Crypto Debit Card
What Is A Crypto Debit Card?
A crypto debit card is a debit card that allows holders to spend their digital assets, such as Bitcoin or Ethereum, at locations where regular debit or credit cards are accepted.
Generally, a debit card allows you to pay for goods or services electronically using the available funds in the account linked to the card. It also allows you to withdraw money from the ATM. A crypto debit card is essentially the same thing. A debit card linked to the crypto wallet will enable you to pay for purchases at any merchant that accepts debit cards using the funds in your crypto wallet.
A cryptocurrency debit card functions as a traditional banking debit card; cardholders can use them in millions of locations worldwide because the card issuers create them by partnering with top payment processor companies such as Visa and MasterCard. A holder must preload it with a cryptocurrency of their choices, such as Bitcoin, Ethereum, Ripple, or other supported altcoins to use the card. The card will automatically convert the cryptocurrency into the preferred fiat currency the holder wants to spend or withdraw.
Despite that cryptocurrency is gaining acceptance globally, it is still difficult to find merchants willing to accept it as a means of payment in the real world. For instance, finding a restaurant willing to accept Bitcoin as a mode of payment is a daunting task. On the other hand, finding a restaurant that allows customers to make payments using a debit card is relatively easy. This type of card enables crypto users to spend their digital assets in the real world conveniently.
Some benefits of owning a crypto debit card over a traditional debit card include:
- Offers protection from nasty exchange rates when traveling outside your home country.
- Allows you to withdraw the fiat equivalent of part of your Bitcoin holdings at the ATM.
- CIt comes with robust security features to help protect your funds.
- Charges lower fees and may offer perks such as cashback rewards.
Crypto Debit Card Example
An example of a crypto debit card is the Binance Card. Binance, the largest cryptocurrency exchange globally in terms of daily trading volume, issues the debit card in partnership with Visa. Binance Cardholders can make purchases using the card at more than 60 million merchants worldwide. Cardholders enjoy some perks, including zero transaction fees and up to 8% cashback on some purchases.« Back to Glossary Index