The growth of cryptocurrency demand has been outstanding in recent years. Due to this, the demand for crypto debit cards has also skyrocketed. According to a 2021 Tripple-a report, crypto users are over 320 million worldwide. Other crypto specialists predict that by the end of 2022, this figure is likely to grow or one billion.
Debit cards with cryptocurrency as their primary currency are known as crypto debit cards. This tool makes it easier to spend your crypto on daily expenses. Besides using a crypto wallet to fund these cards, these cards function like traditional debit cards.
Payment companies and cryptocurrency exchanges are some of the most popular issuers of crypto cards. Others, like the Club Swan, are membership platforms that provide concierge services and crypto solutions.
All crypto debit cards might function similarly, but their feature varies widely. As a result, it is crucial to consider these features when selecting your crypto debit card. Here are nine factors to consider while selecting your crypto debit card.
Nine factors to consider when choosing a crypto debit card
1. Crypto supported
Crypto debit card issuers support different cryptocurrencies. This means there is no maximum number of cryptocurrencies a crypto debit issuer can support. Some card issuers can support up to 100 different cryptocurrencies, while others can support even less. For example, Club Swan only allows you to use up to nine different cryptocurrencies.
Bitcoin, Ethereum, Litecoin, and Ripple are some of the popularly supported cryptocurrencies. Additionally, some crypto card providers also support stablecoins and fiat currency. Some cards, like Club Swan, can support up to 150 different fiat currencies.
This implies that you won’t have to deal with the trouble of exchanging currencies if you travel.
The more currencies the crypto debit card supports, the more flexible it is. So while searching for your best card, choose a card that supports your preferred currencies.
2. Rewards
Most crypto card issuers have a reward system to reward their cardholders. These rewards include cashback, referral, and staking.
Compared to other reward systems, cashback rewards are the most popular. You must use your cryptocurrency debit card to make purchases to receive these rewards. However, most crypto card providers only reward you for particular purchases.
Some crypto card issuers have different card tiers. This means the cashback rewards you earn depend on the card tier you hold.
Staking cryptocurrency is a great reward system as well. You must stake at least a certain amount to receive these rewards for a set time frame. You are more likely to receive more benefits by staking more and for longer. Also, the staking rewards you receive might depend on the change in the crypto market value over the staking period.
Referral incentives are a unique kind of reward system. However, the system isn’t so common. Crypto card issuers will compensate you for recommending the platform to new members. You are then given a certain percentage of the referrals membership fee as the reward.
For instance, Club Swan rewards you 20% of the membership fee when your referral successfully registers. Also, your membership level automatically gets upgraded if you successfully refer three new members.
You might want to choose a crypto debit card with a rewards program that fits your demands and lifestyle.
3. Fees
Crypto card issuers charge different fees. The popular fees charged by card issuers are monthly, yearly, and transactional fees. Deposit and withdrawal fees make up the transaction fees.
Withdrawal fees are the most common transactional fees. On the other hand, deposit fees are rarely charged, although few card issuing companies charge them.
On the other hand, others will charge a fee for foreign exchanges. However, to make crypto card maintenance affordable, most crypto card issuers have done away with these fees to make crypto card maintenance affordable. However, those that continue to charge these fees use them to reimburse the payment processors.
Interestingly, some crypto card issuers give waivers if your monthly or yearly cryptocurrency expenditure reaches a particular threshold. This implies that you are eligible for free withdrawals up to a certain amount.
Even better, some crypto card issuing companies charge zero fees. Thus while choosing your crypto debit card, it’s wise to look for an affordable-to-maintain crypto debit card.
4. Staking Requirements
Staking is one method of earning cryptocurrency rewards with a crypto debit corporation, as stated above. However, you must meet a few requirements before you can begin staking.
You must meet the minimum staking amount and agree to the minimum staking period. These specifications change depending on the crypto card issuer.
Thus choosing a crypto card provider whose staking criteria match your needs is wise.
5. Security
Security is one of the most crucial factors when looking for a crypto debit card. The safety of your hard-earned cryptocurrency will depend on the security measures you and your card issuer. Thus you should look for a card issuer with top-notch security before making your final decision.
A report from CNBC 2021, a channel for financial market coverage, claims that roughly $14 billion was lost due to crypto scams. According to a different report by Chainalysis, nearly $1.9 billion will have already been lost due to cryptocurrency fraud in 2022.
As a result, most crypto card issuing businesses have concentrated primarily on offering top-notch security measures to their crypto holders. Some well-known crypto debit card providers have included remote security with the help of the app as one of their security measures. This implies that by using the provider’s app, you can easily manage the security of your crypto card. You can modify the card’s PIN, freeze it, and even report its loss on the app.
Some crypto card companies have created additional next-level security measures in addition to remote security. These security measures include passphrases, biometrics, and two-factor authentication. We will likely experience new and advanced crypto security techniques as the crypto space evolves.
When choosing your card, you want a crypto debit card from crypto card issuers providing paramount security.
6. Availability
Even though cryptocurrency adoption is currently at its highest point, not all regions have had the opportunity to access crypto debit cards. In addition, most crypto card issuers deliver their cards to only particular regions of the globe.
Unfortunately, even if you believe a card suits your needs and way of life, it might not get shipped to your area. But thanks to payment processors, you can easily use your card worldwide.
This means that online or in-person purchases are simple to make anywhere worldwide. Additionally, you can easily withdraw from most ATMs around the world.
If you want to avoid disappointments, you should make sure a crypto debit card can get shipped to your location before making your final choice.
7. Availability of virtual cards
Some cryptocurrency card issuers additionally provide you with a virtual replica in addition to the physical debit card. This implies that you can conveniently make payments with a virtual card through a smartphone or other smart device.
You may avoid a lot of headaches by having a virtual card. First, if you conduct most of your business online, this card enables error-free and seamless transactions. Second, by not carrying your physical card with you constantly, you reduce the likelihood that it will be lost or stolen.
You can also create a special virtual card to prevent fraud for your most frequent online transactions. To experience the ultimate simplicity, you could choose a crypto card that comes side to side with a virtual copy.
8. Other perks
Some crypto card issuers provide their cardholders additional perks in addition to rewards. Free subscriptions, discounts, and fee waivers are just a few of these benefits.
For instance, Club Swan provides concierge services to the exclusive members of the membership platform. Discounts on lodging and travel are among these services.
You also stand to enjoy a free subscription to Netflix, Amazon Prime, and Spotify platforms by signing up with some of these card issuers. In addition, you can benefit from access to airport lounges, Airbnb discounts, and even Jet partnerships.
Therefore, you could wish to consider some additional fun perks before choosing that particular card.
9. Support for Additional payment
You would also want a crypto card provider that accepts different payment methods. Credit, debit, e-wallet, and even bank transfers.
Apple Pay, Samsung Pay, Banxa, Simplex, and Google Pay are a few popular E-wallets that crypto card providers support. Therefore, check out the payment methods each crypto card issuer supports if you’re seeking a flexible card.
