5 Common Mistakes to Avoid When Using Crypto Debit Cards
By Tobi Opeyemi Amure
AI summary of the source article
Using crypto debit cards involves potential costs and risks, including conversion spreads, capital gains tax events, and third-party issuer disruptions. Overlooking fee schedules, tax regulations, and partner issuers can lead to unexpected losses or interrupted services.
Key facts
- Coinbase states its debit card has no transaction fees, but applies a spread when users trade cryptocurrencies.
- In the United States, the IRS treats digital assets as property, meaning spending cryptocurrency can trigger capital gains or losses.
- Binance ended its EEA Visa card services in December 2023, affecting approximately 1% of users after issuer Contis Financial Services ceased card issuance.
Source excerpt · FinanceFeeds
Crypto debit cards let users pay for everyday purchases without manually selling cryptocurrency before every transaction. They connect cryptocurrency accounts to conventional payment networks, allowing users to pay merchants that accept supported cards. The process is convenient, but it is not cost-free or tax-neutral. A card purchase can involve conversion spread, issuer charges, tax obligations,…