Crypto is more attractive today than it ever was, and that’s for a good reason. It has been improved, polished up, and many new currencies are popping up all over the crypto sphere. While Ripple’s coins seem to be falling out of fashion, Chain Link, Dogecoins, and others have been killing it this year and are the favorite of many.
Crypto and Fiat
Whatever the case may be, many people wonder how they can turn their crypto into fiat, put it on a neat card that is both compact, easy to use, and can be with you at all times. The relationship with digital currencies and fiat has been rocky over the years, and banks worldwide aren’t too happy with the digital currency – which has prompted many considerable fees when trading crypto. It means that many people, rather than turning their profits into fiat and storing them in their bank, tend to turn their currency into far more stable coins such as Tether and keep them in their digital wallets.
Now, the compromise between regular banking and cryptocurrency comes in the form of Cryptocurrency Cards. Crypto cards are debit cards that allow you to make any transaction with your cryptocurrency, which directly converts into fiat. The appeal of the crypto card comes with its sheer convenience. You can use your cryptocurrency account card at any place that accepts debit cards, and since most cryptocurrency cards are either Mastercard or Visa based, you can use them anywhere around the world. What makes these cards particularly attractive is that there are minimal fees associated with them, allowing you to get most of your crypto out without paying any obscene fees or taxes. Other than their ability to work with cryptocurrencies, a range of cryptocurrency cards come with a selection of features that regular cards have, such as bonuses, cashback, and other customer-orientated incentives. (See: 5 Things to Know About Crypto Cards)
What are Crypto Cards Drawbacks?
Many new crypto trading platforms are coming into the crypto card market with their very own cards, which can be linked to their wallets, the most popular of which are Coinbase and Crypto.com. But, it’s not all sunshine when it comes to crypto cards, as there are a couple of prominent disadvantages, such as:
- The continual fluctuation of the price. This is more of a crypto issue, but it translates a bit too well to crypto cards. Because the currency is continually fluctuating due to its volatility, it might be a bit challenging to keep track of how much fiat you have on a card, which might be financially disastrous.
- Almost EU exclusive. The two top credit card issuers globally, VISA, and Mastercard have placed restrictions and no longer support crypto cards outside of the European Union, excluding a couple of experimental projects abroad.
- Pairing issues. Regular banks aren’t too crypto-friendly, and almost no crypto cards can be linked back to your primary bank account, which is problematic, to say to least.