Aside from the obvious benefit in terms of convenience, crypto debit cards have lower fees and provide some rewards unavailable in traditional debit cards.

Picture this scenario. You like to travel A LOT. Because of this, you love to carry light. Thus you only carry the essentials, like a slim card to replace a bundle of cash. It is safer, easier, and less hassle to travel with.

But what if you can't apply for a credit card because you got a bad credit score? Are you now stuck with carrying a bundle of cash wherever you go? Fear not! There's a solution to your problem, and that is...crypto debit cards.

What are they? Why should you use them?

Crypto debit cards

 

Why Do Crypto Debit Cards Exist?

See, crypto debit cards exist as a solution for a few issues in cryptocurrency adoption. One, cryptocurrencies' prices are in constant volatility, which means an asset could appreciate or depreciate wildly in the span of hours or minutes.

Two, general risk-averse behavior ensures most won't be willing to risk money for things they do not understand. To put it simply, people are more willing to retain what they already have and less willing to take risks.

Three, cumbersome adoption. Most businesses already tailor their transactional workflow around traditional financial payment options. Thus, incorporating new payment processors for cryptocurrencies is a hassle.

How does then, in the face of these problems, the cryptocurrency industry still try to promote adoption? The answer is crypto debit cards.

 

Why You Should Use Them

There is a multitude of benefits of using crypto debit cards compared to a traditional debit card. Some companies offer two separate cards for their customers: a physical card for in-person purchases and a virtual card for online shopping. This makes your shopping experience even smoother.

Another benefit is that there's no geographical limit for shopping. Irrespective of your location, most crypto debit cards offer an option to automatically convert your crypto assets into local fiat. This saves the hassle of having to go through any monetary exchanges.

There's also an additional benefit of lower fees incurred by the crypto debit card. Unlike traditional ones, crypto cards don't charge you fees like foreign exchange fees, transaction fees, and even sometimes waive ATM withdrawal fees. In fact, some crypto card issuers waive the subscription fee to the card as long as you hold some minimum amount of cryptocurrency in your account. Not to mentions, right now there are plenty of brokers accepting crypto payments.

And the clincher benefit is that you can get some rewards in crypto without even needing any bank account. You can earn rewards in crypto by using your card to spend the money shopping. You may also be eligible for additional bonuses and even earn interest on your dormant digital assets, simply by buying and retaining a native token belonging to the crypto debit card issuer company.

 

How Does It Work

First, pick the crypto debit card company that suits your needs. You then will have to undergo a Know Your Customer (KYC) verification when you apply for a card. Once the sign-up is done successfully, you should receive your card in the mail after a few days.

Second, top up your card using your crypto wallet or your favorite crypto app. The issuer of your crypto debit card usually has a digital wallet for your use, or you can purchase crypto directly from their website.

Third, with your crypto debit card topped up, you can use the card to pay for your shopping and other needs. Simple right?

This simplicity is how crypto debit card issuer companies (and to some extent, the cryptocurrency market at large) can bring easy access and utility to everyday users, at least partially. They handle the fees and the processing to convert your digital currencies into fiat instantaneously, so you don't have to worry about not having cash on hand.