As the years roll by, we see the growing adoption of cryptocurrency by traditional institutions due to fear of missing out (FOMO). Some of the perks we have enjoyed as a result of institutional adoption are crypto cards.
Many firms are now rolling out various services to cover cryptocurrency. For instance, you can now buy a Tesla using Bitcoin and as well perform many other transactions in crypto. The interest of companies in cryptocurrency has added more credence to the technology among the mainstream audience.
Furthermore, payment systems like Visa and Mastercard embracing digital assets have helped to create more fiat gateways for cryptocurrency and promote global financial transactions.
There are now more options for merchants and crypto enthusiast willing to use cryptocurrency for payments. Today, we will look at what crypto cards are, and how they have improved cryptocurrency adoption. We will also touch on some relevant info concerning crypto cards.
What are Crypto Cards?
Crypto cards are either credit or debit cards that allow holders to use a preferred cryptocurrency to pay for a product or service. Crypto cards allow you to easily spend cryptocurrencies anywhere, anytime and at several merchants.
For instance, Changpeng Zhao said he uses a Binance card – a crypto card powered by Binance – to pay for everything that accepts a credit card. He added that he holds almost 100% of his net worth in crypto.
Crypto cards are similar to regular credit and debit cards. They generally offer you the option to pay with fiat as well. In most cases, they will allow you to pay through either the plastic card or mobile applications.
While there are many crypto cards, newcomers to the crypto world may find it difficult to choose one. However, these are the key things you need to consider when opting for a crypto card.
- The credibility of the company issuing the card.
- Transaction fees
- The security of the card.
What Are the Benefits of Using Crypto Cards?
You might be wondering why you need to use crypto cards when you can easily make purchases using regular credit/debit cards or just transfer to the recipient wallet. However, here are a few advantages of using crypto cards.
They are simple to use and lower the barrier of entry into the crypto world. Similar to fiat credit/debit cards, crypto cards offer simplicity and convenience for holders who are new to crypto. This key attribute helps with the mainstream adoption of cryptocurrency.
In addition, you do not stand the risk of sending money to the wrong address like in wallet to wallet transfer. Credits cards simplify purchases using cryptocurrency. You don’t have to be bothered about verifying the recipient’s wallet address.
Crypto cards also benefit merchants by lowering third-party processing fees. Furthermore, there are chances that merchants holding cryptocurrency will likely profit from the value appreciation of the asset over time.
Some crypto cards also offer several loyalty programs to their customers. For instance, some crypto cards offer up to 5% cashback rewards on all transactions. While there might be processing or conversion fees, some crypto cards do not charge for deposits or withdrawals. However, not all crypto cards offer rewards.