So What Are Cryptocurrency Debit Cards Anyway?
Cryptocurrency debit cards work the same way as any other prepaid or debit card. However, they allow you to use your coins and withdraw fiat currencies once you purchase cryptocurrency. You can also choose which cryptocurrency you want to utilize, depending on the card. You can easily use your cryptocurrency to make payments in a physical store that accepts credit cards with these cards.
A variety of people use cryptocurrency debit cards for different reasons. It is also useful for investors who want to spend their coins without wanting to convert cryptocurrency to fiat. Users who live in countries where cryptocurrencies are banned want an easier way to convert their crypto into fiat currencies.
What Is a Crypto Debit Card?
The first thing to know is that crypto debit cards are a type of prepaid card—and, therefore, not really “debit” at all.
The clear implication of the word “debit” is that a card takes money from your bank account when you use it. However, with a crypto debit card, there’s no bank account being debited. Instead, the card takes its value from the holdings you possess once you buy cryptocurrency.
Crypto debit cards were created for people who want to spend their cryptocurrency as easily as cash in a wallet. For example, let us say you buy crypto with a credit card and have $10 worth of bitcoin (BTC). Instead of transferring that amount into another currency before spending it, you can deposit your BTC into a crypto payment app and start spending it directly at merchants that accept digital payments.
Credit and debit cards traditionally store value in fiat currencies like the dollar or euro. With a crypto debit card, your balance is tied to whichever cryptocurrency you deposited and then converted into fiat by the provider company when used at check-out with merchants who don’t accept digital assets directly.
Who Benefits From Crypto Debit Cards?
You might benefit from a cryptocurrency debit card if:
- You’re a cryptocurrency user
- You want to use your crypto in the real world or just buy things online
- You don’t have a bank account or credit card
- You’ve lost trust in your bank or the banking system
- Crypto debit cards make it easier to use cryptocurrency in everyday life
Cryptocurrency debit cards make it easier for you to use your cryptocurrencies in everyday life. In fact, since their inception, crypto debit cards have made it possible for you to use cryptocurrencies in the same way as you’d use any other currency.
You can easily convert your cryptocurrency and top up your wallet using a cryptocurrency exchange. Or you can transfer funds from one card provider to another. It means that you can rest assured that your money is safe wherever you go, whatever you buy, and whoever you are.
As more people adopt cryptocurrencies into their everyday lives and transactions become commonplace, it’s only natural that they’ll want access to a convenient way of spending their money. Cryptocurrency debit cards offer this convenience while still maintaining all of the security features of a traditional bank account.
Crypto Debit Cards Make Crypto More Accessible for People
If You Have a Bank Account
With crypto debit cards, you can spend your cryptocurrency like cash at most stores that accept debit and credit cards. Some crypto debit cards require that you transfer cryptocurrency from your crypto wallet to the card’s wallet before using it. Others let you pay directly from your crypto wallet.
If You Don’t Have a Bank Account
Crypto debit cards allow anyone to use their cryptocurrency like cash. This is helpful for people who do not want to convert their cryptocurrency into fiat currency but still want to make purchases with it every day without going through an exchange.
What Are the Fees for Using a Crypto Debit Card?
You’re also subject to the fiat payment system when you use a cryptocurrency debit card. That means payment processors and crypto providers will charge fees for converting your crypto into fiat currency and spending your money. The type of fees you may encounter include:
- Transaction fee: It is a percentage of the transaction amount charged for each purchase.
- Monthly fee: A monthly fee is charged to maintain the account or receive or use the card.
- Maintenance fee: It is an annual maintenance fee charged by some issuers.
- ATM withdrawal fee: Some cards impose an additional fee on ATM withdrawals. While there are no extra charges at domestic ATMs, international withdrawals may be subject to a foreign exchange mark-up of 3% or more to cover conversion costs. Some crypto debit cards don’t allow access to cash, but if they do, this is a point that should be checked before applying for one.
- Foreign exchange fees: These are imposed when you use your card abroad and vary between different types of accounts and providers, so it pays to check before traveling overseas with your crypto debit card
Do Crypto Debit Cards Work Everywhere?
It depends, but for the most part, yes. As a general rule of thumb, if you can use a regular debit card there, you should be able to use your cryptocurrency debit card there as well.
So long as it’s not a store that only accepts cash payments or checks, crypto debit cards should work fine. Just remember that not all crypto cards will work at every retailer or ATM. It often depends on which network the cards utilize. You can always check with your card issuer to see where your specific crypto debit card is accepted and what their policy is on using it at ATMs.
How Is It Different From a Regular Debit Card?
As you might guess, cryptocurrency debit cards work similarly to regular debit cards. You can use the card at any business that accepts credit or debit cards. The main difference is that crypto debit cards are linked to your cryptocurrency wallet rather than a bank account.
When you purchase with one, the card loads the amount of fiat currency necessary for your transaction from your digital wallet. To put it simply, you buy something in dollars, and your virtual coins change hands behind the scenes.
Cryptocurrency debit cards are a great way for people who want an easy way to use their cryptocurrency in everyday life. You can use them just like your everyday debit card—they can be used anywhere that accepts the card’s brand, like Visa or MasterCard. You can also use them online to make ATM withdrawals.