A crypto debit card is a type of debit card that allows its holder to pay for goods and services using cryptocurrencies.
What Is a Crypto Debit Card?
A crypto debit card is a type of debit card that allows its holder to pay for goods and services using cryptocurrencies like Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH). Most crypto debit cards in use today are powered by Visa and MasterCard, which enables global support for the card.Users need to first top up their crypto debit cards with their preferred cryptocurrencies before they can use them for shopping, similar to how traditional debit cards work. Loading a crypto card is facilitated via supported websites and mobile applications.
Interestingly, merchants get to receive payments in fiat currencies like EUR or USD despite being paid with a crypto card since the card issuer facilitates the conversion using prevailing market rates.
While the conversion equates the card to a conventional debit card, it provides additional benefits to cryptocurrency holders, especially if they travel overseas regularly. When traveling abroad, crypto cardholders can avoid the high transaction fees incurred when switching between currencies. In addition, a crypto debit card also exempts users from other charges levied on legacy cards such as yearly fees.
Other advantages of using a crypto debit card include the ability to make ATM withdrawals, as well as interface with popular payment platforms such as Samsung Pay, Google Pay, and Apple Pay. Note that there are virtual crypto debit cards ideal for online purchases.
In addition, some crypto card providers offer users the ability to stake native coins to unlock rewards. However, loaded virtual currencies regularly fluctuate in value due to crypto market’s volatility.
Regulated issuers may also require users to reveal some personal details as part of their know-your-customer (KYC) requirements.