Cryptocurrency credit/Debit cards are innovations in the payment industry. These fastest-growing payment methods were introduced to the market last year to merge traditional payment systems with blockchain and its technologies. These cards have become quite popular. A quick Google search reveals many cryptocurrency credit card projects.
In the last couple of months, the number of crypto credit card users has grown tremendously. More and more people realize the potential of combining traditional money systems with cryptocurrencies. Here are a few benefits crypto credit cards have to offer:
With crypto debit cards, users now enjoy low fees while spending their cryptocurrencies anywhere in the World. Unlike local fiats, who charge high exchange rates, cryptocurrencies charge minimal fees. Some cards offer zero fees for conventions up to specific amounts.
Easy to use
It is important to note that crypto credit and debit cards function similarly to any credit card. A user will swipe their card on-site when making purchases or enter the card number for online purchases. Many cryptocurrency card companies provide the virtual and physical versions of the card.
Increased crypto Usability
Initially, users were faced with the challenge of the first pre converting their crypto to spend them in various stores. A crypto debit card allows anyone to spend their cryptocurrencies anywhere without having to pre-convert them at an exchange.
Holds different currencies
Different crypto cards support different currencies for transactions. For instance, one card can support over 45 currencies while another can support 20 or less. One needs to research which currencies are supported to avoid inconveniences.
Increased Crypto Adoption
Crypto cards have helped drive adoption as more people realize cryptocurrencies are not as complicated as they thought. Crypto credit cards allow cardholders to apply cryptocurrency technology in real life. This has to attract many to adopt cryptocurrencies to buy things.
Additionally, these cards allow cardholders to make purchases almost anywhere in the World. One can buy clothes, pay for coffee, food by swapping the credit card at the point of sale.
Some crypto debit card merchants allow their users to remain anonymous if they are only spending small amounts of money.
Unlike your traditional credit cards, many crypto cards companies offer users reward schemes. Some will offer a certain percent return on all the cash spent. For instance, Ternio launched a reward program that allows users to earn an unlimited 6.38% back in crypto on all purchases made through their card, Blockcard. Crypto.com offers 5% back if you stake a corresponding amount of their token.
While cryptocurrency volatility is a significant concern for many, crypto cards are the perfect solutions for inflations. These cards allow people to enjoy different financial benefits while avoiding the challenges that come with inflation.
Reach the unbanked
For entrepreneurs in the banking space, crypto cards are an excellent avenue to reach the unbanked community who have shown great interest in cryptocurrencies. Statistics show that over 2.5 billion adults do not use banks mainly due to their inaccessibility, high transaction fees, and long, tedious processes. Since cryptocurrencies have proven to be better alternatives, the unbacked would be more open to owning a cryptocurrencies credit and debit card.
Disadvantages of crypto cards
While cryptocurrency credit and debit cards have made a significant milestone in the financial market, they are not exempted from day-to-day challenges. Some of the disadvantages of using these cards include:
Cryptocurrencies have come a long way from significant banks warning against their use and bans by authorities. Despite massive adoption, there are a few who are yet to embrace this technology. For this reason, most crypto card companies create a card that can be used within specific regions. Some companies, however, are slowly adding other regions to allow Worldwide applications.
Reliance on centralizations
While cryptocurrencies are decentralized by nature, cryptocurrency cards mainly rely on a centralized company for operation. Users must have an account with a crypto wallet service, which they use to load funds to their cards. In this system, the user is entrusting the company with their money.
In summary, cryptocurrency credit cards and debit cards have a lot to offer to the general finaical market. These cards are the perfect example of how new technologies can emerge with the old system to create better solutions. Despite a few short comings, that can be solved with time, crypto credit and debit cards are great innovations of our time.