Pros and Cons of Crypto Debit Cards
One of the greatest drawbacks of cryptocurrencies is the inability to spend them in everyday life with the same ease as traditional currencies. While the number of merchants accepting crypto directly is rising, it would take a long time since they all jump into it.
Until that happens on a global scale (and we bet on it), the best and simplest ways to spend your digital currencies easily is through a crypto debit card. This new payment method makes the conversion from crypto to fiat smooth and cost efficient.
The question is: do you really need a crypto card? Let’s dig a little deeper into the pros and cons of owning one and find out if this payment solution is right for you.
Pros Of Crypto Cards
Swipe It (As Usual)
Don’t let the ‘crypto’ part scare you off. These debit cards work just the same as any other bank card you own. Except they aren’t linked to a mobile banking app, but to a crypto wallet.
For example, the Crypterium Card is linked to the Crypterium App. This is a big advantage as you can track expenses, block/unblock, change PIN and top up your crypto prepaid card using any of your favorite digital currencies.
Physical Or Virtual
There are various types of crypto cards out there. Most companies now offer both physical and virtual cards. If you intend to use it for online purchases only, then the virtual card will get the job done just fine at cost you a little less than the plastic one. For POS purchases, on the other hand, you would need a physical prepaid card.
An additional benefit of physical crypto debit cards is that you use them in most ATMs. That means you no longer have to wait to cash out your cryptocurrencies. You load it, go to the ATM and withdraw as much as you need. All done in minutes.
With your crypto debit cards, you can buy almost anything anywhere. That’s right. You can use them to pay for a coffee, groceries, clothes or gas/fuel. Basically, anywhere where the traditional cards are accepted you will be able to use them. What makes the transactions even easier is the fact that the companies issuing crypto-backed cards are collaborating with globally recognized payment processors, such as Visa, MasterCard and UnionPay.
The company issuing the debit card is responsible for paying any merchant using the corresponding fiat currencies which will be deducted from your crypto balance afterwards.
Crypto To Fiat In Seconds
Owning a crypto debit card means that you will be able to spend your cryptocurrencies on the go, without having to wait for the funds to be added to your bank account.
Unlike traditional bank withdrawals, this method doesn’t take a big fee. For such reason, you aren’t pushed to exchange more than you need for fees sake. You can top up the card for the amount you need and leave the rest of your digital assets in your balance.
More Currencies At Your Disposal
Crypto debit card providers are trying to link more than one fiat currency to the cards. Wirex is one of them. You can choose dollars, euros or pounds as a base currency. However, this particular crypto card is only available for European clients.
Most cryptocurrency cards can be loaded using different digital currencies. Following a previous example, users of the Crypterium Card can choose between Bitcoin, Ethereum or Litecoin.
Cons Of Crypto Cards
To order a Bitcoin card you’d first have to open an account with one crypto wallet service, such as Crypterium, Wirex, Crypto.com, etc. Then, load that wallet with funds so that you can top up the crypto card. This all means that you’re entrusting that company with your money.
As a general advice, make sure the wallet you are choosing is fully compliant with the law and has taken all necessary security measures to protect your personal data and funds. To reduce the risk, you could also opt to keep a small amount of crypto in the wallet, enough to load the card whenever you need it.
You can expect to encounter different region limitations when it comes to crypto debit cards. Many providers limit their issuance of crypto cards to one or more countries or even continents. Not being able to order a card from the desired provider can be inconvenient.
For example, the Coinbase Card is only available for UK residents, while the MCO Card serves customers in Singapore and a selected number of states in the US. To date, the only crypto prepaid debit card available in all countries is the Crypterium Card.
Fees all over the place
One thing you should keep in mind before deciding to get a crypto debit card is that there are various fees associated with these cards. Starting from the issuance and delivery fee to loading fee and conversion fees. If you are not willing to pay for all of these fees, maybe you should question your decision to get a crypto debit card.
In most cases, spending your cryptocurrencies with this level of freedom comes at a price. But do not let that get in your way. There are plenty of options that might suit your lifestyle and pockets. If you are having second thoughts about getting a crypto debit card due to all the fees, the right thing to do is to compare fees from the different card issuing companies. And yes, we have saved you from that trouble. Check them out:
There is nothing wrong with spending your cryptocurrencies. In fact, digital currencies offer plenty of benefits against traditional ones. The thing is most people still sees cryptocurrencies as investment tools rather than a payment method. But why?
Using certain cryptocurrencies for daily payments such as Bitcoin or Ethereum comes with a big opportunity cost attached. To spend these currencies you would need to exchange them into fiat at a certain rate today, without any guarantees the value of those crypto assets will not appreciate in the nearest future.
Crypterium has come up with a remedy to this uncomfortable situation: stablecoins. These fiat-pegged cryptocurrencies allow users to spend on the go digital currencies that keep their value constant. No need to touch other volatile assets.
The Bottom Line
With the list of all the pros and cons of owning a crypto debit card, you can now conclude whether this kind of crypto payment solution is what you need.