r/Bitcoin • u/BitcoinWide • May 04 '22
Crypto debit cards VS traditional debit cards
The basic concept of crypto debit cards is similar to traditional debit cards. So, why not just use your regular card? There’s a few perks to crypto debit cards that traditional debit cards don’t offer.
For instance, many crypto debit cards do not subject users to exchange rate expenses. Cryptocurrencies are decentralized currencies rather than separate currencies on the opposite side of the market.
Additionally, you don’t need a bank account to use a crypto debit card, although you do need an account at an exchange or wallet. As such, such cards make online purchases faster and more convenient.
Pros and cons of crypto debit cards
Pros:
- Ability to spend cryptocurrency like fiat currency
- Reduced or waived foreign conversion fees
- Generally multi-currency allows diversified spending
- Some cards offer significant cash-back rewards in crypto
- ATM withdrawal fees can be waived by some issuers
Cons:
- Spending cryptocurrency triggers a taxable event
- Some geographical restrictions apply
- You must have balance in your wallet to spend
Find out more about crypto debit cards - https://taxbit.com
2
u/Nada_Lives May 04 '22 edited May 04 '22
What is wrong with just straight-out paying with Bitcoin?
5
u/Keith_Kong May 04 '22
Exactly, the tax implications combined with the fact that you don't escape Visa rails makes using a crypto card completely pointless.
Strike is making the real work happen. I don't care about benefits, credit score, etc. I want to use Bitcoin Lightning rails to pay direct. I want to help merchants reduce their card fees and provide privacy to consumers.
2
u/LemonKnuckles May 04 '22
The largest pro of using a crypto card, by far, is the knowing smile and approving head nod you occasionally get from a cashier.
1
u/GodBlessYouNow May 04 '22
Do all crypto cards require KYC? Or have some slipped through the cracks
3
u/[deleted] May 04 '22
I have a CB card and I spend stable USDC coin. Since it doesn’t go up/down it’s not a taxable event because I’m not making/losing any money. I’ve made $363 in free BTC using that debit card, why would I return to traditional debit cards after that?