Coin digital credit card

The issue about credit cards, with which you can deposit, exchange or buy crypto coins, began to pop up back in 2011-2012. But cryptocurrencies owners had waited until the end of 2014 to see the release of a coin digital card. And then the industry went crazy and now there are already about 30 companies on the market, which allow crypto coins holders to create an account; moreover a dozen more are preparing to release their product. So let's see how the services that offer coin digital credit card linked to the crypto currency work.

To order a card issue, you need to go to the website of the service and place an order. The digital payment card will work in one of the payment systems: Visa or MasterCard, card accounts will be opened in one or several fiat currencies (dollar, ruble, euro, etc.) and crypto currency. Cards that have accounts only in a fiat currency can be deposited only after exchanging a crypto currency for a fiat currency. If the accounts are opened both in a crypto currency and in a fiat currency, users are able to automatically exchange them within the system at the current internal rate.

There is a standard package of services that establish commissions for the using the system - issue and re-issue of a digital card, replenishment and money withdrawal, conversion of funds within the system, change of PIN-code and balance request. It should be noted that the credit card is tied to the service, where you opened the account and where you issue the digital card, and not to the bit coin address. This allows you to conduct transactions almost instantly because, as we all know, block chain does not provide such an opportunity. The risks of the method are obvious: your bit coins are, in fact, at the disposal of a third party and, if this third party closes or fails for some reason, the funds will disappear.

The goal of issuing coin digital credit card, which could use to pay for goods and services with bit coins, was cryptocurrency popularization among ordinary offline users. However, this did not happen, they did not understand what bit coins are and why they are needed. Nevertheless, these credit cards have become very popular Internet users, especially among those who are somehow connected to online earnings and investments. That is why the number crypto cards of users issuing services is only increasing and discussions of these services on forums and inside the community do not stop.

So why did the digital credit cards become commonly used by the bit coin? After all, various exchanges offered to change, buy and sell the crypto currency way before. Well, firstly, it is not only convenient for owners but, perhaps, pleasant to pay for lunch or buy a ticket with their crypto currency account. Secondly, the use of digital cards allows you to quickly exchange bit coins for a fiat currency without long bank transfers or another service. Also, some people choose such cards for the sake of the owner anonymity because some of them offer a credit card without verification procedures or scanned documents copies and other things; however, commission of such services is much higher. Undoubtedly, the most significant advantage of using bit coin cards is simplicity and convenience, the ability to access funds at any time.

If you are willing to order a digital card that will allow you to exchange, buy bit coins and use them in everyday life - you should carefully study the basic options that provide these services. In order to make the right choice, it is better to conduct a comparative analysis and only then decide who is more convincing. First of all, you should know what providers can require money for:

·        Issue and delivery of the card (if you want to have a physical copy of your digital card). It usually ranges within $5-50 per card without shipping; some services offer it for free;

·        Funds withdrawal to the card;

·        Card service: monthly or annual payments, sometimes one year is free of charge depending on a company;

·        Cash withdrawal in ATM;

·        Request for the account state;

·        Change of pin;

·        Transaction and payments;

·        Exchange from bit coin to fiat, from one currency to another.

A comparative analysis of the main players

Advantages of Wirex:

·        There is a mobile app;

·        A large range of available currencies (US dollar, euro, pound);

·        There are no restrictions on online purchases;

·        The website supports 13 languages;

·        Wirex works with Visa and Mastercard so it is not necessary to look for "Bitcoin Accepted" signs.

Disadvantages:

·        Monthly payment for SMS notification (1 dollar, euro or pound);

·        It is not cheap to produce a plastic card - $17 (digital card is issued free of charge);

·        Shipping cost via DHL is $50;

·        There are limits on withdrawing cash without identification. Cash withdrawal limit in an ATM for unverified users is $1,000 but there are no such limits for verified ones. The upper limit amount on the card is $2,000. After the identification process, the restrictions are lifted. The fee for withdrawing cash is $2.5.

Advantages of CoinsBank:

·        Possibility to issue up to five cards and plastic card issue free of charge;

·        It allows you to buy BTC and LTC with four common currencies - GBP (pound), USD (US dollar), RUB (Ruble) or EUR (euro);

·        You can use Perfect Money (3%commission), Qiwi (5% commission), OKPay (0% commission but with 500 EUR/USD entry limit), credit or debit card (2.95% commission), cash transfer SEPA (0%commission) and commission-free bank transfer;

·        Currency quotes are available on different exchanges;

·        Cash withdrawals can be made in almost any ATM of the world either in the currency of the card or in the currency of the place of stay.

Disadvantages:

·        Unembossed cards are temporarily unavailable

·        $4.95 commission for withdrawal of cash for unverified users and $3.95 for those who provided personal data;

·        Commission from $2.95 to $100 for issuing a digital card for a prepaid card;

·        The credit card is mainly oriented to Europe. You can cash out no more than $200 at a time twice a month;

·        Works only with bit coin.

Advantages of Xapo:

·        It has its own bit coin wallet and cold storage, which guarantees the account security (the company is fully responsible for it);

·        The ability to adjust cards to different currencies;

·        Trouble-free wallet work;

·        The ability to withdraw cash in almost any ATM.

Disadvantages:

·        The website supports only three languages - English, Spanish, Portuguese;

·        High cost of a plastic card ($20);

·        Worldwide delivery time takes 20-35 days, depends on the address of the recipient;

·        Yearly service commission is $12;

·        Restriction on cash withdrawal in an ATM - $200 per day;

·        100% verification is obligatory (official documents with the address of residence).

Advantages of BitPay:

·        The highest limits without verification – $10,000;

·        Cash withdrawal of $3,000 per day, $750 at a time - these are the highest indicators in this review;

·        The maximum balance is $25,000;

·        The cost of issuing the card is $9.95;

·        There is no confirmation for high limits;

·        Transfer can be made in less than 60 seconds.

Disadvantages:

·        One of the newest coin credit cards;

·        Preferable only for card users in the US, higher fees for non-US residents;

·        Only one fiat currency - US dollar

Advantages of SpectroCoin:

·        Supports multiple languages;

·        Credit cards are accepted wherever Visa or MasterCard are;

·        There is an option to add additional crypto currency (Monero, Ethereum, Zcashb Dash, etc.);

·        Low card cost - $9;

·        No commission for account replenishment;

·        Free shipping.

There are no obvious shortcomings for this card.

Perhaps, the most compelling reason for using plastic cards attached to the crypto is the ability to have an easy and constant access to the funds and quickly use them whenever needed. For example, if you are on a trip and your usual bank card has been blocked or stolen, you need to pay something urgently and there is no time or opportunity to change the crypto currency in other ways, you can easily get a coin card out of your pocket and make a payment.

If we are talking about the daily use of cards tied to the bit coin wallet and a card which account can be replenished only by bit coins, then the benefit of this option is highly doubtful. You will have to change bitcoin at the rate at the time of the transaction and this may not be the most profitable rate on the market (for example, an internal service rate). Regular changes in the bitcoin exchange rate can make the transaction completely unfavorable. It is way easier to wait for a good rate, to exchange bit coins and withdraw to one of the payment systems or to a bank account. In addition, the services of crypto plastic cards use additional commissions to carry out transactions of their clients. 

Gerard Moore

Gerard graduated from The Summit School, New York, where he studied journalism. Started writing about finances since 2013. He is a board member of the Rotary Club and a member of Young Leaders of Northeast Indiana. Alongside Gerard specializes in providing responsible investments and financial planning solutions for business professionals.

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