It is possible to make spending the bitcoin you hold in the real world less difficult.
When you purchase cryptocurrencies, such as bitcoin, Ethereum, or any other digital coin, you will often store the cryptocurrency in a wallet. It remains dormant until you either move it to another account, spend it on NFTs (or other products that may be purchased using crypto), or convert it into a government-issued currency such as US dollars and withdraw it so that you can put it into your bank account.
However, because of the surge in popularity of cryptocurrencies throughout the past few years, hundreds of millions of individuals now have bitcoin that they may wish to spend. Still, they are unsure of how to do so. There is a solution to this problem in crypto debit cards. They enable you to make purchases using the cryptocurrency stored in your digital wallet at various retail locations, words to describe yourself, including supermarkets, gas stations, and other shops.
If you already possess bitcoin and plan to use it to make purchases in the traditional economy, read on for information regarding how to obtain a cryptocurrency debit card.
What a crypto debit card is?
A cryptocurrency debit card functions very similarly to a traditional debit card; however, rather than being linked to a bank account, it is associated with a digital wallet in which the user’s cryptocurrency is stored. When you purchase using cryptocurrency, the amount of that cryptocurrency that you own is translated into whatever government-issued money the merchant accepts, such as the United States dollar, to complete the transaction.
What are the benefits and drawbacks of utilizing crypto debit cards?
Before applying for a crypto debit card, you should keep a few things in mind, even though these cards allow you to spend your bitcoin and make transactions.
A crypto debit card’s advantages are as follows:
- You can spend the cryptocurrency stored in your wallet more quickly.
- There are credit cards that offer cash-back benefits.
- You can keep traditional currencies such as the dollar and use such currencies to make purchases.
Disadvantages of using a crypto debit card:
- There is a possibility that you will be required to pay a fee for each transaction, withdrawal, or exchange and a flat monthly fee.
- You will be responsible for paying taxes on any capital gains on every transaction.
- Cards can be restricted to specific regions, limiting the locations they can use them.
What are the steps to getting a crypto card?
If you are dead-set on getting a bitcoin debit card, the first thing you need to do is sign up for an account with a cryptocurrency exchange or a digital wallet. After that, you can either buy cryptocurrency or have it transferred into your account.
Be aware that there are waitlists in place to obtain a card. You will be able to apply for the card after you have satisfied the conditions for setting up the account, including validating your identification. After that, the time it takes to arrive can range from a few weeks to many months, depending on how long the list is. Best crypto mobile games you must try once.
What kinds of cryptocurrency debit cards should I look into?
The choice of a cryptocurrency exchange or wallet is determined by several criteria, including the type of cryptocurrency you already possess and the cash-back benefits offered by the exchange or wallet. The following are some of the more important ones:
- The Coinbase Card is a Visa debit card that allows you to use your cryptocurrency holdings to make in-store or online purchases. Coinbase, one of the leading cryptocurrency exchanges in the United States, offers the Coinbase Card. This card is being offered to many clients in the United States.
- Another cryptocurrency exchange, Crypto.com, provides customers with several debit card alternatives, each with a unique cryptocurrency incentive based on the amount of money they are ready to spend.
Other crypto debit cards to consider include the Binance Visa Card and the Robinhood Cash Card, which was just released.
You might also look into crypto credit cards if you’re interested in amassing crypto rewards. These credit cards allow you to receive rewards back on everyday transactions in the form of cryptocurrency, which you can then withdraw or spend as you choose.
I have a debit card from a major bank; can I use that with cryptocurrency?
Currently, debit cards issued by financial institutions such as Bank of America, Chase, Citibank, and Wells Fargo do not support bitcoin transactions. However, you should be aware that you will be subject to costs if you use your cryptocurrency debit card at one of their ATMs.