Over the past few years, a large number of people have been adopting cryptocurrencies globally. But some real-world limitations hindered the exponential growth of this industry. For example, crypto owners could not spend their cryptos on purchases. But the good thing is the crypto industry is ever-growing and always comes up with innovative solutions. The industry launched crypto cards that allow cardholders to spend their cryptos to purchase anything to address this issue. You might be wondering if a crypto card would be the right fit for you or not. Let’s dive in to find out the top benefits of crypto cards and how to pay using them?
What are crypto cards?
Nowadays you have a huge choice of cards to choose from. You can find conventional cards, crypto cards, prepaid cards, and so on. However, before choosing one you should thoroughly explore them. The industry offers both credit and debit cards. Crypto visa cards work almost the same as a regular payment cards. But these cards allow holders to make real-world purchases using Bitcoin, Ethereum, Tether, etc. These cards offer many rewards and cashback to their users.
9 Top benefits of crypto cards
Crypto cards are becoming more and more popular because of their benefits. The following are the nine top benefits of cards.
1- Spend cryptocurrency more conveniently
Cards allow users to spend on everyday purchases. The transactions generally take 30 minutes, which was not acceptable by any shop. But with cards, users can pay within a few seconds.
2- Spend crypto and fiat currency with one card
Users can only use local fiat currency for payments with regular bank cards. But with the card, users can spend both and fiat currencies. They can access different currencies with one card without switching between cards.
Therefore, cards bridge the gap between fiat.
3- Use crypto cards worldwide
Users are limited to using regular bank cards only in their local country. In comparison, cards are issued by VISA and MasterCard. Therefore, it can be used at any store accepting VISA and MasterCard payments worldwide.
4- Low Annual Fees
Banks usually charge an annual fee from customers for using their credit or debit cards. But with cards, the yearly fee is very low. Even some card providers waive off the annual fee if a user spends up to a specific limit within a year.
5- No foreign exchange fee
With the bank, users have to pay a foreign exchange fee. It can sometimes be up to 3%. In contrast, cards cut the expenses by charging no fee on foreign transactions.
6- No ATM Withdrawal fee
Banks usually charge a fee when users withdraw cash from ATMs using credit or debit cards. Typically, it ranges between 2.5% to 3% of the transaction amount or depends on the bank.
Crypto cards provide ease to its users in this aspect as well. Many card providers do not charge ATM withdrawal fees. So, users can spend without thinking about fees.
7- Earn cashback up to 8% of transactions
A few banks offer cashback on payments to their users. But cards allow their users to earn cashback from 1% to 8% of their transactions. It varies from one card provider to other.
8- Crypto cards usually provide cashback in cryptocurrency
With regular bank cards, users earn cashback only in their local currency. On the other hand, cards allow their users to earn by providing cashback.
9- Earn attractive rewards
Only a few to none banks provide rewards to their cardholders. In comparison, cards give attractive rewards to their users. The rewards include Netflix & Prime Video subscription, Spotify subscription, Expedia discount, airport lounge access, VIP concierge, booking.com discount, etc.
How to pay using a crypto card?
Users are not directly paying with Bitcoin, Ethereum, or other using cards. But the digital currency is first converted into the local fiat currency of the user and then is paid to the retailer.
Let’s consider an example to see how actually to pay using them.
Suppose a user wants to buy a Play Station 5, and its price is $500. He decides to use his card for its payment, where he holds $2,000 into Ethereum. Once he hands over his card to the cashier:
- His card provider will reach out to his wallet, convert $500 worth of Ethereum into USD, and send it to the retailer.
- He earns 1.5% (for example) of cashback, which in this case is $7.5 worth of Ethereum.
- His new account balance will be $1507.5 worth of Ethereum ($1500 remaining balance + $7.5 cash back).
All this happens in only a few seconds, making spending handy.
If you own some and want to spend it, a card is the best solution. Without the card, you will have to go through a time taking process that involves high fees as well. Along with many benefits, your funds are also protected by the card provider company. Do your research to find the card of your choice, and surely you will not be disappointed.