People are getting smart with cryptocurrency/bitcoin because, while it was very complex to do bitcoin transactions everywhere, now it is possible with bitcoin debit cards. So even if you go to an area where the shop owners or vendors do not know about bitcoin or any other crypto coin, only about the traditional payment methods, i.e., physical cash online payment like debit card swipe or UPI payment methods, bitcoin debit cards come to the rescue. They make it easy for the holders to buy with debit card at any store even if they do not accept bitcoin because instead of transferring bitcoin, they transfer fiat currency they love to get.
What are the bitcoin debit cards?
Bitcoin cards are the same as the traditional debit card we use for withdrawing money from ATMs or given to us separately by conventional banks. But these debit cards are different because they process the bitcoin amount and convert it into fiat currency at the time of payment without the vendor worrying that it is a bitcoin debit card. For example, suppose you have a bitcoin debit card that you already connected to your bitcoin wallet. When you pay the vendor using your debit card, your card provider will convert your bitcoins into fiat currency to the vendor’s account without extra steps. Within seconds, the vendor will receive the amount.
Are bitcoin debit cards safe to use?
Yes, bitcoin cards are 100 per cent safe to use because they are provided by third-party https://chesworkshop.org/ providers such as MasterCard or Visa, and other US-based card providers. In addition, these cards use two-step authentication to validate the transactions to make them safe and secure because cryptocurrency is full of fraud. As a result, bitcoin debit cards are more secure than the offline or online digital wallets used in our day-to-day transactions.
What kind of fees do bitcoin cards have here?
There are the following types of fees that may occur in the bitcoin debit cards, and you must be sure that you are researching the vendor or costs before connecting your bitcoin wallet with the debit card service provider given below:
- Cryptocurrency liquidation fees: What do cryptocurrency liquidation fees mean? It means fees for converting your bitcoins into the fiat or domestic currency the vendor or receiver will receive. Every time you do the transaction, your bitcoin will start converting into the domestic currency, and the service provider will charge the fees.
- Withdrawal fees: If you want to withdraw money using your bitcoin debit card, you must pay withdrawal fees. It is not convenient for everyone because the costs become much higher than a regular debit card provided by the banking system. However, if you have enough bitcoin and do not care, you will bear it because you want to spend your bitcoins.
- Deposit fees: The bitcoin debit card also allows you to deposit money to your wallet, and it will also charge deposit fees. According to the service provider, deposit fees may be high, medium, or low, and you must check before choosing any debit card.
- Transactions fees: You will think that transaction fees are the same as the withdrawal or liquidation fees but they are different. Transactional fees are the fees of the transaction because when you make a payment using your debit card, bitcoins worth the amount you spend will get sold, meaning miners will solve the equations and charge for solving the transactions. It is also the additional fees that you should keep in mind before ordering the bitcoin debit card.
- Monthly fees: Some exchanges or bitcoin debit card providers charge monthly fixed fees for particular transactions or with transactional limits. So you have to check the different deals if you want to avail of this service.
- ATM fees: If you use the bitcoin debit card to withdraw money from the ATM, you also have to give the ATM fees to the exchange or service provider because these are the additional charges that no one will tell you before buying the bitcoin debit card.
