Crypto Debit Cards For Getting Paid in Crypto
These days more and more people are getting their hard-earned paycheck in crypto, and with services like crypto debit cards, daily crypto spending really couldn’t be easier!
For employees, getting paid in crypto can mean quick payments, high security and lightning-fast investment. For employers, paying your staff in crypto can mean automated smart contracts, ironclad record-keeping and lower administrative costs.
Unsurprisingly services like these have led to a boom in crypto payment popularity, especially among millennials and Gen Z’ers, with 36% of people under 30 reporting interest in getting paid in digital currency.
So in this article, we are going to be talking about how you can get paid and how to spend, all in cryptocurrency.
What’s in This Guide?
Can I Get Paid in Crypto?
With 10% of adults intending to use crypto regularly throughout 2022, crypto payment options are becoming more and more common. So depending on your line of work, there’s a good chance that the employer already has this option in place!
Industries like freelance writing, Fintech and crypto, in general, will often provide you, if not outright encourage you to get your earnings via crypto.
Other industries, however, can be a bit hesitant to engage with crypto as payment, either lacking the technical know-how or harboring concerns over volatility. Thankfully a lot of these issues are addressed by services like Bitwage, which offer service solutions for crypto employee payment management.
So if your employer doesn’t offer crypto as payment, it might be worth mentioning services like Bitwage.
How to Get Paid in Crypto
As an employee getting paid in crypto can be pretty straightforward, requiring little more than an active crypto wallet and an arrangement with your employer.
While other businesses will use more automated technical means to pay employees in crypto.
In highly technical industries, employers will often utilize services like Bitwage or other Smart Contract solutions to create automated payment opportunities for their workers. These Smart Contracts are mutually established, setting up a series of conditions for the contract. So when the conditions are met, the contract is paid.
But once you get paid in crypto, how do you go about spending it? That’s where crypto debit cards come in.
What is a Crypto Debit Card?
In essence, a crypto debit card is a service that allows you to spend cryptocurrencies with a simple tap, scan or swipe of your physical card or virtual card.
For many crypto users, crypto debit cards represent one of the most important steps forward for day-to-day crypto spending, allowing people to spend crypto for everything, from a cup of coffee to their Netflix subscription.
For businesses and retailers, crypto debit cards allow them to accept crypto-as-payment with total confidence.
How Do Crypto Debit Cards Work?
In simple terms, a crypto debit card works pretty much the same way that a regular debit card does. By simply tapping, scanning or swiping you can purchase goods and services, both online purchases or in person with crypto. The only difference is that instead of spending fiat, your card will be using crypto assets in some form.
In terms of the specifics, this will work in one of three ways.
Crypto Rewards Debit Card
The most common way crypto debit cards operate is by converting crypto-to-fiat at the point of purchase. When you use these cards, your card will convert some of the stored cryptos in your account for the current market price, and then use that fiat for the purchase like a traditional debit card.
Crypto Rewards Credit Card
Another less common form of crypto card is best described as a crypto credit card, rather than a debit card.
These cards borrow fiat currency against the value of any stored crypto that you have. With this fiat, you can then purchase goods and services, but will have to pay back the difference either by selling said crypto or paying via some other fiat.
Crypto Rewards Prepaid Card
The final way crypto cards work is best referred to as a prepaid debit card or preloaded card. With these cards, you can manually sell your stored crypto within an exchange and then load that crypto onto a physical or virtual card. Once loaded, you can spend said fiat at your leisure.
Comparing Crypto Debit Cards
There are hundreds if not thousands of crypto cards available to you with Visa announcing nearly a hundred new card partnerships for 2022 alone.
While this is great news in terms of variety and choice, it can make picking out the right card for you a little complicated. So in this section, we are going to be talking about what to look out for in a crypto card, and later provide a list of some of the best cards on the market.
What to Look For
When you’re looking for a card, it’s easy to feel a bit overwhelmed by so many different services offering different cards, different rewards, tiers, perks and services.
But if you have a clear understanding of what your own needs are before jumping in headfirst, you can save yourself some time and even money.
Ask yourself some questions, like how much am I willing to pay? What kind of digital assets would I like to spend? Are there any regional considerations I need to be aware of? Would I like my card to have additional services like a digital wallet, crypto exchange or other DeFi services?
Perks and rewards
When you have a clear picture of what you need from a crypto debit card it’s time to start asking yourself about what kind of perks and rewards you want.
With so much competition in the crypto card market, providers have started to offer some impressive rewards programs, cashback incentives and even discounts for main brand services and retailers like Amazon, Netflix, Tinder and Spotify.
So shop around and see how far a card can take you. But be aware, some companies who offer great rewards and discounts may have complicated terms and conditions attached to them.
Most people now understand they should be looking for cheap rates when it comes to card providers. Often crypto card providers will advertise their lowest rates regarding their exchange rate, conversion fees on crypto transactions and ATM withdrawal fees.
But wise customers will know that crypto debit cards can come with some hidden or less obvious fees that companies may not be so upfront about.
Crypto cards can have maintenance fees, card issuance and reissuance fees, penalties for inactivity, cross-border payment charges as well as strict limitations in spending, top-ups and withdrawals.
So make sure you look into a provider in detail before entering into any contract or providing private information about yourself.
Top Crypto Debit Cards for Getting Paid in Crypto
So now that you have an idea about what to look out for, let’s take a look at some of the top crypto card issuers on the market. It’s worth noting that “crypto debit card ” is a colloquial term for “crypto bank card,” and that generally speaking, we’re talking about what are known as crypto cards.
CryptoWallet launches its card in 2023, and will support the most amount of coins in the world!
- Over 10,000 supported cryptos, the most of any card (nearest competitor supports under 100 cryptos)
- Direct spending – unlike many competitors, user crypto wallets are updated automatically
- SPEND to Earn – earn SPEND tokens in cashback with every purchase
- Lacks some of the more advanced trading features
The Brex 30 card, which is best described as a charge card, allows users to spend money and earn back rewards in cryptocurrency. Requiring full payment of the card’s charges every day for 30 days, this card is best suited for corporate clients not looking to maintain any long-term balance.
- Low fees and decent discounts for use across
- Potentially high credit limits
- Not suited for many day-to-day clients.
- Inflexible payment structure
- No annual maintenance fee
- No hidden fees
Gemini Credit Card
The Gemini Credit Card offers a dependable credit card that offers crypto rewards and clear fees. While perhaps not as flashy as other cards, it is a solid, dependable option for customers.
- Flexible crypto rewards in Bitcoin, Ethereum or other Gemini-hosted cryptos
- Clear and consistent cashback and rewards rates
- Limited perks available
- No signup bonuses or other discounts
- Domestic Transaction Fees: 3.49%
- Foreign Transaction fees: 3%
Crypto.com Visa Card
A somewhat famous/infamous addition to the list, Crypto.com’s Visa Card offers fantastic rewards, often held behind complicated tier systems, paywalls and staking conditions. Great opportunity for high-tier investors.
- Fantastic rewards for high-tier CRO token holders
- Massive cashback/discount opportunities for certain customers
- Highly complex rewards structure
- Requires long-term staking of Crypto.com’s native token CRO for best rewards.
Note: All fees are relative to specific loyalty/investment tiers.
- Domestic Transaction Fees: 2.99%
- Foreign Transaction fees: Free
SoFi Credit Card
Often considered to be one of the more hassle-free card providers on the market, Sofi’s Visa card is a solid option for newcomers to the crypto debit card space.
- Low transaction and maintenance fees
- Strong reputation for customer support
- The primary focus is on US customers
- Top-tier rewards are reserved for top-end clientele
- Domestic Transaction Fees: Free
- Foreign Transaction fees: 3%
Frequently Asked Questions
Where can I use a Bitcoin debit card?
These days crypto debit cards are often backed by a massive corporation like Visa or MasterCard, and as such are accepted in millions of stores worldwide.
Are Bitcoin debit cards safe to use?
Very safe! Crypto debit cards and crypto credit cards work very similarly to regular credit cards and traditional credit and debit cards and are widely considered to be a safe, reliable form of payment.
Do you have to pay tax on your crypto debit card transactions?
Yes, there are tax implications for crypto debit card transactions. Crypto debit card transactions are often subject to some form of crypto taxes, capital gains tax or capital loss tax. So strict record keeping will be required to keep all of your tax obligations in order.