Number 1: Is the service available in your location?Ĭryptocurrency adoption is higher today than ever before. If you’re interested in having a crypto debit card, here are some tips, tricks and best practices to take into consideration when searching for the right one. 4 things to consider when using a crypto debit card This all happened in a manner of seconds, and highlights one more way that crypto is becoming a more accessible form of payment in the real world. The processing company then converted the crypto into regular fiat currency and delivered it directly into the coffee shop's account. When the cashier swiped the card, the processing company reached into the card's crypto wallet and took the dollar amount of crypto needed for the cup of coffee. The cashier hands John his cup of coffee, swipes the card and hands him his receipt. While the coffee shop does not accept cryptocurrency, it certainly takes debit payments. John decides to give his crypto debit card a test run.
Because a Bitcoin debit card works just like the one you get from your local bank, John has the choice to use his regular debit card or the brand new crypto-based debit card. John walks into a local coffee shop that, like most, accepts debit cards. Thankfully, crypto debit cards and other “traditional” financial products seek to further legitimize cryptocurrency as valid forms of payment. Retailers are cautious about digital currencies for several reasons, including uncertain legal status for payment processors, exchange rate volatility, and a still-underdeveloped understanding of blockchain–the cryptocurrencies powering technology–for most of the general public. You can’t walk into any shop and pay for your order with Bitcoin as most merchants are unwilling to accept the crypto. So, now that we’ve touched on the basics of crypto debit cards, let’s explore how they work in more detail.įor starters, using cryptocurrency in the real world today still has its limitations. This type of card enables you to settle transactions at any merchant that accepts debit cards using the funds in your crypto wallet.Ī big difference between a crypto debit card and a traditional debit card: a crypto debit card automatically converts the crypto you’ll be spending into the preferred fiat currency. A crypto debit card connects a cryptocurrency payment processing company with your crypto wallet. In essence, a debit card connects processing companies with your checking account, allowing merchants to process payments using the funds in your account.Īs for a crypto debit card, well-it’s exactly what it sounds like. Unlike a credit card, a debit card allows you to electronically pay for goods or services with the money in the attached account. A debit card is a plastic card with your relevant account information embedded into the card via a chip or scannable barcode. While most of us know what a debit card is, it’s still worth defining as a crypto debit card is based on the same premise.
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