Did you know that the Cryptocurrency Visa Card was available in Canada before the end of 2020? The Canadian market saw the introduction of the first big bitcoin payment credit card that early. The emergence of cryptocurrencies as an everyday means of trade is a fascinating development for anybody interested in the future of money.
Whether you're a skeptic or a believer, it's difficult to disagree with the facts. Cryptocurrency is becoming more widely accepted.
The world's first bitcoin exchange-traded fund was established last February 2021. You can now trade cryptocurrency in a few clicks on your smartphone using various applications. In fact, major public businesses, such as Tesla, are investing heavily in Bitcoin.
It goes without saying that a crypto credit card in Canada would soon come into being.
That the Bitcoin revolution would eventually find its way into our daily money and wallets was an inevitability. Indeed, the launch of many new Crypto Visa Cards in Canada has helped draw even more attention to the cryptocurrency phenomenon.
Do you want to know whether you can get a Crypto Card in Canada? Learn more here.
What Is A Cryptocurrency Credit Card?
Although cryptocurrencies are growing more popular, it is still not widely recognized as a means of transaction. Crypto cards, however, are pushing cryptocurrency closer to the mainstream. As a result, purchasing products and services using crypto is becoming much easier.
A crypto card, similar to a debit card, enables you to make purchases using your cryptocurrency at a retail store. With the card, you have the option of converting your cryptocurrency into fiat currency, such as the Canadian dollar.
It is essential to emphasize that the card is not a credit card; you cannot borrow money to make transactions with it. It functions more like a debit card. The money is not drawn from a conventional bank account; instead, it's drawn from your cryptocurrency wallet.
How Does A Crypto Credit Card in Canada Work?
How do these 'credit' cards work? There are two kinds of crypto cards that you may use to make purchases:
A Prepaid or Crypto Debit Card In Canada
The vast majority of crypto cards are preloaded cards. Before use, you will need to fund your crypto card. You do this by connecting it to your digital crypto wallet or making an electronic transfer to fund your crypto card.
Credit Card or Unpaid Crypto Cards
Non-prepaid crypto cards operate more like credit cards, although they are not as widely used as prepaid debit cards. These cards provide you the ability to borrow money using the value of your cryptocurrency assets as collateral.
This implies that you do not require to sell or convert your cryptocurrencies into Canadian money to make purchases.
Do You Need An Investment Stake?
It is conceivable that you will require to make a significant one-time investment into the card's own cryptocurrency.
This is not a charge; rather, it is an investment whose value may vary based on the state of the cryptocurrency market, posing some risk. Some cards demand you to keep your investment for a minimum of 6 months before you may withdraw it.
Are Crypto Credit Cards Safe?
Any new technology, particularly one linked to your money, brings new uncertainties. It can cause concerns for you about your financial protection.
The Blockchain or DataBase
One of the most compelling reasons in favor of cryptocurrency among those who support it is its safety. All cryptocurrency exchanges and transactions link to the blockchain. The blockchain then records all of the information.
What is the blockchain? It is a digital ledger or database on which cryptocurrencies operate; each cryptocurrency is based around its own blockchain. For instance, Bitcoin's blockchain keeps track of all bitcoin exchanges and transactions, both in the past and present.
Middlemen or fraudsters cannot alter data on the blockchain. That is because the blockchain is fully self-regulated, open, and independent. You can identify each transaction that has a unique identifier and cannot be changed.
To put it another way, if you were to purchase anything using cryptocurrency, the only parties directly engaged would be you and the merchant. As a result, your information is less vulnerable, and the danger of fraud is reduced.
While not introducing a third party directly, the crypto card does it indirectly via the organization that issues the card. For instance, Crypto.com has formed a relationship with DC Bank. That is officially insured by the CDIC, and it's given permission to issue a limited number of cryptocurrency-based Visa cards.
However, it is essential to do your own research on the relationships and the issuer of the crypto card you have chosen. You must do this before making your final decision.
Crypto Cards in Canada and Credit Scoring
Because Crypto Cards are prepaid cards, opening or using them will not affect your credit score, whether it is positive or negative in nature. You will also not be required to satisfy any income or credit score criteria.
The Future of Cryptocurrency Credit Cards
The introduction of fully-fledged cryptocurrency credit cards is on the radar.
Currently on the waiting list in the United States, is the BlockFli Bitcoin Rewards Card. The BlockFli Rewards Card is hailed as the world's first crypto credit card. It will enable users to purchase with credit while also earning Bitcoin rewards.
Meanwhile, the crypto investment group FD7 Ventures recently revealed that it had acquired a stake in BitcoinBlack. A company that aims to launch Canada's first bitcoin credit card in the near future.
Benefits of A Cryptocurrency Card
There are many advantages to making purchases using a crypto card. These include the following:
No Foreign Exchange Fees
Most cryptocurrency cards do not impose foreign exchange fees on purchases made with them. Especially if you often travel for business and make many purchases, these fees may mount up very quickly! Many crypto cards do not even charge any extra ATM fees.
Nowadays, many cards offer cashback rewards. Cryptocurrency cards also provide incentives, such as cashback on purchases and referral bonuses. Rewards structures vary significantly based on card issuers.
Flexibility in Currency Usage
Some cards allow multiple cryptocurrencies to be pre-loaded, so you can choose which one to use as payment depending on market conditions.
Put Your Cryptocurrency to Work
In Canada, cryptocurrency is finally making its way into the mainstream. When it comes to money and finance, cryptocurrency is revolutionizing the way we think about it.
Companies have created more convenient ways to buy, invest, and spend cryptocurrency.
With the help of a crypto card, you may take advantage of those crypto-related benefits. By doing this, you will bring the independent cryptocurrency closer to the man in the street. However, the risks associated with crypto cards must still be carefully considered before deciding on a card.