Crypto debit cards gain popularity every day, but what are crypto debit cards actually, and how are they working?
Cryptocurrencies have become an essential element of our daily life. Even someone who has no interest or saving account for cryptocurrency to look at the news about the crypto world and try to understand.
We have cryptocurrencies and crypto using traditional financial products. Now a new financial product added to the list, crypto debit cards. Very few people were surprised to hear crypto debit cards and more people waiting for this kind of financial instrument.
What are the crypto debit cards?
Everybody knows the traditional credit or debit cards. They are plastic, and you can use them at shoppings or any kind of transaction. Banks generally give them. You may use a debit or credit card to pay electronically goods or services with the money in the attached account.
A crypto debit card has similar characteristics to a debit card. It is plastic, and you can use it when buying something. The main difference is crypto debit card connects to your crypto wallet. A crypto debit card converts the cryptocurrency automatically to Euro or USD.
Another difference is in the traditional financial industry; they add forex fees. Generally, crypto debit cards don’t add foreign exchange fees. However, crypto cards charge forex fees mainly to reimburse Visa and Mastercard – the processing companies.
Different card providers charge different transaction fees. Some of them charge an annual fee. Most of them don’t subject users to exchange rate expenses.
When we talked about fiat currency, crypto debit cards automatically convert the crypto you will be spending into the preferred fiat currency.
When you choose a crypto debit card, you should check crypto debit cards support multiple cryptocurrencies or not. Some of them only support one digital currency.
How do these cards work?
Although many people have at least one kind of cryptocurrency, many shops or places don’t accept cryptocurrency as a paying method.
Merchants are cautious about digital currencies for several reasons, such as uncertain legal status for payment processors and cryptocurrency exchange rate volatility. Crypto debit cards and other “traditional” financial goods attempt to further legitimize digital currency as a valid payment method.
Giving an example is the best way. For instance, you want to buy a cup of coffee. When you pay the price, you can give your crypto prepaid debit card. As soon as the cashier swiped the card, the processing business accessed the card’s cryptocurrency wallet and withdrew the Euro amount for the cup of coffee. You just need to convert your cryptocurrency to Euro before you buy something.
Coinmotion crypto debit card
Coinmotion is one of the leading crypto exchanges, and it announced its prepaid crypto debit card. It is the first in the Nordics. Coinmotion prepaid debit card, powered by Mastercard® that is accepted at 29.4 million locations worldwide.
You can use the card for online payments to pay for your groceries at the supermarket or make ATM withdrawals.
Coinmotion prepaid debit card owners can convert their cryptocurrencies when they want and use the money for anything. Of course, people ask questions about security. In the end, banks’ protection is known by everybody.
Coinmotion is certified and regulated by the FIN-FSA payment institution license. Customer funds are held in highly secure multi-signature storage, out of the reach of e-burglars. Coinmotion is one of the few regulated entities in Europe with a Payment Institution license and a Virtual Currency Service Provider status, granted by the FIN-FSA. That means the company and their cards are secure, like banks’ debit cards.
If you are not a Coinmotion customer, first, you must sign up. You will navigate to the Services > Cards page in your account, where you can order a Coinmotion card.
Some other crypto debit card’s working principle is very easy and similar. You choose the time, and immediately you can convert your coins to Euro. You can see how much Euro you have in the account. Then you can spend the money at 29.4 million locations in the world.
Do you need a crypto debit card?
People may think they need a crypto debit card or not. When you convert the cryptocurrency to the Euro, bank transfers take at least one business day. If you convert the weekend, you should wait till Monday. When you have a crypto debit card, you can instantly sell your cryptocurrencies and use the Euros from your wallet.
The majority of crypto debit cards are issued by established networks such as Mastercard or Visa and are widely accepted.
They are safe like the traditional debit cards, and your digital assets and your money are protected. Crypto debit cards are as safe as debit cards.
What do you think about crypto debit cards? Do you want to have one or not?