Cryptocurrency is growing in our world today and has led to the development of tools to make it effective one of which is the debit cards.
Crypto assets has been predicted the traditional fiat currency. As you can use your debit cards for transaction on an automated teller machine, there are also bitcoin machines which shows the level of crypto’s growth.
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 Issues with 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.
It is important to do your due diligence on the blockchain brands offering crypto debit cards as they may be subject to regulation in other parts of the world.
Crypto debit cards are another exciting feature of the world of crypto and blockchain technology. As much as it has shown exciting features, it is important to make your research before being involved in crypto and its endeavours.