We are way past the time when cryptocurrency was called a fad. It is now being seen as a potential alternative to the current centralized banking system. It has emerged as a fintech solution that offers countless possibilities that were never imagined before. Working on a decentralized ledger called blockchain, crypto brings more freedom into finance. It democratizes the management of assets and gives everyone equal rights.
But a revolutionary technology doesn’t become commonplace so easily. Digital assets are evolving and gradually inching towards becoming mainstream. As their usage is increasing, new ways of accessing them are also coming forth and one of the most notable ones of them are crypto debit cards. That’s right, a combination of traditional banking solutions and groundbreaking blockchain.
In simple words, crypto debit cards are a type of payment card that permits users to spend their digital assets right through their wallets. Just like the normal debit cards you can use these cards online and offline.
Crypto debit cards have gained all the attention they rightly deserve. They have become the much-desired solution that everyone has been looking for. While giving access to digital assets, they deliver the same convenience that we got used to. So what are crypto debit cards and how they’re making decentralized finance more feasible?
Understanding Crypto Debit Cards
So far, the world has seen cryptocurrency as a potential investment. We know that it’s a great alternative to fiat but you can’t use digital assets for buying groceries or gadgets. At least not until you convert them into fiat with the help of a crypto exchange. Thus, crypto doesn’t become a handy solution when you’re making purchases on a daily basis. But all of that has changed with the crypto debit card.
With crypto debit cards, it’s possible to convert digital assets into fiat instantly. For example, you are buying a shoe from a local store that doesn’t accept crypto. Buy you want to use your crypto instead of cash. The crypto debit card will make it all possible. All you need to do is to swipe this card. It would convert the required amount of the crypto into local fiat and you’re all set. You can use this card to purchase various goods and services.
Moreover, the card has already got some major financial players excited. And a significant number of cards are already out there. Considering the potential of this solution, it’s no wonder that it has gained the attention of crypto users and finance giants. So let’s dig deeper and understand all aspects of it.
Advantages of Using Debit Cards
There are quite a few benefits of using this card if you’re a crypto user or investor.
Do Daily Shopping With Crypto
As explained in the example above, this card helps crypto users buy things conveniently using their digital assets. You can use it for travel, day-to-day expenses, and for petty shopping too. It lets you use the assets without a hassle. It becomes as easy as using a regular debit or credit card.
Seamless Switching Between Cryptocurrency and Fiat
Converting crypto into fiat and vice-versa could be tiresome if done regularly via exchanges. On the other hand, it’s very quick and easy with the cards. For instance, if you get paid for anything in crypto you can easily convert it into fiat and spend it easily for various purposes.
Unbeatable Rewards
Crypto cards offer lots of cashback and perks. The cashback amount could go up to 8% of the total billed amount. Some providers offer exclusive deals on other services and others waive fees. And right now since the product is new, the providers are vying for new customers. So users subscribing to this card could get some very nice deals.
Low Transaction Fee
Crypto is already known for offering low transaction fees. These crypto debit card users continue to get the same benefits. Things get even better when they do it for international transactions. As the cards convert digital assets into local currencies, it saves the hassles of going to currency exchanges.
While the advantages are many, there are some things users need to consider.
Things to Keep in Mind When Using Crypto Debit Cards
Tax Implications
The usage of Crypto debit cards hasn’t become common yet. Many countries ban it or tax it excessively. Some consider it as an asset as well making it reportable for capital gains or losses. Therefore, it’s essential to consult with a legal expert before using crypto through this card.
Security Issues
Blockchain is definitely a safer means of making transactions. However, there are plenty of incidents of digital assets globally. Hence, it is very important to take important security measures before using crypto. Furthermore, users must cultivate some habits to safeguard card information. They must keep an eye on all transactions and check notifications on usage.
You must also know about the types of cards before starting to use them.
Types of Crypto Cards Users Must Know About
Crypto Debit Card
Crypto debit cards aren’t very different from their regular counterparts. Your debit card is linked with the bank account to process all the transactions. Similarly, the crypto card is associated with the wallet. Some crypto debit cards charge users for withdrawals and maintenance. To get it, the user must register with a digital asset platform.
Also, some conditions may follow before they get the card. Most platforms have made KYC mandatory. They may even ask for a one-time fee for cards or ask you to buy their tokens. Like traditional debit cards, they allow you to spend what you have in your wallet.
Crypto Credit Card
Credit cards also follow the same guidelines as their traditional counterparts. You get a limit for spending a certain amount of crypto. It lets you defer the payment for a certain amount of time as well. These cards let users get cashback or crypto rewards. The users have to maintain a good credit score while paying some annual and transaction fees.
Crypto credit cards are already getting popular due to all valid reasons. Digital asset users are finding this new solution amazingly feasible. A number of service providers have launched their cards. They are offering plenty of offers making this product unavoidable for crypto users. Let’s look at some options that have grabbed eyeballs across the globe.
Conclusion
Crypto debit cards bridge the gap between a centralized banking system and blockchain. It helps users to tap into decentralization while getting the convenience of fiat. It certainly puts cryptocurrency one level ahead in terms of accessibility and user-friendliness. With this solution, crypto users do much more than they ever could. Seeing its rapid adaption, it’s safe to say that it’d be the go-to swipe card for every crypto user.
