![]() Coinbase, for example, lets you fund your card with USD or USDC. Stablecoins track the value of fiat currencies, like USD, so there’s no gain and, therefore, no taxes. You can fund your account with USD or a stablecoin alternative such as USDC or USDT. Neato.Įxcept… that this could mean you’ll have to pay capital gains tax (assuming you have a gain since you bought it).īut there’s a workaround to the tax conundrum. Here’s how: When you spend your crypto, the exchange sells it on the open market–giving you cash in return. The big difference compared to a bank debit card is that you’re earning crypto rewards while spending. With a crypto debit card, you’re using the cash or crypto in your account - just like you would be using the cash in your bank account when using a regular debit card. How Do Crypto Debit Cards Work?Ĭrypto debit cards or prepaid cards work much like a debit card from your bank, meaning you’re not borrowing. Others work more like prepaid cards, meaning you have to fund them with cash and top them up when the balance gets low. Some are really debit cards - which means you’re spending your cash or crypto. Your crypto does the talking rather than a credit application.īut all crypto rewards cards aren’t the same. Nexo won’t pull your credit because the credit line is backed by your own crypto you deposit as collateral. The one exception above is the Nexo card. The hard pull will ding your credit score, but the effects fade over time - as long as you don’t keep applying for new credit. ![]() If you decide to go through with the crypto credit card application, that’s when they do a hard pull, which is a request for new credit. The card issuer peeks at your credit history, but it’s not a request for credit - not yet. That just means they do a soft pull on your credit. You might see some marketing lingo about instant approvals on various sites. Credit cards mean credit checks, and those can impact your credit score. Ignore the crypto part for a moment and focus on the credit card part because all credit cards work similarly. Yowsa.īy comparison, most rewards top out at 3%, so it doesn’t make sense to carry a balance just to earn some rewards. But if you don’t pay the balance in full, you’ll have to pay interest (which will be waaayyy higher than the rewards you can earn).Įxpect interest rates similar to what you’d get with traditional credit cards, with rates ranging from about 15% to 27%. With a crypto rewards credit card, you’re borrowing money - which isn’t always a bad thing. The main difference is that the rewards you earn are paid in crypto or in points that can be redeemed for crypto rather than earning miles or statement credits. No annual feeOffers 3% cash back on the category of item that you spend most on, 2% on the next, and 1% on the restIs available to all US residentsĪ crypto rewards credit card works much like a standard rewards credit card: You earn rewards for making certain types of purchases. No annual feeOffers 3% cash back on dining, 2% on groceries, and 1% on every other expenseEarn rewards immediately Multiple reward tiersAvailable in all 50 states except New YorkFree Netflix, Spotify, and Amazon Prime on top tiers No annual feeCan retrieve points for crypto, fiat, travel, or gift cardsNo APR for 12 months Low APRsNo credit checkNo minimum repayments or fees Spend in 100+ cryptosCan fund the card via PayPal or bank account to spend fiatAvailable in all 50 states except Hawaii If you live in the US and need a credit line with crypto rewards, look at the Gemini card. ![]() ![]()
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