Cryptocurrency has undoubtedly seeped into our financial system and has taken the world over the storm. This structural shift from traditional transactions has now turned towards better transaction methods and has introduced crypto debit cards.
Now it might seem weird that if this financial system is already online, then what is the use of a crypto debit card? Various additional benefits are similar to a regular debit card. Some of them are given below to understand better. Furthermore, click here for guidelines about crypto.
- The first perk is about exchange rate expenses. Since cryptocurrency works on a decentralized system, the exchange rate of all cryptocurrencies remains the same no matter where you are geographical.
- Secondly, you do not need a bank account for any transaction. You have your crypto wallet or a crypto account. This way, you can make faster purchases that will be more convenient for both sides.
What is a crypto debit card?
The function of a debit card is the same as any other regular debit card. It’s made of plastic, and you can carry it anywhere in your wallet. This card enables you to connect your cryptocurrency to other financial institutions to carry out all transactions.
This way, you can use your crypto debit card to convert the cryptocurrency into any fiat currency worldwide.
Features
Certain features are outstanding among other debit cards.
- Diversified security features.
- More convenient compared to the other cards.
- Access to a mobile wallet.
- Availability of two-factor identification
- Option to quick card freeze.
- There is a feature of spending tracking.
- You can make online and in-store purchases.
- Withdraw cash anywhere in the world.
Pros and cons of crypto debit card
The pros are as follows:
- These debit cards have significant cash back rewards in crypto.
- There is diversified spending.
- It has reduced foreign conversion fees.
- You can have a waiver on ATM withdrawal.
- Spend cryptocurrency like other Fiat currencies.
The cons are as follows:
- You have to pay taxes on spending cryptocurrency.
- There are some geographical restrictions on using crypto debit cards.
- You must have a particular balance in your account to spend the cryptocurrency.
How does it work?
A crypto debit card works similarly, much like other debit cards, but there are no cash or travel rewards. However, the other rewards you earn, which we have discussed in the benefits section, are eligible to purchase other cryptocurrencies.
Remember, it highly depends on the type of crypto debit card you have because you can do transactions of a similar or some of the currencies that are allowed. Generally, all debit cards are the same; hence, the working is the same, but there are limitations to the rewards section.
Things to consider when choosing a crypto debit card
Many other crypto platforms offer crypto wallets. Given that, if you want to purchase a crypto debit card, it is considered to choose from the same platform you have a digital wallet.
However, one thing to remember is that not all platforms that offer crypto wallets also provide their users the option of a crypto debit card.
The crypto rewards that come with crypto debit cards differ based on the platforms. When choosing a crypto debit card, it’s best to explore the crypto rewards that different debit cards provide. Also, it’s crucial to understand the fees and other aspects linked with your potential debit card rather than only focusing on the rewards.
Why to get a crypto debit card
There are dozens of crypto debit cards that crypto investors can use. Most popular are bitcoin debit cards with a wide variety of user-easy interfaces, and all work on decentralized finance systems. However, considering certain facts like investments, fees, and other aspects is quite important while choosing a crypto debit card.
Crypto debit cards are useful in case you seek to find a way out to convert crypto into fiat currency. Moreover, besides debit cards, cryptocurrency also has products like credit cards that can come in the utilization of several ways.
Consider the following features, pros, and cons mentioned in this article before purchasing a crypto debit card.
