The cards are similar to traditional debit and credit cards. The user can then use the balance on the card like any other debit/credit card when making purchases. Most prepaid cards also have options for users to set up a direct deposit and online bill pay. Additionally, some prepaid cards may allow for ATM withdrawals or international transactions. It is important to read the terms and conditions of a particular card before use, as fees and other information may vary from card to card.&; In short, you’ll have to recognize a gain/loss each time you purchase with a crypto debit card because you’re essentially selling your crypto for FIAT. In those cases, the cost basis on each purchase will be the amount see website you paid to acquire the cryptocurrency you used to purchase with your crypto debit card.