Cryptocurrency cards: Guide to best crypto debit cards 2024

Cryptocurrencies like Bitcoin and Ethereum are becoming more mainstream. As more people invest in digital currencies, there is a growing demand for crypto debit and credit cards. Crypto cards allow you to easily spend your cryptocurrency holdings like normal cash. In this guide, we’ll explore how crypto cards work and the top options available.

This guide will explain everything you need to know about crypto debit and credit cards. We’ll cover:

• How crypto cards work
• Top cryptocurrencies supported
• Crypto Cards available to use
• Fees to be aware of
• Pros and cons
• Frequently asked questions

How do crypto cards work?

Crypto debit and credit cards function similarly to traditional debit and credit cards. The key difference is that instead of being funded by a bank account or credit line, these cards are funded by your cryptocurrency holdings on the exchange wallet.

Here’s an overview of how crypto cards operate:

• You first need to purchase and hold cryptocurrency in a crypto exchange which is also a card provider.
• You then purchase a card and link it with the exchange wallet of your account.
• When you make a purchase with your crypto card, it automatically converts the required cryptocurrency amount into fiat currency in real-time.
• The fiat currency is then used to settle your transaction, allowing you to spend just like a regular debit or credit card.

So in essence, a crypto card acts as a conduit between the crypto world and regular fiat currency. This provides a seamless way to unlock the spending power of your cryptocurrency holdings.

Top cryptocurrencies supported

The most widely supported cryptocurrencies by crypto card providers include:

Bitcoin and Ethereum tend to have the widest acceptance, but most decent crypto cards support all major cryptocurrencies. Some crypto cards also support stablecoins like USD Coin (USDC) which can help minimize volatility when spending.

When assessing a crypto card, be sure to check which cryptocurrencies it allows you to fund your card balance with. You want to ensure it supports the cryptos you currently hold.

Fees to be aware of

While cryptocurrency cards make spending crypto seamless, there are certain fees to keep in mind:

• Card issuance fees – Some providers charge an upfront fee for issuing the physical and/or virtual card. This ranges from $0 to $50.
• Monthly service fees – Expect an ongoing monthly fee to maintain your exchange account, typically $0 to $10. Higher tier cards or those with more perks may charge higher monthly fees.
• ATM withdrawal fees – There is sometimes a fee to withdraw fiat currency from an ATM, around $1 to $5 per withdrawal.
• Foreign transaction fees – Using your card internationally may incur extra fees, usually 2-3% of the transaction amount.
• Inactivity fees – Not using your card for a prolonged period can sometimes incur inactivity fees around $5-10 per month.
• Crypto conversion fees – The conversion from crypto to fiat currency and vice versa may incur fees of around 1-2% of the conversion amount.
• Card delivery fees – Overseas delivery of a physical card can incur fees of $10-$20 in some cases.

The specific crypto card fees will vary across providers. It’s important to factor these fees into deciding if a card makes financial sense for your circumstances. Cards with lower fees are preferable if the other features meet your needs.

Pros of crypto credit and debit cards

So why use a crypto card instead of a regular debit or credit card? Here are some of the key advantages:

• Spend the value of your crypto anywhere – Crypto cards unlock your crypto’s spending potential for real world purchases. Use your crypto gains like cash without converting to fiat first.
• Earn crypto rewards – Many crypto cards offer cashback, rewards, and perks in the form of cryptocurrency rather than fiat currency or points. This lets your holdings passively grow.
• Fraud protection – Reputable crypto cards come with the same fraud protection that Visa, Mastercard, and banks provide on regular cards. Your crypto holdings are never exposed.
• No credit checks – Crypto cards do not require credit checks like traditional credit cards as they are tied to your existing crypto holdings rather than creditworthiness.
• Access Lounge Key airport lounges – Higher-tier crypto cards can provide access to airport lounge networks like LoungeKey to improve your travel experience.
• Regulatory friendly – Spending via a centralised crypto card is less likely to trigger regulatory concerns compared to using crypto directly. This provides peace of mind.
• Ease of use – Crypto cards function like any other Visa or Mastercard. Usage is familiar with no learning curve required.

For cryptocurrency investors and believers, crypto debit and credit cards provide the best of both worlds – the ability to hold crypto while still using it conveniently for everyday purchases and transactions.

Best crypto cards

There are numerous crypto card options available from different providers. Here are 5 of the best crypto debit and credit cards on the market right now:

Coinbase Card

The Coinbase Card is a Visa debit card that lets you spend cryptocurrency anywhere Visa is accepted. It is available in 29 countries including the US, UK, and across Europe.

Here are some key features:

• Supports 9 cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Stellar (XLM), Dogecoin (DOGE), MANA, DAI, and USDC
• No annual, monthly or ATM fees
• Up to 4% back in crypto rewards on eligible purchases
• Uses Coinbase wallet app on iOS and Android devices
• Virtual card available immediately. Physical card ships in 2-3 weeks

The Coinbase card is a popular choice given the well-known Coinbase brand and support for multiple top cryptos. The ability to earn up to 4% back in crypto makes it very rewarding to use.

Crypto.com Visa Card

The Crypto.com Visa card also offers generous rewards and perks. There are several tiers based on the amount of CRO cryptocurrency staked:

With higher tiers, you get higher crypto cashback, more perks like lounge access and subscriptions, and increased APY yield on your staked CRO.

The Crypto.com card supports over 100 cryptocurrencies and has no foreign transaction fees. If you have a substantial crypto portfolio, staking for a premium card tier can be very rewarding.

For a full list of the best crypto cards, we recommend exploring Ecoinomy’s crypto cards selection.

Cons of crypto debit and credit cards

Of course, there are also downsides to consider:

• Volatility risk – Your crypto balance remains exposed to volatility. A price crash could significantly impact your effective spending power.
• Lock up crypto – Your cryptocurrency must be locked within your card account. This reduces immediate access and financial flexibility.
• Fees can add up – While fees vary, when added up the costs can impact the net benefits received from cryptocurrency card rewards.
• Limited availability – Access remains restricted depending on where you live. Few provide worldwide accessibility and usage.
• Merchant discrimination – In rare cases, some merchants may decline a crypto-funded card seeing it as high risk. This is uncommon with major providers like Visa and Mastercard.
• Privacy concerns – Linking your crypto activity to a card may negatively impact the privacy benefits and decentralisation of cryptocurrency.

Like with any financial product, weigh up the advantages and disadvantages before jumping into crypto debit/credit cards. Make sure it aligns with your needs and cryptocurrency goals.

In the midst of understanding the intricacies of crypto cards, let’s also look ahead to the next wave in crypto trading, where exciting developments are continually shaping the future of cryptocurrency trading and investing.

Risks and Drawbacks to Consider

While there are many benefits, these cards also come with some risks and drawbacks to consider:

• Volatile crypto prices – Fluctuations in crypto prices can affect the value of your holdings. High volatility means balances can change rapidly.
• Security risks – There is always the risk of losing access to your cryptocurrency. Theft and hacking are still concerns. Proper security is a must.
• Limited adoption – While growing, merchant adoption of crypto is still sparse compared to traditional payments. Bitcoin cards help bridge this gap for now.
• Tax implications – Spending and earning crypto can trigger capital gains taxes in some cases. Consult a tax professional to understand implications.
• Lockup periods – Some cards require you to lock up crypto holdings for a set time to access rewards. This reduces your financial flexibility.
• High fees – Some cards have high monthly, transaction, ATM, and currency conversion fees. The costs can add up quickly.
• Regulatory uncertainty – Crypto regulation is still evolving. Some locations may restrict access to crypto cards as adoption grows.
• Limited availability – Not all cards are globally accessible yet, especially for US residents. Availability depends on your location.

While the rewards and convenience can be appealing, make sure to assess the risks before diving in. Crypto cards are still an emerging financial product.

Frequently asked questions

Are crypto debit/credit cards safe to use?

Crypto cards offered by reputable providers that use Visa and Mastercard are generally safe to use. Your crypto holdings are not directly exposed when making purchases. The same fraud protections provided by card issuers apply as well. However, you should still exercise caution as with any financial product linked to your assets.

What fees apply to crypto cards?

Fees vary across crypto cards but may include:

• Issuance fee – One-time fee to obtain physical and/or virtual card
• Monthly service fee – Ongoing fee for account maintenance
• ATM withdrawal fee – Fee for cash withdrawals at ATMs
• Foreign transaction fee – Extra fee for international transactions
• Inactivity fee – Charged if account unused for a period of time
• Crypto liquidation fee – Fee for converting crypto to fiat currency

Always review the full fee schedule before selecting a card so there are no surprise charges.

Can I fund a crypto card with multiple cryptocurrencies?

In most cases, yes. However, funding options vary by card. Some may only support one or a few cryptocurrencies. Others allow funding with dozens of different cryptocurrencies. Check which specific cryptos can be used to fund each card account before applying.

Is a crypto card considered a taxable event?

Spending cryptocurrency directly from your wallet is technically considered a sale of an asset at fair market value, which is a taxable event. However, most countries have de minimis exclusions for small everyday purchases using crypto. But if spending significant amounts or earning large rewards, consult a tax professional to understand any potential tax obligations.

Do I need to have a crypto wallet to use a crypto debit card?

Yes, you need to have an existing wallet that supports the cryptocurrency you intend to fund the card with. Your crypto card is tied to this wallet address, allowing instant conversions from crypto to fiat when making card transactions. Many cards support connecting directly to major exchange wallets like Coinbase, Crypto.com, etc.

Conclusion

Crypto debit and credit cards allow you to spend your digital currency anywhere while earning cashback rewards. Although still an emerging concept, crypto cards are gaining popularity among cryptocurrency users. They provide a convenient way to unlock the value of your crypto holdings for everyday purchases. Just be sure to do your research and assess the pros and cons before applying.

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