✔️ Information reviewed and updated in December 2023 by Eduardo López
The arrival of cryptocurrencies has been, without a doubt, a true revolution in the market. They brought with them new innovations and changes such as the emergence of cryptocurrency bank cards.
This thanks to the technology that we can find behind the development of these currencies based on the so-called Blockchain or chain of blocks. That's right, believe it or not, today there are bank cards closely related to virtual currencies. What are they about? Here we tell you everything.
✨➡A surprising innovation
The process of using your cryptocurrencies as conventional money, until a few years ago, was somewhat tedious. You had to sell or exchange your virtual currencies for fiduciary money (Conventional) and then transfer it from your Wallet to your bank account and thus, be able to have it with your traditional card.
Now Thanks to the development of this new technology, it is possible to use your cryptocurrencies immediately. This thanks to the fact that it is no longer necessary to manually convert virtual currencies into conventional money, the same cards do it automatically as if you were paying from euros to dollars.
✨➡How does cryptocurrency cards work?
Cryptocurrency cards work like any other credit or debit card, you pay and that's it. When making the payment, the same card makes the direct conversion of the cryptocurrency to conventional money, as if it were converting from euro to dollar.
You pay as if it were traditional money, the card is responsible for taking the equivalent of that money from your Wallet. For example, if you pay $ 1,000, the card will convert the equivalent of that amount of cryptocurrency to conventional money without you having to do it. Very easy and fast!
Regarding the design of the card, it looks completely identical to any other card, generally with the Visa and MasterCard logo, as well as that of the issuer. So, don't expect to find futuristic technology or anything strange on the card as it is just like any other.
The only difference we can find is that this card is not linked to a bank or payroll account but to a Wallet account. In addition, the link is not made with real money but is done with cryptocurrencies. All of this is a revolution to the traditional financial system.
✨➡How can we use a cryptocurrency card?
One of the great advantages that we can find in the use of cryptocurrency cards is that they are as versatile as any other card. And you can use them practically for whatever you want, you can do any payment.
If you want to buy a new television, you can do it, if you want to buy a new smartphone online, you can pay for it. Basically everything you want, purchases, service payments, subscriptions, whatever you can think of. Even if you have funds and the company allows it, you could buy a car or a house.
✨➡What you should take into account
Although it seems like a great innovation, there are points that you should take into account when looking for a cryptocurrency card. Here we will tell you what are the 3 points you should look at in order to avoid being surprised.
- Exchange rate: Just as it happens when you make a purchase from dollars to euros, for example, there is an exchange rate from cryptocurrency to conventional money. We must always consider this point, since it is common that the exchange rate is never favorable for us, that is, they will give us less than we should.
- Commissions: For many experts, the use of these credit cards turns out to be very expensive due to the issue of commissions and the conversion itself. We recommend that you consider that cryptocurrency cards can be very expensive to operate, especially to consider this when managing your money.
- Safety: In addition, you should know that today there are a large number of fraudulent sites that offer to use a cryptocurrency card just to scam you and keep your virtual currencies. You will also be subject to the risks involved in using a card such as cloning and theft.
Visa and MasterCard are not guarantees
This is something you should know and take into account, since a card that has a printed Visa or MasterCard is not synonymous with its being 100% reliable. Yes, the seal is not a guarantee that the card is really secure.
Visa and MasterCard are only responsible for issuing the plastic and generating the payment infrastructure, they do not validate or give certainty of the bank. Plus, with how easy it is to add a logo today, there's always the risk that it's a hoax.
✨➡Is using cards synonymous with tax evasion or fraud?
No, it is not synonymous with tax evasion nor is it a cause of fraud, of course, as long as you keep your records and statements properly. We could say that as long as you declare and pay your taxes according to the law, you will not have problems.
You must take good care of what you declare so as not to fall into fiscal discrepancy, that is, spend more than what you declare to earn. See cards as a means to use your money, not as a way to evade taxes or not pay them as you should. In this way, you will save a lot of trouble.
✨➡Are they the future?
Cryptocurrency cards are a great innovation focused on improving the use of cryptocurrencies and making it much more accessible. And, if there is something that cryptocurrencies are criticized a lot, it is the fact that they do not have much use beyond being an investment instrument.
That is why cryptocurrency cards have arrived in order to make the use of virtual currencies much more accessible. Now, You can now use it to pay and buy without having to go through the entire conversion process.