What Are Cryptocurrency Debit Cards?

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What Are Cryptocurrency Debit Cards?

A few years ago, only a few initiates knew about cryptocurrency. Now, every day cryptocurrencies are gaining more and more popularity, so it is completely natural that crypto economics is expanding, occupying all new areas. For example, quite soon cryptocurrency debit cards may appear in circulation. Accordingly, it will also be possible to pay for purchases and services in cryptocurrencies using such a card.

Cryptocurrency debit cards

Cryptocurrency debit card is a relatively recent development in the blockchain world. In fact, it is the same plastic card as a regular bank debit card, but with one significant difference: instead of the usual money on it – cryptocurrency.

This map serves to solve the main problem of cryptocurrency – ease of use outside the virtual world. With the help of a cryptocurrency debit card, ordinary everyday purchases can be made by paying with a cryptocurrency. At the same time, the card will automatically convert the cryptocurrency into the corresponding fiat currency required by the seller at the current exchange rate. Such a system is based on a mobile phone application. The application, in this case, becomes a combination of a cryptocurrency wallet with the exchange.

Crypto Card Features

Today, the presence of a card tied to Bitcoin greatly simplifies the life of cryptocurrency owners. Using a Bitcoin debit card, you can remove a cryptocurrency almost as easily as any other currency in the first ATM. Isn’t all the owners of savings in digital coins dreaming of this?

Previously, they had to go through all the “circles of hell” in order to withdraw money, and also risk at the same time getting nothing at all. Simply put, there are not so many safe and effective translation methods. But with the advent of cards, it is as easy to manage Bitcoins as money from a regular credit card.

How can to spend cryptocurrency?

Currently, two methods are available. One of them is special terminals for the cryptocurrency, which are installed in the place of trade. This is the equipment that interacts with the application in the mobile phone and removes the value of the purchase in cryptocurrency from the wallet. However, this method has one big disadvantage – for its implementation in practice, the involvement and interest of sellers is necessary. In addition, their willingness to pay for the installation of additional equipment for receiving digital payments is required.

How the world of plastic cards works

So, you go into any Bitcoin plastic card service and order a card for yourself. It will be issued by the service itself, if it has a banking license, or by a partner bank, if there is no license. The card is linked to the payment system (VISA, MasterCard, Unitpay, etc.), can have accounts in one or more fiat currencies (dollar, euro, yuan, etc.) and cryptocurrencies (Bitcoin, Litecoin). If the card accounts are only in fiat currency, then to replenish it, you need to change the bitcoins to the card currency and transfer to the account. For cards with accounts in the crypt, such an exchange occurs automatically at the internal rate of the service (or the exchange to which it is attached) at the time of the transaction.

It is worth noting that a plastic card is not tied to a Bitcoin address directly, but tied to a Bitcoin account (wallet) in the service that issued the card. This allows you to conduct transactions almost instantly, because, as we all know, the blockchain does not provide such an opportunity. The risks of the method are obvious: your bitcoins, in fact, are at the disposal of a third party and if this third party closes for some reason or is robbed, the funds will disappear.

Alphan is a professional online content developer with more than 5 years’ experience. He has mastered the art of writing stellar content that conveys the intended message to the audience in the best way possible. Apart from writing, he is also cryptocurrency enthusiast and has multiple digital assets- Bitcoin, Ethereum, Litecoin and much more. When he is not writing, he loves spending time with his family or outdoors hiking, swimming or camping.