, and ZK-rollup construction scalability methods.

 is the first modular Layer 2 protocol built on Ethereum that is initiated by a 

, Mantle expands the utility of BitDAO's governance token, BIT. 

Mantle's modular structure processes different transactions and actions in separate layers operated by network participants at different levels via Ethereum rollups and a decentralized data availability layer. This enables high throughput on lower gas fees with Ethereum-grade security, derived as a result of a restaking mechanism, for any application built on Mantle.

Mantle also aims to decentralize the sequencer, thereby allowing for multiple Sequencer nodes to operate and receive BIT rewards. This reduces the security and operational risks typically faced in existing rollup models.

 seeks to resolve congestion on Ethereum through its high transaction speed of 40,000 

 (TPS) costing about two cents or less in fees. 

The smart contracts on Arbitrum are validated using optimistic rollups. However, Arbitrum stands out for EVM compatibility. It means that DApp developers can build their apps within the Arbitrum mainnet without learning a new coding language. For instance, if you already know the coding language used for developing smart contracts on Ethereum, you don't require additional skills.

Arbitrum doesn't have a native token. Until a native token is introduced, the most direct way to invest in Layer 2 is by investing in projects that are native to the rollup. 

As the largest DeFi project on Arbitrum, 

 is a viable candidate worth investing in. 

 of the decentralized GMX exchange. Deployed on Arbitrum, the exchange is a spot and perpetual contract decentralized exchange (DEX) with outstandingly low fees and zero slippage. 

 is a major competitor of Arbitrum. While it's somewhat similar to Arbitrum, Optimism uses the optimistic rollups introduced by the Optimism Foundation. These optimistic rollups assume that every transaction is valid. Any fraudulent transaction is rolled back after participants submit 

Both Optimism and Arbitrum are similar because they only deploy when faulty blocks are identified. Accordingly, tokens on these networks can flow between Layer 1 and Layer 2. The mechanism to confirm a block is also identical. 

Besides enhancing the scalability of the Ethereum ecosystem, Optimism helps maintain the security of transactions. Individual nodes on the network put a stake to suggest a new block, and each note has the power to challenge the validity of the transaction.

Optimism is a good alternative to invest in since Arbitrum has no native token. 

 (NFTs) on the Ethereum blockchain. This Layer 2 offers 

 gaming developers a way to launch NFT projects quickly with near-zero gas fees and scalable features. 

The technology uses ZK-rollup. Instead of dumping all the transaction data on the blockchain, the system batches together hundreds of separate transactions into a single zero-knowledge proof known as ZK-STARK and processes the transactions off-chain.

Immutable X is also the first ZK-rollup technology that solely focuses on NFT projects. The unique mechanism requires less storage and computing resources to validate an entire block of transactions. NFT projects benefit from the speed because the network can accommodate over 9,000 NFT trades each second. The zero gas fees for minting or launching a 

ecosystem is an added incentive for developers. 

 is an upcoming Ethereum-based Layer 2 blockchain that will boost the utility of the famed 

, has gained enormous success mainly due to the hype created around the concept. Despite the growth, the community always wanted an ecosystem that could sustain its growth in the long term. The debut of the Shibarium L2 layer is the answer to such concerns. 

The sidechain will take over a large portion of the SHIB transactions, so SHIB doesn't have to rely on the Ethereum network. As a result, users will likely experience massive improvements in transaction speeds along with gas fee reductions.

The prices of SHIB and related Shiba Inu tokens are already increasing in anticipation of the launch. If you're a fan of Shiba Inu, it should be a no-brainer to consider SHIB and other tokens in the SHIBA ecosystem. BONE, the governance token of 

, Shiba Inu's DEX, is another logical choice to invest in as it is slated to become Shibarium's utility token.

 is a Layer 2 scaling protocol that facilitates noncustodial order book-based DEXs and payment protocols. Deployed in December 2019 on the Ethereum mainnet, it is reputed to perform more than 2,000 TPS while maintaining the same level of security as Ethereum. It uses ZK-rollups for the payment system that lets users exchange digital assets such as cryptocurrencies. 

Loopring has tremendous potential to grow further as DEXs and 

 are predicted to flourish in 2023. You can trade LRC as a Spot pair (

 is the execution-layer EVM Layer 2 sidechain to facilitate the development of DApps and NFTs. It uses the xDai 

 to facilitate transactions and pay for smart contracts and gas fees. The native token of the Gnosis ecosystem, GNO, is used for staking on the Gnosis Beacon Chain and for governance in the GnosisDAO. Gnosis Chain is a part of the Gnosis Beacon Chain.

Gnosis Chain was the first Ethereum sidechain solution that had a U.S. dollar-pegged stablecoin as a transactional token. The main goal of the Gnosis Chain is to provide stable, low-cost and optimized transactions for Ethereum-based projects. By focusing on specific goals, the chain can offer developers 100% uptime, $0.0001 per 100K gas, and 5 seconds of block time. 

According to the official website, the Layer 2 blockchain is secured by over 100K validators delivering a yield of almost 16% on staked assets. It takes only $117 to validate with Gnosis Chain. Its advanced technology, simple concept and strong governance make GNO a viable candidate for future growth. 

 is a Layer 2 web3 network that is highly interoperable, allowing developers to create a variety of DApps on the SKALE elastic sidechains instead of the Ethereum mainnet. It is a highly scalable infrastructure that creates an environment suitable for implementing multiple protocols, virtual machines and enhanced security measures.

It is perhaps the largest Layer 2 blockchain network, which is capable of running an unlimited number of fast, on-demand, pooled-security blockchains with zero gas fees. At the time of writing (Feb 8, 2023), the market cap of SKALE is $177.6 million. 

SKALE operates in an integrated manner with Ethereum while running its own consensus mechanism. Accordingly, developers can create an unlimited number of configurable SKALE chains that are independent of each other. All of these independent chains are interoperable and EVM-compatible, which means that anyone can easily deploy existing Ethereum-based smart contracts directly on SKALE chains. 

According to its founders, SKALE can process 120,000 TPS using SKALE’s modular architecture comprising 1,000 chains. Without a doubt, the unique architecture holds a lot of promise that can make SKALE flourish. 

 on the Bybit exchange as a USDT Perpetual (

 is a decentralized ZK-rollup that operates on a Layer 2 network over Ethereum. StarkNet uses Validity Proofs called STARK-Proofs that are produced off-chain and validated on Ethereum. Validity Proof is a form of ZK-Proof that lets a party prove that a computation is executed correctly, thereby maximizing privacy and security for the transaction data.

, you can still benefit from StarkNet's growth by investing in the projects built on it. Immutable X as mentioned above is one such project. Another logical investment choice is 

, an order book model DEX built in early 2022. 

Altcoins

Blockchain

Crypto

DeFi

GameFi

Indicators

Investing

Metaverse

Memes

Options

Stablecoin

Staking

Strategies

Trading

Web 3.0

Investing

Investing

21 Best Crypto Credit and Debit Cards For Crypto Beginners and Veterans in 2023

Investing

15 Crypto VCs Active in Crypto Projects Investment (2023)

Investing

11 Best Layer 2 Crypto Projects To Check Out Post-Merge (2023)

Investing

What To Invest In During A Crypto Pullback?

Investing

Best Noncustodial Wallets for Convenient and Secure Crypto Storage

Investing

7 Best Crypto IRA Companies for Diversifying Your Retirement Plan

Investing

Can You Hold Crypto in Your Roth IRA?

Investing

Crypto Investing vs. Trading: Which Suits You Better?

Investing

Grayscale Bitcoin Trust (GBTC): All You Need to Know

Investing

Crypto Chapter 11 Bankruptcies in 2022: What You Need to Know

Investing

How to Earn Interest on Crypto With up to 180% Yields

Investing

Mt. Gox Settlement: How the Payouts Could Impact Bitcoin Prices