If you want to pay with cryptocurrency but find yourself having to keep track of multiple exchanges and wallets, one way to simplify your life is with a crypto debit card. These plastic cards enable you to make payments with bitcoin or other cryptocurrencies directly from your bank account.
They act like any other debit card, but instead of converting cryptocurrency into dollars or euros when you make a payment, they simply deduct the equivalent amount from your crypto wallet. You then withdraw the funds in cash (or use them for other purchases), which can be done almost as easily as if you were making a regular withdrawal from your bank account.
What is a Crypto Debit Card?
Crypto debit cards are essentially debit cards that pull from your cryptocurrency wallet. They allow you to spend your crypto holdings in the same way that a regular debit card connects to your bank account. Some crypto debit cards are generic and linked to multiple cryptocurrencies, while others are only able to access specific cryptos, like Bitcoin. Either way, all you need to do is load up your balance with whichever crypto debit card you choose and start spending.
Ordering and Applying for Crypto Debit Cards
Zero charges on deposits. In a few simple steps on the bitcoin era website, you can apply for your Crypto Debit Card and set spending limits that suit your needs. Spend your crypto on the go, top up the card at any time – and the best part is that it is free to sign up.
Are Crypto Debit Cards as Secure as Regular Debit Cards?
If you’re a crypto card user, you’re probably already familiar with the numerous features and benefits of this revolutionary form of payment. What you may not have considered is how secure crypto debit cards are in comparison to traditional debit cards. Unbeknownst to many, while they bear a similar appearance and serve similar purposes, crypto debit cards are, in fact, a lot more secure than traditional debit cards.
What are The Tax Implications of Crypto Debit Cards?
For most people who use Bitcoin, the primary benefit is anonymity – yet there are tax implications to using a crypto debit card. That’s because every time you convert your bitcoin into fiat money to pay for something, it’s considered a capital gain and subject to taxes.
The Internal Revenue Service (IRS), the HMRC and other tax bodies may consider cryptocurrencies to be subject to tax purposes, which means that paying for goods and services with a crypto debit card may cause a taxable event. Therefore, you should take advice from a qualified tax professional on how using such a card might affect your tax liability.
Does Crypto Debit Card Attract Fees?
If you spend crypto at a store, you probably use your Coinbase Card, BitPay or Crypterium debit card. Bloomberg reports that Visa is going to charge them all more. That’s a problem for the companies, which don’t want to pass on the cost to customers by raising fees or transaction minimums. Therefore, if you have a crypto debit card, you might have been hit with fees at some point. This applies even when converting dollars to cryptocurrency.
Getting your cryptocurrency set up to spend with a debit card can happen in a matter of minutes. Once you’ve established an online wallet, transfer your currency, and start using it as soon as it’s ready. The process is almost instantaneous and can be used to pay for everything from coffees to couches.