Bitcoin—the world’s first decentralised cryptocurrency—is now a decade old. Since its launching, 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 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).
Some merchants accept cryptocurrencies directly, while others require you to convert them into fiat currency through an exchange. For the latter, you will have to withdraw the fiat currency from your own bank account before you can spend it. It’s 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 your cryptocurrency freely. We will teach you all about crypto debit cards.
What Is a Bitcoin Debit Card?
A Bitcoin debit card functions like any other traditional payment 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. You can withdraw money privately from an ATM.
Most providers offer two kinds: a physical 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 the physical debit card.
Why Do I Need a Bitcoin Debit Card?
Bitcoin buyers who own a physical 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 a big fee for making the transaction.
Best of all, cryptocurrency card providers are now trying to make one fiat currency available. That means you can easily exchange your crypto for dollars, euros, pounds and other currencies. Most debit cards can even be loaded with different digital currencies.
What Are the Risks?
Since you already know the benefits of getting cryptocurrency debit cards, you ought to learn about the risks as well. It’s important to weigh the pros and cons before getting involved.
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 before signing up. 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 Does a Crypto Debit Card Work?
Crypto 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 AUD 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 Debit Card?
The best thing about getting physical 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 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 a 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
- BTC is the only cryptocurrency you can purchase
- Only for domestic use
Shopping can be a whole new experience when you’re paying with digital currencies. You can use your CoinJar Swipe 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.
- Supports five 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 which 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.
- Supports international use
- Has high deposit and withdrawal limits
- Can be used at millions of stores worldwide
- Has a maintenance fee
- Doesn’t support AUD
How Do I Choose a Bitcoin Debit Card?
There aren’t a lot of choices out there. 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 prepaid, which you have to fill up with cryptocurrency, or a non-prepaid, which converts crypto to fiat instantly on every purchase.
- Supported currency – Find out if the card supports AUD or your preferred fiat currency.
- Fees – Look into all the fees that come with the card: maintenance, withdrawal, inactivity, etc.
- 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 chart. 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 application can make your cryptocurrency so much easier to maintain. Thus, check if the provider has one.
- 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 you want.
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 cards. Once you’ve logged into your account, all you have to do is press the “Apply Now” button to sign up for a card.
Other providers have different processes and fees. Also, be sure to look up their rates for Bitcoin Australia. Buy a card only when you’re satisfied with its features and policies.
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.