Can You Spend Crypto Without Selling It? Inside The ether.fi Cash Card’s “Never Sell” Revolution

Is it possible to spend cryptocurrency without selling it and incurring a tax event? Is it possible to spend cryptocurrency without selling it and incurring a tax event? That question has hovered over the crypto sector for years, especially among people who treat their digital assets as long‑term holdings. ether.fi, a company best known for its restaking services, has built a card that tries to answer it. ether.fi The ether.fi Cash Card is a new offering from the decentralized finance platform ether.fi, aims to answer that question. This DeFi-native Visa card takes a unique approach by allowing users to spend their crypto without having to liquidate their holdings. In this review, we’ll dive into how ether.fi’s “never sell” mechanism works, the card’s features and rewards, and how it stacks up against other crypto cards from Coinbase, Gemini, and more. The goal is a comprehensive, journalistic look at what the ether.fi Cash Card offers (and where it might have limitations) for crypto enthusiasts and everyday spenders alike. ether.fi Cash Card ether.fi, without having to liquidate their holdings What ether.fi Is and How It Works ether.fi began as a non‑custodial platform that lets people stake Ether and other assets while maintaining control of their private keys. The platform has amassed over $14 billion in total value locked (TVL) and has integrated with EigenLayer to maximise staking rewards while keeping decentralisation. To extend its reach, ether.fi launched the Cash program. The service combines staking, lending and a payment card in an effort to act as a crypto‑native alternative to traditional banking. ether.fi $14 billion ether.fi Cash The company’s founder, Mike Silagadze, said his goal is to build a financial service that allows people to Mike Silagadze “save, invest, and spend their money and never have to off‑ramp them to TradFi again”. “save, invest, and spend their money and never have to off‑ramp them to TradFi again”. To understand the Cash Card, it helps to know the context of ether.fi better itself. ether.fi has quickly grown to over $14 billion in TVL by leveraging innovative tech like EigenLayer restaking. In simple terms, ether.fi lets users stake their crypto (like ETH, BTC, and stablecoins) in “Liquid Vaults” to earn yield, all while the users retain control of their private keys. This focus on self-custody and DeFi yields sets the stage for the Cash Card’s unique design. has $14 billion in TVL “Liquid Vaults” So what exactly is the ether.fi Cash Card? At its core, it’s a Visa card (physical and virtual) that’s linked to a user’s crypto portfolio. It’s accepted at over 100 million merchants worldwide – anywhere Visa is taken and even supports Apple Pay and Google Pay for tap-to-pay convenience. Unlike many exchange-issued crypto cards, the ether.fi card is non-custodial, meaning you don’t have to deposit funds into a company-controlled account. Instead, you connect it to your own Web3 wallet or ether.fi account, and you remain in control of your assets at all times. The card is available globally (with the notable exception of certain sanctioned or restricted regions) rather than being limited to the U.S. only. Visa card (physical and virtual) that’s linked to a user’s crypto portfolio 100 million merchants worldwide ether.fi non-custodial The “Never Sell” Mechanism Explained The ether.fi Cash Card’s standout feature is what the team calls the “never sell” model. How can you spend money without selling your crypto? The answer is to use your crypto as collateral for a loan that funds your purchase. Practically, the card operates in two modes, behaving either like a high-yield debit account or a crypto-backed credit account: How can you spend money without selling your crypto? without collateral high-yield debit account or a crypto-backed credit account Direct Pay: You can preload the card using stablecoins or other assets in your ether.fi vault. Those funds don’t sit idle; they’re actually earning yield up until the moment you spend them. For example, if you deposit USDC, it can earn around 8%+ APY in ether.fi’s integrated yield vaults. Likewise, ETH or BTC deposits continue accruing staking rewards. This means even in “direct” mode, your money is working for you until the point of sale. When you make a purchase, the required amount is swapped or deducted from your vault balance. Borrow Mode (Collateralized Credit): This is the headline feature – the “never sell” approach. Instead of selling your crypto to spend it, the card automatically borrows against your crypto holdings as collateral when you swipe. It’s like having Aave or MakerDAO in your pocket: each card swipe instantly opens a loan position backed by your assets. You get to make your purchase in fiat, while your crypto stays put in your wallet or vault. Because you’re borrowing, your original crypto isn’t sold, so you avoid the taxable event that a sale would trigger. Afterward, you can repay the loan (with interest) on your own schedule, and your collateral is never touched as long as you pay back what you borrowed. Notably, any yield your collateral earns (from staking or DeFi yields) can be used to automatically pay down your balance if you opt in. In an ideal scenario, your investment rewards effectively subsidize your spending, a concept one commentator described as the card “paying off itself” via your rewards. Direct Pay: You can preload the card using stablecoins or other assets in your ether.fi vault. Those funds don’t sit idle; they’re actually earning yield up until the moment you spend them. For example, if you deposit USDC, it can earn around 8%+ APY in ether.fi’s integrated yield vaults. Likewise, ETH or BTC deposits continue accruing staking rewards. This means even in “direct” mode, your money is working for you until the point of sale. When you make a purchase, the required amount is swapped or deducted from your vault balance. Direct Pay: You can preload the card using stablecoins or other assets in your ether.fi vault. Those funds don’t sit idle; they’re actually earning yield up until the moment you spend them. For example, if you deposit USDC, it can earn around 8%+ APY in ether.fi’s integrated yield vaults. Likewise, ETH or BTC deposits continue accruing staking rewards. This means even in “direct” mode, your money is working for you until the point of sale. When you make a purchase, the required amount is swapped or deducted from your vault balance. Direct Pay: 8%+ APY Borrow Mode (Collateralized Credit): This is the headline feature – the “never sell” approach. Instead of selling your crypto to spend it, the card automatically borrows against your crypto holdings as collateral when you swipe. It’s like having Aave or MakerDAO in your pocket: each card swipe instantly opens a loan position backed by your assets. You get to make your purchase in fiat, while your crypto stays put in your wallet or vault. Because you’re borrowing, your original crypto isn’t sold, so you avoid the taxable event that a sale would trigger. Afterward, you can repay the loan (with interest) on your own schedule, and your collateral is never touched as long as you pay back what you borrowed. Notably, any yield your collateral earns (from staking or DeFi yields) can be used to automatically pay down your balance if you opt in. In an ideal scenario, your investment rewards effectively subsidize your spending, a concept one commentator described as the card “paying off itself” via your rewards. Borrow Mode (Collateralized Credit): This is the headline feature – the “never sell” approach. Instead of selling your crypto to spend it, the card automatically borrows against your crypto holdings as collateral when you swipe. It’s like having Aave or MakerDAO in your pocket: each card swipe instantly opens a loan position backed by your assets. You get to make your purchase in fiat, while your crypto stays put in your wallet or vault. Borrow Mode (Collateralized Credit): “never sell” automatically borrows against your crypto holdings as collateral each card swipe instantly opens a loan position backed by your assets Because you’re borrowing, your original crypto isn’t sold, so you avoid the taxable event that a sale would trigger. Afterward, you can repay the loan (with interest) on your own schedule, and your collateral is never touched as long as you pay back what you borrowed. Notably, any yield your collateral earns (from staking or DeFi yields) can be used to automatically pay down your balance if you opt in. In an ideal scenario, your investment rewards effectively subsidize your spending, a concept one commentator described as the card “paying off itself” via your rewards. your original crypto isn’t sold any yield your collateral earns (from staking or DeFi yields) can be used to automatically pay down your balance if you opt in This credit mechanism is powerful. Imagine you hold 1 ETH (worth say $1,600) and need to cover a $100 expense. Using a typical card, you might sell $100 of ETH – losing future upside on that crypto and likely owing capital gains tax. With ether.fi’s card, you could borrow $100 against your ETH instead. Your 1 ETH remains intact, continuing to earn staking yield, and you incur no taxable sale in that moment. no taxable sale Of course, borrowing isn’t free money; you’re taking a loan that accrues interest. The card’s interest rates and credit limits depend on factors like your collateral value and membership tier (similar to how a margin loan or crypto-backed loan works). It’s worth noting that using the credit feature requires a bit of DeFi savvy. You’ll need to monitor your loan-to-value ratios (if your collateral drops too much in value, like any crypto loan you could face liquidation of assets). However, ether.fi’s approach is to abstract these complexities away with a smooth user experience. The card runs on the Scroll Layer-2 network for Ethereum, which enables near-instant, low-cost transactions behind the scenes. DeFi savvy Scroll Layer-2 network How Does ether.fi Compare to Coinbase and Gemini’s Crypto Cards? ether.fi is entering a growing field of crypto-connected cards. Two of the more well-known competitors are the Coinbase Card and the Gemini Credit Card, each of which takes a very different approach than ether.fis. Let’s briefly compare them: ether.fi Coinbase Card Gemini Credit Card Coinbase Visa Debit Card: Coinbase’s card lets users spend directly from their Coinbase exchange account balance. It’s simple and works like a regular debit card, converting crypto (or using cash balances) for each transaction. The downside is each purchase with the Coinbase card is effectively a crypto sale, which is taxable (Coinbase provides a report of these sales to help with taxes). Rewards on the Coinbase card have been relatively modest – around 0.5% back in your choice of a few cryptocurrencies. It has no annual fee, and it’s convenient for U.S. customers, but it is custodial (Coinbase holds your funds) and doesn’t offer the “borrow against crypto” feature. In short, it’s easy to use but you sacrifice self-custody and get lower rewards. Gemini Mastercard Credit Card: Gemini’s credit card is a more traditional credit card model. Users link it to their Gemini account and can spend up to a credit limit, with rewards up to 3-4% in crypto depending on spending categories (e.g. 3% on dining, 2% on groceries, 1% on others). Rewards are paid in any of the 50+ cryptos on Gemini, and they are delivered instantly on purchase. The card has no annual fee or foreign transaction fees, which is a plus. However, Gemini’s card is custodial and U.S.-only, and it doesn’t avoid the “selling crypto” issue – when your statement is due, you’ll need to pay it off (often by selling crypto or using fiat). It’s a solid option for earning crypto rewards on everyday spend, but again, you’re not in control of the assets once they’re spent, you’ve effectively traded them for the convenience. Coinbase Visa Debit Card: Coinbase’s card lets users spend directly from their Coinbase exchange account balance. It’s simple and works like a regular debit card, converting crypto (or using cash balances) for each transaction. The downside is each purchase with the Coinbase card is effectively a crypto sale, which is taxable (Coinbase provides a report of these sales to help with taxes). Rewards on the Coinbase card have been relatively modest – around 0.5% back in your choice of a few cryptocurrencies. It has no annual fee, and it’s convenient for U.S. customers, but it is custodial (Coinbase holds your funds) and doesn’t offer the “borrow against crypto” feature. In short, it’s easy to use but you sacrifice self-custody and get lower rewards. Coinbase Visa Debit Card: Coinbase’s card lets users spend directly from their Coinbase exchange account balance. It’s simple and works like a regular debit card, converting crypto (or using cash balances) for each transaction. The downside is each purchase with the Coinbase card is effectively a crypto sale, which is taxable (Coinbase provides a report of these sales to help with taxes). Rewards on the Coinbase card have been relatively modest – around 0.5% back in your choice of a few cryptocurrencies. It has no annual fee, and it’s convenient for U.S. customers, but it is custodial (Coinbase holds your funds) and doesn’t offer the “borrow against crypto” feature. In short, it’s easy to use but you sacrifice self-custody and get lower rewards. Coinbase Visa Debit Card: each purchase with the Coinbase card is effectively a crypto sale 0.5% back custodial Gemini Mastercard Credit Card: Gemini’s credit card is a more traditional credit card model. Users link it to their Gemini account and can spend up to a credit limit, with rewards up to 3-4% in crypto depending on spending categories (e.g. 3% on dining, 2% on groceries, 1% on others). Rewards are paid in any of the 50+ cryptos on Gemini, and they are delivered instantly on purchase. The card has no annual fee or foreign transaction fees, which is a plus. Gemini Mastercard Credit Card: Gemini’s credit card is a more traditional credit card model. Users link it to their Gemini account and can spend up to a credit limit, with rewards up to 3-4% in crypto depending on spending categories (e.g. 3% on dining, 2% on groceries, 1% on others). Rewards are paid in any of the 50+ cryptos on Gemini, and they are delivered instantly on purchase. The card has no annual fee or foreign transaction fees, which is a plus. Gemini Mastercard Credit Card: rewards up to 3-4% no annual fee or foreign transaction fees However, Gemini’s card is custodial and U.S.-only, and it doesn’t avoid the “selling crypto” issue – when your statement is due, you’ll need to pay it off (often by selling crypto or using fiat). It’s a solid option for earning crypto rewards on everyday spend, but again, you’re not in control of the assets once they’re spent, you’ve effectively traded them for the convenience. However, Gemini’s card is custodial and U.S.-only, and it doesn’t avoid the “selling crypto” issue – when your statement is due, you’ll need to pay it off (often by selling crypto or using fiat). It’s a solid option for earning crypto rewards on everyday spend, but again, you’re not in control of the assets once they’re spent, you’ve effectively traded them for the convenience. Gemini’s card is custodial So where does ether.fi Cash Card stand in comparison? It’s a fundamentally different philosophy, rather than converting or rewarding with existing major crypto assets, ether.fi emphasizes not having to convert at all. The ether.fi card is non-custodial and DeFi-native, meaning your funds stay in your control and even grow while you use the card. Its cashback (2-3%) is higher than Coinbase’s debit card (0.5%) and on par with or higher than Gemini’s general spending rates (1-3%). And crucially, spending with ether.fi does not force you to sell your crypto holdings, so long as you use the collateralized credit mode. This makes it attractive to crypto investors who are HODLing long-term and don’t want to trigger capital gains events every time they spend. An executive at ether.fi quipped that “there’s just no other card that gives you 3% cash-back without crazy restrictions”, a shot at competitors who require certain tokens staked or have reward caps. It’s a fundamentally different philosophy, not having to convert at all. non-custodial and DeFi-native grow spending with does not force you to sell your crypto holdings “there’s just no other card that gives you 3% cash-back without crazy restrictions” For a clearer snapshot, here’s a side-by-side comparison of the ether.fi Cash Card versus Coinbase and Gemini’s cards on key features: Feature ether.fi Cash Card (Visa) Coinbase Card (Visa Debit) Gemini Credit Card (Mastercard) Custody of Funds Non-custodial (user’s own wallet) Custodial (Coinbase holds funds) Custodial (Gemini holds funds) Spending Model Debit or Collateralized Credit Debit (spend from exchange balance) Credit (monthly bill, pay with fiat) Rewards Rate 2% – 3% on all purchases (up to 5% during promos) ~0.5% on purchases 1% – 4% on purchases (varies by category) Reward Currency SCR token (Scroll L2); user can swap to stablecoin BTC or ETH (user’s choice) 50+ crypto options on Gemini (user’s choice) Key Feature Borrow against crypto; “never sell” approach; yields on collateral Easy spending from exchange; simple UX Crypto rewards on credit spending; no fees Availability Global (100+ countries, excl. some regions) United States (select states) United States only Fees No annual fee; 1% foreign exchange No annual fee; 0% FX fee No annual fee; 0% FX fee Feature ether.fi Cash Card (Visa) Coinbase Card (Visa Debit) Gemini Credit Card (Mastercard) Custody of Funds Non-custodial (user’s own wallet) Custodial (Coinbase holds funds) Custodial (Gemini holds funds) Spending Model Debit or Collateralized Credit Debit (spend from exchange balance) Credit (monthly bill, pay with fiat) Rewards Rate 2% – 3% on all purchases (up to 5% during promos) ~0.5% on purchases 1% – 4% on purchases (varies by category) Reward Currency SCR token (Scroll L2); user can swap to stablecoin BTC or ETH (user’s choice) 50+ crypto options on Gemini (user’s choice) Key Feature Borrow against crypto; “never sell” approach; yields on collateral Easy spending from exchange; simple UX Crypto rewards on credit spending; no fees Availability Global (100+ countries, excl. some regions) United States (select states) United States only Fees No annual fee; 1% foreign exchange No annual fee; 0% FX fee No annual fee; 0% FX fee Feature ether.fi Cash Card (Visa) Coinbase Card (Visa Debit) Gemini Credit Card (Mastercard) Feature Feature Feature ether.fi Cash Card (Visa) ether.fi Cash Card (Visa) Cash Card Coinbase Card (Visa Debit) Coinbase Card (Visa Debit) Coinbase Card Gemini Credit Card (Mastercard) Gemini Credit Card (Mastercard) Gemini Credit Card Custody of Funds Non-custodial (user’s own wallet) Custodial (Coinbase holds funds) Custodial (Gemini holds funds) Custody of Funds Custody of Funds Custody of Funds Non-custodial (user’s own wallet) Non-custodial (user’s own wallet) Custodial (Coinbase holds funds) Custodial (Coinbase holds funds) Custodial (Gemini holds funds) Custodial (Gemini holds funds) Spending Model Debit or Collateralized Credit Debit (spend from exchange balance) Credit (monthly bill, pay with fiat) Spending Model Spending Model Spending Model Debit or Collateralized Credit Debit or Collateralized Credit or Debit (spend from exchange balance) Debit (spend from exchange balance) Credit (monthly bill, pay with fiat) Credit (monthly bill, pay with fiat) Rewards Rate 2% – 3% on all purchases (up to 5% during promos) ~0.5% on purchases 1% – 4% on purchases (varies by category) Rewards Rate Rewards Rate Rewards Rate 2% – 3% on all purchases (up to 5% during promos) 2% – 3% on all purchases (up to 5% during promos) ~0.5% on purchases ~0.5% on purchases 1% – 4% on purchases (varies by category) 1% – 4% on purchases (varies by category) Reward Currency SCR token (Scroll L2); user can swap to stablecoin BTC or ETH (user’s choice) 50+ crypto options on Gemini (user’s choice) Reward Currency Reward Currency Reward Currency SCR token (Scroll L2); user can swap to stablecoin SCR token (Scroll L2); user can swap to stablecoin SCR BTC or ETH (user’s choice) BTC or ETH (user’s choice) 50+ crypto options on Gemini (user’s choice) 50+ crypto options on Gemini (user’s choice) Key Feature Borrow against crypto; “never sell” approach; yields on collateral Easy spending from exchange; simple UX Crypto rewards on credit spending; no fees Key Feature Key Feature Key Feature Borrow against crypto; “never sell” approach; yields on collateral Borrow against crypto; “never sell” approach; yields on collateral Easy spending from exchange; simple UX Easy spending from exchange; simple UX Crypto rewards on credit spending; no fees Crypto rewards on credit spending; no fees Availability Global (100+ countries, excl. some regions) United States (select states) United States only Availability Availability Availability Global (100+ countries, excl. some regions) Global (100+ countries, excl. some regions) United States (select states) United States (select states) United States only United States only Fees No annual fee; 1% foreign exchange No annual fee; 0% FX fee No annual fee; 0% FX fee Fees Fees Fees No annual fee; 1% foreign exchange No annual fee; 1% foreign exchange No annual fee; 0% FX fee No annual fee; 0% FX fee No annual fee; 0% FX fee No annual fee; 0% FX fee As the table shows, the ether.fi card’s closest analog might actually be something like the Nexo Card or Crypto.com’s card blended with a DeFi twist. It offers a hybrid of debit/credit like Nexo’s card (which also lets you toggle between spending your balance or borrowing against it). But ether.fi pushes the envelope with its fully non-custodial design and deeper integration into DeFi protocols. In essence, if you’re already an active DeFi user who values self-custody and maximizing yield, ether.fi’s card is tailored for you. If you’re just looking for a convenient way to spend crypto for everyday purchases with minimal fuss, a simpler custodial card might suffice, though you’d be giving up some of the benefits. if you’re already an active DeFi user who values self-custody and maximizing yield, ether.fi’s card is tailored for you Risks, Limitations and Safety Considerations No product is without its challenges, and the ether.fi Cash Card is no exception. On the security front, the card’s non-custodial nature means you, the user, are responsible for your wallet’s security. ether.fi partnered with Turnkey for secure key management solutions to help protect users’ private keys while still enabling self-custody. The smart contracts underpinning the Cash program have undergone audits (ether.fi publishes audit reports openly). By all accounts, the technical infrastructure is built with a security-first mindset, which is crucial for a product that bridges crypto and traditional payments. you, the user, are responsible for your wallet’s security ether.fi The user experience is ambitiously designed to be smooth, sign-up reportedly takes only a few minutes with KYC, after which you can order a free virtual and physical card. Adding the card to Apple Pay or Google Pay is straightforward through the ether.fi app, and there are no upfront fees to worry about (no annual fee, and no sign-up cost). The card is a Visa Signature, which even comes with typical Visa Signature perks like concierge and airport lounge access for qualified users. All of this positions the Cash Card as a premium product experience. order a free virtual and physical card no upfront fees However, being a newer product, early adopters have reported some issues. In a May 2025 overview of non-custodial crypto cards, one DeFi researcher shared a harsh critique: their ether.fi card failed to function properly in testing – multiple transactions were declined, and the Apple Pay integration didn’t work despite being advertised. However, we need to note that this was during the initial launch, and such technical hiccups are common during launch and with startups generally due to a myriad of market, technical and business reasons. With continuous improvement, developers patch such problems. early adopters have reported some issues their card failed to function properly in testing – multiple transactions were declined, and the Apple Pay integration didn’t work despite being advertised Final Outlook After researching and analyzing ether.fi’s Cash Card, my view is that it’s a bold and forward-thinking product aimed at a specific kind of user. For the active DeFi participant or crypto investor who hates the idea of ever selling their coins, the “never sell” credit card is something of a dream come true. It means you can finally use your crypto wealth for everyday needs without breaking your long-term investment strategy. Your ETH stays staked, your BTC keeps earning, and yet you still have money to buy lunch, that’s genuinely innovative and bridges a real gap between crypto and daily finance. The fact that it’s non-custodial and globally available is a big plus, it aligns with the crypto ethos of self-sovereignty. The high cashback (2-3%) and other perks like lounge access or concierge services add to the appeal, making it competitive with even top-tier traditional credit cards in rewards. bold and forward-thinking product aimed at a specific kind of user I want to temper the enthusiasm with the reality of volatile markets: borrowing against crypto is great in a bull market, but in a sharp downturn, users will need to ensure they don’t overextend themselves. A card like this empowers you to “spend and never sell,” but you must still ultimately pay your bills! Either from your crypto yields or other income! It’s not eliminating obligations, it’s just deferring them in a potentially tax-efficient way. Used wisely, it can be an incredible financial tool. Used recklessly, one could run up debt just as with any credit card. volatile markets “spend and never sell,” Overall, my final impression is that the ether.fi Cash Card is a significant step in the evolution of crypto-financial products. It takes the concept of crypto credit cards into truly decentralized territory. The team’s vision even goes beyond crypto circles – as Sandy Peng of Scroll noted, “It’s genuinely a better credit card product rather than just a better crypto product”. “It’s genuinely a better credit card product rather than just a better crypto product” Don’t forget to like and share the story! Don’t forget to like and share the story! This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYO This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYO This author is an independent contributor publishing via our business blogging program. HackerNoon has reviewed the report for quality, but the claims herein belong to the author. #DYO business blogging program business blogging program