Key takeaways

A typical crypto card allows you to earn crypto rewards or instantly convert your cryptos to fiat currency to pay for goods and services. Mastercard and Visa both issue crypto cards, meaning you can use your crypto in millions of locations around the world.

A prepaid crypto card is similar to a debit card because it must be preloaded with cryptocurrencies to spend. You can obtain a crypto card from an approved issuer, such as a crypto exchange or a bank. However, using crypto cards is not without risk. Your funds stored on the card may still lose their value, and any transactions made with your card are likely to be taxable.

Crypto credit cards work more like standard credit cards with crypto rewards. You can pay your credit card bill with fiat currencies but will receive crypto bonuses on the money you spend.

Binance offers Binance Visa Card for customers who have completed KYC and AML verification. You can complete the registration process in less than a few minutes and benefit from zero administrative or transaction fees, cashback and other benefits.

Introduction

Although the appeal of cryptocurrency lies largely in its investment potential, it still has utility in the transfer of value. Satoshi Nakamoto didn't create Bitcoin to make people billionaires. Bitcoin was designed as a global digital payment system. One way to achieve this goal is to use crypto cards. This payment method now helps people use cryptocurrencies and digital assets in their daily lives and even receive cryptocurrency rewards.

What is a crypto card?

A typical crypto card works the same way as your credit card. You can pay for items or services from sellers who accept the card issuer. You might think you're paying a seller directly with digital currencies, but that's not the case. The seller receives fiat currencies in their account, not crypto. Your crypto card takes the cryptocurrencies from your linked account, converts them to the local currency you're paying in, and then uses that money to pay. We will explain this process later using an example.

Both Visa and MasterCard offer crypto cards with partner companies that require licensing. These are the two most widely used payment service providers in the world, making crypto cards almost universally accepted by merchants. Some crypto cards only offer crypto rewards on money spent with the card. These cards are usually credit cards that require a credit check.

How does a crypto card work?

As we mentioned, a crypto card does not actually pay the seller in cryptocurrency. It converts your cryptocurrencies into fiat currency which you can spend at the merchant through the card.

For example, imagine you hold $500 (US dollars) worth of BNB in ​​your Binance Card payment wallet. At a restaurant, you pay the $100 bill with your crypto card. Once you insert your card and accept payment, Binance sells $100 worth of BNB and loads fiat funds onto the card. The restaurant then receives $100, leaving you with $400 worth of BNB in ​​your payment wallet. All this happens in a few seconds, the time it takes to use your crypto card.

You can also use crypto cards for ATM withdrawals, where your service provider supports them. The same method as above is used to withdraw your physical money.

What are the differences between a crypto card and a credit or debit card?

There are some minor differences between credit cards and crypto cards. Most of the time, they work the same way when it comes to paying. The most significant difference between a crypto card and a credit/debit card is that you top up your crypto card with cryptocurrencies. A debit card is preloaded with fiat currencies, and a credit card's transactions are paid later in fiat.

A prepaid crypto card works the same as a traditional debit card. You must hold the funds in your account before you can spend them. You cannot load your cards with fiat funds, only with cryptocurrencies. When you make a payment, your funds are converted immediately into your crypto wallet.

On the other hand, crypto credit cards offer a line of credit that allows you to buy now and pay later. Your credit card bill is payable in fiat currency, which means that the crypto credit card is essentially a credit card with rewards.

To order a card, you must be a customer of a company that offers a crypto card, such as a crypto exchange or a bank that supports cryptocurrencies. The procedure involves you completing Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures before you can order your crypto card, just like with any credit or debit card. conventional flow. With a crypto credit card, you will also need to pass a credit check.

What are the benefits of using a crypto card?

The key benefit of a prepaid crypto card is the ability to use your cryptocurrency for everyday purchases. This has traditionally been difficult to do unless a provider accepts cryptocurrencies directly. Although some cryptocurrencies like Bitcoin can take 30 minutes to confirm a transaction. The price is also volatile, meaning you may pay more or less than expected.

Many crypto cards also offer benefits such as cashback or discounts on certain subscriptions like Spotify or Netflix. These benefits attract you to a specific card provider and are similar to those offered with standard debit/credit cards. Be sure to compare each card's offers to find the best benefits for you. Also remember to take into account any foreign exchange fees you may have to pay during the conversion process.

Are crypto cards risky?

Holding a crypto card presents the same risks as holding cryptocurrencies. If you loaded your account with Bitcoin (BTC) or Ether (ETH), the fiat value of your account will constantly change. This means your account balance is not what you think it is, based on exchange rates.

Also keep in mind that in many tax jurisdictions, spending cryptocurrencies is a taxable transaction, whether you spend a few dollars on a coffee or thousands of dollars on a car. If you made gains or losses on your cryptocurrency before using it to purchase something with your cryptocurrency card, you will need to pay or note the appropriate taxable amount.

You can avoid this problem by purchasing stablecoins to use with your crypto card, as the price very rarely varies from the value of the underlying asset.

What is Binance Card?

The Binance Card is a Visa debit card connected to your Binance account. By depositing funds into your payment wallet, you can spend cryptocurrencies anywhere Visa cards are accepted. It works similarly to the prepaid cryptocurrency debit cards mentioned above.

In which countries is Binance Card available?

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

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

How to apply for a Binance card?

Getting a card is simple if you already have a Binance account and reside in one of the eligible countries. You will need to complete all necessary KYC and AML processes before you can apply for a Binance Card.

To order your card, make sure you are logged in and access the Binance Card page. You can also access this page by hovering over [Finance] on the Binance homepage and clicking on [Binance Visa Card].

Next, click [Get Started] and then [Order a Card]. You will now see some KYC information and an agreement to accept.

After confirming, the card order page is displayed. Here you can choose the format of your name that will be engraved on the card. Once you have confirmed your choice, click [Continue].

You will now find your information pre-filled with additional information to fill out. Finally, agree to the Privacy Policy, Terms of Service and Cardholder Agreement before clicking [Order your Binance Card].

Once you order your card, you will also have access to a virtual card that you will need to use before your physical card is delivered. You can add this card to Apple Pay, Google Pay, or even use it for online purchases. If you prefer to use the Binance mobile app, you can also order your card there. To learn more about ordering a Binance Card, check out our FAQ.

Benefits of using Binance Card

In addition to allowing you to spend your cryptocurrencies at stores, restaurants and VISA merchants around the world, the Binance Card also offers unique benefits.

1. No fees. A Binance Visa card is free for any Binance user. There are no administrative, processing, or annual fees for Binance, but you may occasionally be subject to third-party processing fees.

2. You can continue to hold your crypto. There is no need to exchange your cryptocurrencies into fiat currencies in order to purchase something. Binance converts them when you need them, which means your cryptocurrencies can always increase in value on the market.

3. Up to 8% cashback. Depending on your average monthly BNB balance, you'll get up to 8% cashback on all your purchases. This cashback is paid to you in BNB on your Binance account. To learn more about the cashback program, click here.

4. Safe funds. Your crypto funds are SAFU and protected by Binance. Binance has established a high level of security and uses robust security standards.

What is the Trustee Plus card?

Since February 2024, Binance has offered its users the Trustee Plus affiliate card. It is a virtual payment card that is linked to a cryptocurrency wallet of the same name, can be added to Apple or Google Pay in just a few clicks, and allows you to directly use one of the three cryptocurrencies in banking network payments: BTC, ETH, USDT.

List of countries where you can get a Trustee Plus card

Starting February 2024, citizens of the following countries can apply for a Trustee Plus payment card: Ukraine, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Ireland, Spain, Countries -Netherlands, Iceland, Liechtenstein, Lithuania, Luxembourg, Latvia, Malta, Germany, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden, Hungary and Italy.

Key Benefits of Trustee Plus Card for Binance Users

1. The card is issued almost instantly after installing the application. All you need to do is pass the KYC and order the card. For Ukrainian users, thanks to integration with the Diia service, this process takes less than a minute.

2. The only exchange fee is 0.5% of the amount. Trustee Plus does not charge any other hidden or explicit fees.

3. The payment card in the wallet is virtual, can be added to Apple Pay and Google Pay in just a few clicks, and is accepted at any terminal in the banking network.

4. Users can withdraw up to €20,000 in cash per month from ATMs equipped with NFC readers.

5. Free transfers of 21 different cryptocurrencies inside the wallet: no fees for payments to family, friends and acquaintances. No limits on wallet usage.

6. Users can simply install Trustee Plus for all their family members and open payment cards to unlock cryptocurrency payments worldwide.

7. Additional Referral Program. Users can invite their friends and get up to 45% commission for their trades.

Thanks to the cooperation between Trustee Plus and Binance Pay, it is now easier to use your cryptoassets for your daily payments.

Conclusion

If you have cryptocurrencies that you no longer want to HODL, the crypto card allows you to simplify their conversion into fiat currencies. Without a crypto card, you will have to go through the conversion process and manually transfer the fiat funds to your bank account. This may take a few days, depending on your bank and cryptocurrency exchange. A crypto card is one of the quickest ways to use your cryptocurrency to make purchases, and it's also a positive development. However, for tax purposes, always make sure to write down what you spend.