Crypto debit cards are similar to regular banking debit cards in concept.
The cryptocurrency world has seen a spectacular rise over the past two years with an increasing number of people investing in it or showing an appetite to use it to buy products and services. However, the exponential rise has been hampered by some real-world limitations. Not many shops and websites have started to accept these virtual currencies as a mode of payment. There are some other reasons for this. Retailers might be worried about the exchange rates of this highly volatile industry, they could also find the new technology difficult to understand or think the demand for transactions in popular currencies like Bitcoin and Ethereum is still low.
Thankfully, to address these issues, creators are coming up with innovative solutions and products. One of them is crypto debit cards.
What are crypto debit cards?
Crypto debit cards are similar to regular banking debit cards in concept. They allow users to complete day-to-day transactions using Bitcoin, Ethereum, Ripple and other crypto coins. One of the greatest benefits of using crypto debit cards is that users, largely, don't have to worry about whether the physical card will be accepted by a merchant or not. That's because many of these products out there have been released in tandem with Visa and Mastercard, meaning 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 conventional debit cards, the money in our bank account is first converted to dollars or the local currency of the country the person is visiting. But crypto debit cards, crypto coins act as a bridge to other fiat currencies, saving money spent on conversion.
How do these cards work?
First, users will have to top up their crypto debit cards with the virtual currency of their choice, using a mobile app or website. Say you want to buy a coffee. How do you pay? You start a transaction to the coffee shop owner in crypto and the card provider will convert the digital coin into fiat money and transact it into the account of the service provider. There are some perks as well. Most crypto debit cards offer generous rewards and spending limits. Additionally, the transaction fees are lower when compared to conventional debit cards.