With the massive growth of the crypto industry over the years, more users and investors are drawn to investing in invaluable digital assets. Many people now want to do businesses associated with cryptocurrencies, invest in them, and earn from them. As the crypto market grows, more inventions keep happening to match the market’s exponential growth.
One of these inventions is the crypto card, a development that has been met with open arms. Unlike traditional bank cards, which are tied to users’ money in the bank, crypto cards are tied to users’ crypto wallets in a crypto exchange where they earn rewards in cryptos.
Many exchanges, like Bybit and Crypto.com, offer these crypto cards. Some benefits include crypto rewards and simplified and better means of making daily transactions with little or no charges. While many exchanges offer crypto credit or debit cards, we will look at the ones by Bybit and Crypto.com.
In this article, we will discuss the pros and cons of each, what makes each unique, and which is the best of the two. But first, what are crypto cards, and how do they work?
What Are Crypto Cards?
The concept behind crypto cards is pretty straightforward. Crypto cards enable holders to purchase or make transactions using cryptocurrencies.
These crypto cards are affiliated with crypto exchanges, and the users’ digital assets are in a digital wallet instead of traditional bank accounts. Also, the way crypto cards work is pretty simple.
Suppose you are a Bitcoin, Ethereum, or any other crypto holder who wants to make a purchase or perform a physical transaction without a crypto card. It is expected that you sell your crypto to get cash.
However, with crypto cards, you can easily withdraw cash from any automated teller machine as the crypto is converted to that country’s currency. Also, using a point-of-sale machine, a merchant can receive money from customers who own crypto cards in his country’s currency.
There are so many benefits to using crypto cards, and they include:
Ease of Use
This is one of the major reasons why crypto cards are gaining popularity. They are easy to use, and the process of acquiring them is also simple. Crypto card holders can quickly pay merchants or make daily transactions using cryptocurrencies without hassle.
In addition, these transactions are more secure, granting holders privacy and anonymity, which is one of the foundations of blockchain technology. Users do not need to fill out or submit personal information, unlike wire transfers done with traditional banks, where you are expected to submit specific details.
Rather than earning traditional spending points, which benefit only a few traditional cardholders (the big spenders), crypto cards reward holders in crypto, which is of great value to them. These crypto rewards benefit the holder, who can invest the crypto and make more profits or gains.
So imagine earning a crypto each time you make a transaction. That will be a lot of profit for the user if a wise investment decision is made.
No Annual or ATM Fees
With crypto cards, there are no annual charges or high-interest rates, although, in some situations, you might be charged a small fee to make certain transactions. However, the costs do not compare to traditional bank cards, which might charge as much as 5%, while crypto cards charge as little as 0.5%.
Also, crypto cards are ATM fee-free, meaning users can withdraw their cryptos (in cash) from any ATM without paying any fee.
Access To Web3
Another perk of using crypto cards is the access they grant to Web3 users. This facilitates networks’ interoperability, as the cards can be used across various blockchains to enable cross-chain transactions between protocols and decentralized applications (dApps).
Since the private keys of crypto cards are stored offline, the transaction process on Web3 is made easier as the need for technical expertise to manage the private keys is eliminated.
With the increased adoption of these crypto cards, many exchanges like Bybit and Crypto.com are now issuing these cards to users. However, it might be challenging for users to determine which is the best to go for and which will suit their needs. Let’s discuss them.
Bybit or Crypto.com: Which Offers The Best Crypto Cards?
Bybit and Crypto.com are two of the most established and successful crypto exchanges in the market, and they are ever-evolving to match the industry’s specific needs. While they both offer crypto cards, their cards differ in various aspects.
The Bybit card is a Mastercard crypto debit card, enabling users to access their crypto funds easily and make payments seamlessly. In contrast, the Crypto.com card is a prepaid Visa crypto debit card. To determine which might be the best among both, let’s highlight the pros and cons of each.
Pros of Bybit Debit Card
Over 90 million merchants accept the Bybit debit card as a means of payment. This widespread adoption comes from Bybit’s strategic partnership with Mastercard, which has a vast merchant network. Also, this partnership improves the exchange’s security, enabling cardholders to make transactions with cryptos easily.
Loyalty Rewards Program
The Bybit debit card offers an exciting Loyalty Rewards Program. It enables cardholders to earn loyalty points each time they make payments using their debit card.
With the Bybit debit card, users amass loyalty points for every 1 GBP or EUR spent, and they can swap these points for more exclusive rewards like coupons, bonuses, or merchandise. Also, they can redeem them for other prizes based on the accumulated loyalty points.
The Auto-Savings function available on the Bybit card dashboard is a feature enabling users to put their idle assets to work and earn interest. The idle assets are placed in Flexible Savings, and you can automatically redeem them for use once the Bybit card is enabled.
A major bonus of Auto-Savings is its flexibility, as you can unstake your assets automatically subscribed to Flexible Savings at any time. This grants you real-time access to your assets while still earning interest.
3D Secure EMV
As a Mastercard crypto debit card, the Bybit card is EMV 3-D Secure, an industry standard that allows merchants and users to authenticate their transactions. This adds an additional layer of security to the Bybit card, preventing loss of funds and protecting customers’ details.
Bybit offers over 20 trading products on its exchange, such as Bybit Earn, Spot Trading, and Margin Trading. With the Bybit card, you can conveniently off-ramp your trading profits and spend them anywhere.
Cons of Bybit Debit Card
The Bybit debit card was launched this year (February 2023), and it still has limited availability as it is not yet used in many countries. The card is only available for use in the UK and other EEA countries like Croatia, Iceland, Ireland, and Romania. Apart from these countries, other EEA countries are expected to show Proof of Address during the card application process.
Bybit is still working on the Bybit card to enable users to make certain integrations with their cards for ease of payment. For now, cardholders cannot make Apple Pay or Google Pay integrations.
Pros of Crypto.com Card
CRO Credit Rewards
Crypto.com is known for its crypto, CRO, which has over a $1 billion market cap. This shows that the CRO token is of significant value to its holders. With the Crypto.com card, you earn rewards in CRO, which are credited to your Crypto.com wallet.
To further increase cardholders’ rewards, the Crypto.com card enables them to link their card to Dosh. Dosh is an app that gives users cashback when they shop with eligible merchants, allowing them to earn rewards when they make payments with a Dosh-linked card. Users' rewards can be as much as 10% cashback.
With a Crypto.com card, cardholders can send funds to other Crypto.com cardholders. Imagine realizing you are out of funds while trying to pay for your groceries or shopping items. You can quickly contact another cardholder to transfer money to your account, and it takes only seconds for the funds to reflect in your account once the transfer is done.
Also, if you lose your card, you can log in to the Crypto.com app to freeze your card or reset your card pin.
Cons of the Crypto.com Card
Rewards are Earned In Tiers
The rewards earned with the Crypto.com card are in tiers, and the tiers are:
Midnight Blue: Here, the cardholders do not earn any bonuses.
Ruby Steel: The cardholders earn only 1% CRO and are limited to just a $25 reward cap in a month.
Royal Indigo or Jade Green: They earn just 2% back and are limited to a $50 monthly reward cap.
Frosted Rose Gold or Icy White: They have a 3% reward.
Obsidian: Cardholders earn 5% CRO back.
This means users can only earn more rewards if they upgrade their cards to the highest level, which means they need more CRO tokens.
While staking might be a good way for cardholders to increase their earning capacity, it can still be a lot as the staking requirement is fixed in dollars. Cardholders are expected to stake at least $400 to earn rewards with the lower card tier. Also, the funds must be staked for at least six months, and if you unstake at any time, your rewards are reduced.
Bybit and Crypto.Com cards are excellent crypto debit cards that enable users to access their crypto funds quickly and ease the transaction process. However, the Bybit card has an edge over the Crypto.com card.
The Bybit card does not require users to stake any token before they earn rewards, whereas the Crypto.com card requires users to stake their CRO tokens to activate higher rewards. For Crypto.com cardholders, their benefits can only grow if they stake more and more CRO tokens.
In addition, the Bybit card has no tiers, meaning users can easily activate their rewards with the card. On the other hand, the Crypto.com card has tiers, and users can only access services and rewards like Netflix, Spotify, Amazon Prime memberships, and airport lounge access based on their card tier.