As blockchain technology and public awareness of cryptocurrency continue to increase, it brings many new utility products to market and improves the efficiency of older financial systems.
Despite many applications, Bitcoin’s own use case (BTC) as an exchange remains one of the most basic applications in blockchain technology, and although BTC may not be the best asset to use for payments, it is service providers who have made the transaction easier. settlement process. In other cryptocurrencies.
Currently, the most common way to use cryptocurrency for direct payments in everyday life is by using cryptocurrency debit cards, which allow users to convert their cryptocurrency assets to US dollars. They basically work in the same way as a prepaid discount does.
With the company’s interest in the growing cryptocurrency sector and a unique level of awareness of blockchain technology, the popularity of cryptocurrency debit cards is increasing as new players enter the field to try to gain a share of this growing market.
Three of the debit cards with proven success and attractive rewards are BitPay, Crypto.com and Nexo Card.
BitPay Prepaid MasterCard has become the best choice for many cryptocurrency holders due to its ease of use and low fees. It was originally launched in 2016 as a debit card only in the US and initially served as a bitcoin payment processor.
BitPay now supports eight different fiat currency options, as well as Bitcoin, Ethereum (ETH), Gemini Dollar (GUSD), USD Coin (USDC), Paxos (PAX) and Bitcoin Cash (BCH).
Users wishing to receive a card must first pay an activation fee of $ 9.95 and provide their social security number and driver’s license to access the card. Once approved, the user can load the cryptocurrency into the BitPay wallet and then convert it to dollars to make it available on the card.
There are no transaction fees for US users, and the card has a daily spending limit of $ 10,000 and an account balance of up to $ 25,000.
For the avid cryptocurrency enthusiast, Crypto.com debit card is one of the best options due to the fact that it has a built-in original token called Crypto.com Coin (CRO), which acts as the base currency and bonus sign for the blockchain.
The benefits of using the card include 100% cashback on popular streaming services such as Netflix and Spotify, and up to 8% cashback on regular purchases.
Crypto.com users can choose from a list of over 100 top cryptocurrencies to fund their card by depositing them into their accounts and converting them to stable currency, which is then loaded onto their debit card.
The Crypto.com ecosystem offers five different Visa debit cards with a step-by-step reward structure that increases based on how much CRO the user places in their account.
The levels range from a 5,000 CRO claim for the Ruby Steel card to a 5 million CRO claim related to the Obsidian card, which gives an 8% refund on all purchases. There is also a basic version of the card that does not require storage and offers a 1% refund on all purchases.
The third option, which offers a different structure than most cryptocurrency debit cards, is the Nexo card and the original NEXO cryptocurrency, which is currently trading at $ 3.63.
Instead of requiring users to convert cryptocurrencies to their USD accounts before using them, Nexo issues an instant loan based on the value of the cryptocurrency in the user’s account and transactions in fiat currency.
This gives users access to the value of their cryptocurrency assets without having to sell them. The loan can be repaid using cryptocurrency or fiat currency through their Nexo account with the option to pay a minimum repayment amount from the return received from users who have accumulated cryptocurrency assets.
The interest rate on the card commission is 5.9%, there is no monthly or annual exchange commission. In addition, users receive 2% cashback in the form of Nexo tokens or BTC.
As more banks and institutions in the United States and around the world engage in the cryptocurrency sector to find ways to enter a growing market, cryptocurrency debit cards are likely to become an important component in older payment channels.