] All You Need to Know About Crypto Credit and Debit Cards - AABB Wallet
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All You Need to Know About Crypto Credit and Debit Cards

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Daily, there is a growing circle for the real-world application of cryptocurrencies. As such, they are a significant driving force for crypto mass adoption. Other drivers in the space are crypto credit cards and crypto debit cards. They are an innovative approach to ensuring inclusive participation in the cryptocurrency market.

This article examines crypto credit and debit cards, how they work, how you can utilize them for your next transaction, and why you need one.

What is a Crypto Credit Card?

Think of a crypto credit card as a conventional credit card where you borrow funds from a card company to sort your bills or make an advance payment for a particular purchase. But the difference lies in using digital currency (cryptocurrency) instead of fiat currency. Likewise, you earn crypto rewards in place of cash back or credit points.

Another significant difference between a regular credit card and a crypto credit card is the utilization of credit points. If you use a crypto credit card, you can convert the point balance into a particular cryptocurrency. Likewise, you can receive your reward as crypto directly. An example is the card company paying 2% cashback as Ethereum (ETH) for your purchase.

How Crypto Credit Cards Work

The underlying principle that upholds credit cards is the same one that works for the crypto credit card. That means that there is no difference between the two. The reward from crypto credit cards is the only thing you can consider a difference. With crypto credit cards, you receive your rewards in the form of cryptocurrency available for the card. And the amount of reward depends on how you spend.

Meanwhile, you can maximize your accumulated crypto assets via this credit system. It is noteworthy to remember that retailers accept fiat currency. As a result, you convert your crypto assets to fiat currency while making payments. This gives you the advantage of spending the cryptocurrencies you have been HODLing. As for retailers accepting crypto, you have no conversion stress while making the payment.

Crypto credit cards also majorly impact your credit score like the regular credit card. As such, you must pay off your credit every month. Otherwise, you will attract interest to the entire amount. Before obtaining any crypto credit card, read through the terms and conditions because some crypto credit cards might have different fees—such as annual fees—attached to them.

What is a Crypto Debit Card?

Crypto debit cards are debit cards that are linked to a cryptocurrency wallet. You can use them the same way you use a traditional debit card. The only difference is that you link your crypto wallet (such as Binance wallet or AABB Wallet) to them. With crypto debit cards, you can conduct daily transactions that include payment for goods and services.

You can use your crypto debit cards on automated teller machines (ATMs) that allow crypto transactions. On the other hand, crypto debit cards don’t store fiat currency. Instead, they instantly convert your crypto to any selected fiat currency while making any transaction.

How Crypto Debit Cards Work

Using a crypto debit card works precisely like traditional bank debit cards. The only difference lies in how the funds are converted and deposited into the merchant’s account. When you pay with your crypto debit card, the funds in your crypto wallet will be withdrawn and converted to the fiat currency the merchant wants to accept.

However, you must have a sufficient crypto balance to be able to initiate the payment. That will save you from stress while the checkout point is trying to attend to the long queue. Meanwhile, your crypto debit card type is a factor for the crypto-to-fiat conversion. You might have the chance to keep your crypto until you initiate a payment or manually convert it to a fiat currency.

Crypto Credit Cards vs. Crypto Debit Cards

Crypto credit cards and crypto debit cards are essential to amplify massive cryptocurrency adoption across the business world and the consumer space.

Using a crypto debit card works like a traditional debit card. Funds from your crypto wallet are converted to the merchant’s fiat currency at the point of payment. As such, you must have enough crypto balance to conduct a purchase.

Conversely, a crypto credit card doesn’t tamper with your crypto investment. Instead, you use a credit line that operates with your local currency. This works exactly like a credit card. You borrow funds from the card company and repay the bills when due. But the reward system makes people call it a crypto credit card. And that’s because the credit rewards are crypto.

Pros and Cons of Using Crypto Cards


  • Convenience

Crypto cards make it easy to conduct transactions with little to no stress. Likewise, transactions become faster and happen at the speed of light. As such, you don’t have to wait for long hours before you make payments.

  • Flexible Payment Method

When you use a crypto credit or debit card, it is easy to make payments and move your money across borders. The flexibility also spreads across merchants accepting cryptocurrencies as a payment option. Likewise, some countries have crypto ATMs where you can make a withdrawal.

  • Earning Rewards

When you use crypto cards, you might be eligible to receive rewards for transactions via the cards. This cashback is paid in the form of cryptocurrency. It might also help build your credit score for good use in the future.


  • Crypto Taxes

Every transaction you make that includes cryptocurrency is liable to taxation. So, either you use the crypto credit card or the crypto debit card, you might have taxes to pay for each gain or loss you incur. The best bet is to check the crypto tax regulations within your country. This teaches you about how crypto is taxed and if you are not paying any tax.

  • Possible High Fees

There is a potential of incurring high fees for using crypto cards. And this depends on the card issuer. Some of those are inactivity, physical card, and transaction fees. For instance, Coinbase charges 2.49% for transaction fees to make payments with other cryptos different from USDC.

Is Crypto Credit Card or Crypto Debit Card Better for You?

When deciding which one to go for between a crypto credit card and a crypto debit card, the way you spend and your credit history play a significant role in this decision. There is no particular answer to which is the best for you. But you can start with that if you want to know how crypto works and get started with it. That keeps you in a safe mode.

However, consider important things such as annual fees, transaction fees, withdrawal and spending limits, staking options, rate of rewards, and other perks associated with the card. Likewise, make sure you thoroughly read the terms and conditions of the card before you decide to choose it.

Ridwan is a digital nomad. He is an experienced crypto writer that writes across blockchain and cryptocurrency topics. He buries his head in books' leaves, playing games and networking if he is not writing. He believes you will be happy if you appreciate the little things that matter while working for more.