Cryptocurrency adoption has been on the rise over the past few years. We come across many crypto trends every day. Crypto cards are one such sensation that allows crypto holders to spend their cryptos for real-world purchases. But how are these cards different from regular bank cards? In this blog, we will go through six main differences between crypto and conventional cards.
Keep reading!
What are crypto cards?
Crypto cards are payment cards that enable cryptocurrency holders to spend their holdings to pay for real-world goods and services. These cards come in crypto credit and debit cards.
The popular crypto cards available in the market are Crypto.com debit card, Coinbase debit card, BlockFi credit card, Gemini credit card, etc.
6 Main difference between crypto and conventional cards
Crypto cards work almost the same as regular bank payment cards, but some main differences make these cards unique. The following are six main differences between crypto and conventional cards.
1- Unlike regular cards, crypto cards allow users to spend both cryptocurrency and fiat currency
The most notable difference between crypto and conventional cards is that crypto cards allow crypto enthusiasts to spend their holding paying for anything from coffee to a car.
Before crypto cards, people had only limited options, and they could not spend their digital assets for shopping. Of course, they might want to! Crypto cards have provided them with this facility.
Another exciting fact about crypto cards is that you can also use fiat currency (USD, EUR, etc.). It means users can access different currencies with one card, avoiding switching between cards to make payments.
2- Crypto cards are linked to cryptocurrency account, while conventional cards are connected to a bank account
Conventional cards are linked with the bank account and process transactions. In contrast, crypto cards are connected to the digital cryptocurrency wallet of the user. The wallet can be a platform wallet you are using or your personal wallet.
3- Unlike conventional cards, crypto cards work all over the world
One of the most important differences between conventional and crypto cards is their functionality. Let’s explore how do crypto cards work and where you can use them? Crypto cards are issued by companies licensed under VISA and MasterCard. Therefore, these cards can be used at any retailer accepting VISA and MasterCard payments worldwide. However the conventional cards are useful for daily purchases, but they cannot be used outside the country of origin. Or users need to have separate international cards if that banking is operating in other countries.
4- Fees associated with crypto cards are comparatively lower than on conventional cards
Users have to pay high fees associated with conventional cards in the form of annual fees, interest charges, foreign transaction fees, exchange fees, late-payment fees, etc.
On the other hand, the yearly fee is meager with crypto cards. Some card providers also waive off the annual fee if a user spends a certain amount of crypto within a year. Some cards such as Celsius. Network, Gemini, etc., do not charge annual fees on crypto cards. With most crypto cards, there are no foreign transaction fees, no late payment fees, no ATM fees, etc. Even those card providers that charge fees on crypto cards are still far lower than on conventional cards.
5- Unlike conventional cards, crypto cards usually pay cashback in crypto
Most conventional cards do not cashback, while other banks put certain limitations, such as selective merchants. On the other hand, Crypto cards provide a more exciting opportunity to their users. These cards usually pay cashback in cryptos. Users can get cashback on dining, groceries, or any other shopping. The cashback can be from 1% to 8% on transactions depending on the card service you are using.
Because of this cashback, crypto cards are considered a passive way of earning cryptos.
6- Crypto cards offer more attractive rewards than conventional cards
Only a few banks offer limited rewards to their users. In comparison, crypto cards offer more attractive rewards to their users. The rewards can be airport lounge access, Netflix and Spotify subscription, Expedia discount, VIP concierge, Prime video subscription, etc. However, the rewards depend on the card service you are a part of.
Conclusion
Both crypto and conventional cards are doing well. But the differences in crypto cards make them more unique and attractive. Therefore, these cards are getting more and more popular. If you own cryptocurrency, you should consider giving a crypto card a try. Search the market to check different crypto cards available, compare them and choose the one that best matches your demands.
