Crypto Card or Regular Debit Card?

If you're anything like me, you probably didn't learn about the nuances of credit vs debit cards until you were older (like 30, in my case). We so often just use our money without thinking too much - like going to the ATM to take out cash, or using our debit and credit cards interchangeably. But it IS good to learn more about advantages and cons to how we choose to make payments.

If we compare crypto cards to regular, old debit cards, many pros immediately become evident. I want to share them with you so to bring more awareness about using cryptocurrencies as a means to do every day transactions. In the end, we all want to see more ownership and control, don't we?

So, let's dive right in!

The Pros of Using a Crypto Card

The history of crypto cards reflects the evolving nature of the cryptocurrency industry as a whole. As cryptocurrencies gain more mainstream acceptance and regulatory clarity, the use of crypto cards is likely to continue to grow, offering a convenient way for individuals to spend their digital assets in the real world.

Crypto cards, also known as cryptocurrency debit cards, remain a relatively new financial tool that allows users to spend their cryptocurrencies just like they would with a traditional debit card.

And here are the top reasons why you should be interested in using them as an alternative:

1. Global Accessibility: Crypto cards can be used worldwide, providing access to your cryptocurrency funds regardless of your location. Traditional debit cards may have international usage fees or restrictions.
2. Cryptocurrency Spending: With crypto cards, you can spend your cryptocurrencies directly, allowing you to use your digital assets for everyday transactions.
3. Currency Conversion: Crypto cards can be a more cost-effective option for international travelers. When using traditional debit cards abroad, you may incur fees for currency conversion. Crypto cards can potentially save you on these fees.
4. Privacy and Security: Cryptocurrencies are based on blockchain technology, which provides a high level of security and privacy. Your personal and financial information is less exposed when using crypto cards compared to traditional debit cards.
5. Reduced Fraud Risk: Traditional debit cards are linked to your bank account, and if they are compromised, hackers could potentially drain your entire bank balance. Crypto cards typically have a limited balance, reducing the potential loss in case of fraud.
6. Portfolio Diversification: Crypto cards enable you to diversify your financial portfolio by easily using cryptocurrencies for everyday expenses while still keeping the rest of your investments in traditional assets.
7. Decentralization: Crypto cards align with the principles of decentralization. They give you more control over your funds, as you hold the private keys to your cryptocurrency, and transactions are processed on the blockchain without the need for intermediaries.
8. Earning Rewards: Some crypto card providers offer rewards or cashback in the form of cryptocurrency for using their cards. This can be an additional benefit not typically offered by traditional debit cards.

"There is still a long way to go before crypto cards will become mainstream, but we are moving in the right direction," says Yang Lan, co-founder of Fiat24. "There are now 420 million crypto users around the world, and while many treat it as an investment and HODL, we see a lot of demand for services enabling people to spend their digital assets. Our card is the only one out there which works seamlessly with any non-custodial wallet, and that is a very exciting USP. We hope to see the entire crypto payments space grow and mature over the next few years."

Choosing a Crypto Card

With so many options on the market, it can be challenging for people to know how to choose the right one for them. When choosing a crypto debit card, you should consider the supported cryptocurrencies, transaction and conversion fees, regulatory compliance, merchant adoption, card issuer, and rewards and cashback programs. Also, be aware of the limitations of crypto debit cards and the tax implications of rewards and cashback programs.

In this case, like in all of DeFi, DYOR is something I cannot emphasise enough! I personally use a crypto debit card for Starbucks and other daily purchases, but I have found it to be most useful and impactful when traveling!

Leave your thoughts with me in the comments and I look forward to our conversation!