6 Benefits of Crypto Debit Cards

Over the years, cryptocurrencies have gained tremendous traction around the world. It is estimated that there are over 320 million crypto users worldwide. Some crypto experts expect this number to grow to over a billion within the next five years. 

Meanwhile, over a million organizations and companies have adopted cryptocurrency as a form of payment and an asset in their portfolios.

At the same time, the world of cryptocurrencies has also been rapidly changing. One of the recent additions in the cryptocurrency space is the use of crypto debit cards. They are becoming a more practical method of payment.

Before we dive into the benefits of crypto debit cards, here is how crypto debit cards work. 

How do crypto debit cards work? 

Even though cryptocurrency serves as the primary funding source for crypto cards, the recharge process may vary for different cards. Different cards go through different conversion processes.

You can fund your crypto debit card manually or automatically. Manual means using the given website to exchange your crypto for fiat, then use the funds to recharge your card. Once you sell your crypto, you get fiat deposited in your account. From this account, you can now fund your crypto card.

Meanwhiles, you only need to sell your crypto for automatic cards, and the system carries out the rest of the process.

There are three steps involved in converting crypto to fiat. These are: 

1. Crypto to fiat

This process is the most popular among crypto debit cards. These crypto cards require you to sell your cryptocurrency first manually. Afterward, you receive the fiat in your account after exchanging your cryptocurrency.

You can now fund your cryptocurrency debit card from this account and start shopping immediately. The Club Swan crypto debit card is a classic example of a card. 

2. Crypto to stablecoins to fiat

These cards require you first to convert your crypto into stablecoins like USDC and USDT. Afterward, you can convert the stablecoins to fiat whenever the need arises. 

First, the advantage of converting your crypto to stablecoins is avoiding the crypto market volatility. So in case of a bearish crypto trend, the value of stablecoins remains constant. At the same time, stablecoins pegged to fiat currency share a ratio of mostly 1:1. 

3. Crypto to stablecoins 

This process is similar to that of crypto-stablecoins-fiat. The only difference is that system automates a part of the process.  

As a result, you might think the payments happen in the form of stablecoins. However, the system converts the stablecoins to fiat before the merchants receive the payment.  

What are the benefits of crypto debit cards?

1. Easy to use

In terms of usability, crypto debit cards function similarly to conventional debit cards. However, you can only recharge these cards using your crypto wallet instead of regular cards requiring you to recharge using a bank account.

In addition, just like traditional cards, you can swipe or enter your card information to make purchases. Alternatively, you can use your virtual card to make flawless and seamless transactions online. Online purchases are quick, easy, and convenient with virtual crypto cards. They are also intended to increase online transaction security. 

A long confirmation time may cause a delay for some cryptocurrencies. The card issuers will pay for your transactions while they wait for confirmation to prevent delays. After successful confirmation, the issuers will immediately deduct the appropriate amount from your wallet’s cryptocurrency balance. As a result, the cryptocurrency market can circulate coins continuously.

The majority of cryptocurrency debit cards can also store several cryptocurrencies. For instance, you can carry nine different cryptocurrencies with the Club Swan card. 

2. High Versatility

Most cryptocurrency debit cards can support multiple conventional currencies in addition to cryptocurrencies. The popularly supported cryptocurrencies are Bitcoin, Ethereum, Ripple, and Litecoin.  

Some of these crypto cards also support stablecoins and fiat currencies. The US dollar, the British pound, and the Japanese yen are a few of the fiat currencies widely supported. 

Even better, some of these cards can support over 150 different traditional currencies. This means you save yourself from the hassle of converting currencies whenever traveling. 

Better still, a few crypto card issuers also accept different payment options. Apple Pay, Samsung Pay, and Google Pay are some of these payment options. 

Compared to traditional currency, it isn’t easy to manipulate cryptocurrency. Unlike fiat currency, crypto can easily retain its value despite high economic instability due to its inflationary nature. At the same time, it is hard for currency conversion and foreign transactions to affect its value.

Thanks to this ability, citizens in many countries facing economic instability have resorted to crypto(mainly Bitcoin). For example, Venezuelan citizens have resorted to Bitcoin after the collapse of their national currency. 

3. Highly secure

Security is one of the major things to strive for if you are a crypto investor. As a matter of fact, according to business insider, a business and finance website, over $1.9 billion so far has been stolen this year. This shows the amount of attention crypto investors need to give security of their crypto assets. 

The majority of crypto card issuers, however, have given their customers the highest level of protection for their cards and wallets. For example, Club Swan gives users access to an app where they can manage finances, security, and other aspects related to their card. 

This app helps modify your card’s PIN, report its loss, or even freeze it remotely.

However, keeping most of your crypto in a cold wallet is recommended for additional security. 

4. Crypto Rewards

Users of cryptocurrency debit cards receive amazing benefits, including cashback, referral bonuses, staking rewards, and other benefits. Typically, reward programs are offered to cardholders by the majority of card issuers.

Once you make specific purchases with these cards, you automatically earn cashback rewards. Depending on the card issuers, these cashback incentives can change.

However, certain cards, such as Club Swan, feature a referral program. By recommending the platform to a new user, you earn referral rewards. The more referrals you recommend, the more likely you will upgrade your membership and earn more money. 

Staking prizes is another unique reward mechanism. You can stake a certain amount of cryptocurrency with crypto card issuers for a set period. Your rewards keep coming in as long as the value of cryptocurrencies rises. The higher and the longer you stake, the more you’re likely to earn higher rewards. 

Your choice of card will also influence how much you stake. For instance, you’ll need to stake extra if you select one of the top-tier cards. 

5. Low Transaction Fees

Crypto cards have notably lower fees than conventional debit cards. These fees are unaffected by fees associated with traditional banking.

Surprisingly, the majority of crypto card issuers don’t impose withdrawal fees. Additionally, using these cards for ATM withdrawals is quite straightforward. Even better, since most of these cards are associated with MasterCard, Visa, and UnionPay, they are widely accepted worldwide.

So looking for a superb debit card? You might want to try out crypto debit cards with reduced costs. With this card, you can save money and fit your lifestyle. 

6. Additional Perks 

Besides varying rewards, some crypto card issuers provide their card users additional perks. However, these perks vary from one company to another. 

For instance, besides referral rewards, you can enjoy Club Swan services from traveling to lounging discounts. To enjoy this benefit, you must be a Club Swan member. 

Some also offer a fee waiver when you hit a certain threshold for your monthly or annual crypto expenditure. This waiver allows you to enjoy free withdrawals up to a certain limit. 

Other perks include a free subscription to streaming platforms like Spotify, Netflix, and Amazon Prime. Also, Airbnb discounts, flight discounts, and private jet charters are common.

Conclusion

As the cryptocurrency space continues to grow exponentially, it’s certain crypto usage will be a norm in the future. So,  if you want to sign up for a crypto debit card, above are the benefits you will likely experience in your crypto journey.  

The post 6 Benefits of Crypto Debit Cards appeared first on Cryptocoinzone.

Original source: https://www.cryptocoinzone.com/bitcoin-exchanges/6-benefits-of-crypto-debit-cards/

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