It may not be surprising to know that a lot of folks aren’t aware that there’s such a thing as ‘Bitcoin Debit Card’. With major companies like Bitpay, Coinbase, and Cryptopay offering bitcoin card services, You may ask, ‘what are bitcoin debit cards?’. However, let’s take one at a time. Bitcoin in itself is a disruptive technological improvement to the world’s financial system. The introduction of bitcoin helped to spark up major interest in the crypto around the world.
Key Takeaways
- If you are a successful Bitcoin dealer, the idea of having a Bitcoin debit card buy is a perfect way to tap into the liquidity of your Bitcoin wallet with a minimum amount of hassle.
- Just decide on the company, you’d be using their card services, however, that would depend on your location. If you are located in the United States, then Bitpay is your best bet.
- Also, just like every other debit card, you will only spend what you’ve got in your wallet.
- Understand that It’s also a good idea to be conscious of the value of the bitcoin whenever you spend and whether or not you think the bitcoin value will rise.
- When you think it’s going to go up, you may want to keep it in your account instead of converting to your local currency and leaving it that way on your card where it doesn’t have a chance to rise.
From the days of its all-time historic bullish run to $20,000 per coin back in 2017, to its ridiculously low of $900 per coin. Over the years, for savvy crypto experts and investors, Bitcoin has always been a smart investment opportunity. Bitcoin has also been the building block of several crypto copycats. However, the only known challenge with Bitcoin is that, when people buy bitcoin, they don’t buy to spend, they buy to invest.
Research indicates that approximately 1% of bitcoin purchases are to spend. The overwhelming majority of Bitcoin traders are focused purely on trading in exchanges. Although Bitcoin is not regulated by any government and also its value is especially unpredictable, using Bitcoin for payment is impractical for many users.
Fortunately, there may be a few ways you can convert your bitcoin into real money to spend conveniently. First, One emerging method is through bitcoin debit cards. These debit cards work like most prepaid debit cards — but then you can use Bitcoin to top them off.
What are Bitcoin Debit Cards?
These are debit cards that instead of loading with your regular cash, load them up with bitcoin. So, when you first load your debit card, you can then use Bitcoin from your Coinbase wallet, and your bitcoin prepaid card will immediately convert your Bitcoin into real cash(depending on your location, it could be USD, Euro or Pounds) this implies that Bitcoin debit cards can be used to perform any kind of transactions at merchants that accept debit cards as a mode of payment anywhere.
Most Bitcoin cards come in either Visa debit card or MasterCard — this makes it so convenient to locate traders and pay using your card. It makes bitcoin debit cards incredibly simple to use. After you buying Bitcoin and creating a Coinbase wallet, you can easily link your debit card to your Coinbase wallet and exchange coins anywhere you are.
Why should you use a Bitcoin debit card?
There is no doubt that there are several other methods of converting bitcoin into your regular USD or Euro cash. Centralized exchange platforms like Coinbase and Gemini can be used to convert Bitcoin to regular cash, and the beautiful thing is that you can make a transfer to your local bank account. Services such as the innovative bitcoin ATM can also be leveraged, with the Bitcoin ATM you have the liberty to withdraw cash directly from your crypto wallet.
However, bitcoin debit cards do have a unique advantage over both of these options. Your funds will appear immediately on your visa debit card or MasterCard whichever you are using. You should understand that moving Bitcoin to your bank works fantastically, but somehow it adds an extra step to your purchasing process if you need your money to buy something from a retailer. And, while hyper-convenient, bitcoin ATMs are now only accessible in particular physical places.
What is the best Bitcoin debit card?
Anytime that you perform debit card a transaction with a merchant, the business owner will be paid through these debit cards in his own cash and the charges will be deducted from your Bitcoin balance, and you have to pay the conversion fee for every single transaction.
WaveCrest, the company responsible for supplying most of the crypto credit cards out there was on the 5th of January 2018, suspended by Visa debit card company. Most card issuers either have discontinued their programs or are operating exclusively in particular countries.
Currently, there are only four operating trustworthy firms that offer bitcoin debit cards.
Here are the best Bitcoin Debit Cards available today:
Coinbase Bitcoin debit card
Coinbase is probably the Bitpay of Europe, and its one of the leading Bitcoin exchanges around the world is issuing its own Visa card for Countries in Europe for local bitcoin traders to spend on what they wish to purchase.
These cards are then connected to your Coinbase wallet and will enable you to easily spend the crypto kept in the Coinbase wallet anywhere Visa cards are accepted as the mode of transaction.
The card is connected to your Coinbase app and you can make use of the app to decide on which coin to spend. The card also provides several security features for your crypto, such as automatic freeze, 2-factor verification, and more.
There is a €4.95 charge for issuing the debit card, and the ATM rate for each transaction for domestic and international varies between 1% and 2%.
Pros
- Coinbase supports multiple coins from established companies
- All cardholder rights reserved with this company
Cons
- Unlike Bitpay, It is only limited to six countries
How to get your Coinbase debit card:
- Create an account with Coinbase
- Download the mobile app
- Finally, make your debit card order from the app
- Use your Coinbase bitcoin debit card, you can now make withdrawals and spend your money
CryptoPay debit Card
Cryptopay founded in late 2013, is a wallet and a crypto payment platform that issues bitcoin cards. One downside to this company is that you have to be residing in Russia to get a hold of the bitcoin debit card, meanwhile, if you are living in other parts of Europe, you get to use a virtual card.
If you want to spend online, then you can decide if you want to order a virtual debit card or maybe a physical card by making use of chip and pin, then you can access your funds.
Unlike Bitpay, which supports only one crypto, CryptoPay supports BTC, XRP, LTC, and Ethereum.
The ATM fees per transition are 1.5% with a $5 minimum. Meanwhile, the physical card is shipped for free as it costs $15.
The monthly maintenance fees of the debit card cost $1 and a commission of 1% anytime you load money. if your card isn’t verified, you are allowed to load only € 1000 to your debit card.
Pros:
- crypto pay debit card supports multiple currencies
- All rights reserved for cardholders
Cons:
- It’s only available in Russia and the fees per transaction are relatively high.
TenX debit card
Located in the nation of Singapore, TenX Pte. Ltd supplies visa cards that are tied to a crypto wallet. Some of the crypto supported by the wallet includes; Ethereum, Bitcoin, and Litecoin.
You can order the debit card from the following countries;
- Singapore
- Malaysia
- Hong Kong
- New Zealand
- Australia
The fee for the physical card costs $15 while the fee for the virtual card is anywhere between $1.5 – $3. However, for maintenance, the fees can be up to $10 per annum, but the fee can become a waiver when your accumulated spending is over $1000 in that year. You have a flat fee of $3.25 per ATM withdrawal, bear in mind that the bank may accrue additional fee to you.
Pros:
Relatively low fees and supports multiple currencies
Cons:
Supported countries are very limited
Wirex bitcoin debit card
Rebranded in January 2016, Wirex was formerly known as E-coin. The company supplies Chip and Pin visa cards that may be loaded with cash using your Wirex mobile app or desktop. The card can also be funded You can add funds of Litecoin, Bitcoin, Ethereum, and Ripple.
you can convert the card balance to USD, EUR, and GBP.
The card is available to all residents of Europe but is yet to get to North America and Asia. Anywhere Visa is accepted it can be used.
There is a $2.5 fee charged for every ATM transaction within Europe and a fee of $3.5 for ATM transactions outside Europe. The fee charged for account management is billed monthly at $1.5.
Virtual cards can also be supplied to you if you don’t need the plastic card.
Bear in mind that some users have reported having experienced issues accessing their funds from certain ATMs and using the Wirex card for online payment.
Pros:
- An established company supports multiple crypto coins.
- User rights reserved here is exceptional
Cons:
- Available only in Europe, maintenance fees are significantly high
Bitpay Bitcoin debit card
The option of using Bitpay is available for only residents residing in the United States. Bitpay debit card is available in all 50 states. In order to use Bitpay without hassle, you must have the following; a government-issued ID, SSN, and a home address.
Bitpay card costs a flat fee of $9.95 and typically takes around seven days to arrive in the mail. Bitpay does not charge you for any fee for using the Bitpay bitcoin debit card. The various cryptos supported by Bitpay include; Paxos, bitcoin, bitcoin cash, USD Coin, and Gemini dollars.
If you making use of the Bitpay bitcoin debit card outside of the United States, you will be charged a conversion fee of 3%. Fees of $2 and $3 will be deducted from your Bitpay account anytime you withdraw within and outside the United States respectively.
Pros:
- Bitpay is a well reputable company, accrues no transaction fees
- User rights reserved with Bitpay
- There is no daily spend limit as a verified user
Cons:
- Bitpay is limited to only residents in the United States. Processes only bitcoin
Bitwala Debit Card
Having raised over $20m in venture capital funding to date, Bitwala was founded in 2013. The company allows residents in Europe to trade bitcoins making use of their bank accounts.
Even while hit by the initial Wavecrest shutdown, the company quickly recovered and began offering services to its users in 2019. The company considers itself the first crypto bank account.
The company card attracts 0% fees, however, you can still be charged by certain ATM operators when you withdraw funds. The spending limit for this card is €1,500 daily, however, it may be increased to €3,000 or more. Withdrawal of funds from the ATM is set to a limit of €3,000 daily spend.
Pros:
- The company charges 0% fees on ATM withdrawal transactions, and they are a well-reputed company in all of Europe
- All rights reserved for cardholders on this platform
Cons:
- The company trade only Ethereum and Bitcoin and their services are limited to only European residents.
How to get a Bitcoin debit card
You can have a Bitcoin buy a debit card by submitting applications online and paying the appropriate fee. Bitpay, being the most popular bitcoin debit card provider in the United States is considered to function like this, although, It’s worth looking around to see where you can find the perfect offer. Bitcoin debit card fees, just like bank charges, vary greatly.
There are two distinct types of Bitcoin debit card;
- Physical plastic debit card
- Virtual card(where your card’s number and PIN will be provided)
You can utilize these Physical cards for both online and in-store at any store, retailer, or any other merchant that accepts credit card transactions. Virtual debit cards only give you a credit card number and security pin, also they are only for use online, and you have rights reserved just as you would a plastic card.
Where to get a bitcoin debit card
Instead of thinking where to buy bitcoin debit card, you should understand that getting a bitcoin debit card is similar to applying for the conventional credit cards, The main distinctions is that bitcoin cards usually do not utilize your credit history and these credit cards would always your bitcoin wallet records.
There are also costs to be taken into consideration. Every debit card provider for bitcoin will have a distinctive fee structure. And, you should really do your homework by searching for the best deal in the market. One thing you must look out for is whether there is an app for selected bitcoin card. Some bitcoin cards have mobile apps, whereas some don’t. If you fancy the idea of topping up your card anywhere, while on the go so it allows for easy spend, then you must consider if the app is compatible with the OS of your mobile phone.
What to look out for in a bitcoin card
Bitcoin cards all work pretty much the same exact way. The main difference is the fees and the wallet they are linked with. If you have a Bitcoin wallet that you would want to be using for spend, also you’ll want to see if that wallet has a card linked to it. Then, your best bet is to check out the fee structure and see if you can get the best offer.
Bitpay is an excellent option, however, the company you are utilizing their card must be able to give you the liberty to spend.
The benefit of having a bitcoin debit card
The first big benefit of a Bitcoin debit card you are at liberty to load Bitcoin to your card and then convert your Bitcoin balances to your regular local currency, and utilize the crypto card anyplace that major credit cards are accepted.
You can transfer your Bitcoin from your wallet to your Bitcoin debit card through the Bitcoin wallet app that you are using or through the desktop interface for that particular wallet and all this can be done online.
Bitcoin credit cards are branded as either Visa or Mastercard and when funds are in it, you can spend at almost any restaurant, sports venue, online, and at any other retail location that accepts credit cards online.
How does a Bitcoin debit card work?
First, you have to understand that the Bitcoin debit card works much the same way as the prepaid debit cards. Whenever you need to spend in supermarkets and gas stations, you just pull them out and spend normally. Only that this time instead of loading it with your regular currency, the funds are from your Bitcoin wallet and then you can get it converted to the currency of your choice – typically people always go for Euros or Dollars, this is because fiat currencies are easy to spend.
This allows you to spend from your Bitcoin wallet anywhere and everywhere major credit cards are accepted as a means of a transaction – both online and offline.
While some folks contemplate buying bitcoin debit card; here is the standard Bitcoin debit card utilization flow.
- You sign up for a Bitcoin wallet using a crypto exchange platform.
- You buy Bitcoin from your preferred exchange.
- you submit your application for a Bitcoin debit card.
- The moment you’re approved, you will link your Bitcoin wallet to the app or desktop interface that is provided by your Bitcoin debit card service provides.
- You can now utilize your Bitcoin wallet to fund your prepaid card.
- For this final stage, after fees are applied, your prepaid card will instantly be topped up with your regular currency just like USD or Euros.
- You can now spend your prepaid card cash anywhere credit cards are accepted online or offline.
How to use a Bitcoin ATM with a debit card
Having a bitcoin buy with a debit card and using your bitcoin debit card to withdraw from a bitcoin ATM works like your traditional ATM withdrawal, just that this time, the bitcoin will be converted to your local currency and then you can make withdrawals to spend.
A Bitcoin ATM enables anyone to buy or sell Bitcoin via credit card or currency first. It also seems like a normal ATM where you can withdraw money to spend, except that it’s not connected to a bank account. There are currently more than 2000 Bitcoin ATMs spread around the world. This is a perfect way to cash out without struggling with the hassle of bitcoin exchanges.
It is easy and safe and helps an individual to withdraw cash or bitcoin without communicating with another party. Bitcoin ATMs differ by service and some of the popular types are Lamassu Bitcoin ATM, Satoshi1 Bitcoin ATM Genesis1 Bitcoin ATM, and BitAccess Bitcoin ATM.
How to cash out with a Bitcoin ATM
First, what you should do is to try to search out the nearest Bitcoin ATM by going to Coinatmradar, this is a website that shows a live map of functional BitcoinATMs
When you have located an ATM here are the steps to follow:
Pros
- When you arrive at the ATM, select the cash withdrawal option
- Insert your bitcoin debit card
- When asked for a currency choice, always select Bitcoin
- Select the desired amount you want to withdraw
- Send bitcoin from your mobile wallet to the QR code provided by the ATM.
- Then Collect cash and spend on what you like
- Using your debit card is secure
- The process of using a Bitcoin ATM is simple than using an exchange
- When using Bitcoin ATM, no registration required
Cons
- Without being physically at the machine, you cannot find your self using Bitcoin ATMs, this makes them static
- People in developing countries will not be using Bitcoin ATMs because they have not yet gotten there
- Places, where Bitcoin ATMs are usually found, are inside shops, retail stores, airports, malls, and restaurants, there you can make your withdrawals and be instantly presented with a vast option on what to spend on.
