What is a Crypto Card?
One of the latest revolutionary products in the blockchain industry is the crypto card. It follows other innovations in the global financial system, such as digital currencies, exchanges, and crypto wallets. In this article, we will tell you everything you need to know about crypto debit and credit cards. Read it for up-to-date information on the features, fees, limits, and rewards available on the best crypto cards.
What is a Crypto Debit Card?
A crypto debit card is quite like a standard debit card. However, it is unique because it allows you to make payments directly from your crypto wallet or app. When you have a crypto debit card, you can choose not to move around with your hot or cold cryptocurrency wallet. Thus, it allows you to spend your digital currency much more conveniently.
What is a Crypto Credit Card?
A crypto credit card is any credit card you can use to make payments in cryptocurrency and receive crypto rewards. It is not much different from a regular credit card used for fiat money transfers and payments. The cardholder borrows crypto from the issuing company, spends it, and pays back the amount with interest.
Who are These Cards For?
Crypto credit or debit cards are for people who want to spend the digital coins in their accounts with cryptocurrency exchanges or crypto payment service providers. In other words, they own units of cryptocurrencies like Bitcoin and Ether and intend to spend them online or offline.
While regular banks use fiat currencies, credit funds on cryptocurrency cards are tied to one digital currency or another. It can be very convenient, especially if the account is opened in so-called stablecoins (e.g., USDT). However, some cryptocurrencies have such high volatility that a credit card is simply unprofitable. For example, the price of Bitcoin has fluctuated several times this year, going up and down.
What to Consider with a Crypto Credit Card?
There are a few things you should consider before you order or apply for a crypto credit card:
- Taxes: Cryptocurrencies are considered assets in many countries. Hence, crypto holders are required to pay taxes on the rewards of their cryptocurrency investments. This also applies to crypto cards. When converting your crypto to fiat money, the cryptocurrency’s exchange rate may be higher than the rate at which you bought the digital coins earlier. In that case, in many countries, you will have to pay tax on the profit made.
- Flexibility: It is helpful to find out whether your card or crypto exchange supports whichever cryptocurrencies you want to invest in. Why? Every crypto card comes with a portfolio of cryptocurrencies that you can earn rewards from. So, be sure to select cryptocurrencies that will work with your card.
- Location/jurisdiction: Not just any crypto card is available to everyone. By law, you may need to live in a certain location before you can apply for a crypto credit card. Crypto cards are not allowed in Algeria, Bangladesh, China, Egypt, Morocco, Qatar, and a few other countries that have banned cryptocurrencies.
Debit Cards and Crypto Taxes
Many countries are using various tax systems to get back money from their citizens or residents who make gains on their crypto investments. In some countries, there are no harsh laws about crypto taxation, while others have strict ones.
In the United States, the Internal Revenue Service (IRS) does not see crypto as a currency but as a capital asset. Therefore, when you make purchases with your crypto debit card, you have to pay capital gains tax. For example, if you purchased $30,000 in Bitcoin and spent $50,000 with your crypto debit card, you must pay capital gains tax on the difference of $20,000.
Also, cryptocurrencies are taxable assets in many European countries, including the United Kingdom. The European Union (EU) does not have a uniform regulation for cryptocurrency as of July 2022. Instead, individual member states charge different capital gains taxes on crypto profits. The rates are between 0 and 50%. For example, Germany can be seen as a tax haven because the government does not tax your crypto if held for over a year. In France, all crypto traders are required to pay a tax of about 30%. Likewise, in Norway, the UK, and Italy, all crypto investors must pay around 25%, 20%, and 26%, respectively, based on their cryptocurrency gains.
Pros
- Crypto cards let you pay for goods and services
- Many crypto cards support multiple fiat and digital currencies
- Crypto cards come with strong security features
- Cashback rewards on many crypto cards
- Some crypto cards waive currency conversion fees
Cons
- High volatility of cryptocurrency
- Crypto cards are not generally accepted for payment
- Many crypto cards charge various fees
- Capital gains or property taxes apply to your crypto rewards
- Some jurisdictions do not support payments in cryptocurrency
Perks and Cashbacks of Crypto Cards
Many crypto debit card providers offer generous cashback to their customers, which could be up to 8% of the amount billed in cryptocurrency. While some provide special perks, such as travel and subscription rewards, others waive their fees for ATM transactions. Crypto card issuing companies use their cashbacks and perks to compete for customers.
Top Crypto Cards
Are you looking for the best and most secure crypto debit or credit cards for convenient payments, transfers, currency exchange, and maximum rewards? Then, search no further. We have carefully selected the top crypto cards for cryptocurrency enthusiasts and experienced investors. Find them below.
Binance
European residents and Ukrainian refugees in Europe can get the Binance Visa debit card for fast and secure payments in crypto and local currencies. It offers an opportunity to earn up to 8% BNB cashback, which is the official cryptocurrency of Binance, on all your payments. The card exists in virtual and physical forms and is supported by Samsung Pay and Google Pay. You do not need to pay any card-issuing fee or annual charge to use this card. However, it has withdrawal and spending limits. For example, in the European Economic Area, the daily spending limit on the card is 8,700 EUR, while the withdrawal limit is 290 EUR daily.
Nexo
You can get 2% cashback on every purchase or ATM withdrawal you make with the Nexo Mastercard card. This card helps you avoid paying crypto tax because you do not have to sell your cryptocurrency to spend it. Instead, you make payments of up to 90% of the fiat-money value of your crypto worldwide and use your digital assets as collateral. The card is connected to the Instant Crypto Credit Lines of Nexo. Therefore, your portfolio stays intact while the money for all your purchases automatically comes from your available credit line. Besides, Nexo charges no fees for the use of this card, whether for purchases or as a travel card. Also, it comes with 10 free ATM withdrawals per month, but with a 10,000 EUR limit per month.
Wirex
Earn 2% cashback in WXT (the digital token of Wirex) when you use the Wirex multicurrency travel card for transactions abroad. This card allows you to make payments in more than 50 cryptocurrencies and over 150 fiat currencies. It saves you up to 3% on your online and in-store transactions in foreign countries. Its instant in-app alert feature keeps you informed of all your payments. The Wirex crypto debit card gives you the best exchange rate with no fees, and you can use it wherever Mastercard and Visa are accepted.
Uphold
The Mastercard debit card from Uphold is one of the most flexible in the world. You can use the physical or virtual card for online purchases and payments to over 50 million merchants in the Mastercard network. All foreign transactions are free of charge. Also, you can get 1% cashback for US dollar payments and 2% cashback for crypto transactions.
Unbanked
Unbanked offers crypto debit and credit cards for use anywhere at affordable fees. The cards, which exist in physical and virtual forms, are issued by Visa and are available in Europe, the United States, and Latin America. Every customer gets some rewards for using the Unbanked card for online/offline payments and ATM transactions. You can get 6.38% cashback in UNBNK, the Unbanked cryptocurrency. In addition, the Unbanked debit card works well with popular m-wallets: Google Pay, Apple Pay, and Samsung Pay.
Nuri
Nuri provides a free Visa debit card that you can easily use to manage your daily finances. It allows you to spend fiat money and cryptocurrencies globally. You can get the card for free and make unlimited free ATM withdrawals. Nuri does not charge monthly fees, except a 1% crypto trading fee.
Crypto.com
Another crypto card that comes with no annual fee and zero monthly charges is the Crypto.com Visa debit card. It gives you up to 5% cashback on your spending. Besides, you can top up the account with fiat or cryptocurrency.
Note that this card is available in five tiers: Obsidian; Frosted Rose Gold & Icy White; Royal Indigo & Jade Green; Ruby Steel; and Midnight Blue. They offer various benefits and come with different fees and limits. The Obsidian tier is the most rewarding. You can get several rewards when you use it to pay for your subscriptions to online entertainment services such as Spotify and Netflix, as well as for travel bookings, including Airbnb, Expedia, and LoungeKey airport lounge access.
Gemini
Holders of cryptocurrency in Canada and the United States are opportune to get the Gemini credit card for payments and earn crypto rewards. The card, which is issued by Mastercard, gives you up to 3% cashback on your purchases worldwide. It also gives other rewards in over 60 cryptocurrencies, including Bitcoin and Ether. Gemini charges no annual fees, no exchange fees, and no foreign transaction fees for the use of this card.
BitPay
The BitPay crypto debit card can be your first choice whenever you need to turn Bitcoin into US dollars and spend fiat money. It is a prepaid physical/virtual card issued by Mastercard, which makes it acceptable in more than 200 countries. You can use the mobile or desktop version of the BitPay app to order the card, which is available only in the United States.
Furthermore, when you invite a friend to BitPay and they load their first $100 into their wallet, you will get a $10 referral reward. However, there are some limits and charges on this card. For example, you cannot load or spend more than $10,000 per day, currency conversion costs 3%, and the ATM withdrawal fee is $2.5.
Coinbase
Use the free Coinbase Visa debit card to get 4% cashback and other rewards from everyday purchases. It works in more than 200 countries where Visa is accepted. Spend fiat money and cryptocurrencies using the Coinbase card and enjoy attractive benefits — free ATM withdrawal, no annual or monthly charges, no transaction fees, only a 2.49% crypto conversion fee, and no sign-up requirements.
FAQ
You can use a crypto card to make online and in-store payments to millions of merchants worldwide. It converts your digital coins to fiat money so that transactions can be completed in local currencies such as EUR, USD, and GBP. Hence, using a crypto card, you can easily spend any amount of your cryptocurrency on small expenses such as meals and drinks in a good restaurant as well as on bigger shopping sprees such as yachts, cars or luxury watches.
Yes, there are many crypto cards you can get for free. Examples of them are credit/debit cards from Coinbase, Gemini, Crypto.com, and Wirex. However, some card-issuing companies will require you to pay a small fee to obtain their cards.
We want to assume that you have already completed the process of getting your crypto card. So, to put money on it, you need to fund your account using the digital wallet or app connected to it. You can buy Bitcoin or any other cryptocurrency through a direct money transfer from your bank or an alternative method provided by the crypto company.
You can use your card to make cash withdrawals at any supported ATM. Alternatively, you can use the app to transfer funds to a regular debit card and use the card to withdraw cash as you usually do.
Yes, crypto cards are real and legit. You can get crypto debit and credit cards from several reputable crypto exchanges and card-issuing companies. An example is Binance.
You use either a crypto wallet or a crypto card to make payments with your cryptocurrency. If you want to pay online, you can copy the cryptocurrency address (say, Bitcoin) of the merchant and paste it into the field designated for payment in your wallet. Next, you will type in the amount of cryptocurrency you want to pay and click "send" to complete the transaction. However, if you want to pay offline, you can use your crypto card at a supported ATM to withdraw cash and pay in fiat money.
Yes, you can withdraw cash from ATMs using your Crypto.com card. You only need to ensure that the ATM is Visa or Visa Plus enabled. An easy way to confirm this is to look for the Visa logo on the ATM. You can use this link to locate the nearest Visa ATM to you.
To get a crypto card, you need to create an account with a crypto payment service provider or an exchange. Some of them will require you to download and install their mobile or desktop apps, which you can use to order a crypto card.
Worldwide, cryptocurrencies are accepted by many e-commerce stores, grocery markets, technology giants, telecommunication companies, coffee shops, and restaurants, to name a few. Some examples are Microsoft, AT & T, and Starbucks.
To transfer money from your crypto card to your bank account, you need to use the mobile app or digital wallet from the payment company or exchange that issued the card. The process begins with selling your crypto for cash. After that, you can transfer the fiat money to your traditional or neobank account.
What’s Next?
We have shown you an incredible range of crypto cards with competitive features and attractive rewards. You can use most of them to convert your cryptocurrency to cash for free, pay millions of merchants worldwide, earn cashback, and enjoy other benefits. Now, you have the opportunity to spend your digital coins at home or abroad for free. What are you waiting for, friend? Get a crypto debit or credit card from any of the top providers mentioned in this article. Use them to unlock the full benefits of cryptocurrency ownership.
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