Crypto Cards — A Convenient Way to Spend Cryptocurrency
If you want to pay with cryptocurrency in a fiat scenario where only traditional currencies are accepted, crypto cards provide a viable solution. These cards allow you to spend your digital coins without the need for prior exchange into fiat currency. Crypto cards come in both physical and virtual forms, with the latter used for online payments and the former used at brick-and-mortar stores equipped with point of sale terminals.
Types of Crypto Cards
There are several types of crypto cards available. Credit crypto cards use deposited crypto assets as collateral to extend a credit line in fiat currency. Some cards offer coins and tokens as cashback or rewards. However, the most popular type is the crypto debit card, which is linked to a cryptocurrency wallet and provides instant conversion to fiat at current exchange rates when making purchases or withdrawing cash from ATMs.
Leading Platforms Offering Crypto Cards
Despite regulatory pressures, there are still several platforms offering crypto cards. Coinbase, a leading crypto exchange in the US, provides the Coinbase Card that allows users to spend their default fiat currency, stablecoin USDC, or supported cryptocurrencies. Binance, another major exchange, introduced its Binance Card but faced issues with regulators and banking partners. Bybit launched its own Mastercard-supported crypto debit card in February.
Other platforms that offer crypto cards include Crypto.com and Kucoin. Additionally, Venmo and Gemini issue credit cards with crypto cashback and rewards. Nexo has a unique feature on its card that allows users to toggle between a crypto credit mode and a debit mode for spending in traditional currencies while earning interest.
Early Players in the Market
Bitpay and Wirex were among the earliest players in the market for crypto debit cards. However, Bitpay paused new applications for its prepaid Mastercard, while Wirex continues to offer both physical and virtual cards. Wirex is also preparing to introduce an app chain called W-pay, which will allow the issuance of non-custodial cards.
Hot Take: Crypto Cards Provide a Convenient Way to Use Cryptocurrency
Rising regulatory pressures may have limited the availability of crypto cards, but they still remain a viable way to spend cryptocurrency in situations where only fiat currency is accepted. With crypto cards, you can conveniently use your digital coins without the need for prior exchange. Whether it’s a credit card that uses crypto as collateral, a debit card that instantly converts crypto to fiat, or a card that offers cashback and rewards in cryptocurrency, there are various options available from leading platforms in the industry. While some platforms have faced regulatory challenges, there are still reliable solutions for those looking to pay with cryptocurrency.
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