When it comes to crypto, there are a lot of different options for payments. You can use crypto to buy goods and services online, or you can use crypto to store value. But what about using crypto as a form of payment? Is using a crypto credit card a good idea?
Crypto Credit Cards
Crypto credit cards offer a way to use crypto as a form of payment. There are a few different crypto credit cards available, but the most popular is Crypto.com. Crypto.com is a crypto wallet and crypto card that allows you to spend your crypto in over 200 countries.
So is paying with a crypto credit card a good idea? It depends on your needs and goals. If you want to use crypto as a form of payment, then a crypto credit card is a great option, but there are downsides.
Overall, crypto credit cards are a great way to use crypto as a form of payment, but there are some downsides to be aware of. Make sure you understand the fees involved and the tax implications of using crypto before deciding whether or not a crypto credit card is right for you.
The downsides of paying with a crypto credit card include?
For one, crypto credit card fees can be high. But on the upside, crypto credit cards offer a way to easily spend your crypto, and they're a great way to start using crypto as a form of payment. If you're comfortable with some of the high fees, then utilizing a crypto credit card might be right for you.
One downside of paying in crypto is that each transaction is technically taxable. When you pay for something in crypto, it counts as a sale, which incurs some form of taxes, either a gain or a loss.
If you're using crypto to pay for goods and services, you'll need to make sure you keep track of your transactions so that you're aware of any tax implications.
If you use your card frequently, that means that you'll be incurring a significant amount of taxable transactions. All of these need to be tracked and handed over to your tax accountant or DIY tax software come tax time. This can be overwhelming if you're doing it by hand, but utilizing tools like Ledgible is a great way to automatically compile and track your crypto transactions. Ledgible's free year-round transaction monitoring solutions help you keep track of your potential tax burden in real-time.
What are the fees associated with crypto.com credit cards?
Crypto.com credit cards come with a few different fees, including an annual fee, a loading fee, and a foreign transaction fee.
The annual fee is charged once per year, and it's generally around $50. The loading fee is charged every time you add crypto to your card, and it's usually around 2-5%. The foreign transaction fee is charged anytime you use your crypto card abroad, and it's usually around 3%.
These fees can add up to a lot over time, so make sure you understand what you're getting into before applying for a crypto credit card.
What are the benefits?
Crypto credit cards offer a few benefits over traditional credit cards. For one, crypto credit cards are easier to use than regular credit cards. With a crypto credit card, you can spend your crypto in over 200 countries. Plus, crypto credit cards come with a crypto wallet, so you can easily store and use your crypto on the day to day.
In essence, crypto credit cards are paving the path to assuring crypto adoption is as smooth and as simple as possible.
Making crypto payments to be as frictionless as swiping a card is crucial in order for crypto to be adopted on a larger scale.
A Summary
Overall, crypto credit cards are a great way to use crypto as a form of payment. They're easy to use and come with a crypto wallet, which makes them a great option for anyone looking to start using crypto. However, crypto credit cards come with high fees, so make sure you understand what you're getting into before applying. Additionally, remember that each crypto transaction is taxable, so keep track of your transactions throughout the year if you're planning on using crypto credit cards - either manually or by utilizing tools like Ledgible.
