We already know the benefits that Cryptocurrencies have to offer both customers and businesses alike. However, companies, in particular, have a lot to gain from the cryptocurrencies. With every payment replaced with the crypto payment, companies can save thousands every year.
The idea of crypto transactional payments has started to take a concrete shape. And this might be the reason you will find people carrying Crypto debit or credit cards. As an unknown entity in the financial world, Crypto debit/credit card might still be under the clouds.
Fortunately, COVID 19 pandemic has provided the most necessary catalyst for the people to make themselves acquaintance with the Crypto debit/credit cards.
What are the Cryptocurrency Debits cards?
As the name itself suggests, what are they? Cryptocurrency debit cards are the payment cards that are used in the same way as standard credit cards. The only difference is that instead of using the traditional fiat currency, you will be using digital cryptocurrencies to pay for goods and services.
You will even find some of the service providers with the facility to instantly convert the Cryptocurrencies to the fiat currency before making any payments.
You can even use the Cryptocurrency debit cards to add funds to your account.
The Cryptocurrencies Debit card was made for the people who have built their careers on Cryptocurrency investment. To encourage their activity and provide security to these traders with the crypto funds, several companies have surfaced up with this kind of service recently.
With these services being around, it has become simpler to use Cryptocurrencies for even the smallest financial transactions.
A brief history of Cryptocurrencies Debit cards
When there were no Cryptocurrency Debit cards, people were forced to use any third-party platform to convert Cryptocurrencies into fiat currencies.
This process was too lengthy and hectic. The conversion charges were also huge, making people lose most of their profit in the overhead expenses.
Hence, it was inconvenient for Crypto traders to pay for small transactions. This problem became enormous, and then some institutions came up with the idea to have a debit/credit solely for the Cryptocurrencies.
The first of the companies that implemented this idea was Coinbase. It operates on a simple principle. It has distributed a Cryptocurrency debit card to its users, and whatever purchase is made with the help of the Crypto debit card was deducted from their Coinbase account.
However, there were limitations to using the debit card. You were restricted from having a daily purchase of up to $1000 and ATM withdrawals up to $200.
Why use Cryptocurrency Debit cards?
Well, you do not have to use it until and unless you are a full-time Crypto trader or you have most of your assets in Cryptocurrencies. The cryptocurrency Debit card was exclusively made for the people who found it hard to spend their cryptocurrencies.
Also, it comes with its advantages over traditional Debit cards.
- Close to 0% annual fees
We all have used traditional debit cards, and we know how high annual maintenance charges can be. But with the Cryptocurrency debit cards, you have minimal maintenance charge. And if you have a certain amount of expenditure with a Crypto debit card, then fees are also waived.
- Smooth regulation of your crypto asset
There are many people who have invested their time and money to become a Cryptocurrency trader and investors. However, it becomes very difficult for them to use the same cryptocurrency to buy daily needs.
Now that Cryptocurrency debit cards have been introduced to them, they happily use it to pay for the goods and services efficiently. And the best part is that they do not have to pay up hefty conversion fees.
- No foreign exchange fees
One of the significant issues with bank-related debit cards is that they charge too much foreign exchange fees. These exchange fees can go as high as 3% of the total transaction made. On the other hand, most of the cryptocurrency debit cards do not change any foreign exchange fees. Hence, making them a better option over the traditional debit cards.
- One card access to different countries
There are many cards that serve both Cryptocurrencies transaction and fiat currency transaction. That means you do not have to swap cards to make different transactions. You can use one card for all kinds of transactions.
- Cashback rewards
You all must have got some discount, coupons, or voucher after purchasing with a traditional debit card. The same thing happens with the cryptocurrency debit card. There are provides that offer cashback and crypto tokens to their user. Some of the cashback can be up to 3% of the total transaction made.
Overall, after going through what Cryptocurrency debits can do for you, it is worth trying one. If you are interested in applying for one, you can look into the bitcoin trader app.