Crypto isn’t only for the internet. Did you know you may spend your cryptocurrency with a standard credit or debit card?
Cryptocurrencies have gone a long way since Bitcoin’s original introduction, and while we can’t yet confirm mass use, they continue to intrude on our daily lives; new crypto start-ups appear on a daily basis, and more businesses adopt crypto by the day.
Even traditional financial institutions, which the crypto community has historically opposed, are beginning to embrace cryptocurrencies, offering new services and products geared specifically to bitcoin consumers.
Crypto cards are one of them, offering a handy way to spend your cryptocurrency.
What Exactly Are Crypto Cards?
Previously, if you wanted to spend your cryptocurrency, you had to first convert it into a fiat currency at a crypto exchange and then wait for the cash to arrive in your bank account. This was a time-consuming and laborious process that meant you couldn’t use your cryptocurrency as actual cash for ordinary transactions.
This is where cryptocurrency cards come into play. Crypto cards allow you to spend your cryptocurrency without having to convert it to fiat money first.
What Is the Function of a Crypto Card?
Even though crypto exchanges and start-ups are the primary providers of crypto cards, they function similarly to standard payment cards and may be used for everyday transactions just like any other bank-issued card.
When you use your crypto card to make a purchase, the transaction is routed through any of the standard payment processing networks, such as Visa and MasterCard. This implies that crypto cards can be used everywhere standard payment cards are accepted.
Crypto cards transfer your cryptocurrency from a connected wallet into the fiat cash required to pay. This makes crypto cards particularly helpful since they may be used to make online and in-store purchases from merchants who do not necessarily accept cryptocurrency. They may also be used to withdraw money from supported ATMs, which is useful.
Bitcoin Debit Cards vs. Bitcoin Credit Cards
Aside from a few important exceptions, cryptocurrency cards are remarkably similar to traditional debit and credit cards. In any case, they both fulfill the same function.
Debit Cards for Cryptocurrency
Crypto debit cards function similarly to prepaid cards in that you must have funds tied to the crypto card in order to use it. In addition, most of them include monthly maintenance and ATM withdrawal fees.
To apply for a crypto debit card, you must first open an account or crypto wallet, authenticate your identity using the know-your-customer protocol, and fund it with cryptocurrency. Furthermore, some cards must be purchased, but others ask you to stake some of your assets in the issuer’s own crypto token in order to receive higher perks.
Overall, crypto debit cards are highly convenient since they allow you to spend your cryptocurrency without first withdrawing it from your wallet or exchanging it for fiat cash.
However, because you need to have cash readily available to utilize your crypto for regular transactions, crypto debit cards aren’t as handy for large expenditures like buying a vehicle or a house. This is where cryptocurrency credit cards come into play.
Credit Cards for Cryptocurrency
Crypto credit cards are a payment alternative that rewards holders with cryptocurrency rather than fiat rebates. You may use your crypto credit cards in the same way that you would a standard credit card.
You may earn rewards on every transaction you make with your crypto credit card. The primary distinction is that the incentives are in bitcoin rather than fiat dollars or airline miles.
Should You Purchase a Crypto Card?
Crypto cards may appear difficult, but they function exactly like ordinary bank-issued payment cards. If you own or use cryptocurrencies, getting a crypto card might come in useful for convenient access to your assets.
However, you should be aware of the distinctions between cryptocurrency debit cards and cryptocurrency credit cards. And, if you do decide to get a crypto credit card, make sure to choose one that will truly reward your purchasing habits!