Conceptually, a crypto debit card is similar to a regular bank debit card.
The crypto world has seen a spectacular resurgence in the past two years with an increasing number of people investing in it or showing an appetite to use it to purchase products and services. . However, the exponential increase has been hampered by some real-world limitations. Not many stores and websites are starting to accept these virtual currencies as a payment method. There are several other reasons for this. Retailers may worry about the exchange rate of this volatile industry, they may also find it confusing about new technology, or assume the need to transact in popular currencies like Bitcoin and Ethereum is still low.
Thankfully, to solve these problems, creators are coming up with innovative products and solutions. One of them is a crypto debit card.
What is a crypto debit card?
Conceptually, a crypto debit card is similar to a regular bank debit card. They allow users to complete daily transactions in Bitcoin, Ethereum, Ripple and other cryptocurrencies. One of the biggest benefits of using a crypto debit card is that most users don’t have to worry about whether a physical card will be accepted by a merchant. That’s because many of these products have been released in tandem with Visa and Mastercard, which means they can be used in millions of locations.
Another benefit is that users do not need to pay sky-high exchange rates when traveling abroad. With a regular debit card, the money in our bank account is first converted to dollars or the local currency of the country the person is from. But a crypto debit card, a cryptocurrency that acts as a bridge to other fiat currencies, saves on conversion costs.
How do these cards work?
First, users will have to top up their crypto debit card with the virtual currency of their choice, using a mobile app or website. Let’s say you want to buy a cup of coffee. How do you pay? You initiate a transaction with the cafe owner in crypto, and the card provider converts the digital currency into fiat and the transaction into the service provider’s account. There are some perks as well. Most crypto debit cards offer generous rewards and spending limits. In addition, transaction fees are lower when compared to regular debit cards.
