Best Crypto Debit Cards (April 2024 Expert-Reviewed)
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Our team of crypto tax professionals has identified and reviewed the best crypto debit card options available so you can make an informed choice. We looked at factors including fees, rewards, security, and supported cryptocurrencies, resulting in top picks that include Crypto.com, Uphold, and Wirex.
While crypto debit cards offer a convenient way to use your digital assets, users should be know that every transaction with a crypto debit card will typically trigger a taxable event with potential tax implications.
Best crypto debit card: Which debit card is best for cryptocurrency?
The market is seeing an influx of cryptocurrency debit cards with appealing rewards for everyday expenses. If you're contemplating acquiring a crypto debit card, you likely have questions regarding its functionality. In this article, we delve into the nature of crypto debit and credit cards, discussing their advantages and disadvantages and their potential implications for your crypto taxes.
Here are our crypto tax professionals' top picks, followed by comprehensive reviews of the seven best crypto debit cards on the market today.
Methodology
How our crypto tax professionals selected the best crypto debit cards
Best crypto debit cards of 2024
Here are our expert picks for the best crypto debit cards of 2024 to help you find the best card for your goals and how you use crypto. These short reviews feature overviews, pros and cons, and why we like these crypto debit cards.
Uphold
Best crypto debit card for the UK
The Uphold Card offers a Mastercard debit card usable globally wherever Mastercard is accepted. This versatile card functions physically and virtually, enabling spending using assets in your Uphold wallet—cryptocurrencies, precious metals, commodities, and fiat.
Binance
Best for Binance users seeking cashback
The Binance VISA debit card links directly to your Binance wallets, making it very easy to use. The Binance cashback rewards are very appealing: you can earn up to 8% back on transactions.
BlockCard
Best crypto debit card for US traders seeking cashback rewards
The BlockCard VISA from Unbanked is an all-around good pick for US traders, who have fewer options than their European counterparts. It has cashback rewards on an unlimited volume of purchases, with rates capping out at 6%.
Coinbase
Best crypto debit card for Coinbase users wanting crypto rewards
The Coinbase VISA card links directly to your Coinbase wallets, which means you won’t have to preload crypto like you would on most crypto debit cards.
Crypto.com
Best crypto debit card for traditional perks with crypto cashback rewards
If you’re used to the kind of perks you often receive from traditional debit or credit cards, the Crypto.com debit card might be the right choice for you. Among the five tiers of cards, you get rewards like reimbursed Spotify, Netflix, and Amazon Prime subscriptions, discounted hotel and AirBnb rates, and free access to airport lounges.
Monolith
Best crypto debit card for DeFi enthusiasts
Monolith, built on the ETH chain, is the only DeFi platform on this list—there's no custodian involved. Notably, it supports ETH and any other ERC-20 token, giving altcoin holders a lot to be excited about.
Wirex
Best for travelers seeking cashback rewards
The Wirex VISA card is a solid option for international travelers, supporting over 150 fiat currencies and live customer support. Additionally, it has cashback rewards and some of the lowest fees out there: just a 1% fee to top up your account.
What is a crypto debit card and how does it work?
Crypto debit cards help bridge the gap between the crypto and traditional markets, letting holders use their cryptocurrency for everyday transactions and ATM withdrawals. Here’s how they work:
Using an app or website, an investor pre-loads a crypto debit card with a set amount of cryptocurrency.
When a cardholder uses the card for a purchase, the card provider automatically converts the proper amount of the preloaded funds into fiat currency and transfers that cash to the seller.
Most crypto cards are offered by CeFi exchanges in conjunction with major card providers like VISA or Mastercard, making them available for use at millions of vendors worldwide and online.
Can you withdraw money from a crypto debit card?
Yes, you can typically withdraw money from a crypto debit card. These cards are designed to bridge the gap between the world of cryptocurrencies and traditional finance, making it possible for you to use your crypto assets for everyday transactions and even withdraw cash from ATMs.
Why get a crypto debit card?
Crypto debit cards allow you to spend your crypto easily. Additionally, they also offer several other advantages:
No or low fees for membership or purchases made while traveling internationally
Protection from unfavorable currency exchange rates
No bank account requirement
Allow you to use multiple wallets and cryptocurrencies
Many offer rewards for spending in the form of crypto “cashback”
While cashback rewards for traditional debit card spending are typically relatively low (1–2%), crypto debit cards can offer significantly higher cash-back amounts, depending on the provider.
Do I need a good credit score to apply for a crypto debit card?
No, you don't need a good credit score to apply for a crypto debit card. Unlike traditional credit cards, which often require a credit check and a good credit score, crypto debit cards don't typically have such requirements. These cards are linked to your existing cryptocurrency holdings, and the process is more focused on verifying your identity and ensuring security.
Take advantage of crypto debit rewards
Crypto debit cards offer a unique opportunity to take advantage of rewards while using your cryptocurrencies for everyday transactions. Our crypto tax experts have carefully evaluated these cards to guide you in making the most of their benefits. Here's how you can maximize the rewards offered by crypto debit cards:
First, make sure to choose a crypto debit card that suits your needs and preferences. Our experts have assessed various cards based on factors like user-friendliness, rewards, and fees to help you find the right one.
Many crypto debit cards offer rewards for using them. These rewards could be in the form of cashback, discounts, or other perks. Our analysis has highlighted which cards offer the best rewards and how to earn them.
Check which cryptocurrencies and regular currencies the card supports. Our evaluations cover this aspect, so you can select a card that matches the currencies you hold.
Be mindful of any fees associated with the card. Some cards might charge fees for certain transactions or activities. Our assessments outline these fees, helping you make informed decisions.
Safety matters. Choose a card with strong security protocols to protect your information and assets. Our experts have taken this into consideration when selecting the recommended cards.
Gain insights from user reviews to understand how well the card's rewards and features work in real-world scenarios. Our evaluations consider user feedback to ensure you're well-informed.
By following these steps and leveraging the insights provided by our crypto tax experts, you can confidently use a crypto debit card to enjoy rewards while conducting your day-to-day transactions. Remember, while our analysis provides helpful guidance, we strongly urge you to conduct your own research and select the card that aligns best with your preferences and goals.
Tax implications of crypto debit cards
Every time a crypto debit card is used, a crypto taxable event is triggered. The IRS considers every sale, trade, or disposal of cryptocurrency a taxable event. Thus, when the card provider converts crypto into fiat currency, the cardholder has realized a capital gain or loss. The user must report the transaction on their tax filing and may owe capital gains taxes on the transaction, in addition to any sales tax paid for the purchase of a good or service.
Example: Charlie wants a cup of coffee from a local bakery. His hot latte costs $3.00, and because he lives in California, is subject to a 7.25% sales tax. This makes his total $3.22.
Charlie pays for his drink with his BTC debit card. At the time of the purchase, BTC is trading at $35,000, so his card provider converts .000092 BTC into cash. Because the BTC Charlie preloaded on his card was originally acquired when BTC was trading at $30,000, Charlie has realized a capital gain:
(.000092 x $35,000 = $3.22) - (.000092 x $30,000 = $2.76) = $.46.
Charlie must report this 46-cent gain and pay corresponding capital gains taxes.
Even if transactions are for small amounts, the frequent use of crypto cards can result in a large number of taxable events that need to be reported. This can be difficult for those who file by hand or with tax software that isn’t designed for crypto investors. However, crypto tax software can significantly simplify this process.
Frequently asked questions about crypto debit cards
Here are answers to frequently asked questions about the best crypto debit card options for crypto enthusiasts around the world.
Are crypto credit and debit cards safe?
Crypto credit and debit cards generally prioritize safety and security. Our team of crypto tax experts has diligently assessed the cards in this article, with a focus on security. We've looked for rigorous encryption standards, two-factor authentication, and other safeguards that provide users a secure and reliable experience. That noted, always do your own research and understand the risks involved before undertaking any activity in crypto.
What is the most anonymous crypto debit card?
Monolith stands out as one of the most anonymous options among the crypto debit cards we've assessed. Monolith is built on the Ethereum blockchain, which means it's decentralized and doesn't involve a custodian. It supports a range of cryptocurrencies and doesn't require extensive personal information, offering a level of privacy.
Where can I use a crypto debit card?
You can use a crypto debit card at millions of vendors worldwide and online, much like a traditional debit or credit card. Our analysis considered the availability of each card in various regions, making them versatile tools for conveniently spending your cryptocurrencies.
How do I report transactions made with a crypto debit card on my taxes?
The IRS typically considers each transaction made with a crypto debit card a taxable event. You'll need to report these transactions on your tax return, similar to any other cryptocurrency transaction. It's important to keep track of each transaction's date, amount, and purpose to report them on your tax forms accurately.
Are there any tax benefits to using a crypto debit card?
While using a crypto debit card offers convenience, it also comes with tax implications. Every time you use the card, you're triggering a taxable event by converting cryptocurrency into fiat currency. However, if you hold the cryptocurrency for more than a year before using the card, you might qualify for long-term capital gains tax rates, which typically are lower than short-term capital gains tax rates.
Do I need to pay taxes on the rewards I earn with a crypto debit card?
Yes, any rewards you earn with a crypto debit card, such as cashback or discounts, are considered taxable income by the IRS. You'll need to report these rewards on your tax return and pay taxes on them according to your tax bracket. Be sure to keep track of these rewards throughout the year to accurately report them at tax time. If you have any questions, consult one of our crypto tax professionals for guidance.
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