Best Crypto Debit Cards (2023 Expert-Reviewed) (2024)

More and more crypto debit cards are hitting the market, often with attractive rewards for daily spending. You may be considering getting one or may have questions about how these work. In this article, we explain what crypto debit and credit cards are, their pros and cons, and ways they might impact your crypto taxes.

Here are our top three picks, followed by comprehensive reviews of the seven best crypto debit cards our crypto tax professionals have identified.

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.

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:

1. Using an app or website, an investor pre-loads a crypto debit card with a set amount of cryptocurrency.

2. 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.

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.

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:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

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.

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?

Among the crypto debit cards we've assessed, Monolith stands out as one of the most anonymous options. 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, similar to how you would use a traditional debit or credit card. Our analysis considered the availability of each card in various regions and can be used around the world like traditional debit cards. This makes them versatile tools for spending your cryptocurrencies conveniently.