Cryptocurrency Debit Cards: How Bitcoin Bank Cards Work

Transferring crypto to a debit card can be quite frustrating. The difficulties are usually associated with waiting for the conversion process, paying fees, and, what is more, with considering market volatility. That's why debit cards for cryptocurrency appeared, which are much easier to use. In this article, we explain how they work and how you can use them for your daily purchases.

What Are Cryptocurrency Debit Cards?

Cryptocurrency debit cards can be used to pay for purchases in the same way as bank cards. The difference is that instead of the usual fiat currency like USD or EUR you pay with cryptocurrency. Thus, the crypto card works exactly like an ordinary bank card except that the crypto debit card allows you to have a crypto wallet and proposes a real-time converter that will enable you to pay instantly using your crypto.

When you pay in USD, for example, with crypto debit cards, a bank automatically converts the cryptocurrency you have in your wallet into dollars. It transfers it to your card, which works with fiat currency with Visa or MasterCard.

The Rise Of Cryptocurrency Debit Cards

Crypto debit cards were first proposed and created in 2014 by BitPay. But, at that period, they were not popular due to several elements, such as lack of awareness and acceptance of cryptocurrency, the inconvenience of using crypto debit cards and the high fees they charged then; not many people were interested in sending the crypto to a debit card.

However, in 2021, they became more popular thanks to the increasing popularity and accessibility that the cryptocurrency witnessed, the growing acceptance of cryptocurrency payments by merchants, and the increasing convenience and affordability of crypto debit cards. Being able to transfer crypto to a debit card brought numerous advantages:

• Convenience: Using cryptocurrency with a debit card allows you to spend cryptocurrency anywhere that accepts Visa or Mastercard, eliminating the need to convert it to fiat currency first.

• Rewards: Some cryptocurrency debit cards offer rewards programs, such as cashback or points that can be saved from digital assets, earning great rewards.

• Control: One of the crypto debit card benefits is that you can control your cryptocurrency completely. You can load or unload your card anytime and check your balance and transaction history online.

• Accessibility: Crypto debit cards are an easy and convenient way to use cryptocurrency without a necessity to have a bank account.

• Financial inclusion: Crypto debit cards promote financial inclusion, providing access to financial services to people who didn't have it before, going through a traditional bank.

Choosing The Right Bitcoin Debit Card

There are not just general crypto debit cards, but cards for different coins, for example, Bitcoin, which is the most popular one. And, in this part of the article, you will see how to choose a Bitcoin debit card for seamless everyday transactions appropriately. The main thing is that you should consider some factors to get the best card in the market. Here are these factors:

• Fees. Many Bitcoin debit cards charge commissions, including monthly or annual service, ATM withdrawal or foreign transaction fees. Compare the sizes charged by different cards before choosing one.

• Rewards. Bitcoin cards usually have cryptocurrency cashback, which can significantly expand your budget. So, pay attention to cards with a high cashback option.

• Accessibility. Some Bitcoin debit cards are only available in a few countries, such as the US or EU countries. So before purchasing, find one that will work in your region as well. If you want to know more about countries where Bitcoin and other crypto are in use, read our article about it.

• Security. Bitcoin debit cards use various security features to protect clients’ cryptocurrency, including encryption technology and 2FA. Choose the best crypto debit card that offers robust protection.

• Customer support. To get a Bitcoin wallet with a debit card, one of the main points that you need to consider is the quality of the support; if the support is not helping you when you have problems, you will lose money and time, so make sure to choose one that is active.

To get a crypto debit card you have to pass the application process. Firstly, choose a provider: it can be a crypto exchange such as Binance or Coinbase. Create an account there, pass the KYC procedure, and order your card. Then you will receive it by mail and you will only need to activate it by following the instructions provided.

We hope this guide has helped you understand the features of crypto debit cards, and now you know how to choose the most suitable option for you. We recommend you to read the answers to frequently asked questions that can also be useful.

FAQ

How Cryptocurrency Debit Cards Work?

Crypto debit cards are used by specialized companies that operate in cryptocurrency financial services, like Binance. These companies make deals with payment networks, Visa and Mastercard, to allow users to spend their cryptocurrency where classic payment systems are accepted.

Here's how a crypto wallet with a debit card works:

1. You transfer cryptocurrency from your crypto wallet to your debit card wallet.

2. When purchasing, the card provider converts your crypto to fiat currency at the current exchange rate.

3. The fiat currency is sent to the merchant's bank account.

4. The merchant receives the payment and completes the transaction.

5. The entire process is recorded on the blockchain for security and transparency.

Therefore, using a crypto wallet with a debit card is an easy way to spend your cryptocurrencies without having to convert and wait for the process to end. Your provider will automatically convert your crypto to fiat currency and transfer it.

What Is The Limit On Bitcoin Debit Cards?

Yes, there are limits on using Bitcoin debit cards that are associated with spending certain amounts. They vary depending on the service provider and card type you have. For example, there may be daily, monthly, or annual spending limits. And the average limit is $10,000 daily and $25,000 monthly. Ask your card provider to know exactly what limits apply in your case.

Is It Safe To Buy Bitcoin With A Debit Card?

You can buy Bitcoins with a crypto debit card with peace of mind, as it is completely safe. Crypto debit cards use encryption, two-factor authentication, fraud protection, FDIC insurance and follow the same security regulations as traditional cards to protect your crypto assets and personal info.

Where Can I Use A Crypto Debit Card?

You can use crypto debit cards just like regular bank cards, at the same places, but with a slightly limited list. Among the places that accept crypto cards are retail stores (Walmart, Zara), online stores (Amazon, Spotify, Booking), restaurants (McDonald's, Starbucks), entertainment (Ticketmaster), transportation (Uber, Lyft), and also some pharmacies and doctor's offices. In some countries, crypto debit cards can be used to pay for utility bills, mobile communications, university tuition, or to donate money to charity.

Which Is The Best Crypto Debit Card?

The best crypto debit card is different for everyone, and its choice depends on the functionality and terms of use. However, there are a few of the most popular cards that are often favored by users. They include the Crypto.com Visa card, Binance Visa card, Bitpay card and Nexo card. They have no fees for the service, and Crypto.com, and Nexo cards offer cashback, that is why users choose them.