5 Tips to Use Crypto Cards to Store Digital Assets and Use Them Worldwide
Crypto cards are trendy these days. These are getting more and more popular worldwide because of their unique features. If you own cryptos and consider buying a crypto card, you must read this blog first. Here, we will discuss some tips to use crypto cards to store digital assets and use them worldwide.
So, let’s get started.
What are crypto cards?
There are many crypto cards available in the market like Coinbase, Nexo, BlockFi and so on. However they work almost in the same way with some different or extra services. Crypto cards are almost similar to regular bank cards, but with these cards, you can pay for services with cryptocurrencies. These can be either crypto debit or credit cards. You can earn cashback and rewards using these cards. Two financial giants, VISA and MasterCard, support crypto cards and provide the license to cryptocurrency exchanges to issue these cards. Because of this, all cards have the same regulations and restrictions.
5 Tips to use crypto cards to store digital assets and use them worldwide
You first need to know how you store your digital assets with the crypto card.
A crypto card requires you to connect a wallet with it. Some platforms will ask you to create a dedicated wallet. In this wallet, you will have to transfer your digital assets. You can use the platform’s wallet as well. Some platforms provide another option; you can use your personal wallet.
You had stored your assets into a digital wallet, and you were responsible for its security. But when you connect your wallet with the crypto card, the crypto card provider company also provides an extra layer of protection to your assets. Since you are using their service with your funds connected to the card, so it also becomes their responsibility to make your experience as secure as they can.
It means you have stored your digital assets more securely through the crypto card.
The next thing to understand is using these digital assets worldwide through a crypto card.
Once your crypto wallet connects to your crypto cards, funds become available to your card. You can start using it for shopping. Since VISA and MasterCard support crypto cards, you can use them at any retailer worldwide, supporting VISA and MasterCard payments.
In this way, you are carrying your digital assets all the time, in any part of the world securely, and can use them as well for making real-world purchases.
Now let’s move towards tips to use crypto cards.
1- Use a crypto card that supports multiple currencies
Many crypto cards support conversion to only a few cryptocurrencies, limiting their usage. Choose a card that supports a variety of cryptocurrencies.
Also, if you have any favorite cryptocurrency, check if your selected crypto card supports it or not.
2- Use a crypto card with comparatively fewer fees and quality service
Crypto cards charge different fees such as withdrawal fee, deposit fee, transaction fee, exchange fee, annual fee, etc. Some card providers waive some fees if you spend a certain amount of cryptos within a year. Some cards providers do not charge annual fees and ATM withdrawal fees.
Use a crypto card with a more straightforward fee structure, comparatively.
3- Use a crypto card with a higher daily or monthly transaction limit
Sometimes you cannot pay through your card because the payment exceeds the daily transaction limit. The same is the case with some crypto cards. Check out the daily transaction limit of different crypto cards and use the one with a higher transaction limit.
4- Read the tax details of your crypto card carefully
IRS considers cryptocurrency property, so it is taxable. Therefore, you need to report your capital gains or losses on purchases using crypto cards. Always read in detail the tax structure of your card and spend accordingly.
5- Carefully read the reward structure of your crypto card to get better benefits
Many crypto cards offer attractive cashback and rewards. The cashback can be 1% to 8% of the transaction. Some crypto cards offer cashback in cryptocurrency. Rewards include Netflix, Spotify, Prime Video subscription, airport lounge access, Expedia discount, etc.
Carefully read your card’s reward and cashback structure and make payments accordingly. It will help you to earn more rewards and cryptos.
The best way to use any service is to know details of its all aspects. Therefore, no matter which crypto card you are using carefully read all instructions and details related to the card provided by the company. It is also recommended to compare different cards and then select one to use, according to your requirements. It will also enhance your experience with crypto cards.