Things To Know About Crypto Debit Cards
The introduction of crypto debit cards has made it easier to deal with cryptocurrency than ever before. Although coins can be used in the real world for transactions, spending crypto coins can be really hard.
Crypto debit cards have made it possible for you to pay for shopping using digital currencies. Bitcoin, Ethereum, and Litecoin can now be used as means of payment for businesses.
In this article, we’ll learn more about these crypto debit cards.
Table of Contents
What are Crypto Debit Cards?
Cryptocurrency debit cards allow you to complete day-to-day transactions using BTC, ETH, XRP, and other altcoins.
In this case, you don’t have to worry about whether your physical card will be accepted by a merchant. That’s because many of the products out there have been released in conjunction with Visa and Mastercard, meaning they can be used in millions of locations.
How Does It Work?
For you to use the crypto debit card, you’ll need to top up the card with the digital currency of your choice. This can be done via a mobile app or website.
You can now buy whatever you need in the real world. Many cryptocurrency debit cards offer more generous spending limits, as well as lower transaction fees.
Once the transaction is complete, the card provider will convert the digital currency into cash. This means that the business owner you’re dealing with will get your payment in fiat currencies such as USD, GBP or EUR.
What’s The Difference Between Normal Debit Card & Crypto Debit Card?
When you use crypto debit cards, there are exciting features you could enjoy using it. One of this is that when you travel, you’ll save more money while using your crypto debit card.
A conventional debit card will make you end up paying sky-high conversion fees while on holiday as the dollars in your bank account are switched to pounds and euros.
Crypto debit cards can be used for ATM withdrawals just the normal debit cards. Some cards offer rewards, like airport lounge access or cashback on transactions, so it’s worth shopping around to see which one suits you.
Any Downsides To Using Crypto Debit Cards?
There are few disadvantages to using this debit card. Some providers will require you to stake crypto coins in order to unlock access to the best rewards.
The issue of crypto’s volatility also affect the use of the card. The BTC you use to buy a $1,000 holiday on your crypto debit card now could end up being worth double or triple as much in the years to come, meaning you’ll feel short changed.
Also Read: 5 Reasons Debit Cards Are Better Than Cash
Finally, it is important to do your due diligence on the blockchain brands offering crypto debit cards as it may be subject to regulation in other parts of the world.