As the world continues to embrace cryptocurrency, there has been a need to find ways to use it in daily transactions. Crypto debit cards provide an avenue for cryptocurrency owners to use their digital assets to make purchases. This article will dive into everything you need to know about it.
What Is a Crypto Debit Card?
A crypto debit card is a payment card that allows users to make purchases with cryptocurrencies. Unlike regular debit cards that are linked to a bank account, they are connected to a cryptocurrency account.
History of Crypto Debit Cards
The first crypto debit card was launched in March 2014 by Xapo Debit Card. Since then, many companies and exchanges have followed suit and launched their own crypto cards. Financial services companies such as MasterCard, Visa, and Swipe have also partnered with crypto exchanges to provide infrastructure for banks to issue such cards. Recently, Nexo launched a crypto-backed card that allows users to borrow cash and use their cryptos as collateral.
How Do Crypto Debit Cards Work?
Crypto debit cards work by acting as a link between a user’s cryptocurrency account and a retailer’s payment system. When a user inserts their card at a point of sale (PoS), the cryptocurrency in their account is sold by the exchange and the fiat currency equivalent is transferred to the retailer. The cards can also be used at ATMs that support cryptocurrencies, where the crypto is sold and the user can withdraw cash.
Types of Crypto Debit Cards
There are two types of crypto debit cards: virtual and physical. Virtual crypto debit cards are only usable online, and users must provide their card details to make purchases. Physical cards are plastic cards that are applicable both in the real world and online.
Benefits of Crypto Debit Cards
Quick Transactions: Crypto debit cards help facilitate faster transactions, as users can withdraw cryptocurrencies directly as fiat currency and make payments.
Cashbacks: Users can get cashback when they use their crypto debit cards. The rate and percentage of cashback vary from provider to provider.
Crypto Utilization: Crypto debit cards are helping people embrace cryptocurrencies as a way of payment, which is what they were created for.
Ease: Users with crypto debit cards can avoid the hassle of exchanging currencies at forex points, as they can withdraw the preferred currency from a crypto ATM.
Most Popular Crypto Debit Cards
Several companies offer crypto debit cards, but some have outperformed others. The most popular debit card companies include:
- Binance Visa Card: The Binance Visa Card is issued to users who have verified their identity through KYC and AML. It offers cashback features that enable users to get back 8% of the crypto spent in the form of BNB. Furthermore, the spending limit depends on the user’s account status and the available balance of their linked Binance account.
- Coinbase Visa Card: The Coinbase Visa crypto debit card allows users to get up to 4% cash back on purchases made with the card. Over 40 million merchants accept the card due to the partnership between Visa and Coinbase.
Crypto debit cards have become increasingly popular as they allow crypto owners to use their digital assets to make purchases. With virtual and physical options available, users can enjoy fast and easy transactions, cashback, and the ability to fully utilize their cryptocurrencies.
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