Cryptocard Choices: Which One for You?

Traditional financial service companies and startups have noticed that cryptocurrency is becoming a valuable investment asset and getting bigger. To attract new users with crypto, they've introduced a new type of cryptocard with great flexibility and security features. Here's what you need to know.

What is a prepaid cryptocard?

Also known as a crypto debit card, a prepaid cryptocard is a card that takes funds from a user’s crypto account. The card is topped up using crypto from an individual’s or cryptocurrency exchange accounts. Crypto debit cards allow users to spend their crypto funds instantly without moving money around.

Before their introduction, crypto holders intending to spend their assets had first to convert them from crypto exchanges and have them wired to their accounts, a process that would take hours or several days.

A prepaid cryptocard can be used for in-person and online purchases and cash withdrawals from ATMs, including from ATMs and vendors that don't traditionally accept cryptocurrencies. Cardholders no longer need to exchange their digital assets for any local currency. Once preload their crypto debit card with a given amount of cryptocurrency, it automatically and instantly converts during a transaction.

Crypto credit vs. debit cards

Unlike a crypto debit card tied to your account and drawing directly from your crypto holdings, a crypto credit card functions like a short-term loan. The card provider allows you to use their funds, to a specific limit, based on your credit history. Typically, the card provider is responsible for servicing your account, accepting your payments, billing you for purchases, and all other administrative tasks. Your responsibility is to make timely payments to continue enjoying the service.

Should you acquire a prepaid cryptocard?

As knowledge about cryptocurrencies and digital assets rises remarkably, more financial service providers are hitting the market with cryptocurrency cards, most of which incorporate rewards they pay out in crypto. The best thing about crypto rewards is that, unlike other reward points programs such as those offered by airlines and some stores, the value of crypto rewards can appreciate. If you believe in cryptocurrencies, a crypto debit card from a trusted provider is generally a good idea.