Step by step, cryptocurrencies are becoming part of the everyday financial activities of the average user. Crypto cards (debit or credit) make the use of digital currency a lot less complicated for common transactions. They work just like regular bank plastic cards and enable you to use your crypto assets for regular shop purchases.
The use of a crypto card might look a little complicated for a beginner without any experience in cryptocurrencies. However, it is easy to get, set up, and use, so you can start buying, earning rewards, and even withdrawing cash at ATMs.
What Is a Crypto Card?
A crypto card (debit or credit) makes it possible for its holders to use their crypto assets for day-to-day purchases. These cards do not rely on pre-conversion methods; they convert crypto into fiat currency at the point of sale, allowing users to pay with their tokens at the current moment.
Crypto cards link digital currencies to the traditional financial world and help in utilizing cryptocurrencies for daily expenses. These cards are supported by the most popular payment networks (Visa and Mastercard in most cases), so they are accepted wherever typical debit or credit cards are accepted.
This means one can easily use coins and tokens in typical everyday operations, which makes cryptocurrencies a lot more practical. People can use them in online and offline shops or any other organization, just as you do with a regular bank card!
A crypto card looks and works the same as ordinary bank plastic.
Image credit: Kolo
How Crypto Cards Work
Crypto cards automatically convert digital assets to fiat money at the time of purchase. The payment process includes several steps:
- Initiating Transaction: When the card is used by the holder, the card issuer is provided with a payment request in fiat currency from the merchant.
- Conversion: Then follows the real-time conversion of the specified amount of cryptocurrency from your wallet into the merchant’s currency at the current exchange rate.
- Payment Processing: The converted fiat currency is routed over the payment network (Visa, Mastercard, etc.), crediting the amount to the merchant.
- Transaction Completion: The purchase is completed, and the equivalent amount of crypto (plus any applicable fees) is withdrawn from your wallet.
This process of automatic conversion means that cryptocurrencies can be used to make everyday purchases immediately, without the need to exchange them for cash or transfer them to a bank.
Moreover, many crypto cards provide rewards just like traditional credit cards — including cashback, points, and other perks. Similar to cryptocurrency transactions, these financial tools have the privacy and security features that are native to cryptocurrency.
Image credit: Gemini
Types of Crypto Cards
Just like traditional bank plastic, there are debit, credit, and prepaid crypto cards, so you can use the one that best meets your needs.
For example, you want to control the maximum amount of money spent. With a prepaid crypto debit card, you can replenish a certain amount of cryptocurrency and never spend more than that. Some crypto debit cards also have perks like cashback, reward points, or other benefits. Thus, you can choose a card with rewards that meet your interests.
Although there are thousands of cryptocurrencies on the market, most debit cards support only the most popular and demanded ones. So, you should check whether the cryptocurrency you want to use is supported by the card issuer you choose.
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Debit cards
Crypto debit cards work similarly to traditional debit cards, tied to the account from which the funds are deducted automatically when a transaction is made. But unlike fiat cards, which withdraw funds from a linked bank account, crypto debit cards are linked to a crypto wallet. Several cryptocurrency platforms are offering this type of crypto card.
Credit cards
Crypto credit cards use the same principles as traditional credit cards. Thus, users can spend up to a specified credit limit (based on the provider’s terms). The debt is set in fiat money, and crypto is used as collateral. The rewards for the users of such cards are awarded in crypto, and their value can be magnified over time by the volatile market.
Prepaid cards
A prepaid crypto card has no account with fiat money connected to it. Instead, cryptocurrency is used to top them up, for example, BTC in a Bitcoin prepaid card. Their biggest advantage is that they can be easily obtained with very little personal information. But prepaid debit cards often have withdrawal and spending limits.
How to Choose the Best Crypto Card?
So, how to choose the best option? Several important criteria will help you choose the best crypto card for your needs. Here are they:
Supported Cryptocurrencies
Look for a card that will allow you to spend a range of cryptocurrencies (the more, the better). If there's a coin you use a lot, make sure the chosen card supports it.
Rewards
Seek out cards that provide crypto rewards like cashback, staking rewards, or exchange discounts. Options offer increased rewards based on your spending patterns in specific categories, such as travel, dining, or online shopping.
Fees
Embrace a credit card with disclosures that are clear about transaction and maintenance fees, so there are no hidden payments. Compare the fees to those of other cards to make sure they are warranted by the benefits and rewards offered.
Security
Look for cards offering two-factor authentication, encryption, and real-time transaction alerts. There must be fraud protection and zero-liability policies for unauthorized transactions.
User Experience
A card should provide an intuitive app interface enabling a user to monitor transactions, rewards, and account settings. Choose a provider with a responsive and accommodating customer service department for troubleshooting and account issues.
Compatibility
Make sure that the card’s limits suit your financial needs, especially for bigger or more frequent transactions. A card integrated into other financial apps can consolidate spending, investment tracking, and reward management.
Keeping these points in mind will help you select the best available option that suits your needs, wallet, and experience.
How to Get a Crypto Debit Card and Use It
Getting a crypto debit card is a straightforward process. Generally, it goes as follows:
Choose a Provider
When choosing a provider, consider the things from the above list (supported coins, fees, rewards, and others). Visit their websites to read details about the offerings and eligibility requirements.
Registration Process
The registration process includes several simple steps:
- Create or log into an account with the chosen provider.
- Provide the necessary personal and financial information on the application form.
- Submit a government-issued ID to verify your identity and, if needed, a selfie to confirm your facial recognition.
After finishing and approving, the card is sent to your address by mail.
Link Your Crypto Wallet
Follow the provider’s instructions to connect your crypto wallet or fund your account. If necessary, transfer cryptocurrency onto your card’s account — this will be your spending balance.
Once you’ve completed all these steps, you’ll be all set to use your crypto debit card for purchases, online transactions, and ATM withdrawals, just like you do with traditional bank cards.
Using Your Crypto Card for Everyday Purchases
In all aspects, crypto debit cards are the same as regular bank cards, except you can use them to spend cryptocurrency in daily transactions without the need for any additional conversions crypto-fiat-crypto. Here’s how you can use these:
In-store purchases
Swipe, insert, or tap your card at the payment terminal. To make a transaction, enter your PIN or sign a receipt for security purposes. The purchase amount will be immediately converted through the exchange interface from your cryptocurrency to local fiat currency at the current exchange rate.
Online shopping
Choose the credit/debit card payment option when paying for the goods in an online shop. Your card has the same details as an ordinary bank card: number, expiration date, holder’s name, and CVV code. After the confirmation, the equivalent amount of crypto will be converted to fiat and then withdrawn from your card balance.
Withdrawing cash at ATMs
Find an ATM supporting Mastercard or Visa crypto cards (depending on your card’s payment system). Insert the card and input your PIN to access the account. Choose the withdrawal amount, and the corresponding crypto is converted into fiat and withdrawn from your balance (plus fees wherever applicable).
Thus, a crypto debit card provides an option for making cryptocurrency convenient to spend in the real world like traditional money.
Popular Crypto Card Providers
Here are some of the most popular crypto card providers offering their solutions in different countries.
Coinbase Card
The Coinbase Card is a Visa debit card connected to a Coinbase exchange account. It permits customers to spend cryptocurrency directly and even obtain loans collateralized by crypto holdings. The card is offered in the US and most countries in Europe.
The users can get free physical and virtual cards and earn cryptocurrency rewards on transactions. A no-commission mobile app allows for easy account management.
Bybit Card
The Bybit Card is a Mastercard debit card linked to a Bybit account and is offered to customers in the UK and the European Economic Area (EEA). It supports two fiat currencies (EUR, GBP) and five cryptocurrencies (BTC, ETH, XRP, USDT, and USDC).
Virtual cards are free, physical cards are 5 EUR/GBP/USDT, and the fees are 0.5% for exchanges and 0.9% for crypto conversion. Users can access loyalty programs and a VIP tier with even more perks.
Kolo Crypto Card
The Kolo Crypto Card effortlessly connects digital assets with conventional spending. A wallet for both experienced crypto veterans and newcomers alike, a safe and easy place to securely store, swap, and spend cryptocurrency.
Kolo provides custodial and self-custody options for personalized crypto cards. The system is integrated with Mastercard for easy transactions. With this card, financial flexibility is easy, and crypto payments are truly at your fingertips.
Conclusion
Making a withdrawal through a crypto card at an ATM is a bridge between classic banking and the crypto environment and the simplest way to exchange cryptocurrency for cash. As cryptocurrency adoption continues, these payment cards will be more and more in demand, helping to integrate digital assets into everyday transactions.
Whether you are an experienced crypto user or new to digital assets, the ability to withdraw cash with a crypto bank card gives you more financial freedom and access to spending your digital wealth.
FAQ
Which Cryptocurrencies Are Supported by Crypto Cards?
These cards can be used in most countries around the world. Typically, they support popular digital assets, including BTC, ETH, LTC, DOGE, XRP, TRX, ADA, USDC, and USDT, as well as the most common fiat currencies, for example, EUR, GBP, and USD.
What Are the Best Crypto Credit Cards?
Some of the best options include the Crypto.com Visa Card, Binance Card, and Kolo Crypto Card, allowing you to easily utilize your crypto holdings in your everyday spending.
Are Crypto Credit Cards Safe?
Yes, most of them are backed by strong fraud protection measures like zero-liability policies that protect users against unauthorized transactions.
Are Crypto Debit Cards Worth It?
With enticing benefits like cash back on purchases, this type of debit card also offers verification and security features like multi-signature wallets and cold storage, making it a great asset for crypto enthusiasts.
