There are plenty of crypto wallet services and similar companies that make it easy for you to convert money to crypto (or to convert crypto to money). However, if you are looking for a service that offers crypto exchange with low fees, you might want to look at some of a new class of financial service providers calling themselves e-banks’, ‘neobanks’ and even ‘financial admin services’. These are typically internet-only services which offer credit or debit accounts, and are often cheaper than brick-and-mortar traditional banks.
Many of these neobanks offer their own version of what is becoming the industry standard, the ‘sell-to-card’ system. All of the different versions of sell-to-card allow you to exchange crypto for money (fiat money, if you’re a purist) and transfer the money directly to your card account instantly. Some neobanks, like Binance for example, only allow this for Visa based credit or debit cards, but others like Blackcatcard are more flexible.
But how does it work?
There are really only 4 steps:
1) Log into your neobank or other account service. There will be the usual Know Your Customer (KYC) authentications, and then you access your card account.
2) If your card account supports crypto natively (like Blackcatcard), you enter the crypto wallet linked to that account. Select what crypto you want to sell for fiat currency, which currency you want the proceeds in, and confirm.
3) Choose where the money should go – you can sometimes keep it in your wallet, but more often you will need to confirm a fiat currency account card.
4) Make sure all of your transaction details are correct, double check that you are happy with the market price quoted, and confirm your choices. You’ll be notified when the transaction completes, usually in just a few moments.
Are there other methods?
Of course. There are several competing systems on the market, each with their own strengths and weaknesses. For example, you can buy cryptocurrency with a neobank, a traditional credit or even a debit card so long as that card is part of the ‘3D Secure’ payment network.
3D Secure payments do not require you to pre-fund your crypto wallet account to buy cryptocurrency, so you can buy almost instantly and have the transaction come out of your card account, very much like any other purchase.
Still, if your chief goal is crypto exchange with low fees, you might be best sticking with Balckcatcard or something else in the same class.
Why would I want to sell crypto and deposit fiat currency onto a card account?
There are a few clear reasons that the systems used by Blackcarcard, Binance and others are superior to the old way of making crypto transactions:
1) Speed and convenience
The old ways can take a long time, and the process can be overly complicated, especially between certain types of crypto wallets and card accounts. Using this newer process skips several steps.
2) Liquidity is king
Crypto is great for a lot of reasons, but it is still hard to buy a hamburger with it. This new system makes crypto nearly as liquid – as easy to spend – as fiat currency.
3) The safety of your funds
Blackcatcard in particular offers excellent user protection features, but secure, reliable transactions are a watchword of this entire class of new ‘neobanks’.
4) Customer service
One thing the old stand-alone but coin wallet services often lacked was good customer care. Neobanks like Blackcatcard offer live customer support in a host of languages 24 hours a day, 7 days a week.