How does a Bitcoin debit card work?
Bitcoin is an electronic currency that is a better alternative to traditional currencies. Bitcoin uses peer-to-peer transactions to send a digital token from one person to another. Additionally, global Bitcoin transactions do not take days to go through, unlike fiat currency transactions that take days and weeks to complete.
Moreover, this digital currency is not only a store of value, but also a medium of exchange. As a result, one should consider getting a Bitcoin debit card. Therefore, you can use your debit card to swipe from your location to complete a transaction with your available Bitcoins.
On the other hand, a Bitcoin debit card allows one to use this digital currency to purchase a product and pay for it in real time. Bitcoin debit cards are pretty much like regular debit cards. However, major Bitcoin exchanges issue Bitcoin debit cards in partnership with major financial institutions. Such institutions may include Visa and Mastercard. Additionally, debit cards are a perfect way to increase the use of this digital money as it is very accessible to everyone.
How does a Bitcoin debit card work?
A Bitcoin debit card works in the same way as a traditional debit card, except that the payment partner contacts a Bitcoin exchange instead of the bank when settling a transaction. So if your Bitcoin wallet has enough funds, the transaction will go through successfully. Ultimately, your Bitcoin wallet is debited instead of your bank account.
You can find your Bitcoin debit card in the following two ways:
- You can connect your Bitcoin wallet to the card, so that when you buy a product with this digital money, you can exchange the right amount of this virtual currency for cash.
- You also choose to top up your card by selling this electronic currency for cash in large amounts. As a result, you use the money when you buy products with the card.
Depending on your card provider, your Bitcoin credit card may not have an annual fee. However, you may be charged a small fee each time you convert this digital currency to cash.
The Importance of a Bitcoin Debit Card
A Bitcoin debit card helps many people quickly access this digital currency and make payments quickly. Consequently, there is an increase in the usage rate of this electronic currency due to the convenience it offers its users.
In addition, debit card issuers issue a shiny card that appears familiar to card users. Moreover, Bitcoin debit card users use a network of many operating stores and retail stores, which can translate into regular use of this digital currency.
However, it is wise to consider a few factors while looking for a Bitcoin card provider, which include:
- You should find out the feed they charge for a Bitcoin transaction because Bitcoin debit cards come with some fees. These fees include maintenance, foreign transfer fees and ATM withdrawal fees. So look for a card that doesn’t require a lot of money.
- Also, find out the currencies that your preferred debit card issuer supports. There are debit cards that do not support certain currencies. So choose a card that supports your preferred currency.
Get a card that offers generous cashback because there are debit cards that come with rewards like Bitcoin cashback.
Final thoughts
A Bitcoin debit card works in a way like a traditional debit card. So get a Bitcoin Debit Card today because it is safe to use and has advanced security features.
