Comparing Crypto Cards issued by Centralized Exchanges

Muhammad Naeem

Blogger

Investors around the world are increasingly adding cryptocurrency to their portfolios as it is seen as a valuable asset. CoinMarketCap reports that the total value of all cryptocurrencies available now exceeds $2 trillion, and this figure continues to grow.

Numerous centralized exchanges and payment processing firms have already launched their crypto debit cards. These cards serve to streamline the connection between conventional financial systems and cryptocurrencies. With a bitcoin card, you may make purchases right away for everyday necessities such as food, gas, clothing, and more. A debit card keeps you from pending beyond the amount you hold.

Another notable advantage of using crypto debit cards is the possibility of earning cashback. The percentage of cashback can vary from 1% to 8% and is added to the total amount of your purchase.

The method of acquiring a crypto debit card may differ among providers, but the process is generally easy and speedy. Some providers provide only a virtual card that can be linked to Apple Pay or Google Pay or used to make online purchases. However, certain services like BitPay can issue physical cards as well.

Choosing the right crypto debit card for your requirements depends on your location and needs. It's essential to consider factors such as daily limits and usage restrictions set by the service provider, as well as the number of supported cryptocurrencies and regional restrictions.

Since most crypto cards are backed by Visa and MasterCard, they are widely accepted at shops and ATMs worldwide. In the following section, we will explore and compare the three most popular cryptocurrency debit cards available.

Crypto.com Visa Card:

The Visa-supported Crypto.com card is accepted in over 100 countries and enables payment with over 100 different cryptocurrencies.

Crypto.com provides five different card levels to customers, each with its terms and reward structure. The highest-level card, called Obsidian, offers 5% cashback and unlimited access to airport lounges through the Lounge Key program. In addition, it provides refunds on Airbnb and Expedia bookings, as well as 100% cashback on Spotify, Netflix, and Amazon Prime subscriptions, among other benefits. However, to obtain this particular card, one must stake CRO tokens worth $400,000.

Binance Visa Card:

The Binance Card functions on the Visa network and is limited to European users. Users can get up to 8% cashback in Binance Coin on every transaction and withdraw funds from ATMs without paying any fees. The card is available in both virtual and physical forms, and both are free of charge.

Coinbase Visa Card:

The Coinbase card is open to all U.S. residents except for those in Hawaii and gives up to 4% cash back on purchases. There are no card maintenance fees or ATM withdrawal fees for users.

The chart below provides a comparison of the key features of the three most popular crypto debit cards.

Advantages of a Crypto Debit Card

In addition to eliminating the need to transfer funds between accounts, there are several other benefits to using a crypto debit card.

Using Crypto for Routine Purchases:

With crypto debit cards, you can make purchases both online and in-store, as well as when traveling, using the same account you use for trading. These cards can even act as a replacement for your conventional bank account for everyday shopping if you have an account with the issuing exchange. Additionally, you don't have to be concerned about overdrawing your account with crypto debit cards.

Simple Integration of Cryptocurrencies and Fiat Currencies:

By using a crypto debit card, you can convert your cryptocurrency into fiat currency, such as dollars, automatically. This means that you can use the card for various financial activities, such as receiving a salary or making purchases, without worrying about converting the currency yourself. However, it is important to keep in mind that you still need to pay taxes on your earnings.

Benefits and cashback

One of the best benefits of crypto debit cards is the cashback program that many providers offer. This program allows users to receive a certain percentage of the amount spent on the card back in cryptocurrency, typically ranging from 1% to 8%. Some providers have additional reward programs for streaming services or other offers, and some waive ATM fees associated with the card.

Disadvantages of a Crypto Debit Card

However, crypto debit cards have some disadvantages when compared to traditional debit cards.

Not available worldwide

Crypto cards are not available globally. The Binance debit card, for example, is available only in Europe. Availability can be an issue, particularly for users outside of Europe and the United States.

A debit card is not the same as a credit card

As with traditional debit cards, you cannot use a crypto debit card to get credit, which means you can spend only the funds you have available. While this can help with financial discipline, it limits the usefulness of these cards for larger purchases. Since the provider cannot guarantee your financial stability, you won't be able to use a crypto debit card to finance a big purchase like a car or a house. These cards are more suited for everyday use rather than big-ticket purchases.

Conclusion:

For the ordinary user, crypto cards make the use of cryptocurrencies much easier and more convenient, and they don't come with the same restrictions as conventional bank cards. The possibility of using cryptocurrencies as a legitimate means of payment has been a longstanding goal of crypto enthusiasts, and crypto cards make it achievable due to their ease of use and availability.