Cryptocurrencies were created to serve as peer-to-peer electronic cash, at least Bitcoin was. This means they were created to be used for buying and selling, just like fiat currencies which are used for all things buying and selling.
However, the use of cryptocurrencies for payment has faced challenges because of the technicalities involved. For example, it takes some level of technical awareness to operate a crypto wallet, which is where you normally spend your crypto assets.
This is a major turnoff for many people because they don’t know how to do this, and they may not be willing to learn. Besides, there is the fear about cryptocurrencies being fraudulent, which makes many merchants to reject cryptocurrencies as payment.
To create a way around these issues, crypto companies like exchanges created crypto debit cards. These cards can be used to spend crypto assets just like fiat debit cards. Because they are issued by leading debit card companies such as Mastercard and Visa, they are accepted worldwide, wherever such cards are accepted.
Perhaps the best part about crypto debit cards is that they are funded with crypto but are used to make purchases in USD or whatever fiat currency they are denominated in. Therefore it is acceptable at all pay points. You can also choose to use a physical or virtual debit card, depending on what is convenient for you.
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Why Should You Use a Crypto Debit Card?
There are many advantages to using a crypto debit card. The following are some of the top reasons you should get one.
Easy Crypto Spending
As stated earlier, spending crypto from a wallet can be a daunting task. However with a debit card, you can spend crypto assets the way you spend fiat currencies without having to convert your money to fiat. This is incredibly convenient, since you get to retain your crypto assets rather than having to trade them for fiat.
The debit card automatically converts whatever crypto assets you have on the card to the fat currency you denominated the card with. This eliminates any extra costs for conversion, which also saves cost.
Debit Card Rewards
Another perk to using crypto debit cards is that they come with cashback rewards. When you use a crypto debit card to spend, the card provider typically pays you back 1-8% of the amount you spent in the cryptocurrency you spent.
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Some of them even waive fees when you use the card at ATMs.different cards come with different perks and reward programs, so you should research them and pick one whose reward program suits the nature of what you intend to use the card for.
No Credit Checks Required
When you apply for a conventional fiat debit card, the bank will first run a background credit check on you to ensure you’re not a liability before giving you the card. You don’t need that for a crypto debit card.
All you need is an account with the card provider and you need to apply for the card. If the card is free, you can get it for free, if not, you only need to pay for it and you’re good to go.
Disadvantages of Using a Crypto Debit Card
Crypto debit cards are excellent for seamless spending of crypto assets. However, they have some limitations such as the following.
Not Globally Available
Although crypto debit cards are globally accepted because they are issued by Mastercard, Visa, and other global payment companies, they may not be available to everyone from every part of the world.
For example, a Binance debit card, though globally accepted, may not be available in your country, which means you can’t use it.
Your Transactions May be Taxable
Spending crypto from a card may be very convenient and rewarding, but it may be taxable. Most crypto people hate the idea of taxes, but if you’re okay with it, you may find crypto debit cards appealing enough to use.
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