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Crypto debit cards
Spending crypto in the realworld can be tricky. Few shops and websites are yet to accept digitalcurrencies for different reasons. Some worry about exchange rates, others don’tunderstand the technology or think the demand for crypto transactions is toolow.
However, new products areemerging that solve these problems. Namely, crypto debit cards. Likea traditional debit or credit card, a cryptocredit card allows you to complete everyday transactions usingcryptocurrencies like BTC and ETH. Manycrypto debit cards have been released in conjunctionwith Mastercard and Visa, so there’s no need to worry aboutwhether or not the card will be accepted by a retailer.
How do crypto debit cards work?
First, you top up yourcrypto debit card with your chosen cryptocurrency (typicallythrough a website or mobile app). Then, it’s ready to use. Manycrypto debit cards offer higher spending limits and lowertransaction fees than conventional cards.
So, you purchase your coffeewith your crypto debit card. Then, once the transaction is complete,the card provider will convert the digital currency to fiat currency(so the seller will receive your payment in fiat currencies like USD, GBP, orEUR).
Examples of crypto debit cards
Coinbase: Coinbase’s debit card supports8 different cryptocurrencies, offers 4% rewards, and can be used anywhereVisa is accepted.
Crypto.com: crypto.com‘s card comeswith rewards of up to 8%, supports 22 cryptocurrencies, and is acceptedanywhere Visa is accepted.
Binance: the Binance debit card supports 30cryptocurrencies, and comes with up to 8% cashback on purchases.
What are the benefits?
But why do you need acrypto debit card if you already have a normal creditor debit card? A crypto debit card comes with someexciting benefits.
With conventional cards,you’ll often end up paying high exchange rates if you travel abroad. Acrypto debit card your crypto acts as a bridge between fiatcurrencies, so you’ll save money.
Traditional cards oftenalso charge a range of charges like membership fees, or fees whenever youcomplete a transaction. Crypto debit cards are generally a lotless expensive.
You can also use yourcrypto debit card for ATM withdrawals, and many are compatiblewith Samsung Pay, Google Pay, and Apple Pay too. Some even offer rewardslike cash back and access to airport lounges. And,crypto debit cards can usually be set up without the need for abank account.
Of course,crypto debit cards are not without downsides. Some providersrequire users to stake coins in order to access the best rewards. And, there’salso the issue of crypto’s volatility.
Some of the biggest cryptoexchanges like Coinbase and Binance now offer Visa debit cards.The cards are easy to top up and users aren’t charged extra to movefunds from the crypto exchange to a card.
Should you pay for your coffee with BTC?
But before you set up yourcrypto debit card, consider this: when you spend $4 of BTC on a coffee, are youreally just spending $4? $4 of fiat will likely be worth less in a year due toinflation, but $4 of BTC will likely be worth more.
