Crypto debit card’s pros and cons, and everything you need to know
The PrivacyCard is soon to be released and stirs excitement among the PRVarmies. While waiting for the official release, it is fantastic to discuss crypto debit card’s pros and cons and everything you need to know.
The debit card is one of the greatest inventions we have today. Convenience in withdrawing is one of the most significant benefits a debit card offers. Now that cryptocurrency and DeFi platforms started to adopt seamless and instant money withdrawal, more people also began to invest in these platforms to enjoy such benefits. However, potential users must understand that these debit cards have their drawbacks, especially the crypto-accepting ones. That is why we will also cover these so you can use your crypto debit cards wisely.
Before we go there, let us first discuss the fantastic benefits of a crypto-accepting debit card.
Crypto debit card’s pros
The main advantage of a debit card is that ordinary transactions and online payments are swift and straightforward. All you need to do is wait a few moments as if you are using a conventional debit card from any bank. Another significant advantage is that you do not have to wait for confirmation, which might take much longer than when using a bank account. The platform you choose for your crypto debit card will cover the immediate payment and deduct the funds from your e-wallet. Aside from these, a crypto accepting debit card has multiple benefits.
Usable everywhere, globally
Whenever we travel abroad, we always ensure that we carry the correct currency of the country we are going to. With crypto-accepting debit cards, converting fiat to fiat is no longer necessary as cryptocurrencies operate globally. With that, debit cards eliminate possible conversion taxes and hidden charges. Because these cards are part of the same system as MasterCard and Visa, you can use them to pay in any country, and the system will instantly convert your funds into local currency at no additional cost.
Anonymity and security are two of the most common advantages of the whole blockchain ecosystem. Meanwhile, fraud stories, such as data from the cash terminal being stolen, are rampant in traditional bank cards. With crypto debit cards, data is protected with smart contracts, and most information is hidden. In the event of card loss, blockchain technology is encrypted with high security, and you can simply disable your account for a while or immediately transfer your assets from one wallet to another. In addition, most of the platforms are protected with two-factor authentication, so hacking is almost impossible.
Crypto debit card’s cons
Despite the advantages, crypto accepting debit cards has its drawbacks as well.
Though it was mentioned that most of the international taxes are eliminated, there are still charges present in the crypto-accepting debit card. These charges are used for maintenance and other services to improve debit card services.
One of the reasons why cryptocurrencies thrive is their savings-inducing feature: the long process of converting your assets into actual money sort of forces you to minimize withdrawal transactions. Some of us find it stubborn to withdraw daily, so we tend to withdraw from our crypto accounts minimally to lessen gas fees and any other transaction fees. But since the purpose of the debit card is to eliminate the crucial process of withdrawing, impulsive spending could be a drawdown.
How should you use your debit card intelligently?
Now that you know both benefits and drawbacks, it is clearer to correctly identify how to properly use a crypto-accepting debit card. Nonetheless, recognizing the platform in which you will be investing is necessary. This is to determine if investing in such a platform or buying their debit card would be profitable or not. You should look into the companies that provide you the choice of getting this card and compare their fees. You should also be aware that having a debit card with cryptocurrency support will reduce your capacity to remain anonymous because you will be required to submit certain private information to the corporation. Moreover, the platform’s profitability depends not solely on the platform itself but also on those who use it.
Related Article: Crypto accepting debit cards, are they worth it?
The existence of the crypto debit card is both beneficial and risky. In a nutshell, the most significant advantage of using a debit card is that regular transactions and online payments are quick and easy. Converting fiat to fiat is no longer essential with crypto-accepting debit cards because cryptocurrencies operate globally. The platform you select for your cryptocurrency debit card will cover the instant payment and deduct funds from your e-wallet. Smart contracts protect data on crypto debit cards, and most of the information is buried.
On the other hand, there are still fees associated with the crypto-accepting debit card. Also, having complete control of your funds could lead to impulsive spending. These could be the major drawbacks of a crypto-accepting debit card.
The platform’s profitability is determined not only by the platform itself but also by those who use it.
As PrivacySwap releases its PrivacyCard, we aim to maintain the advantages of a crypto-accepting card offer and to reduce those disadvantages. Furthermore, we always strive to give the best return to our users. With the great migration and all the amazing events on our roadmap, we can help you with your financial knowledge and be financially free in the future.