Debit cards with a tie up to cryptocurrency wallets offer an opportunity to use your digital coins like regular cash. At least for now, this is you the only way you make use of this currency as payment for your usual spendings. And a solution for countering the drawbacks of not being able to spend your crypto coins in your everyday life.
But is it a feasible method of payment? What the future holds for crypto cards? Get to know more about this as we are going to dig a bit deeper into this topic about cryptocurrency debit cards in today’s post.
Crypto Cards Explained
Basically, cryptocurrency debit cards like BlockCard or Revolut work like your average bank cards, but the deposits are designed to accept cryptocurrency coins on them.
Crypto cards are relatively recent. And the purpose of inventing them is to allow cryptocurrency wallet owners to make use of their digital coins as payment for daily expenses.
How Can It Be Used?
- Swipe It Like The Usual Card – Crypto cards are similarly used as your typical credit or debit cards where you easily swipe it for paying something. The only difference is that the card is linked to your crypto wallet and not your bank account.
- You Can Of For A Physical Or Virtual Card – Applying for crypto card lets you choose between 2 options, either you have it as a physical card or as a virtual card.
Physical crypto debit cards are ideally used for point of sales (POS) payments while virtual cards are recommended for those who frequently make online purchases.
- Can Be Used Anywhere – Since the crypto card is just like a normal debit card, it can be easily be used for making payment transactions at coffee shops, groceries, gas stations, and just about anywhere. And since crypto companies are now making efforts to partner with globally recognized payment processors like UnionPay, Visa, and MasterCard, then you can expect these cards to be an acceptable mode of payment worldwide soon.
Are The Any Drawbacks Of Using Crypto-Backed Cards?
The technology of using cryptocurrency debit cards is still a working solution. But like using normal debit cards, it also has its share of disadvantages:
- Centralized Risk – To order a crypto card, you have to sign up with a crypto wallet service (Wirex, Cripterium, etc.) and deposit some cash. In short, you’re entrusting your money to these companies which are not yet protected by the government like banks do (at least, for now).
- Many Fees – Crypto cards usually involves many fees like issuance fees, delivery fees, loading fees, and conversion fees. However, there are other options provided to accommodate your lifestyle and spending habits.
- Area Restrictions – For the moment, the issuance of crypto cards is still limited to specific countries. But the future is bright because as previously mentioned crypto companies are now collaborating with top payment processors to allow all crypto-based cards to be availably used in all countries.