Bitcoin—the world’s first decentralised cryptocurrency—is now a decade old. Since its launch, one of the biggest drawbacks of digital currency has been the inability to spend it on regular purchases with the same convenience as fiat currency. Until recently, it was nearly impossible for people to use their Bitcoin or spend crypto for everyday purchases.
Thankfully, the number of merchants accepting cryptocurrency is on the rise, which means it will become increasingly easier to use your Bitcoin (BTC). With crypto debit cards gaining popularity, paying with crypto funds will soon be as easy as using Apple Pay and Google Pay.
Some merchants now accept cryptocurrencies directly, while others require you to convert them into fiat currencies through an exchange. For the latter, you will have to withdraw the fiat currency from your own bank account before you can spend it. The bank transfer is a tedious process—but you won’t have to put up with it for long.
In this guide, we will show you how to eliminate some of the unnecessary hurdles and empower you to spend crypto freely. We will teach you all about crypto debit cards, crypto credit cards, and the crypto rewards you can gain from using them.
What Is a Bitcoin Debit Card?
A Bitcoin debit card functions like any other traditional credit or debit card. The only difference is that the former uses your Bitcoin wallet as a funding source instead of a checking account or a mobile banking app. You can convert BTC to cash using your card or you can withdraw money privately from an ATM.
Most providers offer two kinds: a physical crypto debit card and a virtual cryptocurrency debit card. If you only need one for online purchases, you can get a virtual card. It will cost less than getting a physical card. However, if you need it for POS purchases, you certainly have to get a physical crypto debit card.
Why Do I Need a Bitcoin Debit Card?
Bitcoin buyers who own a physical crypto debit card can purchase nearly anything with it, anywhere. Whether it’s for coffee or for clothes, you can use your card to pay for what you need. As a matter of fact, you will be able to use it anywhere that accepts traditional payment cards.
Now more than ever, it’s even easier to make such transactions because crypto card providers are working hand in hand with major payment processors, including MasterCard, Visa, and UnionPay.
If you’re looking for a quick and hassle-free way to convert your cryptocurrency to fiat currency, there’s nothing more convenient than using a crypto debit card. You won’t have to wait long to receive the funds. Unlike traditional bank withdrawals, you also won’t incur costly transaction fees.
Best of all, cryptocurrency card providers are now trying to make one fiat currency available. That means you can easily exchange your crypto for Australian dollars, euros, pounds, and other currencies without hefty conversion fees. Most crypto debit cards can even be loaded with different digital currencies.
What Are the Risks?
Since you already know the benefits of getting crypto debit cards, you ought to learn about the risks as well. It’s important to weigh the pros and cons before getting one.
Perhaps the most important fact that you need to be aware of is that there are tons of bogus providers and scammers hoping to make a quick buck. Thus, you should always do your research on the best crypto debit cards before signing up for an account. While there are limited options, the rates and fees can vary significantly between each one.
More countries and financial institutions have embraced cryptocurrency. But there are still a handful of banks and networks with tight restrictions.
As with any type of investment, cryptocurrency has risks. But you can minimise them and be more confident about your choices if you do your research.
How Do Crypto Debit Cards Work?
Crypto debit cards are quite simple. Here’s what you need to know:
- Prepaid cards: With a prepaid card, you have to load it with cryptocurrency from your digital wallet. It will instantly be converted into Australian dollars or your preferred fiat currency, ready for spending.
- Non-prepaid cards: Unlike the former, non-prepaid cards can be linked to your crypto wallet. Whenever you swipe it at a payment terminal, the card provider will instantly convert your cryptocurrency into fiat currency based on the current exchange rate.
How Do I Withdraw BTC with My Crypto Debit Card?
The best thing about getting physical crypto debit cards is that you can now use them at a regular ATM. In other words, you don’t have to wait to cash out your cryptocurrency. You can fill it with crypto or link it to your wallet, then withdraw as much as you want from an ATM.
What Is the Best Crypto Debit Card?
Not all crypto debit cards are made equal. Unfortunately, some have turned out to be frauds while others have failed to live up to expectations. But don’t fret. That’s what we’re here for.
Below, you will find some of the best crypto debit cards in Australia.
BTC.com.au is excellent for beginners who have yet to master how to buy Bitcoin. With this crypto debit card, you can easily load it with funds using cryptocurrencies such as Ethereum, BTC, and Litecoin. You can withdraw cash through an ATM or make purchases at EFTPOS terminals across the country. You can buy groceries, pay your utility bills, and even your rent with crypto.
- No monthly maintenance or inactivity fee
- Buying crypto is quick and easy
- Allows you to purchase BTC with cash
- Only supports AUD
- Can purchase only BTC and ETH
- Only for domestic use
Shopping can be a whole new experience when you’re paying with digital currencies. You can use your CoinJar Swipe Mastercard anywhere in the country that accepts EFTPOS. With a debit card, you can exchange your cryptocurrency for cash at any ATM. You may also do it at merchants with cash-out facilities. Even utility payments can be exciting if you can transact with crypto. For more functionality and flexibility, get CoinJar Card which can also be used for online and over-the-phone transactions. The Coinjar Card also has a mobile app that makes managing digital assets and crypto funds easier.
- Supports several cryptocurrencies
- No activation and monthly fees
- Competitive exchange rates
- Only supports AUD
- Has fees for different products
- Only for domestic use
SpectroCoin offers a prepaid version that you can use at any ATM around the world. Like every other traditional payment card, you can use this to purchase items or services in-store. Whenever you transfer funds from Bitcoin mining into your SpectroCoin blockchain wallet, it will instantly reflect on your balance. With SpectroCoin, you can make purchases in cryptocurrency at more than 20 million shops worldwide.
- Has high deposit, withdrawal, and spending limits
- Can be used at millions of stores worldwide
- No monthly service charge fee
- Doesn’t support AUD
- 2% withdrawal fee outside of EU
Crypto.com Metal Visa Card
The Crypto.com Visa Card is a prepaid debit card that allows you to spend your cryptocurrencies, such as Bitcoin, Ethereum, and others, at any merchant that accepts Visa payments. The card is issued by the Crypto.com platform and has the most supported currencies thus far. Crypto Metal Visa Cards come in five different types, each with different benefits, rewards, and staking requirements. The card tiers include Midnight Blue, Ruby Steel Card, Jade Green/Royal Indigo, Icy White/Rose Gold, and Obsidian Black.
The Crypto.com Visa Card is a popular option for those looking for a cryptocurrency debit card with a rewards program and a variety of supported digital assets.
- No annual fee
- Up to 5% CRO rewards on eligible purchases
- Supports over 100 cryptocurrencies
- 2% ATM withdrawal fees
- Must purchase CRO tokens to qualify for higher tiers
- 180-day lockup of CRO tokens prior to the card application
How Do I Choose a Bitcoin Debit Card?
There aren’t a lot of choices out there for Bitcoin debit cards in Australia. Still, you need to make sure you get a worthy investment. Take a close look at the following factors when you’re deciding on a debit card that suits your needs.
- Type of card – Do you need a virtual or physical card? Find out if a provider offers the card you need. If they have both, compare their fees and features so you can end up with the card you need the most.
- Prepaid or non-prepaid card – Decide if you want crypto prepaid cards, which you have to load with cryptocurrency, or a non-prepaid, which converts crypto to fiat currencies instantly on every purchase.
- Supported currencies – Find out if the card supports Australian dollars or your preferred fiat currency.
- Fees – Look into all the fees that come with the card: maintenance, withdrawal, inactivity, etc. Many providers offer their cards completely free and waive monthly or annual fees.
- Exchange rate – Be sure to check the exchange rate you get every time the provider converts crypto into fiat. Learn more about the provider’s conversion fees. Then, compare it with the current Bitcoin price (AUD) and other market rates.
- Transaction limits – Find out the load limit, daily spending limit, and withdrawal limit.
- Mobile app – Much like regular banking, a mobile app can make your crypto assets so much easier to maintain. Thus, check if the provider can give you an app account for crypto payments.
- Company background – Learn more about the company through reviews. Go to forums and other online communities. Read reviews and ask questions so you can avoid scams.
Where Can I Get a Bitcoin Debit Card?
First, you have to find a provider that can issue an Australian crypto card.
Then, you will have to create an account on their platform and get verified before you can start buying or selling Bitcoin cash. Some platforms like BTC.com.au offer free physical cards. Once you’ve logged into your account, all you have to do is press the “Apply Now” button to sign up for a crypto debit card.
Other providers have different processes and fees. Check their terms for trading fees, monthly maintenance fees, currency conversion fees, foreign transaction fees, exchange fees, annual fees, and any other fees that may be due when using their crypto debit cards. Also, be sure to look up their rates for Bitcoin Australia. Buy a card only when you’re satisfied with its features and policies.
Is there a Bitcoin Visa Card?
Yes, there are Bitcoin Visa cards available from various providers that you can use either as a debit card or a credit card anywhere Visa is accepted. In Australia, visa debit cards that can be issued by providers locally include Crypto.com Visa Card and Wirex Visa Card. Coinbase Visa Card, Binance Visa Card, and Cryptopay Visa Card also have crypto card services, but these are not offered to residents of Australia as of now.
The choices for crypto Visa debit card and crypto credit cards in Australia may still be limited now, but as crypto cards become more commonplace, we are likely to get more options for the best crypto debit cards.
Where Can I Find Crypto ATMs?
Lucky for you, more crypto ATMs are popping up across the country. You can easily find ones near you using online tools and applications. But remember that some of these cards can now be used at a regular ATM. Hence, look up that information beforehand so you don’t have to drive far away to withdraw from a crypto ATM.
Another important thing to note is that ATM withdrawals may be subject to ATM fees, exchange fees, and other fees. Unless your crypto debit card provides free ATM withdrawals, you may want to limit your ATM transactions.