The cryptocurrency you buy – whether it’s ethereum,or another digital coin – usually lives in a wallet. It remains dormant until you transfer it to another account, spend it on NFTs (or other items purchasable via crypto), or convert the money to government-issued currency, such as US Dollars , then withdraw it and deposit it in your bank account. .
However, with the growing interest in cryptocurrency in recent years, hundreds of millions of people have crypto they may want to spend, but don’t know how. This is where crypto debit cards come in. They allow you to use cryptocurrency from your digital wallet for purchases at grocery stores, gas stations, and other outlets.
If you own cryptocurrency and want to spend it in the real world, here’s what you need to know to get your hands on a crypto debit card.
What is a Crypto Debit Card?
A crypto debit card looks a lot like your regular debit card, but instead of being connected to your bank account, it’s linked to a digital wallet that holds your cryptocurrency. With each transaction, the cryptocurrency you own is automatically converted into the government-issued currency that the retailer accepts, such as US dollars, to complete the purchase.
What are the pros and cons of using crypto debit cards?
Although crypto debit cards help you spend your cryptocurrency to make purchases, keep a few things in mind before applying for one.
Benefits of a crypto debit card:
- It is easier to spend the cryptocurrency in your wallet.
- Some cards come with cashback.
- You can store and use traditional currencies, such as dollars, to make purchases.
Disadvantages of a crypto debit card:
- You may have to pay transaction, withdrawal or exchange fees or fixed monthly fees.
- You will have to pay capital gains taxes on each transaction.
- Maps may be restricted to certain regions, limiting where you can use the map.
How to get a crypto card?
If you want to get a crypto debit card, you must first create an account with a cryptocurrency exchange or digital wallet, then transfer the cryptocurrency to your account or buy it.
Be aware that there are waiting lists to obtain a card. Once you complete the installation requirements, including verifying your identity, you can apply for the card. This can then take weeks or even months to arrive, depending on the size of the list.
Which crypto debit cards should I consider?
Choosing a cryptocurrency exchange or wallet depends on several factors, such as the type of cryptocurrency you own or the cash rewards. Here are some of the biggest:
- Coinbase, one of the largest crypto exchanges in the United States, offers the Coinbase Card, a Visa debit card that lets you use your crypto assets to make in-person and online purchases. This card is currently available to select US customers.
- Crypto.com, another cryptocurrency exchange, offers a variety of debit card options that offer different crypto rewards, depending on how much you are willing to pay.
Two other crypto debit cards to consider are the Binance Visa Card and the recently announced Robinhood Cash Card.
If you want to earn crypto rewards, you can also explore crypto credit cards, which allow you to earn rewards on your daily purchases in the form of cryptocurrency.
Can I use my debit card from a major bank with crypto?
Currently, debit cards from Bank of America, Chase, Citibank, and Wells Fargo, for example, do not support cryptocurrency. You can, however, use your encrypted debit card at any of their ATMs, but expect to pay a fee if you do.
New to cryptocurrency? here is aas well as a guide on how to protect your cryptocurrency and money.