Could Crypto Debit Cards Help Drive Adoption?

Beginner’s Guide / 31.03.2020

The approval for mainstream use in the cryptocurrency space remains a central theme, and crypto debit cards have been adopted as a great way to bridge the gap between traditional finance and digital currencies. These cards have introduced significant improvements in transaction speed, privacy, cost, and convenience.

Crypto debit cards have eased the combination of cryptocurrency and fiat currency, where cardholders can make transactions and payments at restaurants, cinemas, retail outlets, and a bunch of other places. When spending cryptos, you often don’t require much of the specialized knowledge that comes with obtaining and storing digital assets since these cards make it more straightforward.

Characteristics of the Best Crypto Debit Cards

Before deciding on a crypto card to use, several factors should be taken into consideration, and these include:

  • Ease of Use

Crypto cards should be easy to use, but fees, spending limits, and funding options can confuse the whole experience. Since these cards are often attached to online exchange accounts, eased access to your account or getting in contact with a member of the support team will significantly influence your overall experience.

  • Features

The core function of all crypto debit cards is to facilitate online/offline spending and allowing cardholders to make ATM withdrawals. Besides, having more features like banking services, payment/remittance services, and altcoin support could also come in handy.

  • Jurisdiction

Unlike in the past, the crypto industry is now being regulated, making each debit card solution only available in certain areas. Cardholders should make sure a debit card provider supports their region. The provider should aim to stay up to date with any changes in legislation and also remain regulatory compliant.

  • Reliability

The crypto space is still young and trying to choose the most established and respected service providers makes a lot of sense. Crypto debit cards supported by fully transparent projects, and integrated with the traditional and modern (Visa and MasterCard) banking systems stand the best chance of surviving in the long run without suddenly halting their services.

  • Fees

The crypto market is quite volatile, but cardholders are still motivated to get the best price rates so that an overly restrictive fee structure shouldn’t hinder spending on a card. Having a crypto debit card that maintains a transparent and straightforward fee structure will save you more.

Top Crypto Debit Cards

  • Nexo

Nexo tops our list. It is a platform that allows you to acquire loans using your crypto as collateral. You deposit cryptocurrency to their platform, and they send you cash. Nexo doesn’t sell your crypto; instead, they hold it for you while you pay back the loan.

Some of the benefits are that you never lose access to your cryptocurrencies, and you get them back once the loan is paid off. Nexo is easy to use, and you can begin the depositing process after signing up, which takes just a couple of minutes.

Nexo has an incredible feature called the free Nexo Mastercard for people who are not looking to spend using their card, allowing you to access your money worldwide with no monthly fees and no foreign exchange fees.

Wirex is another popular option based in London which provides a cryptocurrency- oriented range of personal and business solutions. It also has offices in Ukraine, Japan, and Tokyo.

Wirex is among the most established companies in the crypto space, with close to 3 million users and a transaction volume of $2.0 billion. It features a contactless multi-currency Visa Card, which enables you to connect your debit and credit cards, store crypto and purchase Bitcoin and selected altcoins with high limits and competitive exchange rates.

The platform allows you to make low-fee direct money transfers as well as the exchange between crypto and Fiat currency using transparent live prices and exchange rates.

Additionally, it features a Cryptoback Reward Program, which allows you to earn crypto each time you use the Visa debit card. Getting back 0.5% of your spending whenever you make payments or purchases sounds like a good offer.

  • Revolut

Revolut is a well-known firm that has set about disrupting the finance industry through its mobile banking app. Revolut operates in the EEA, Switzerland, and Australia, and the UK based company not only provides mobile banking services but also allows its customers to purchase cryptocurrencies.

Once you have signed up for one of the paid monthly subscription plans, you instantly get access to the digital assets integrated into the platform and purchase Bitcoin as well as other altcoins.

However, Revolut will not suit everyone since you do not have your private keys, and are not able to transfer your crypto holdings outside of the Revolut system. This is because the platform effectively retains custody of your digital assets. Many crypto advocates have considered it not a “true” method of purchasing Bitcoin. Nevertheless, the mobile bank has a few features that make it a solid choice, including free unlimited FX volumes, free overseas medical insurance, free virtual cards, and delayed flight and delayed baggage insurance.

  • BitPay

BitPay is a US-based cryptocurrency payments provider established in 2011 and has over 10,000 merchants on board. It offers its US residents a BitPay’s Bitcoin debit card that is loaded with funds through a BitPay account. Since BitPay is only available to US residents, users are required to give their home address (no PO boxes), government-issued ID and their Social Security number.

BitPay is well suited for anyone looking for a reliable, straightforward Bitcoin payment solution since their cards are widely accepted around the world, and it doesn’t incorporate discounts or any special incentives to use the card.

SpectroCoin is a platform based in Lithuania that enables its users to purchase a range of cryptocurrencies and store/transfer them through its mobile wallet. SpectroCoin provides debit cards that use EUR or USD and allows the exchange of Bitcoin and other digital assets to be spent in it.

SpectroCoin Prepaid Card Program is primarily focused at crypto users in Europe who must pass KYC verification, and cardholders must provide a passport or ID and a utility bill to make use of a VIP card that comes with an unlimited maximum card balance. Also, it allows unlimited POS/ online transactions.

Final Takeaways

With the above examples, there are a lot of options to choose from if you are looking for an available crypto debit card to use like; US citizens should choose BitPay, and European citizens should go with Wirex or Revolut. All in all, the best crypto debit card option is based on each person’s requirements to make sure you do proper research to find the debit card service, which best suits you.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.