A typical crypto card allows you to earn crypto rewards or convert your crypto to fiat currency to pay for goods and services instantaneously.
What is a Crypto Card?
The function of a typical crypto card is similar to that of your debit card. With a crypto card, you can pay for products or services to a vendor that accepts the card provider. Although it may sound as if you are using digital currencies to pay the vendor directly, that is not the case. The vendor does not receive crypto into their account but rather, fiat cash.
Both MasterCard and Visa provide crypto cards with partner companies that apply for a license. These two payment providers are the most commonly used globally. This makes crypto cards almost universally accepted by merchants.
How a Crypto Card Works
A crypto card does not pay the vendor with crypto, as we already mentioned. It easily converts the crypto into cash which can be spent with the vendor through the card. To be able to use a crypto card, it must be connected to a wallet. You will be required to transfer your assets to this wallet before you can use your crypto card.
Crypto cards can be used for shopping and also for ATM withdrawals, provided they are supported by your service provider. There are variations in these cards, in terms of cash backs, maximum payment, withdrawal limit, etc.
You can learn more about how a crypto card work here.
The Benefits of a Crypto Card
A crypto debit or credit card can be handy for you if you own a cryptocurrency. Here are some of the benefits of holding a crypto card:
Allows the convenient use of crypto: Crypto cards allow you to conveniently pay for real-world services. They make it easy for you to use your crypto for daily purchases. What this means is that a crypto card helps you to complete purchases quickly.
Low annual fees: Annual membership fees for crypto cards are low. The fees are low compared to the fees you pay for the debit or credit card services offered to you by some banks. Additionally, crypto cards fees may be waived off if you spend a certain limit of crypto in a year.
Use both fiat currencies and cryptocurrencies: Many crypto cards allow you to use and access both cryptocurrencies and fiat currencies. This implies that with one card, you will have access to different currencies.
No foreign exchange fees: Bank charges on foreign exchange for the use of regular debit or credit cards are high. In contrast, you only need to pay a standard fee with crypto cards. You will not be charged an extra fee for any foreign transaction.
Cashback rewards: You can earn additional coins with your crypto cards when you use them for purchases. However, the reward you get is determined by the card provider you are using.
A crypto card is a great development as it allows you to use your crypto for purchases promptly. When using a crypto card, ensure to keep accounts of everything you spend for tax purposes.
Consider getting a crypto card if you have some cryptocurrencies that you no longer wish to HODL. It makes it easy for you to convert crypto to fiat. If you don’t use a crypto card, you'd have to go through the conversion process and manually transfer the fiat to your bank account. Depending on the crypto exchange and your bank, this could take several days.
Comments here are not of the author's opinion. Users are responsible for their comments.