The very first crypto card was released back in 2014 by Xapo, and since then, they’ve exploded in popularity.
Being able to spend crypto virtually anywhere with a tap, scan, or swipe of a card makes crypto spending easy. That’s why there are hundreds of different crypto cards available today!
That’s why in this article we are going to be covering the 7 most important things to consider when choosing your very own crypto debit card in 2023.
Table of Contents
Is There a Service in Your Location?
In general, most crypto cards will be partnered with either Visa or MasterCard, and this means that they are accepted in pretty much any store at the point-of-sale, or POS.
There are, however, some exceptions.
Countries can vary in terms of their crypto-friendliness, with countries like China, India, and Turkey having strong regulations against crypto and countries like Singapore, Portugal, and Germany being rather crypto-accepting.
So it’s important to keep this in mind when shopping around for a crypto card.
Another thing to keep in mind is that different crypto card companies will tend to focus their services on one economic region. For instance, Coinbase Card is a largely US-focused company, and CryptoWallet Debit Card is more focused on the EU, so look for one that suits your location.
Do You Have to Pay Transaction Tax?
Regardless of what crypto card you choose, in general, you will have to pay tax of some kind.
Most crypto cards operate by converting some crypto into fiat at the point of sale. This means that at the point of sale, your card is selling a digital asset, which, depending on whether it has gone up or down in value, will be counted as a capital gain or a capital loss.
Keeping track of your crypto tax can be a real pain, but thankfully there are a few companies out there who can help with this. Koinly and Accointing are just two companies that offer services that will tally up your crypto tax obligation for you.
How Many Types of Cryptocurrencies Are Supported
There are roughly 22,000 cryptocurrencies on the market today. So when it comes to your crypto card, make sure you can spend the crypto you want to!
Most crypto card issuers will offer big-name crypto for you to spend and even often earn rewards on. This will be your Bitcoin crypto card, Ethereum, Litecoin etc.
But some other cards will offer massive varieties of cryptos for you to choose from.
The CryptoWallet card, for example, will support over 800 cryptos and allow for direct spending with no conversion necessary. Sign up to order your card here!
What Fees and Exchange Rates Apply?
Depending on the card issuer and the country you are in, card fees and exchange rates will vary.
In general, most cards will charge a fee at a few key points.
ATM withdrawal fees, monthly/yearly maintenance fees, and general transaction fees are probably the three main charges you’ll be looking out for when shopping around.
Often, finding the best rate on a crypto debit card is not just about finding the lowest advertised rate, it can also be about finding the best value for you and your location.
But there are other charges to keep an eye out for!
Some card companies will have hidden fees, such as inactivity fees, overdraft fees, and card issuance or re-issuance fees, to look out for.
Are There Spending and Withdrawal Limits?
Most cards will have a spending, ATM withdrawal, or transaction limit of some kind. These can be weekly, monthly, or yearly and depend on your card issuer and, in some cases, the “level” of the card.
Some cards, like the Crypto.com card, will have a tier or level system to their card, with the higher, more expensive cards having much higher spending limits than their cheaper counterparts.
But in general, most cards will have ATM withdrawal limits in the $1,000- $10,000 range and card loading limits in the $10,000-$20,000 range.
So when you’re looking for the card that suits you, make sure it has limits that suit your financial lifestyle.
We all need a little help now and then, which is why customer support is so important.
All too often in the world of crypto, customer support is overlooked, and that’s something a customer misses when they need it. A really good crypto card provider will give you all the tools and support you need if any issue arises.
This can include a contact number for you to talk to a professional, a contact email address, a chat box, or a social media address that you can get in touch with if you need it.
So when you choose a crypto card, make sure your provider has all the necessary information for if/when you need it.
Design and Material of Manufacture
It might not be important to everyone, but having a card that’s sleek, well-designed and tough can be very important when choosing a crypto card.
Companies can offer a range of crypto cards, from virtual cards stored on your phone or device to common plastic cards and even sleek metal ones.
Some companies will even go the extra step and allow you to personalize your card with custom designs, catchphrases, or images.
Something to keep in mind is that many companies will charge a card issuance fee, while others, like the CW Card, do not.
Looking for the right crypto card is all about finding the one that suits you, and that means different things to different people.
Some people require cards with higher limits and lots of perks and don’t mind paying extra. Others need something a little bit more straightforward and don’t want to pay for extras they don’t need.
So when you shop around for the right card, ask yourself what kind of crypto you want to spend, what kind of fees you are comfortable with, and what is available in your area.
And remember that CryptoWallet is committed to unleashing your crypto’s full potential, offers a huge variety of cryptos for you to choose from, and does all of this without any hidden fees or surprises. You can earn SPEND tokens with every purchase, and unlike most competitors, your crypto balance will automatically update when you tap the card, with no conversion necessary on your end.
Our card launches in 2023 — join our whitelist here!