Bitcoin is a digital currency that is a better alternative to traditional currencies. Bitcoin uses peer-to-peer transactions to send one digital token from one person to another. What’s more, global Bitcoin transactions do not take days to go through, unlike fiat currency transactions which take days and weeks to complete.
What’s more, this digital currency is not only a store of value but also a medium of exchange. As a result, one should consider getting either a Bitcoin credit card or a debit card. Either way, you can use your preferred card to swipe from your location to complete a transaction with your available Bitcoins. Start your trading journey at bitcoinpro.
Bitcoin Debit Card
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 similar to standard debit cards. However. On top of that, debit cards are a perfect way to increase the adoption of this digital money since it is highly accessible to everyone.
How Does a Bitcoin Debit Card Work?
A Bitcoin debit card functions similarly to the traditional debit card except that, when settling a transaction, the payment partner liaises with a Bitcoin exchange rather than the bank. 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.
Importance of a Bitcoin Debit Card
A Bitcoin debit card helps many people access this digital currency quickly and make payments fast. Consequently, there’s an increase in the adoption rate of this electronic currency due to the convenience it offers its users.
On top of that, debit card issuers issue a shiny card that appears familiar to card users. Moreover, Bitcoin debit card users utilize a network with many operating stores and retail stores, which could translate to mainstream usage of this digital currency.
Bitcoin Credit Cards
Bitcoin credit cards function like traditional credit cards since one gets rewarded when they spend on the card. On the contrary, different providers that reward you offer many crypto debit cards. As a result, when looking for a Bitcoin credit card, find the process they use to reward their cardholders.
Like we said earlier, Bitcoin debit cards function similarly to standard credit cards, so you must pay your balances off each month, or else you will have to pay interest fees. Bitcoin credit cards can affect your credit score the same way a traditional credit card impacts your credit score.
Factors to Consider When Getting a Bitcoin Credit Card
There are a few things you should consider before getting a Bitcoin credit card which include:
- Find out if the credit card allows you to invest in various cryptocurrencies apart from Bitcoin. Finding out if they are flexible enough to accommodate different cryptocurrencies helps greatly.
- Also, do not apply for a Bitcoin credit card before checking the terms and conditions of the card. Also, find out if the Credit card is eligible at your currency location.
- What’s more, find out the various rewards the credit card offers its users
- When using a Bitcoin credit card, you always get a chance to earn rewards that have the potential to increase in value. However, rewards are not taxable but can only be taxed if you decide to sell them.
Final Thoughts
A Bitcoin debit and credit card function like traditional credit and debit cards. However, this guide has provided helpful information on how a Bitcoin debit and credit card functions.
