Your quick guide to understanding crypto debit and credit cards

Over the years, crypto has grown so massively popular to the point that several crypto ATMs have been placed in several places. Quite similar to fiat, you can also have debit and credit crypto cards which you can use for casino gaming or any transactions. 

Crypto ATMs are great as they help you access your assets easily. Although crypto may not have a physical form, these ATMs help you complete the transactions you wish to make. This is also helpful for those who don’t have a stable network. 

Of course, there are cards that would have to be inserted in the machines so they can function well. In case you missed it, there are also crypto debit and credit cards. Here are a few facts to learn about them: 

What is a crypto debit card? 

A crypto debit card functions similarly to prepaid debit cards as they can be loaded with crypto credits. The best thing about this is that these can be used to make online and in-person purchases even from businesses that do not take crypto.

These cards convert any Bitcoin or other crypto to fiat. Any fiat currency that the card supports can be withdrawn from ATMs using crypto debit cards.

How do crypto debit cards work? 

Quite similar to fiat, crypto debit cards use the balance that you have deposited in them. Simply put, they work with the crypto that you already have. Since crypto works with apps, it’s easy for you to monitor how much money you have. 

Therefore, having a physical card with you makes it more convenient to make payments with crypto. With its special mechanism, it becomes acceptable to other merchants. The reason behind this is that these cards are mostly powered by Visa. 

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Advantages of having a crypto debit card

There are several advantages that come with using a debit card crypto. Here are some of them: 

• More chances to use your crypto assets 
   

Similar to using a standard debit card, using a crypto debit card gives you access to just about any retailer. This implies that you have essentially limitless options for how to spend your cryptocurrency's worth.

• Faster off-ramping
   

Crypto debit cards make you easily switch to fiat without the need to wait for hours or days. This gives you more control on how you can use your assets.

• Inflation protection 
   

Using a crypto debit card to spend crypto whenever you want. This allows you to insulate it from fiat's renowned inflation and volatility. Simply put, it provides you greater power over how you manage your assets' value.

How to get a crypto debit card? 

A cryptocurrency debit card is typically offered by cryptocurrency exchanges. Applying for one normally involves opening an account and/or a digital wallet. Some of them also demand that you go through the Know Your Customer (KYC) verification process to confirm your identity.

Sometimes, you can buy crypto debit card with certain fees. This is because some of them come with certain charges and many of them require you to invest in their crypto. That way, you can also be entitled to some perks that come with having a crypto debit card with them. 

Some cards can also be purchased with varied costs. Others charge fees and demand that you invest in their own token currency to receive better perks.

What is a crypto credit card? 

A crypto credit card works similarly to regular credit cards as they allow you to borrow money and make payments each month. The way it differs from the regular ones is that instead of travel points or cashbacks, crypto credit card rewards are paid in the form of your chosen crypto. These will then be deposited to your wallet that is connected to your card. 

Quite similar to regular credit cards, it is important that you pay your dues on time so as not to get charged with interests and late fees. Also, it gives you a chance to make purchases even on merchants who aren’t that open to crypto yet. 

How do crypto credit cards work?

Similar to every other credit card, a cryptocurrency credit card functions by rewarding you with crypto as you make purchases.  The methods used by each card to process and award to cardholders vary, though.

For example, some give back a certain percentage of the crypto that was used for purchases or a certain amount once you reach their threshold. Some even give you points that help you redeem prizes. Once the points are deposited and you’re able to maintain a good standing in terms of payment, you are more likely to convert the points in the crypto of your choice.

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Advantages of having a crypto credit card 

There are several advantages that come with having a crypto credit card. These are: 

• Passive crypto income 
   

If the idea of passive cryptocurrency income sounds appealing to you, crypto credit cards are a great choice. This is because they can passively help you earn more crypto with the help of your usual shopping habits. 

• Premium rewards 
   

For frequent travellers, crypto credit cards can reward you with annual credits, status upgrades, access to airport lounges, and travel protections. 

• Value assurance 
   

With this type of credit card, you can expect returns in the form of miles, points, or cash back. Still, you would have to keep in mind that the rewards are most likely affected by volatility as well. 

How to get a crypto credit card? 

The process for applying for a crypto credit card is similar to that of applying for any other sort of credit card. To determine eligibility, you must fill out an application, and the issuer will check your credit record. With that, you should always consider your credit history before applying as most crypto credit cards require good to excellent credit to qualify.

It's also crucial that you pick a credible service provider. To do so, compare interest rates or annual fees when researching the rewards that each of them has to offer.

These are just some facts that you would have to keep in mind if you’re planning to have a crypto debit or credit card. By learning how they differ, you may find it easier for you to choose which one is more suitable for your needs and preferences. That way, you’ll find it easier to decide which of the two you should be getting. 

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Words: Kyra Jimenez