Do you want to spend crypto in the real world but don’t know how? Using a crypto card could be for you! Let’s discuss how it works, along with the differences between a crypto debit card and a crypto credit card in this blog post.
What Is a Crypto Card?
A crypto card refers to a payment card that allows you to use your crypto holdings to buy things or withdraw cash, much like a traditional debit or credit card, by converting your tokens to a traditional currency like euros (EUR). This type of card links directly to your crypto wallet.
How Does a Crypto Card Work?
Crypto cards are usually offered by crypto platforms like Ka.app. The platform would have a screen for ordering the card, activating it, and then topping up funds (which is Ka.app’s case is by depositing euros through IBAN or converting crypto to EUR.)
Crypto Debit Card vs. Crypto Credit Card: What Sets Them Apart?
Crypto debit cards and crypto credit cards offer convenient ways to spend your crypto, but they function quite differently. Understanding these differences can help you choose the right card for your needs and lifestyle.
a. Crypto Debit Card
A crypto debit card offers direct access to your crypto as it is linked directly to your crypto wallet. Therefore, when you make a purchase, the card uses the funds in your wallet. Depending on the platform you will use, you may need to convert your crypto to a fiat currency first to use the funds, or the tokens will directly be converted to a traditional currency.
Since you’re using your own money, there’s no need for a credit check when you apply for a crypto debit card. Also, crypto debit cards usually have lower fees compared to crypto credit cards, especially when it comes to interest charges, because you’re not borrowing funds.
b. Crypto Credit Card
Unlike a debit card, a crypto credit card allows you to borrow money up to a certain limit. Typically, you can make purchases even if you don’t have enough crypto in your wallet at that moment, but you must repay the borrowed amount. Although it still depends on the card provider, you may choose to pay it off immediately or over time, with interest accruing on the outstanding balance.
To qualify for a crypto credit card, you’ll likely undergo a credit check, as these cards are a form of credit and the issuer will want to assess your risk as a borrower.
One potential advantage of a crypto credit card though is you can access extensive rewards programs, including cash back in crypto, travel benefits, and more, which can be more generous than those offered by debit cards.
What Is the Crypto Card Offered by Ka.app?
Ka.app offers a crypto debit card called the Ka Debit Card. It’s a secure, stylish, Visa-compatible card that makes adding crypto a part of your lifestyle way more convenient.
Top 5 Benefits of Using the Ka. Debit Card
Some things you can enjoy by using the Ka. Debit Card include, but are not limited to:
1. High Transaction Limits
Spend crypto with high transaction limits with the Ka. Debit Card. Use up to €5,000 per transaction, €8,000 daily, €10,000 weekly, and €20,000 monthly.
2. Easy In-Store Purchases
Buying stuff in physical stores is effortless with your Ka. Debit Card. All you need is to tap your card (and input a passcode for transactions over €50 for your security), whether you need to grab a cup of coffee, do grocery shopping, grab a gift for someone, etc.
3. Quick Online Crypto Transactions
Book flights, pay for online subscriptions, or shop online by converting crypto to EUR and using your Ka. Debit Card for transactions. You just need to type your card details like how you do it with other cards and you’re good to go.
4. Cheap and Easy Wallet Top Ups
Add funds to your card by transferring EUR from your external bank account to your IBAN account on Ka.app, or converting your cryptocurrencies to EUR. Topping up is cheap as Ka.app only charges €1 for incoming Single Euro Payments Area (SEPA) transactions or as low as 0.376% for conversions.
More top up features will be available soon.
5. Cash Out Funds via ATM
Gone are the days when cashing out crypto takes multiple steps. With the Ka. Debit Card, you can get extra cash whether you need them by simply converting your crypto to EUR, going to a Visa-compatible ATM, and withdrawing funds.
Withdrawal limits include €550 per transaction, €550 daily, €1,600 weekly, and €4,600 monthly.
How to Order a Ka. Debit Card
Ready to get your Ka. Debit Card? Here’s how you can order:
- Sign up on Ka.app (if you haven’t already.)
- Log in on the platform.
- Activate Cash.
- Click/tap ‘Order Card.’
- Agree to the Terms & Conditions.
- Confirm your delivery address.
- Wait for your card to get arrive within 5-10 business days.
The Bottom Line
Crypto debit cards offer a blend of traditional usability and innovative technology, making them exceptionally convenient for you to access and spend your cryptocurrencies on regular transactions, such as dining, shopping, travel, and more.
If you don’t have one yet, the Ka. Debit Card makes an excellent choice for beginners and tenured users alike, considering its high transaction limits, low top up costs, and overall ease and convenience.
Disclaimer: This article was written for educational purposes only and should not be taken as financial, investment, or legal advice. Getting into crypto carries considerable risks due to market volatility, including the possible loss of your funds. Please conduct research, evaluate your financial circumstances, and understand your risk tolerance before making any investment decisions.
FAQs
Can I use my crypto card anywhere?
You can use the Ka. Debit Card anywhere Visa card is accepted.
Is the Ka. Debit Card safe to use?
Yes! The card has a 3-digit security code for verifying online transactions, and you also have to enter a PIN when tapping your card for transactions over €50. Meanwhile, freezing your card through the app is quick in case you detect suspicious transactions.
Is getting a crypto card worth it?
Getting a crypto card is definitely worth it if you want to spend crypto for regular transactions. It makes accessing your tokens easy, and eliminates the need to transfer funds to your bank account to use crypto in the real world.
