How Do Crypto Cards Work?
In this article, we’ll be explaining the technology behind crypto cards and how you can use them to benefit your everyday life.
In addition, we’ll also list some key differences between a crypto card and a regular bank card.
Let's get started…
What is a Crypto Card?
Before we jump into the in-depth discussion, let us first give you a brief idea about what crypto cards are for those who are completely new to the topic.
Most likely, you are familiar with cryptocurrencies since they’ve been around for over a decade now.
Cryptocurrencies have no physical existence yet possess monetary value to purchase goods and services from vendors.
They ensure a quick and hands-free payment scheme alongside whopping financial benefits for its users.
However, many business holders and marketers are still not ready to accept cryptocurrencies as a form of payment. This is due to cryptocurrency still being a relatively new and volatile market.
Previously, cryptocurrency users would have to convert or sell their crypto for an accepted fiat currency before making a purchase – obviously, this is not ideal.
Hence, people were less interested in investing in cryptocurrencies.
However, the solution to this drawback came in the form of crypto cards.
These cards are just like regular credit or debit cards that store your funds – but in this case, they store cryptocurrencies.
Crypto cards allow you to buy things with your crypto without having to convert them into fiat currency.
The Benefits of Crypto Cards
Believe it or not, crypto cards are the most underrated financial boon of the current time. Its perks are far better than regular debit and credit cards, which are still unknown to many.
Here are some of the benefits of crypto cards:
•Crypto Rewards: Most Crypto Cards offer a huge 8-10% rebate on all your spending. You can also choose to stake your crypto to earn dividends.
•Very Low Fees: Any currency saving account deducts an annual maintenance fee, and the amounts usually turn out to be quite exorbitant for the users.
However, things are different with cryptocurrency accounts, since there is no physical substance to take care of or watch over, it charges a very minimal amount in the name of annual fees.
Not to mention, many companies are out there who changes no value for storing your digital asset!
•International Payments: Not all debit and credit cards allow international payments, and if they do, they can make it quite a hassle.
On the other hand, a crypto card will let you pay the bills instantly without any geographical boundaries.
•No Foreign Exchanges Fees: In general, regular debit and credit cards deduct 3/4% of the total transaction amount during a foreign exchange. Crypto cards do not charge a foreign exchange fee.`
•Use Multiple Currencies: Most cryptocurrency cards let you pay with both fiat and multiple cryptocurrencies.
•Great for Travelling: Once borders open up, we can see crypto cards as being the preferred payment choice for travelers.
Just think, they can be used anywhere in the world with no extra setup, minimal fees, and no international fees.
This makes it the perfect card for people traveling to multiple countries.
How Do Crypto Cards Work?
Crypto cards are actually quite easy to understand.
Once you receive your card, you’ll need to set it up with the issuing company.
You can then transfer your crypto onto the card, when you go to pay for something online or at the shops where they only accept fiat currencies, the card will automatically convert your crypto into fiat in real-time and allow you to make the purchase just as if you were using a bank card.
Setting Up Your Crypto Card
To start, as you set to open up a crypto card, make sure to opt for the option that suits your convenience – in terms of the daily spending limit, daily withdrawals limit, daily top-up limit, probable balance limit, and likewise.
Choose your package wisely as you might not be able to change it later.
Once you have your account, you need to transfer your crypto to your account to have them on your crypto card.
From then onwards you are ready to make digital payments whether you’re paying your rental fee or utility bills or your favorite coffee from your favorite coffee shop.
You no longer have to go the extra mile to convert the coins into fiat currency beforehand!
Functions of Crypto Cards
Now talking about the functions of cryptocurrency cards, they are pretty much the same as the regular cards.
They even look the same and carry the same information: like the owner’s name following by the card number, the issue and expiry dates, the name of the issuing company, and likewise.
The Best Crypto Cards in 2021
There are many crypto cards on the market, these are the only 2 we have had hands-on experience with.
They are both great cards and do exactly what they advertise. They both also have very clean and easy processes.
Crypto cards are a great way to earn some extra crypto with rebates, bonuses, and earned staking interest.
If you enjoy traveling, then a crypto card is a must-have.