Your Ultimate Guide
Over the past decade, crypto and blockchain technologies have been disrupting conventional finance and giving users new ways to borrow, trade, and profit. Crypto is no longer a domain for the chosen few.
Bitcoin, Ether, and a plethora of other assets have entered the mainstream. Today, there are over 10,000 coins and tokens in total. Decentralized finance, crypto lending, and stablecoins are some of the most revolutionary innovations so far. The advent of the crypto card is a relatively recent phenomenon.
Our guide will give you a glimpse into the future of global finance. If you want to explore crypto but don’t know where to begin, read on. This article covers the past, present, and future of crypto cards.
What Are Crypto Cards?
The key advantages of crypto are well-known. Digital money benefits consumers and businesses alike. Companies have a lot to gain from embracing crypto payments. However, they still encounter obstacles when it comes to making and receiving them.
Crypto cards are a solution to this problem. Due to the coronavirus pandemic, digital payments have become not only the norm but also the safest and smoothest payment standard. Now, consumers are ready to explore the benefits of using cryptoassets for day-to-day expenses.
How Cryptocurrency Debit Cards and Credit Cards Evolved
Before the advent of crypto cards, holders of digital assets could only dream of using them for ordinary purchases. Cryptocurrencies were mainly used for trading and hodling (holding on to assets to profit from their growth). Direct payments were impossible, but individuals could make crypto-to-fiat conversions on third-party exchanges. This process was too lengthy and inconvenient for frequent use.
Cryptocurrency cards (debit and credit) were designed to streamline these operations. They were created by popular crypto platforms like Bitpay, Revolut, and Coinbase. The latter achieved early success with its Shift Card. It relied on a simple principle – the value of purchases made by the holder was deducted from their current balance on the crypto exchange.
However, the card also had downsides. First, it came with a daily expense limit of $1,000 and an ATM withdrawal limit of only $200. Secondly, the transaction fees were too high to make this card a smart financial product. In 2020, users could already use a variety of instruments with improved features. The CRO Visa Card and Coinbase’s new card were both superior to the Shift Card.
How Crypto Cards Work
Essentially, these cards work similarly to conventional debit or credit cards that belong to the Visa or Mastercard systems. The currencies are the main distinction. Crypto investors can use their assets to buy goods and services on a daily basis. They pay directly, foregoing conversion to fiat on a third-party exchange. Yet, holders can also convert crypto to fiat instantly when they need to.
Crypto cards are built on the same Visa/Mastercard infrastructure as conventional products. This means that holders can pay in millions of outlets around the world. No extra steps are required, and cashiers may not even realize you are using a crypto card. All you need to do is insert or tap it! Conversion into fiat is seamless and discreet.
Who Should Use Crypto Cards?
Despite the above-mentioned benefits, crypto cards are still rare compared to their conventional counterparts. They are not a novelty anymore, so why aren’t they getting more publicity? The main barriers are the status of cryptocurrencies and some technical aspects of their use.
The average Bitcoin transaction takes ten minutes to confirm, and the fees are rising as the industry grows. BTC on plastic cards is therefore unsuitable for frequent small purchases. Ethereum, its strongest arrival, and some other currencies offer faster transactions and lower fees, but these advantages are insufficient.
At present, crypto cards are handy for those who have experience with digital finance. Their holders keep most of their assets in crypto, so crypto-to-fiat conversions without the middleman let them save time and money.
Benefits of Crypto Credit and Debit Cards
Crypto cards solve a number of problems faced by holders of conventional debit and credit cards. Here are the most notable advantages:
Access Different Currencies with One Card
A crypto card is a multifaceted instrument – it gives access to both crypto and fiat assets at your disposal. This eliminates the need to carry a bunch of different cards and rummage them to make payments.
Low to No Annual Fees
Typically, banks charge substantial annual fees for card services. Crypto companies have rewritten this rule. Service fees typically drop to zero if you spend a particular amount per year.
Pay With Crypto Without Hassle
If you have experience using crypto, you know how profitable these assets can be. Yet, you should also know that using this profit for payments in the real world is complicated. With a crypto card, you can do it easily and avoid high fees for conversion to fiat.
Where Can I Get Crypto Card?
Crypto debit cards are available on popular platforms like Nexo and CRO. You can find other providers by running a quick search online. It is easy to order a crypto debit card – just visit the provider’s website, create an account, and submit your application.
Please note that blockchains fall under different regulations around the world as they bridge the worlds of digital and conventional finance. As a result, providers usually require that you undergo KYC verification, which includes submitting a copy of your ID. Upon approval, getting your card is a breeze – it will be yours once you make a modest upfront payment.
Crypto Cards: Future
The spread of crypto debit and credit cards is spurring the development of digital finance. These instruments give users the Best of both worlds – fiat and crypto. They unlock new opportunities for consumers and businesses as crypto payments are easier than ever. Now, you can carry your crypto in your wallet or pocket and spend it at millions of locations.
What used to be an idealist thought is now a reality, an industry evolving at breakneck speed. Crypto cards make financial transactions easier, cheaper, and faster. Holders can garner cashback rewards and other benefits. Powered by the DeFi economy, crypto cards are pushing global finance forward.