Bitcoin bank cards and cryptocurrency bank cards

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Thanks to cryptocurrency bank cards, cryptocurrency holders can, from now on, make their purchases directly on line, withdraw at a cash machine (ATM), or pay for any purchases in a shop. To understand this "novelty", you have to go back in time a little.

BEFORE cryptocurrency bank cards: you first had to resell the cryptocurrencies on a trading platform, transfer the funds to an establishment that would re-convert them into cash, then re-transfer the euros to your bank account, to finally be able to use cryptocurrencies’ notorious "added value" to buy something in cash.

TODAY thanks to crypto bank cards: you can buy directly in cash although you hold bitcoins or any other cryptocurrency.

What does a crypto bank card look like?

It is identical to all other traditional credit cards and generally bears the wording "VISA" or "MASTERCARD". It allows withdrawals / payments worldwide. The only difference is that it is not linked to a bank account but a "wallet" (your cryptocurrencies’ virtual wallet).

bank card cryptocurrency bitcoin
There are dozens of cryptocurrency credit cards; Each provider differs from the others by:
- the cryptocurrency(ies) connected to the bank card
- withdrawal charges
- payment charges
- card renewal fees
- registration fees
- conversion costs, etc.

The costs of cryptocurrency credit cards are relatively expensive but that should not be your main concern; the most important concern (in my opinion) is that the CRYPTO/CASH conversion is done at the real market price; and that is never a sure thing.

In real terms, what happens when you buy in cash with a crypto card?

The institution simply takes the equivalent of the amount you paid/withdrew from your wallet. This conversion is not controlled by the user. The institution theoretically uses the market price at the time the transaction is carried out; but a lot of institutions must really add a hard "margin" at this stage to generate the maximum profit at your expense, and afford to offer upfront costs which outweighs their competitors.
Steps to obtain a cryptocurrency card:
There is nothing very complicated. You register, you receive a card, you activate it, you transfer cryptocurrency to your "wallet" that will be attached to the card, you spend the crypto.

The risks of crypto bank cards

Watch your step! The wording VISA or MASTERCARD on the card does not guarantee your funds’ security. Scams grow like mushrooms. Find out before depositing cryptocurrency in these establishments, or you may never see them again. And then good luck filing a complaint. An unregulated institution offering an unregulated payment service... I’ll leave that to your imagination.

Do not focus on the fees when choosing the establishment for your cryptocurrency credit card; favour those with good regulations, good reputations and a large number of customers already using that establishment’s card.

Crypto credit card does not mean FRAUD!

Watch out wise guys. Like all cryptocurrency accounts, you are obliged to declare your cryptocurrency card account. Any capital gains made on cryptocurrencies are taxable. Those who think that they can escape the tax authorities are fooling themselves and will weep once they are investigated and automatic taxation is applied. Without elements allowing the tax authorities to clearly analyse your crypto accounts, a heavy fine (which can exceed several hundred thousand euros) is applied as a base.

Use a cryptocurrency card wisely

All your cryptocurrency accounts and cards are declared; you pay tax on all your cryptocurrency capital gains; what then is the use of this payment/withdrawal card if it is not to defraud? Cryptocurrency cards are simply for ease of use. The enable you to buy freely in cash, or to make withdrawals in cash, anywhere in the world, in a few minutes. Where it used to take several days to exchange cryptocurrencies back into cash on your bank account, the process is now instantaneous (but more expensive).

A little negative note: be careful to manage the amounts transferred to your crypto card’s wallet so as to declare the correct amounts of capital gains to the tax authorities. With multiple accounts, transactions, withdrawals and payments, be careful not to lose track of the amount you owe in taxes.

Cryptocurrency bank cards in the future

It is difficult to evaluate the future of the cryptocurrency bank cards. In theory, they are used to reduce transaction costs as much as possible and to simplify exchanges; but as we can see, fees are already more expensive than a traditional bank card; as for simplicity, isn't payment by telephone using a "QR code" better?

With cryptocurrencies everything is dematerialised; I am more of the opinion that the future of payments/withdrawals in various cryptocurrencies will be done simply by telephone, without expenses; you will be able to convert X amount of a crypto directly into cash, then to use them with a simple "QR code" with your telephone. This is already being done via Bitcoin ATMs.

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