Bank-issued credit cards have long dominated the world of daily expenses. Coffee, groceries, online subscriptions, petrol, you name it. But now there’s an increasingly popular contender in town: crypto cards.
If you’re wondering which one suits your lifestyle better, we’ll break it down to help you decide.
What Is a Crypto Card?
A crypto card (sometimes called a crypto debit card) functions like a traditional debit card, but with one key difference: it pulls from your crypto wallet, not a bank account. However, how a crypto card works may vary depending on the specific platform you use.
For instance, with Ka.app, you must either convert your cryptocurrencies to EUR or transfer EUR from an external bank account to top up your card. Then you can simply tap your card on a POS machine or enter your card details when making online payments.
Crypto Card vs Credit Card: Which Should You Choose?
Here are some factors that can help you pick the right card for your lifestyle.
- Transaction Fees and Costs
When it comes to transaction fees and costs, some traditional credit cards come with hidden fees. You might encounter interest charges, annual fees, late payment penalties, or foreign transaction costs, especially if you carry a balance.
On the other hand, crypto cards, like the Ka. Debit Card, operate with more transparency. There’s typically a small crypto-to-fiat conversion fee, but no interest charges or late fees. Everything is deducted directly from your balance, meaning you can only spend what you own.
- Security
Security is a big concern for anyone managing finances on a card. Credit cards are backed by strong fraud protection measures and zero-liability policies, making it easy to file disputes or reverse unauthorized charges.
Meanwhile, crypto cards offer a different kind of control. With the Ka. Debit Card, for example, you can instantly lock your card from the app and get real-time transaction alerts. Ka.app also uses top-tier protection like Fireblocks security infrastructure and two-factor authentication (2FA) to keep your assets safe.
- Accessibility
Acceptance and usability are crucial when choosing between a crypto card and a credit card. Credit cards are universally accepted across the globe. Whether you’re at a boutique shop in Paris or a gas station in Los Angeles, you can swipe or tap your card with ease. Crypto cards, on the other hand, are quickly catching up. Powered by Visa or Mastercard networks, they can be used almost anywhere traditional cards are accepted. It’s good to note though that local restrictions in certain countries might limit access or functionality.
- Rewards and Cashback
Rewards and cashback programs are another area where users compare both options. Many credit cards offer structured loyalty programs, including cashback, travel miles, or exclusive discounts. Some premium cards even give up to 5% cashback in selected categories. However, crypto cards are starting to offer competitive perks, too. Some cards offer crypto cashback, allowing you to earn rewards in the form of Bitcoin, Ethereum, or other tokens.
- Regulatory Considerations
On the regulatory side, credit cards operate within well-established legal frameworks. They are monitored by financial regulators, and consumer protections are deeply embedded into how these cards function. Crypto cards, while evolving quickly, are still subject to different regulations depending on the region. Platforms like Ka.app follow strict Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines, but access and features can vary by country due to local laws.
Which One Is Better for Daily Expenses?
Still not sure which card is better for daily expenses? Well, that depends on your needs. If you rely on building credit scores, value large sign-up bonuses, or need expansive travel perks, a traditional credit card might serve you better. But if you receive your salaries in crypto or have a huge crypto portfolio and want a cost-effective, transparent way to spend cryptocurrencies in real life, the Ka. Debit Card is a powerful option.
Why the Ka. Debit Card Stands Out
The Ka. Debit Card gives you the flexibility to convert crypto to EUR within Ka.app and use your funds in everyday transactions securely and without hefty fees. There’s no interest or risk of debt. You’re only spending the funds you already own.
It also lets you withdraw funds from any Visa-supported ATM. With full app integration, you can manage everything from your phone, such as monitor your balance, lock the card, approve payments, and more.
FAQs
Why are crypto transactions cheaper than credit cards?
Crypto card transactions don’t come with the same interest rates, interchange fees, or late penalties that a lot of traditional credit cards include. You only pay a small conversion fee, and the rest is deducted from your crypto balance.
How do crypto card payments work?
With Ka.app, you just need to swap your crypto for EUR within the platform, then tap your card at a POS machine for physical store transactions or enter your card details when paying online. Your wallet balance is updated in real time.
Is a crypto debit card worth it?
If you own crypto and want to use your coins/tokens for everyday expenses, then yes, a crypto debit card like the Ka. Debit Card is worth it. You gain spending flexibility in just a few steps.
Can I withdraw money from my crypto card?
Yes, most crypto cards allow you to withdraw cash from an ATM. With Ka.app, for instance, you just need to convert your crypto into EUR within the app, then you can go to any Visa-supported ATM to cash out funds.
