Crypto Debit Card: Blockchain Expert Explains Why Consumers Need to be Careful When Opening an Accou

Crypto debit card is now becoming a thing since various digital coin brands appear in the blockchain market.

A bitcoin symbol is pictured at a cryptocurrency exchange branch near the Grand Bazaar in Istanbul on October 20, 2021, a day after Bitcoin took another step closer to mainstream investing with the launch of a new security on Wall Street tied to futures of the cryptocurrency.

Despite these cryptocurrencies' up and down trends, new investors are still arriving since they believe that Bitcoin and other digital coins could financially benefit them in the long run.

If you are one of those individuals who already own cryptocurrencies, you might already have your own crypto debit card or you are thinking of having one.

However, Merav Ozair, a blockchain expert at Rutgers Business School, explained that you and other interested consumers need to be careful when opening a crypto debit card account.

Crypto Debit Card: Why You Need to be Careful With It

Ozair claimed that cryptocurrency debit card providers usually advertise exciting reward programs to attract consumers. He added that they might also claim that their crypto debit cards have low charges.

A woman uses a bank ATM next to a Bitcoin ATM machine at a shopping mall on April 16, 2021 in Istanbul, Turkey. Turkey's Central Bank announced a ban on the use of cryptocurrencies and crypto assets for purchases, directly or indirectly to pay for goods or services. The announcement comes as Turkey's crypto market has boomed over the past few years.

However, the fintech professor clarified that these digital coin cards hide the fees automatically deducted from your crypto. Ozair further explained that crypto debit cards don't include penalties in their advertisements.

This is why Merav urged new consumers to read all the fine print before opening their own accounts. Aside from fees, The Wolf Group International Tax Director, Mishkin Santa, said that blockchain consumers might also be taxed if they open a crypto debit card account.

“I would advise people to really be careful and educate themselves about the tax implications when it comes to these credit and debit cards,” explained the tax expert via US News.

Is Crypto Debit Card the Same With Conventional Debit Card？

NDTV explained that crypto debit cards actually work just like the traditional ones.

The only difference they have is that you can actually use these blockchain cards to purchase items using your digital currencies, such as Ethereum, Ripple, Bitcoin, and other brands.

You can view this link to see more details. In other news, blockchain experts confirmed that the USDT supply is now higher compared to USDC. On the other hand, cryptocurrency CEOs plan to discuss the national competitiveness of blockchain coins in the United States.