The appeal of cryptocurrency and its potential to alter the world of conventional financial systems isn’t likely to fade anytime soon. Crypto cards are yet another exciting development in the blockchain and cryptocurrency industries, enabling users to spend their digital currencies rather than merely storing them in their crypto wallets.
In this article, we are going to introduce different types of crypto cards and then we will explore the advantages of crypto credit cards.
Crypto Debit Card
Crypto debit cards work much like regular debit cards, allowing you to make everyday purchases using Bitcoin and other cryptocurrencies. Users can use a crypto debit card to spend their cryptocurrencies wherever that debit card is acceptable. Money will be taken from the user’s crypto wallet balance and exchanged into the seller’s currency each time they use their crypto card for purchasing a product or service.
Crypto Credit Card
Crypto credit cards provide the same services as regular credit cards, with the exception that they allow users to use their crypto assets as a resource of purchasing power. Crypto credit cards are linked to users’ crypto wallets rather than their bank account. Physical, virtual, and prepaid crypto cards are available for crypto users.
When purchasing products or services, it’s crucial to remember that you wouldn’t pay your bill with cryptocurrencies directly. Your digital assets are instead turned into fiat money before being transferred to the seller. Visa and Mastercard, two of the world’s major financial platforms, now support crypto credit cards. This allows users to use these companies’ ATMs to receive their converted fiat money.
How Does a Crypto Credit Card Work?
The supplier determines how a crypto credit card works. Users will move their virtual currencies to a specialized crypto wallet and deposit them on their credit cards. To deposit their virtual currencies on their credit cards, certain crypto card services may need users to convert these assets into fiat money. However, it’s not like all providers insist that you keep your cryptocurrencies in specialized wallets.
Users can make cryptocurrency purchases when the digital currencies have been loaded on their cards. Their crypto card would then function similarly to a regular credit card. The tokens on their card will be automatically converted into cash whenever they make purchases unless the provider requires users to exchange their virtual currencies into fiat money.
A crypto card, like a regular credit card, may have various limitations, including a daily withdrawal and purchase limit. A few crypto card providers enable general limitations for all users, while some others employ a tiered structure in which reaching a higher level is necessary to enable higher limits and premium services.
Why Should You Use Crypto Credit Cards?
There are several advantages to crypto credit cards, and we’ll go through a few of them below:
You can access several currencies with the same credit card
If you want to use both virtual currencies and fiat money, crypto credit cards provide the perfect blend. There’s no need to keep several cards because virtual currencies are automatically exchanged into users’ base fiat money whenever they purchase a product or service.
Certain crypto credit cards accept both virtual and fiat currencies, allowing users to choose their preferred payment method. There will be no need to go to a currency exchange to deposit foreign currencies.
Their monthly fees are minimal to non-existent
Users won’t have to pay any monthly, yearly, or foreign exchange fees if they use their crypto credit card. A few cryptocurrency-backed credit cards may even eliminate those fees provided you spend or keep a certain sum of money within a certain time frame.
You can earn a reward for all purchases you make
Certain crypto credit cards work similarly to traditional rewards and cashback cards in that users can receive a reward for each and every transaction they make. Each transaction you make can bring you up to 5% cash rewards. A few crypto card companies even offer a monthly maintenance fee refund if users achieve the necessary card load requirement each month.
By allowing cryptocurrency users to spend their virtual currencies directly from their crypto wallets, crypto cards will create new alternatives in the finance industry. This post-fiat currency age brings along a variety of crypto card options, not to mention the duplication of premium services and cashback rewards offered by regular credit and debit cards which have been in use for ages.
Bitunivex.com is introducing a new Multi-Currency, Crypto card that allows you to spend all of your coins and tokens in one place. This card will be rolled out to users first. To take advantage of the Bitunivex card, sign up today and register your interest for free. It takes less than 5 minutes.