How do they work cryptocurrency card?

Summary

The general cryptocurrency card allows you to earn cryptocurrency rewards, or immediately convert cryptocurrency to legal currency in order to pay for goods and services. Both Mastercard and Visa issue cryptocurrency cards, which means you can use cryptocurrencies in millions of locations around the world.

Prepaid cryptocurrency cards are similar to charge cards, and cryptocurrency must be deposited in advance before consumption. You can obtain a cryptocurrency card through an authorized card issuer, such as a cryptocurrency

exchange or bank. However, cryptocurrency cards still have risks. The funds you deposit in the card will still lose market value, and any transactions made through the card may be taxable.

A cryptocurrency credit card is more like a standard credit card, but will provide cryptocurrency rewards. You can use fiat cash to pay your credit card bill, but you will receive a cryptocurrency bonus based on the amount you spend.

If it is a customer who is verified by Know Your Customer (KYC) and Anti-Money Laundering (AML), Binance provides Binance Visa card. It only takes a few minutes to complete the registration process, and you can enjoy free management fees or transaction fees, cash back and other benefits.

Preface

Although the interest of many cryptocurrencies has investment potential, there are still use cases for transferring value. When Satoshi Nakamoto created Bitcoin, he did not intend to turn people into billionaires, but to design a

global digital payment system. Based on this goal, a cryptocurrency card is one way to achieve it. Currently, this payment method can help people use cryptocurrency and digital assets in their daily lives, and even obtain cryptocurrency rewards.

What is a cryptocurrency card?

A general cryptocurrency card operates in the same way as a charge card. You can pay for goods or services from the provider that accepts the card. Although it sounds like a direct payment of digital currency to the seller, it is not. The

seller’s account will receive cash in fiat currency instead of cryptocurrency . Your cryptocurrency card will deduct the cryptocurrency in the linked account and convert it to the local currency to be paid, and then use this cash to pay. We will provide examples to explain later.

Both Visa and Mastercard cooperate with partner companies applying for licenses to jointly launch cryptocurrency cards. These are the two payment providers most commonly used by users around the world, so almost all retailers

around the world accept cryptocurrency cards. Some cryptocurrency cards only provide cryptocurrency rewards based on the card consumption amount. These cards are usually credit cards that require a credit check to register.

How does a cryptocurrency card work?

As mentioned earlier, cryptocurrency cards will not actually pay the seller in cryptocurrency. But it will exchange your cryptocurrency for cash in a convenient way, allowing you to use the card to spend at the seller.For example,

imagine that you have $500 ( U.S. dollars) in BNB (Binance Coin) in the funds wallet of your  Binance card . You will use a cryptocurrency card to pay a $100 bill at the restaurant. After you insert the card and agree to the payment,

Binance will sell $100 of BNB (Binance Coin) and deposit the fiat currency into the card. Then, the restaurant will receive $100, and $400 BNB (Binance Coin) is left in the fund wallet. In the case of using encrypted currency cards above, it only takes a few seconds to complete.

If your service provider supports the ATM cash withdrawal function, you can also use a cryptocurrency card to operate. The same method described above can be used to withdraw your physical cash.

What is the difference between a cryptocurrency card, credit card or charge card?

There are a few small differences between credit cards, charge cards, and cryptocurrency cards. In most cases, they operate in the same way in terms of payments. With regard to cryptocurrency cards and credit/debit cards, the most

obvious difference is that you will deposit cryptocurrencies into ordinary cryptocurrency cards. The debit card will be deposited in fiat currency in advance , and the credit card transaction will be paid in fiat currency later.

Prepaid cryptocurrency cards work similarly to traditional charge cards. Before spending, you must deposit funds into your account. You cannot deposit fiat cash in the card, and only use cryptocurrency. When you pay, the funds will be exchanged in the cryptocurrency wallet.

On the other hand, cryptocurrency credit cards have a limit function that allows you to buy immediately and pay later. Both Gemini and BlockFi have launched cryptocurrency credit cards that provide cryptocurrency cash

back. You can use normal fiat currency to pay for credit card bills, which means that cryptocurrency credit cards are basically reward credit cards.To order a card, you must be a customer of a cryptocurrency card issuing company,

such as a cryptocurrency exchange or a cryptocurrency service bank that supports cryptocurrency. During the process, you must complete Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures before

you can order your cryptocurrency card, just like any normal credit or charge card. When applying for a cryptocurrency credit card, you must also pass a credit check.

What are the benefits of using a cryptocurrency card?

The main benefit of a prepaid cryptocurrency card is that it allows you to use cryptocurrency for daily shopping. This is traditionally difficult to implement unless the seller accepts cryptocurrency directly. Nevertheless,

some tokens such as Bitcoin require 30 minutes to complete transaction confirmation. Prices have also fluctuated, meaning that the actual payment amount may be higher or lower than expected.

Many cryptocurrency cards also have cash back rewards or discounts, or the benefits of specific subscription items such as Spotify or Netflix. These benefits will induce you to prefer a specific card issuer, similar to the case of a

standard charge card/credit card. Make sure to compare the offers of each card in order to find the best benefit for you. Please also pay attention to the exchange fees you may need to pay during the exchange process.

Are there any risks with cryptocurrency cards?

The risks of owning a cryptocurrency card are exactly the same as those of holding a cryptocurrency. If you deposit a large amount of Bitcoin (BTC) or Ether (ETH) in your account, the fiat currency value of your account will continue

to change. This means that the actual money in the account may not be what you think, it must depend on the exchange rate.You should also remember that in many taxation jurisdictions, the consumption of cryptocurrency is

a taxation event . Whether you spend a few dollars on a cup of coffee or thousands of dollars on a car, the situation is the same. If there is a profit or loss in your cryptocurrency before shopping with a cryptocurrency card, you must

still pay or write off the appropriate taxable amount.Buying a stable currency and using it with your cryptocurrency card can avoid this problem, because the price of the currency rarely fluctuates in the pegged value.

What is Binance Card?

Binance Card is a Visa debit card connected to your Binance account. As long as you top up your card’s fund wallet, you can spend cryptocurrency wherever Visa is accepted. This is the same way as the prepaid cryptocurrency charge card described above.

In which countries/regions can Binance Card be used?

Binance Card is only available to users in certain countries/regions, including:

Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein , Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

How to apply for Binance Card

If you have a Binance account and live in an eligible country, you can easily get the card. If you haven’t registered with Binance, you can follow our Binance Beginner’s Guide and complete the setup in a few minutes. You must

complete all relevant procedures for Know Your Customer (KYC) and Anti-Money Laundering (AML) in order to successfully apply for Binance Card.To order your card, please log in and go to the Binance Card page . You can also

move the cursor to [Financial Services] on the Binance homepage, and then click [Binance Visa Card] to browse this page.

After confirmation, the system will direct you to the “Order Card” page. Here, you can choose the name format to be displayed on the card. After confirming your selection, click [Continue].

Now, the system will pre-fill your details, but you still need to fill in some missing additional information. Finally, please agree to the “Privacy Policy”, “Terms of Use” and “Cardholder Agreement”, and then click “Order Your

Binance Card”.When the card is ordered, you will also get access to the virtual card before the physical card is delivered. You can add this card to Apple Pay, Google Pay Send, or even use it for online shopping. If you prefer to use the Binance mobile app, you can also use it to order cards. For detailed information on how to order Binance Card,

Benefits of using Binance Card

In addition to allowing you to spend cryptocurrency in stores, restaurants, and places where Visa is accepted worldwide, Binance Card has some unique benefits and rewards.1. Zero handling fee -Binance users can use Binance

Visa card for free. There are no Binance management fees, processing fees or annual fees, but sometimes a third-party handling fee must be paid.2. You can continue to hold cryptocurrency -there is no need to exchange your

cryptocurrency for fiat currency in order to use it for shopping transactions later. Binance will complete the exchange accurately according to your needs, which means that cryptocurrencies may still earn market gains.3. Up

to 8% cash back -According to the average monthly balance of BNB (Binance Coin), you can get up to 8% cash back when shopping. This cash back will be deposited into your Binance account in BNB (Binance Coin). To read more

details about the cash back program, please click here .4. Safe funds – Binance will ensure the safety of your cryptocurrency funds ( SAFU ) and provide protection mechanisms. Binance has high security and adopts strong security standards.

Summarize

If you have some cryptocurrencies that you don’t want to keep ( HODL ), cryptocurrency cards make fiat currency exchange easier. Without using a cryptocurrency card, you must complete the exchange process and manually

transfer the fiat currency to your bank account. Depending on your bank and cryptocurrency exchange, this can take several days. The cryptocurrency card is indeed one of the fastest methods, allowing you to use cryptocurrency for shopping, which is also a welcome development. However, if the consumption is based on taxation reasons, please be sure to keep accounts.