Crypto Debit Card: Blockchain Expert Explains Why Consumers Should Be Cautious When Opening an Account

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The crypto debit card is becoming a thing since various brands of digital coins appear in the blockchain market.

(Photo: Photo by OZAN KOSE / AFP via Getty Images)
A bitcoin symbol is pictured at a cryptocurrency exchange branch near Istanbul’s Grand Bazaar on October 20, 2021, a day after Bitcoin moved closer to mainstream investing with the launch of new security at Wall Street tied to cryptocurrency futures.

Despite the upward and downward trends in these cryptocurrencies, new investors are still coming in because they believe that Bitcoin and other digital coins could be of benefit to them financially in the long run.

If you are one of those people who already own cryptocurrency, you may already have your own crypto debit card or are considering having one.

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

Crypto Debit Card: Why You Should Be Careful With It

Ozair claimed that cryptocurrency debit card providers typically advertise exciting reward programs to entice consumers. He added that they could also claim that their crypto debit cards have low fees.

Crypto Debit Card: Blockchain Expert Explains Why Consumers Should Be Cautious When Opening an Account

(Photo: Photo by Chris McGrath / Getty Images)
A woman uses an ATM machine next to a Bitcoin ATM in a shopping mall on April 16, 2021 in Istanbul, Turkey. The Central Bank of Turkey has 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 the Turkish crypto market has exploded in recent years.

Also Read: Most Recommended Cryptocurrency Wallet Tracker Apps For Investors and Traders [2021]

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

That’s why Merav urged new consumers to read all the fine print before opening their own account. Besides the fees, the Wolf Group’s international tax director, Mishkin Santa, said blockchain consumers could also be taxed if they open a crypto debit card account.

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

Is crypto debit card the same as a conventional debit card?

NDTV explained that crypto debit cards actually work like traditional cards.

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 see this connect to see more details. In other news, blockchain experts have confirmed that the USDT’s supply is now higher than that of the USDC. On the other hand, cryptocurrency CEOs plan to discuss the domestic competitiveness of blockchain coins in the United States.

For more updates on cryptocurrencies and other related topics, always keep your tabs open here at TechTimes.

Associated article: Crypto Watch Sunday: Top Crypto Falls To $ 41,000 With $ 2.5 Billion Wiped Out | Bear market?

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Written by: Griffin davis

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