Crypto cards are now widely used to spend cryptocurrencies anywhere, thanks to the automatic conversion into fiat currency at the time of payment.
They offer several advantages, but also some disadvantages, therefore it is necessary to have at least a minimally in-depth discussion on the matter.
In particular, we will analyze five of the most well-known and widely used crypto cards in the world, comparing them with each other.
Summary
Advantages
The main advantage of using crypto cards is undoubtedly the ease with which cryptocurrencies can be spent practically anywhere, as they are generally standard Visa or Mastercard cards powered by cryptocurrencies.
Simply load them with stablecoins or crypto, and then use them to pay like regular debit cards: if there are sufficient funds in the account, at the time of payment in fiat, enough crypto is automatically converted to complete the payment, and all of this happens instantly.
Additionally, they often offer rewards, such as cryptocurrency cashback, staking bonuses, or other incentives.
In addition, the crypto cards of individual crypto platforms are perfectly integrated with the wallets of the platforms themselves, making it unnecessary to even recharge them if there are sufficient funds in the same platform wallet.
Finally, many also offer fraud protection, insurance, and 2FA logins.
Disadvantages
The main disadvantage is the costs.
In fact, not only do the platforms offering this service charge fees for its use, typically with a percentage commission on the amounts paid, but they sometimes also apply significant spreads on exchange rates.
In other words, manually converting crypto to fiat on a crypto exchange often costs less than using a crypto card to do so, although it is obviously a significantly slower and slightly more complex procedure.
Additionally, they inevitably require KYC, as they effectively use fiat currency.
Moreover, they are not always available in all countries for all users, so it is necessary to first verify if they are compatible with your residential address.
The Cards
There are now dozens of platforms offering crypto cards, but in this article, we will analyze only six of them.
First, we will analyze those of the exchanges Coinbase, Bybit, and Crypto.com, and then we will also add those of the crypto platforms Wirex and Nexo.
The point is that since they need to be funded with cryptocurrencies, they must be linked to a crypto wallet, and being standard Visa or Mastercard cards, they necessarily require KYC.
Therefore, there are very few crypto cards offered by decentralized platforms, such as the one from 1inch, and the most widely used are precisely those from centralized crypto platforms.
Coinbase Card
Probably the most widely used crypto card in the world is the Coinbase Card from the namesake American exchange (the largest in the USA).
This is a prepaid Visa debit card, available not only in the USA (except Hawaii) but also in Europe.
Offers cashback up to 4% in BTC or other cryptos (such as ETH, USDC), with no cap on base rewards. Naturally, it features direct integration with the Coinbase wallet for instant payment execution.
It also offers purchase protection and travel insurance.
In terms of costs, it does not have annual fees, but it still requires the Coinbase One membership, which costs $4.99 per month.
The issue lies in the conversion fees, which are approximately 2.5%, on transactions.
It is very easy to use even for beginners, but it is certainly not the most economical.
Bybit Card
The Bybit card from the namesake exchange, one of the largest in the world, is also widely used.
This is a prepaid Mastercard debit card available in the EEA (EU plus Norway, Iceland, and Liechtenstein) and in Australia.
It even offers up to 10% cashback in USDT, or in loyalty points, and also allows you to earn yields on deposits.
Obviously, it is integrated with the exchange’s wallet.
In this case as well, there are no annual fees, although the paper version costs $5.
One of its main advantages is the conversion fee, which is 0.9% plus a transaction fee of 0.5%.
It is generally used by slightly more experienced users, as is also the case with the Bybit exchange.
Crypto.com Visa Card
One of the most iconic crypto cards is undoubtedly that of the exchange Crypto.com.
This is a prepaid Visa debit card with multiple tiers based on staking the CRO token. It is available in the USA, Europe, Australia, and more.
Offers cashback up to 8% in CRO on every transaction, plus up to 15% on travel.
The higher tiers (such as Obsidian) also include airport lounge access, Netflix/Spotify reimbursements, and high APY on staking.
It has no annual fees, but for higher tiers, you need to stake CRO for 6 months.
Conversion fees range from 0.5% to 1%, but there are no additional fees on transactions.
Wirex Card
Another historic crypto card is that of Wirex.
This is a prepaid Mastercard debit card available in the USA and Europe.
Offers cashback between 0.5% and 8% in WXT (the Wirex token) or crypto. It integrates with Apple Pay and Google Pay, and also offers rewards on deposits.
It has no annual fees, but the conversion fees range from 1% to 2%, with an additional 0.5% fee on transactions.
Nexo Card
The fifth card is that of Nexo.
It is widely used because it offers a dual-mode functionality, operating not only as a traditional crypto debit card but also as a credit card. It is available in Europe.
The cashback is low (0.5% in BTC or 2% in NEXO), but in credit mode, crypto assets can be used as collateral without having to sell them.
The APY reaches up to 14% on deposits.
There is no activation fee, but a minimum deposit of at least $50 is required.
However, it is important to be cautious about credit interest rates, as they can exceed 18%, although they start at just 3%.
Which Card to Choose?
It all depends on individual needs.
Those with high spending levels often prefer cards like Crypto.com, while those seeking an easy and entry-level solution opt for Coinbase.
Wirex and Bybit are excellent for those aiming for cashback, although in these cases it is important to always keep in mind that the volatility of token prices could also very negatively impact the actual value of the rewards.
Nexo, on the other hand, is primarily used by those who wish to avoid selling their crypto assets.
Finally, it should be noted that the use of these cards is not without risks.
First of all, the volatility of cryptocurrencies can lead to unpleasant surprises during automatic conversion (so it is recommended to primarily fund them in stablecoins).
Additionally, there are sometimes hidden fees that increase costs, while the taxation on rewards would deserve a separate discussion.
Despite this, they remain highly utilized tools, primarily due to their convenience.
