A crypto card is an analog of a bank card. It differs in that cryptocurrencies (Bitcoin, Ethereum, LiteCoin and others) are held in the account, rather than fiat currencies (ruble, dollar, euro). The card can be used to pay for purchases in stores and services in other places. However, there are many details which are worth knowing.
This article will explain how crypto cards of 2021-2022 work, to whom they are available, and what the limitations are. And most importantly, we'll look at the reasons to use them in the first place, and whether it's worth getting a cryptocurrency card in 2022.
Let's start by looking at the basic principle of how cryptocurrency cards work:
Thus, the cardholder spends the cryptocurrency, but the account of the recipient (for example, the store) is credited with regular rubles or dollars. Because of this, cryptocurrencies can be used even in countries where paying in cryptocurrency is prohibited, for example, in Russia. After all, payments are made in fiat currency.
Cryptocurrency cards are used for many reasons. Common scenarios are:
There are other cases as well. For example, some people use cryptocurrencies to avoid being charged by government services, like court enforcement officers. Still, it's difficult to find out if this behavior is legal, so it's not advisable.
In fact, the crypto card simplifies the conversion of cryptocurrency into fiat money when you need to pay in rubles or dollars. If you don't have a card, you have to go to an exchanger every time to convert funds. Therefore, a cryptocurrency card is a multi-purpose tool for everyone who keeps funds in cryptocurrencies but cannot pay with them directly (for example, due to the illegality of such transactions in the country of location).
There are a few nuances to be aware of:
Companies issuing cryptocurrencies in 2022 can be roughly divided into three categories:
In this case, the cryptocurrency account is linked to the user's account on the trading platform. At the time of payment, the desired amount of cryptocurrency is exchanged for fiat money and transferred to the recipient. The disadvantages include the volatility of cryptocurrencies.
Volatility is defined as rate fluctuations over a small time period. Volatility is higher on trading floors. The rate is likely to "drop" a lot at times. If you pay by card at an unfortunate moment, more money will be debited than, say, if you pay the same amount in a minute.
This way is actually similar to the use of a third-party exchanger, as the user first converts the cryptocurrency into fiat, and then the funds are sent directly to the card. However, the exchange is performed quickly and in one place.
Disadvantages include restrictions on the maximum amount that can be stored on a crypto card (most companies have them) and spending limits (for example, there may be a limit on the maximum amount that can be spent within a day or month).
Let's take a look at popular cryptocurrency cards that are considered to be the best in the current reality. Both by users themselves and experts. These are the ones to keep in mind if you choose a cryptocurrency card for personal use.
A service that has been in operation for about 10 years. AdvCash crypto cards operate in many countries. There are virtual and physical (plastic) cards. As for cryptocurrencies, you can store Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Tron, 0x, as well as stablecoin USDT. At any time crypto can be sent to a fiat account, and it is converted into dollars, euros or other currency at the current exchange rate. The reverse conversion is also possible.
At the time of writing this article, the company has temporarily suspended the issuance of cards, but it is expected to resume soon.
The company's cards were launched last year, and quickly gained popularity. They support about 80 cryptocurrencies, and the number is constantly expanding. It is possible to convert crypto assets into fiat currencies and back at any time. There aren't many reviews yet, but according to the first reports from users, the card deserves attention.
TTM is a full-fledged cryptocurrency-oriented bank. The abbreviation in the name stands for "To The Moon" (a slang expression in the cryptocurrency community that denotes the expectation of rising cryptocurrency prices - "the price is flying to the moon"). The design of the card is appropriate - it shows the surface of the moon.
These cryptocurrencies are available in a large number of countries. The bank operates under the legislation of the European Union. The list of supported cryptocurrencies is small - USDT, BTC, ETH, TRX, BNB.
Cryptocurrency from Binance - the largest platform for trading cryptocurrencies, which is actively used by Russian users. For now, it's not available in the Russian Federation and neighboring countries. However, the opportunity to order it should appear in the near future.
The management of the company promises no service fees, a link to an account on the trading platform, and many other things. All the same, Binance is the leading platform at the moment, so it can afford to provide a large list of benefits.
A company with a 5-year history. It issues crypto cards for many countries, including Russia. The card doesn't have any specific advantages, but it is actively used by several Russian citizens.
It's one of the most popular companies issuing plastic cryptocurrency cards. Standard conditions:
However, there are different rates, and their conditions vary, which allows the user to choose the best offering.
A cryptocurrency card that is free for users from 179 countries. However, to use it profitably, you need to buy and store your own AMN cryptocurrency. In return - 24-hour technical support, cashback, no fees for cash withdrawals from ATMs.
Even the best cryptocurrency will be useless if the terms of use are not suitable for your country or your needs. So here's a list of rules that you can follow to avoid mistakes and difficulties:
These rules will help to avoid most of the possible problems that are often described in the reviews of real crypto card users.
After choosing the best cryptocurrency card with the terms offered, it's worth considering whether it makes sense to order one. The field of implementation of such cards, although they have already been around for a few years, is at the initial stage of development. So far, everything works unsteadily, and at any moment unforeseen difficulties may arise. For example:
Specialists recommend refraining from using cryptocurrency cards if there is no urgent need. So far, they create more problems than conveniences for the average user. After studying the reviews, you may find that:
That's why it's better to give up ordering a cryptocard for now, no matter how progressive and interesting it may be. Yeah, there will be profitable and comfortable offers in the market in 5-10 years, and the work of the sphere will be normalized. Still, in 2022, experts recommend abstaining - you do not need unnecessary problems. Moreover, it's possible to exchange fiat money for cryptocurrency, or vice versa, sell digital assets for fiat, without a cryptocurrency card. For example, through Broex.
Broex is a cryptocurrency exchanger and wallet officially registered in Estonia. The company has passed the inspections of regulators and has received a license. This made Broex a 100% legal way to store and trade cryptocurrencies. By working with the exchanger, you can be sure of the safety of funds and reliability of the company.
The advantage of Broex is the provision of a custodial wallet, convenient for beginners and experienced users. Purchased cryptocurrencies do not need to be withdrawn to third-party wallets. They will be stored in accounts that the company supervises. At the same time, you will have round-the-clock access to the assets through your personal account.
Storing cryptocurrencies with Broex is even more convenient and reliable for an inexperienced user than using classic cryptocurrency wallets.
Broex also offers:
Register to have access to Broex exchanger and Broex wallet. The procedure is simple and takes less than 5 minutes. In case you have any difficulties - write to the online chat so that a tech-support specialist can help you figure it out.