Andrea Muñozledo

To understand the importance of this technology, you must first understand the risk of the internet. A cold wallet is essentially a digital vault that is physically disconnected from the web. While "hot wallets" (apps on your phone or laptop) are convenient, they are constantly exposed to online threats like<a href="https://www.bydfi.com/en/support/FAQs/articles/3wtrkkh38g5r?title=How+to+Set+Up+Anti-Phishing+Code+on+BYDFi+%28APP%29" target=""> </a><a href="https://www.bydfi.com/en/support/ANNOUNCEMENT/articles/yu7mjskoevb2?title=BYDFi+Security+Alert%3A+Avoid+Phishing+Scams" target="">phishing</a>, malware, and remote hackers. If your computer is infected, a hacker could theoretically drain your hot wallet.In contrast, a cold device stores your private keys—the passwords to your funds—on a dedicated secure chip that never goes online. Even when you plug the device into an infected computer to make a transaction, the signing happens inside the device, and only the safe, signed result is sent out. This "air gap" between your keys and the internet is why cold storage is considered the gold standard for protecting significant amounts of wealth.

What is cold wallet technology and why is it safer?

This is the single biggest myth in cryptocurrency storage. It is vital to understand that your coins are not stored inside the plastic or metal device itself; they live on the blockchain network. The device simply holds the "keys" to move them. When you set up a cold wallet crypto device, you are given a "<a href="https://shop.ledger.com/pages/seed-phrase-storage?srsltid=AfmBOooBYnBON6vxcFB0ttc2yIC0Y_mvz1g0_ehtNOKFPDW5G_t-ezmg" target="">Seed Phrase</a>" (usually 12 to 24 words).If you lose your device, break it, or if it gets stolen, your funds are safe as long as no one else has your seed phrase. To recover your money, you simply buy a new hardware wallet (of any brand), select "Restore Wallet," and enter your words. Your entire balance and history will reappear instantly. This is why keeping that paper record safe—and offline—is actually more important than the device itself.

 What happens if I lose my hardware wallet? Is my crypto lost?

Yes, most experienced crypto users employ a "tiered" security strategy that uses both. Think of a hot wallet, like the BYDFi Web3 Wallet, &nbsp;as your physical wallet in your pocket: it is perfect for carrying small amounts of cash for daily spending, trading, or quick interactions with DeFi apps. It is fast, convenient, and free, but you wouldn't keep your life savings in it.On the other hand, think of a cold storage wallet as your bank vault or a safe buried in your backyard. This is where you store the majority of your wealth—your Bitcoin stack or long-term holdings that you don't plan to touch for months or years. By linking the two, you can transfer profits from your trading activities on BYDFi directly to your cold storage for safekeeping. Using this hybrid approach ensures you have the liquidity and speed for market moves, while maintaining the best cold wallet for crypto protection for your generational wealth.

Do I need both a cold wallet and a hot wallet?

Not at all. A few years ago, hardware wallets were technical tools for coders, but in 2025, user experience is a top priority. Devices like the<a href="https://tangem.com/en/" target=""> Tangem cold wallet</a> or Ledger Nano X are designed specifically for non-technical users. The setup process is guided step-by-step through a mobile app that looks just like any banking application you already use.Typically, the onboarding involves downloading the official app, connecting the device, setting a PIN code, and writing down your recovery phrase. The device itself will give you instructions on its screen. Many modern wallets even feature large touchscreens (like the <a href="https://trezor.io/?transaction_id=1023874478c66b27cc0a6b352d2f55&offer_id=133&affiliate_id=11167" target="">Trezor Safe 7</a>) that make typing and navigation intuitive, similar to a smartphone. If you can set up a new email account, you are fully capable of setting up a crypto cold wallet. The learning curve is small, but the security payoff is massive.

Are cold wallets difficult for beginners?

While many people specifically seek out a Bitcoin cold wallet, they often fail to realise that most of today's hardware wallets are actually built as, "Multi-Chains," which means they can protect and store thousands of different digital assets at once, so there's no need for a separate hardware wallet for <a href="https://www.bydfi.com/en/spot/btc_usdt" target="">BTC</a> and a second one for Ethereum to store these digital currencies.There are many leading hardware wallets on the market - like the Ledger Nano X, Trezor Model T and OneKey Pro, that support more than 5,500 coins and tokens, including the top three chains (<a href="https://www.bydfi.com/en/spot/sol_usdt" target="">Solana</a>, <a href="https://www.bydfi.com/en/spot/ada_usdt" target="">Cardano</a> and <a href="https://www.bydfi.com/en/spot/xrp_usdt" target="">XRP</a>), as well as thousands of ERC-20 tokens! This means that you only need one device to create unique "addresses" for every blockchain; each device creates these addresses mathematically through the same "Seed Phrase". It's always wise to verify a device's compatibility before you make a purchase (you can find compatibility information in the manufacturer's "supported coins" section). For example, while nearly all hardware wallets support Ethereum-based (EVM) chains, there may be some niche coins that aren't supported by all hardware wallets. Therefore, if you want to find the best cold storage solution for your <a href="https://www.bydfi.com/en/user/wallet-overview" target="">crypto assets</a>, you should look for the hardware wallet that has the largest asset repository.

Can a cold wallet hold any cryptocurrency, including Bitcoin?

Indeed! Many people believe that storing assets on a cold storage device means that they are unable to be accessed. However, with today's technological advancements, hardware wallets such as Ledger and Trezor allow you to stake cryptocurrencies directly using their apps (Ledger Live and Trezor Suite). You can delegate the use of your assets to validators in order to generate income <a href="https://www.investopedia.com/terms/a/apy.asp" target="">(APY)</a> without ever having to leave the private keys on the device.You can securely stake Ethereum, Solana, and Cardano with this method. Although the keys are stored offline, the assets still reside on a blockchain and will be able to participate in the network. Therefore, you can take advantage of the highest levels of security for your cold storage crypto while continuing to build your portfolio simultaneously. Advanced users also have the option of connecting their cold storage wallets to <a href="https://www.bydfi.com/en/moonx/markets/trending" target="">DEXes </a>and yield farms through<a href="https://walletconnect.com/" target=""> WalletConnect</a>, allowing them to trade and interact with such platforms while ensuring that every transaction approval is confirmed via physical button presses on the hardware wallet.

Can I stake and earn rewards while my assets are in a cold wallet?

Security experts universally recommend avoiding second-hand marketplaces or unauthorized third-party sellers when purchasing these devices. The risk is what is known as a "supply chain attack." A sophisticated scammer could buy a device, open the box, tamper with the internal chip or install malicious firmware, and then resell it as "new" on <a href="https://www.ebay.com/" target="">eBay</a>. If you use a tampered unit, the hacker could steal your funds the moment you deposit them.To ensure you are getting maximum security, you should always buy directly from the manufacturer's official website or authorized resellers (like<a href="https://www.bestbuy.com/home" target=""> Best Buy</a> in the US). Alternatively, take advantage of official partnerships, such as the <a href="https://www.bydfi.com/en/support/ANNOUNCEMENT/articles/w78xyacrnobt" target="">BYDFi x Ledger</a> collaboration, where the provenance of the device is guaranteed directly by the exchange. Never use a wallet that comes with a pre-filled recovery sheet in the box; a new device must always generate a new seed phrase on its screen upon first setup.

Is it safe to buy a hardware wallet from Amazon or eBay?

This distinction is crucial when choosing your device. A Bluetooth wallet (like the Ledger Nano X) prioritizes convenience; it connects wirelessly to your phone, making it easy to manage assets on the go. While the connection is encrypted and safe, some security purists prefer to avoid wireless signals entirely to minimize any theoretical risk. This is where "<a href="https://www.ibm.com/think/topics/air-gap" target="">Air-Gapped</a>" wallets (like Ellipal or SafePal) come in.An air-gapped device has no Bluetooth, no WiFi, and no USB data connection. It communicates solely via QR codes scanned by a camera. This creates a literal physical gap between your private keys and the internet. If you are a long-term holder with a very high net worth, an air-gapped model is arguably the safest option because it removes every possible remote attack vector. However, for daily users, the convenience of Bluetooth often outweighs the risks, as modern secure chips are designed to prevent wireless key extraction.

What is the difference between "Air-Gapped" and Bluetooth wallets?

Think of the cost of a hardware wallet not as an expense, but as a one-time insurance premium. Software wallets are free, but they run on devices (phones or laptops) that are constantly connected to the internet and full of potential vulnerabilities like malware, clipboard hijackers, and phishing links. If you hold significant value—anything you would be devastated to lose—the $70 to $150 cost of a dedicated device is negligible compared to the risk of losing your entire portfolio.When you acquire a hardware wallet, for example a <a href="https://trezor.io/" target="">Trezor</a> or Ledger device, you are effectively acquiring the hardware (Secure Element) that securely isolates your digital identity from the rest of the world around you, allowing you to achieve true sovereignty over your cryptocurrency. This way, your funds can only be accessed by you (physically) and cannot be accessed by any third party (e.g., hackers, exchanges, software bugs) without your explicit permission. As such, for serious investors, the peace of mind that comes from being able to store their<a href="https://coinknew.com/how-to-store-cryptocurrency-offline/" target=""> cryptocurrency off-line</a> (i.e., securely) will probably be the single greatest peace of mind you experience on your journey as an investor.

Why should I pay for a cold wallet when hot wallets are free?

Yes, because of increasing traffic on 2025's hybrid security model, exchanges are beginning to see that high-end users want as much of the benefits of both CEXs and cold storage. Rather than competing with each other, these exchanges are now working together to meet this demand. A prime example of this occurred recently at <a href="https://www.bydfi.com/en/support/ANNOUNCEMENT/articles/s6rmtcm2iz41?title=BYDFi+Partners+with+Ledger+to+Launch+Limited+Edition+Hardware+Wallet%2C+Debuts+at+TOKEN2049+Dubai" target="">TOKEN2049 in Dubai</a>, where BYDFi teamed up with Ledger to release an exclusive, co-branded Ledger Nano X. This limited-edition hardware wallet features custom branding and was launched to celebrate BYDFi’s 5th anniversary, symbolizing a commitment to user asset sovereignty alongside their "<a href="https://www.bydfi.com/en/moonx/markets/trending" target="">MoonX</a>" on-chain trading solution.An excellent historic partnership that exemplifies this hybrid approach is<a href="https://www.binance.com/en" target=""> Binance </a>and SafePal. As the first hardware wallet incubated by Binance Labs, SafePal was developed to allow for easy transfers between SafePal and Binance, which makes it a perfect example of how companies are working together to support the needs of their users. For you, the user, these partnerships are fantastic! This means major platforms are supporting users who want to manage and "self-custody" their digital assets. This provides you with all the tools necessary to continue active trading on BYDFi while keeping your long-term cryptocurrency wealth stored securely offline in a crypto cold wallet.

Do centralized exchanges partner with cold wallet providers for better security?

8 Best Cold Crypto Wallets 2025: Secure Your Assets

From Air-Gapped to Bluetooth: Comparing the Best Cold Crypto Wallets for Security, Features, and Compatibility in 2025

8 Cold Crypto Wallets of 2025

Cold wallets and hot wallets differ primarily based on how they interact with the Internet and how quickly one can access their funds. Hot wallets are all-time connected to the Internet and available on a mobile phone or computer to send crypto or trade or engage with a decentralized app (dApp). Because a hot wallet is connected to the Internet all of the time, it functions like a traditional physical wallet; it is quick, easy to use, and is suited for regular use.In contrast, cold wallets store <a href="https://www.investopedia.com/terms/p/private-key.asp" target="">Private Keys Offline</a>. Cold wallets typically look like USB drives (thumb drives) and do not have access to the Internet. To access your Private Keys from a USB drive, one must physically connect (plug) the USB drive into a computer or other device. Cold wallets are more secure than hot wallets; they are impossible to hack because the hacker cannot access a device that has never been connected to the Internet; therefore, they can only be hacked while plugged into the Internet. However, due to the extra security of being unconnected to the Internet, cold wallets have a major disadvantage in terms of time; therefore, cold wallets will lag behind hot wallets in terms of use for quick transactions.Finally, most experienced cryptocurrency users will use both a hot wallet and a cold wallet together; the cold wallet is used for longer-term storage of cryptocurrency and for using hot wallets to send and receive cryptocurrency and use <a href="https://www.bydfi.com/en/support/ANNOUNCEMENT/articles/wlcj7peuv7sf" target="">Web3 tools</a>.

What is the main difference between a cold wallet and a hot wallet？

This is often the most confusing part for newcomers. Downloading and setting up a major hot wallet—whether it is <a href="https://metamask.io/" target="">MetaMask</a>, <a href="https://trustwallet.com/" target="">Trust Wallet</a>, or the <a href="https://www.bydfi.com/en" target="">BYDFi Web3 Wallet</a>—is typically 100% free. These companies do not charge a monthly subscription just to have an account. However, you must distinguish between the "wallet provider" and the "blockchain network."Every time you send money or interact with a smart contract, you must pay a network fee (often called "gas"). Think of this like a toll road: the car (wallet) is free to own, but driving on the highway (blockchain) costs money to pay for maintenance. These fees go to miners or validators, not the crypto wallet app. That said, convenience comes at a price: if you use the built-in "Swap" button inside most wallets to trade one coin for another, the wallet provider usually adds a small service fee (around 0.5% to 0.8%) on top of the network fee. Always review the transaction summary before confirming.

What is the best hot wallet for Bitcoin?

For users seeking a mix of strong security, privacy, and minimal data exposure, several hot wallets stand out in 2025. Traditional self-custodial wallets like Trust Wallet, <a href="https://www.exodus.com/" target="">Exodus</a>, and MetaMask give you full control of your private keys without requiring identity verification. They also avoid storing personal information, which helps maintain a good level of privacy.MPC-based wallets are recognized as providing security and ease of use. Platforms such as <a href="https://bestwallet.com/en/" target="">Best Wallet</a> and <a href="https://zengo.com/" target="">Zengo</a> do away with the need for a single recovery phrase (the weakest link in many users' security). They utilize a method of encryption that divides your private key into a number of encrypted pieces. This means that the likelihood of someone successfully hacking into your wallet is extremely low, and the risk of losing access is significantly decreased.If anonymity is your priority, remember that no hot wallet can completely hide your activity on public blockchains. What they can do is ensure that you retain full ownership and that you are not forced to reveal personal data to create or access your account. The best approach is choosing a wallet that avoids tracking while offering strong, modern protection.

What is the best hot wallet for users which is secure, private and also anonymous in 2025?

To understand how hot wallets work, think of a hot wallet like your physical wallet. You carry your wallet everywhere so you can access your money whenever you need it (for example, to purchase coffee or pay for a ticket). Just like your physical wallet gives you instant access to your money, a hot wallet also gives you instant access to your cryptocurrency through a digital application via the internet to interact with the blockchain. Unlike "crypto cold wallets," which act like underground bank vaults for long-term storage, hot wallets are "live."You need one because the Web3 economy operates 24/7. If you want to swap tokens on a <a href="https://www.bydfi.com/en/moonx/markets/trending" target="">decentralized exchange</a>, mint a new NFT, or play a blockchain game, you cannot do these things with offline storage. You need a wallet that can "<a href="https://www.bydfi.com/en/register" target="">sign</a>" and broadcast transactions instantly. While they are slightly less secure than cold storage due to being online, they are the necessary bridge that allows you to stop being just a spectator and start actively participating in the decentralized finance (DeFi) ecosystem.

What exactly is a hot wallet and why is it essential for daily use?

Hot wallets are generally safe for everyday activities, but they require a "<a href="https://www.bydfi.com/en/support/FAQs/articles/7c4gbs9no5hl?title=Security+of+BYDFi" target="">security</a> mindset." Because these wallets are constantly connected to the internet, they have a larger attack surface than offline devices. The software itself uses military-grade encryption, so it is very rare for a wallet to be "hacked" directly. Instead, the danger almost always comes from user error, such as falling for phishing scams or connecting to malicious websites.Just as you would carry cash with you on your journey, you should keep your hot wallet secure whenever possible by treating it like cash. You would not walk through a sketchy part of town with your entire net worth in your pants, so you should also avoid putting your entire crypto portfolio in a hot wallet. Instead, only keep what you plan on spending in that hot wallet; move everything else to cold storage until needed. Furthermore, always enables every security feature available, such as &nbsp;<a href="https://www.bydfi.com/en/support/ANNOUNCEMENT/articles/huzcs6nah2ye?title=BYDFi+Security+Center+Upgrade+Notice" target="">biometric identification (FaceID) </a> and auto-lock timers. For an added layer of <a href="https://www.bydfi.com/server/en/questions/how-can-i-securely-store-my-digital-assets-in-a-hot-wallet" target="">safety</a>, some modern wallets now simulate transactions before you sign them.

Is my cryptocurrency actually safe inside a hot wallet?

The seed phrase (often called a recovery phrase) is a sequence of 12 to 24 random words generated when you create a &nbsp;<a href="https://learn.metamask.io/lessons/what-is-a-self-custody-wallet" target="">self-custodial wallet</a>. You must understand that your cryptocurrency does not live inside the app on your phone; it lives on the blockchain. The seed phrase is the master key that grants access to your specific address on that blockchain. It is not just a password reset tool; it is the literal ownership of your money.If you lose your phone, delete the app, or your computer dies, these words are the only way to recover your funds on a new device. There is no customer support hotline that can help you if you lose them. This responsibility causes anxiety for many beginners. This is why integrated solutions like the BYDFi Web3 Wallet are gaining popularity; they link wallet access to your secure exchange credentials and <a href="https://www.bydfi.com/en/user/safety-center" target="">2FA</a>, offering a more familiar recovery method for users who are terrified of managing and potentially losing a piece of paper with 12 words on it.

What is a "Seed Phrase" and why is it considered the most critical security feature?

Connecting a hot wallet to a dApp is the defining feature of Web3. In the traditional internet (Web2), you have to create a new username and password for every site you visit. In Web3, your wallet is your identity. When you visit a platform like <a href="https://app.uniswap.org/" target="">Uniswap</a> or <a href="https://opensea.io/" target="">OpenSea</a>, you will see a "Connect Wallet" button. Clicking this triggers a secure handshake between the website and your wallet app.Most mobile wallets work with a protocol named WalletConnect which scans a QR code from your computer screen using your mobile wallet for the <a href="https://www.bydfi.com/en/support/FAQs/articles/uid3wdnggire?title=How+to+Log+In+to+BYDFi+on+Your+PC+Using+a+QR+Code" target="">secure login process</a>. This quick log in is fast and seamless but it is also important to be careful. Once the connection is established, the dApp has the ability to ask for permission to execute transactions for you. Bad actors have the ability to build “drainer” contracts that appear as normal log in credentials but they can also include the request for permission to take your funds. Always check the website URL prior to connecting. Never sign any transaction unless you clearly understand its impact.

How do I connect my wallet to decentralized apps (dApps)?

This is the nightmare scenario that keeps many potential users away from crypto, but if you have set up your wallet correctly, your money is perfectly safe. Remember: your funds are not stored on the silicon chip of your phone; they are stored on the global digital ledger (the blockchain). Your wallet app is simply a "remote control" that lets you move those funds.If your device is lost or broken, you simply need to buy a new one, download the wallet app again, and select "Import Wallet." You will then enter your 12-24 word <a href="https://trustwallet.com/blog/crypto-basics/what-is-a-seed-phrase-and-why-is-it-important" target="">Seed Phrase</a>, and your balances will magically reappear. This is why writing down that phrase is non-negotiable. On the other hand, if you are using an integrated wallet like BYDFi, the recovery process is even more familiar: you simply <a href="https://www.bydfi.com/en/login" target="">log into your account</a> on the new device using your email, password, and Two-Factor Authentication (2FA), and your Web3 assets will be there waiting for you.

What happens if I lose my mobile phone or my computer breaks?

Absolutely. Hot wallets have evolved from simple banking apps into visual galleries for digital collectibles. If you are interested in NFTs (Non-Fungible Tokens), hot wallets are the standard tool for buying, selling, and holding them. Modern wallets like Phantom (for Solana) and <a href="https://metamask.io/" target="">MetaMask</a> (for Ethereum) automatically detect when you purchase an NFT and display the artwork beautifully in a dedicated "Collectibles" tab.These wallets also connect directly to marketplaces like OpenSea or<a href="https://magiceden.us/" target=""> Magic Eden,</a> allowing you to list your items for sale with a few clicks. <a href="https://www.bydfi.com/en/support/PRODUCT_DESCRIPTION/articles/z9bcolyjzqnc?title=Token+Security+Audit+Guide+on+MoonX+%28PC%29" target="">Security</a> is also improving in this area; some advanced wallets now include "spam detection" features. Because scammers often send fake or malicious NFTs to random wallets to trick users, high-quality wallets will hide these junk items in a hidden folder to prevent you from interacting with them accidentally. If visual art and gaming are your main interests, prioritize a wallet known for its gallery interface.

Can I view and store NFTs in these hot wallets?

The best hot wallet for 2025 depends on what kind of user you are and what you want to accomplish. There isn’t a single wallet that works perfectly for everyone, which is why it’s important to choose one that matches your habits and the way you use crypto. If you like getting involved in DeFi, experimenting with yield opportunities, or trying out new protocols on Ethereum and various Layer-2 networks, MetaMask and <a href="https://web3.okx.com/" target="">OKX Wallet</a> tend to stand out. They offer a wide range of tools, connect easily with most dApps, and support multiple chains, making them a great fit for users who want more advanced features and room to explore.If you are primarily a mobile user who wants simplicity and access to thousands of assets, Trust Wallet and Exodus are excellent picks. They combine strong design with multi-chain support and do not require KYC to create a wallet.For users who want the easiest on-ramp into Web3—especially those who already trade—BYDFi Web3 Wallet is one of the most approachable options. It removes technical friction by integrating wallet functions directly with your <a href="https://www.bydfi.com/en/register" target="">exchange account,</a> making it suitable for beginners or busy traders who want fewer steps.The right choice depends on whether you want flexibility, simplicity, advanced tools, or a seamless trading-to-Web3 bridge.

 Which hot wallet should I choose overall for 2025?

Best Hot Crypto Wallets 2025: Fast & Secure Options

Which Hot Wallet is Right for You? Beginner vs. Expert Options for Security, Privacy, Seed Phrases, and MPC in 2025

Best Hot Wallets in 2025

Cryptocurrency cards operate by allowing immediate conversion of your crypto into fiat, making it simple to use cryptos in any merchant that accepts Visa or Mastercard. When a payment is made the card issuer will convert a portion of your cryptocurrency into the set amount of fiat for the transaction. This conversion takes place in real time and the merchant just sees the fiat note for payment and your crypto balance decreases proportionately. Most crypto cards are linked to centralized exchange accounts like Crypto.com, Coinbase, Binance and BYDFi, so you have to manage your card in the app associated with the <a href="https://www.bydfi.com/en" target="">exchange accounts</a>. There you can freeze/unfreeze the card, monitor transactions, limit spending limits, and select which crypto you are redeeming for payment. For instance, newer options like theBYDFi Virtual Card are making this process even easier. Designed for the digital age, this card lets you spend major assets like USDT, BTC, and ETH online instantly, removing the usual friction of using crypto for daily purchases. As for safety, you are protected by the same standards as traditional banking—including KYC verification and two-factor authentication. Plus, since these cards run on established global payment networks, you can use them confidently at millions of merchants around the world.

How do crypto cards work?

Not necessarily. Crypto cards tend to divide into two groups: a crypto debit card and a credit or loan-based card. For a debit-style card, your crypto is automatically converted at the time of purchase. You do not physically sell anything yourself—the provider sells the precise amount needed for the transaction. This saves you from needing to sell anything, but depending on your local area, this may create taxable events during a crypto purchase.Companies like Nexo offer different models. Rather than converting or selling your crypto, the <a href="https://nexo.com/card" target="">Nexo Card </a>allows you to borrow fiat against your <a href="https://www.bydfi.com/en/user/assets/spot-account" target="">crypto assets</a>. This allows your assets to remain intact, you maintain exposure to price movement, and there is usually not a capital gains event. The borrowing model appeals the most to long-term crypto holders who want liquidity but still want to hold their crypto, especially those who prefer to buy crypto and hold it over time.Depending on the platform, you can also choose which asset to pay with too, such as <a href="https://www.bydfi.com/en/spot/btc_usdt" target="">BTC</a>,<a href="https://www.bydfi.com/en/spot/eth_usdt" target=""> ETH</a>, or stablecoins.

Do I need to sell my crypto before using a crypto card?

Crypto cards are secure and very reliable when issued by reputable companies, especially those addressing strict security practices. Cards from companies such as <a href="https://crypto.com/security" target="">Crypto.com</a>, Coinbase, and <a href="https://www.binance.com/en/security" target="">Binance</a> issue you a card that's accepted on Visa or Mastercard, so they use the same payment network as <a href="https://www.bydfi.com/en/support/PRODUCT_DESCRIPTION/articles/ejegt6xxhjiz" target="">standard cards</a>. They also include KYC identity verification, two-factor authentication, alert you when a transaction occurs, and utilize encryption comparable to bank-grade services.Most crypto card providers will allow you to turn your card on or off, change the PIN, set a spending limit, and provide a push alert for every transaction. Wallet-based crypto cards, such as the MetaMask Card, permit even more direct control over finances (the funds remain in the self-custody wallet until you use them). The greatest risk for <a href="https://www.bydfi.com/en/support/ANNOUNCEMENT/articles/huzcs6nah2ye?title=BYDFi+Security+Center+Upgrade+Notice" target="">security</a> comes from how you may be using your exchange account or private keys, not the card. Always make sure to enable 2FA, and don’t access your exchange account on public Wi-Fi, and to use secure passwords.

Are crypto cards safe?

In several jurisdictions, the act of spending cryptocurrency can trigger a taxable event as it involves exchanging a digital asset for fiat currency. As a result, the tax regime treats the action as if you have sold the crypto at the value it was worth when you acquired the asset — this means that you could potentially owe capital gains taxes between what you paid for it and the amount you have spent on the crypto asset, similar to how gains are calculated during a crypto trade.For example, if you purchased Bitcoin for $20,000 and subsequently used a crypto card to purchase an item when BTC is worth $40,000, you would have a taxable gain o $20,000. Technically, even the most ordinary purchase with cryptocurrency is taxable and there is a potential for multiple taxable events to happen on just one spend event.There are some options, such as the Nexo Card, that can help users avoid taxable disposals by offering credit lines against your crypto rather than requiring you to sell your assets. This way, you can spend fiat while leaving your crypto untouched — a strategy often recommended in <a href="https://www.bydfi.com/en/support/PRODUCT_DESCRIPTION/articles/eey3ixlsr6pq?title=BYDFi+Card+FAQ&recommend=true" target="">BYDFi’s crypto management guides.</a>

Is spending crypto taxable?

There are differences in the crypto card reward programs offered and what each program focuses on makes it difficult to determine which will be most beneficial to you, it really depends on your spending behaviour in relation to where you live (region). For instance, The Crypto.com Visa Card provides an amazing overall opportunity to earn crypto rewards, anywhere from 0% to 5% based on which tier they fall into with tiers requiring CRO staking for higher tiers and unlocking great benefits like cash back from Spotify and Netflix as well as greater rates of cash back for users who want to get the most long-term benefit from their crypto investments — similar to traditional cash back rewards credit cards.For those wanting a simpler, no stake card, The<a href="https://www.gemini.com/credit-card" target=""> Gemini Credit Card(R)</a>, for existing cardholders only, offers an incredible 4% cash back with no annual fee, and rewards are added immediately after the purchase of over 50 cryptocurrencies, so you can use them every day. The <a href="https://www.binance.com/en/cards" target="">Binance Visa card</a> offers up to a maximum 2% cash back but depends greatly on your BNB holdings and regional issuer restrictions.The <a href="https://nexo.com/card" target="">Nexo Card</a> offers up to 2%, however, the benefit of this card is the opportunity to earn while you borrow against your cryptocurrency rather than having to sell. On the other hand, <a href="https://www.bybit.com/en/card" target="">Bybit</a> offers up to 10% cash back through campaigns and promotions, while MetaMask rewards those who use Web3 by giving them a 1% back via its self-custodial system. <a href="https://www.kast.xyz" target="">KAST</a> offers tiered rewards and <a href="https://www.bydfi.com/en/support/PRODUCT_DESCRIPTION/articles/eey3ixlsr6pq?utm_source=chatgpt.com" target="">BYDFi</a> has the benefit of being virtual and easy to use, but currently has no cash back rewards.

Which crypto card offers the best rewards?

The Coinbase Card is regarded as the top cryptocurrency card for beginners due to its easy setup, simple interface, and frictionless integration with the Coinbase app — one of the most well-known crypto platforms globally. New users simply select which piece of crypto they wish to spend, see their transactions live, and manage everything from there without dealing with complicated staking tiers or requirements.Transactions can be completed using a variety of assets which include BTC, ETH, stablecoins, and virtually all ERC-20 tokens. It does provide some level of <a href="https://www.bydfi.com/en/support/ANNOUNCEMENT/articles/dyhtfd1dfdwl?title=BYDFi+Fiat+Promo+%3A+Earn+0.5%25+Cashback+%2B+Win+%2430%2C000%21" target="">cashback rewards</a> &nbsp;depending on your location as well. Finally, it brings security features like 2FA and immediate freeze or unfreeze features, helping secure your funds similarly to how modern crypto wallets operate.If you’re looking for a quality crypto card that’s still beginner-friendly, the Crypto.com Visa Card also offers a fairly straightforward onboarding process and has clear reward tiers even if you do have to stake CRO for a higher-level benefit.

Which crypto card is best for beginners?

The <a href="https://www.bydfi.com/en/questions/can-i-use-my-crypto-com-debit-card-internationally" target="">availability of crypto cards</a> is contingent on several things including the card provider, licensing, and financial regulations in your locale. The technology behind crypto cards is inherently <a href="https://kazepay.com/best-countries-for-using-crypto-payment-cards-in-2025/" target="">global</a>. However, each issuer operates within the laws applicable to them regionally. This is why there are cards available in very few countries, while others are more, or less, globally adopted. Most of the major issuers will support <a href="https://help.crypto.com/en/articles/3966346-crypto-com-prepaid-visa-cards-are-available-in-which-european-countries" target="">regions </a>comprised of North America, Europe, parts of Asia, and Australia. All that said, options in markets like Latin America, Africa, and selected Asian countries may be more limited. Availability will often depend on where the issuer is licensed to operate a financial product, and how each jurisdiction treats cryptocurrency, and cryptocurrency related financial products.In any case, remember to always check whether the provider <a href="https://www.bydfi.com/en/support/PRODUCT_DESCRIPTION/articles/7f57ypczk6fa?title=List+of+Countries+and+Regions+Not+Supported+for+BYDFi+Virtual+Card+Applications" target="">supports your country</a> before you apply for a crypto card, as availability may differ or have limited availability, even if you're in the same region. Be sure to research whether things like ATM withdrawals, cashback, spending limits, and staking tiers are supported in your particular area, as these benefits may not be available on a global basis.

Are crypto cards available worldwide?

The cryptocurrencies accepted for spending through a crypto card are contingent on the card provider and the platform to which the card is linked. Generally speaking, most cards tend to support popular assets such as Bitcoin (BTC), Ethereum (ETH), and a handful of popular stablecoins (e.g., USDC or USDT) because they are actively traded <a href="https://www.bydfi.com/en/user/assets/spot-account" target="">assets</a> and have a reasonable degree of price stability during the conversion. For example, <a href="https://www.coinbase.com/price" target="">Coinbase</a> offers you the ability to spend dozens of supported assets. At the same time, it allows you to spend popular ERC-20 tokens, which might be a good option if you have a diversified holding of digital assets across a crypto trading platform.Crypto.com allows users to spend more than 250 cryptocurrencies, a massive selection of options to choose from. On the contrary, Binance has a more limited set of options for user spending, compared to having a lot of options, relies primarily on the top-tier assets (e.g., BTC, ETH, BNB), and user spending will depend on the asset access allowed by a region by licensing or regulations.The <a href="https://portfolio.metamask.io/card" target="">MetaMask Card</a> is of significant interest if you are a Web3 user. Through a direct connection to your self-custodial wallet, it allows you to spend any number of tokens held in the wallet (e.g., stablecoin, ETH, ERC-20, etc.) for maximum flexibility if you are utilizing DeFi, or simply spending on chain.

What cryptocurrencies can I spend with a crypto card?

Depending on the issuer, your area and the methods of using the card, crypto cards can have multiple fees associated with them. The most common fee is the <a href="https://www.bydfi.com/en/questions/are-there-any-fees-or-charges-associated-with-converting-cryptocurrencies-to-fiat-currencies" target="">crypto-to-fiat conversion fee</a>, &nbsp;which account for the varying market prices when the coin is converted — especially when converting to top cryptocurrency.<a href="https://medium.com/@tothemoon_exchange/how-to-withdraw-cash-from-atms-using-a-crypto-card-b6a28e86b4bf" target="">ATM withdrawals</a> will typically have other fees, including at the very least, the withdrawal fee from the platform and the withdrawal fee from the local ATM operator. Also, variances may be significant between countries. Also, some crypto card programs (such as Crypto.com or Binance) may have staking tiers, meaning the wallet or platform has a native token, and if you stake or hold that coin in your crypto account, you will get certain reductions on platform and even ATM fees, and perhaps improve cashback rates.You will find that many providers will advertise no monthly or even yearly maintenance fees, but it might come in some length of terms in certain jurisdictions. It's always best to verify and check the official fee schedule for each provider before subscribing to avoid unexpected fees.

What fees should I watch out for?

Most physical cryptocurrency cards allow you to withdraw cash from ATMs, which means you can convert a digital asset into cash at any ATM that accepts the Visa or Mastercard statement. When you do this, the provider will automatically convert the cryptocurrency you chose into the local fiat currency, so you will be able to access cash no differently than if your crypto balance was in Bitcoin, Ethereum, stablecoins, or another supported asset. Nevertheless, there are a <a href="https://www.bydfi.com/en/support/PRODUCT_DESCRIPTION/articles/thu2l9huj5dd?title=BYDFi+Card+User+Guide" target="">few considerations</a> you must consider before using your cryptocurrency card.Providers charge varying fees, including crypto-to-fiat conversion fees, network spread fees, and <a href="https://www.visa.com/atmlocator" target="">ATM </a>withdrawal fees. <a href="https://www.mastercard.us/en-us/personal/get-support/find-nearest-atm.html" target="">Local ATM</a> operators may have their own fees that will vary, sometimes several percent over what they will charge because they are not affiliated with providers. Finally, the withdrawal limit can change depending on the provider and is likely affected by the verification levels of your card, tier of the card, and whether or not your card requires staking.One other thing to consider is taxation. In many countries, cash withdrawal is treated as a taxable event because you converted crypto into fiat, which is the tax reason for converting it. Depending on the law where you reside, you may or may not be taxed, so do make sure you have a general understanding of your <a href="https://www.irs.gov/individuals/international-taxpayers/cryptocurrency" target="">local tax rules</a> before relying on withdrawing cash from an ATM.

Can I withdraw cash from ATMs using a crypto card? 

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It stands for Non-Fungible Token. I know the name sounds incredibly technical, but the concept is actually quite simple if you break it down. To understand it, you just need to know the difference between "fungible" and "unique." Money is fungible: if you lend your friend a $10 bill, and they pay you back with a different $10 bill next week, you don't care. They are identical in value and utility."<a href="https://www.bydfi.com/server/en/questions/can-non-fungible-tokens-nfts-be-considered-as-a-form-of-fungible-digital-assets" target="">Non-fungible</a>" simply means unique. Think of the Mona Lisa or your grandfather's vintage watch. You can't just swap them for another one and say it's the same thing. An NFT is just a digital version of that uniqueness. It uses blockchain technology to create a <a href="https://support.microsoft.com/en-us/office/digital-signatures-and-certificates-8186cd15-e7ac-4a16-8597-22bd163e8e96" target="">digital signature</a> that says, "This specific file is the original, and this specific person owns it." It solves the internet's biggest problem: the ability to copy-paste. Anyone can save a JPEG, but only the NFT holder owns the "original" on the blockchain.

What does NFT stand for?

The best way to think about an NFT is as a digital deed or a certificate of authenticity. Imagine you bought a house. You can take a thousand photos of that house, and anyone can walk by and look at it, but none of those people own it. You own it because you hold the deed.An NFT works the same way for digital items. It is a token that lives on a public<a href="https://www.ledger.com/" target=""> Ledger</a> (the blockchain) and points to a piece of media, like an image, a song, or a video game item. This token proves undeniably that your wallet is the owner. This technology has revolutionized the creator economy because, for the first time, artists can sell digital work directly to fans like physical trading cards. Plus, NFTs can do things physical art can't, like automatically granting you access to a private Discord group or sending you rewards just for holding them.

What exactly is an NFT?

In the crypto world, we call creating an NFT "minting." It sounds fancy, but it’s basically just publishing your file onto the blockchain so it becomes a tradeable asset. You don't need to be a coder to do this anymore. First, you'll need a <a href="https://www.bydfi.com/en/moonx/account/assets-manage" target="">digital wallet</a> and a little bit of cryptocurrency (usually ETH) to cover the network fees.Once you have that, you just head to a marketplace like <a href="https://opensea.io/" target="">OpenSea</a> or <a href="https://magiceden.us/" target="">Magic Eden</a> and look for the "Create" button. The process feels a lot like uploading a video to YouTube: you upload your art, give it a name, write a description, and—crucially—set your "royalties." This feature ensures that if someone resells your work five years from now, you still get a percentage of that sale. When you hit "Mint," you sign a transaction with your wallet, and voila, your digital file is now an immutable asset on the blockchain.

How to make (mint) an NFT?

Buying an NFT isn't quite as instant as "One-Click" ordering on Amazon, but it’s getting easier. The first hurdle is getting a Web3 wallet. If you are buying on Ethereum, you’ll likely use MetaMask; for Solana, you’ll use Phantom. You can't just pay with a bank transfer directly; you need to fund this wallet with cryptocurrency, which you can easily buy on a trusted exchange like<a href="https://www.bydfi.com/en" target=""> BYDFi </a>and then transfer to your wallet address.Once your wallet is funded, you go to a marketplace, click "Connect Wallet," and start browsing. When you find that perfect piece of art, you usually have two choices: "Buy Now" for the listed price, or "Make Offer" if you want to try to haggle. When you click buy, your wallet will pop up asking for approval. You pay the price plus the "gas fee," and within seconds, the asset moves from the seller's collection to yours.

How do I buy an NFT?

I'll be honest with you: this is a high-risk, high-reward game. While headlines are full of people selling Bored Apes for millions, the reality is that the market is incredibly volatile. An NFT that is popular today could lose value next month if the hype dies down or the project founders fail to deliver on their promises.To stay safe, treat this like venture capital <a href="https://www.bydfi.com/en/questions/what-are-the-best-ways-to-invest-in-nft-without-actually-buying-nft" target="">investing</a>: never put in money you can't afford to lose completely. You also need to be street-smart about security. The NFT space attracts scammers, so always double-check links before clicking, and verify that the collection you are buying has a "verified" badge (usually a blue checkmark) on the marketplace. If you are buying a high-value asset, consider moving it to a <a href="https://www.bydfi.com/en/questions/which-crypto-hardware-wallet-is-recommended-for-beginners" target="">hardware wallet </a>(cold storage) immediately after purchase, so it can't be touched by online hackers.

Are NFTs safe to invest in?

Think of "gas" like the shipping cost when you order something online, or the toll you pay to use a highway. The marketplace (like OpenSea) doesn't keep this money; it goes directly to the "miners" or validators who run the blockchain network. They need an incentive to process your transaction and secure the network, and that incentive is the gas fee.On the Ethereum network, these fees can be annoying because they fluctuate based on demand. If everyone is trying to buy an NFT at the same time, the "highway" gets jammed, and gas prices spike. This is why many beginners prefer starting on blockchains like <a href="https://solana.com/" target="">Solana</a> or Polygon, where gas fees are typically just a few pennies. Keep in mind that you'll pay gas for almost every interaction: buying, transferring, or sometimes even canceling a listing.

What are "Gas Fees"?

Yes, thankfully, the industry has realized that not everyone wants to deal with exchanges and transfers. Major marketplaces like OpenSea have integrated payment processors like MoonPay. This allows you to treat an <a href="https://www.bydfi.com/server/en/questions/what-are-the-steps-to-buy-nfts-on-popular-digital-marketplaces" target="">NFT</a> purchase almost like any other online shopping experience—you just enter your Visa or Mastercard details at checkout.However, there is a catch: convenience costs money. When you use a card, MoonPay is doing the heavy lifting in the background—converting your dollars to crypto and sending it to the seller. Because of this, they charge extra processing fees. It is usually cheaper to buy the crypto yourself on an exchange like BYDFi and send it to your wallet, but if you are in a rush or just want the simplest experience possible, the credit card option is a great feature to have.

Can I buy NFTs with a credit card?

Just as large corporations such as Apple, Coca-Cola, and Amazon are believed to be safe, steady investments in the stock market, similarly blue chip tokens in the cryptocurrency realm are referred to as "Blue Chip" tokens. The best examples of Blue Chip tokens include <a href="https://www.cryptopunks.app/" target="">CryptoPunks</a>, Bored Ape Yacht Club, and <a href="https://opensea.io/collection/azuki" target="">Azuki</a>, all of which have consistently provided value to their owners over an extended period of time. Additionally, the best examples of<a href="https://www.bydfi.com/server/en/questions/which-blue-chip-stocks-in-the-cryptocurrency-industry-performed-the-best-in-2017" target=""> Blue Chip tokens</a> do not simply let go of their value when the excitement around them, following their initial launch, diminishes.What makes them "Blue Chip" isn't just the art; it's the community and the utility. Holding one often acts as a membership card to an exclusive club, granting access to real-world parties, merchandise, or even intellectual property rights to the image. Investors look for high trading volume, a stable "floor price" (the cheapest item in the collection), and celebrity ownership when deciding if a project has earned Blue Chip status.

What makes a "Blue Chip" NFT?

In short, the answer is yes. Most taxing authorities view NFTs as "<a href="https://www.bydfi.com/server/en/questions/what-are-the-top-digital-asset-brokers-for-purchasing-stocks" target="">digital assets</a>." Therefore, like any other capital assets, sale of NFTs is subject to Capital Gains Tax. For example, if an individual purchases digital art from an artist for $500, then later sells that same piece of art for $5,000, they will have made $4,500 in taxable income. Therefore, Capital Gains Tax will apply.It gets even trickier: technically, even trading one NFT for another is a taxable event because you are "<a href="https://www.bydfi.com/server/en/questions/how-can-i-buy-and-sell-digital-trading-cards-as-nfts-using-cryptocurrency" target="">selling</a>" the first one to buy the second. If you are a creator, the money you make from minting is often taxed as regular income. Because <a href="https://www.bydfi.com/server/en/questions/how-does-the-new-tax-law-affect-cryptocurrency-investors" target="">crypto tax laws</a> can be a headache, it is highly recommended to use crypto tax software to track your trades or speak to a professional, so you don't get a surprise bill at the end of the year.

Do I pay taxes on NFTs?

There isn't one "perfect" chain; it really depends on your personality and budget. If you want prestige and high-value art, Ethereum is the place to be. It has history and the biggest "Blue Chip" collections, but you have to deal with higher gas fees. If you prefer speed, cheap transactions, and gaming, Solana is fantastic and very user-friendly for beginners.If you are looking for corporate collectibles (like <a href="https://www.bydfi.com/en/questions/how-can-i-customize-my-reddit-avatar-to-reflect-my-favorite-digital-currencies" target="">Reddit Avatars</a>) or gaming items without spending money on fees, Polygon is a great choice. And recently, Bitcoin has entered the chat with "Ordinals," allowing digital artifacts to be inscribed directly on the most secure blockchain in the world. My advice? Start where the collection you love lives, but don't be afraid to try different ecosystems to see which user experience you prefer.

Which blockchain is best for NFTs?

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8 Best NFT Marketplaces in 2025

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