Cryptocurrency and the underlying blockchain technology have revolutionized global finance, with digital assets increasingly popular as a method of payment around the world. Today, millions of businesses accept Bitcoin and other cryptocurrencies as payment. And as more people pay with cryptocurrencies at various merchants and outlets, a new trend has emerged: the use of cryptographic debit cards. An example of just how big this trend is is Visa’s recent announcement that cryptocurrency-linked cards accounted for $2.5 billion in payments in its first fiscal 2022 quarter. Its growth has also seen cryptocurrency payment processors like BitPay and Strike increase support. Overall, cryptocurrency debit cards are on the rise and with it a chance for users to win some free cryptocurrencies. But what are these cryptocurrency debit cards and how do they work? Let’s take a look at this and, more importantly, dive into how someone can easily earn free cryptocurrency with their crypto debit card.
What are cryptocurrency debit cards?
Think of cryptocurrency debit cards as being similar to conventional debit cards. In that case, you can use the cryptocurrency debit card to make in-person or online payments for goods and services as you would any traditional debit card. However, unlike conventional debit cards, encrypted debit cards use cryptocurrencies as the main currency to load them. Therefore, instead of cash in a bank account, cryptocurrency debit cards use Bitcoin, Ethereum, Ripple, or other digital assets held in your crypto wallet. What is remarkable about cryptocurrency debit cards is that they are widely accepted. Top examples currently in use around the world include Voyager Crypto Mastercard, Nexo Debit Card, Crypto.com Visa Card, Coinbase Debit Card, and Binance Visa Card.
How do crypto debit cards work?
You will need to link your crypto debit card to your cryptocurrency wallet to use it. It is an easy process that allows you to top up your card with cryptocurrencies. When you buy or look to pay at a location that accepts debit cards, a payment processor will convert your cryptocurrency into the merchant’s preferred currency. Note, however, that different debit cards convert cryptocurrency into fiat currency at different times. Some of these cards will automatically convert cryptocurrency into fiat currency during the top-up process. Meanwhile, others will hold the cryptocurrency and only convert it when you are trading. That said, you can choose your cryptocurrency debit card depending on the crypto conversion time. With the convenience and flexibility of this card, you don’t have to worry about currency exchange fees. With a cryptocurrency debit card, your card directly converts your cryptocurrency to any fiat currency of your choice. Therefore, you can use these cards to make purchases at your local retailer. For example, you are buying groceries at a grocery store with your debit card. When you make the payment with your crypto debit card, the store owner will receive the payment in fiat currency.
How do you earn free cryptocurrency with cryptocurrency debit cards?
Crypto debit card providers want to incentivize users, just like conventional loyalty programs do. But instead of common rewards like cashbacks, points and miles, crypto debit cards allow you to earn rewards in cryptocurrencies. In other cases, you can use the points earned to buy cryptocurrencies. So while different cryptocurrency debit cards have different strategies for rewarding their users, there are three common ways this happens. These are cryptocurrency rewards, betting and referral systems, the latter strategy popularized by the Club Swan card. Let’s see how each of these strategies gives customers the chance to earn free cryptocurrency with cryptocurrency debit cards.
1. Cryptocurrency Rewards
When it comes to most cryptocurrency debit cards, crypto rewards are the main reward. Whenever you make a purchase using your debit card, you are automatically rewarded – not in cash, miles or points – but in cryptocurrencies. The amount of cryptocurrency reward available can vary greatly, especially depending on the provider. For example, after making a purchase, a Coinbase debit card offers a 4% reward. On the other hand, BlockFi will reward you with 3.5% cash back for any purchase you make. However, this reward amount is only valid for 90 days. Afterwards, the amount automatically reduces to 1.5% cashback. Some cards, however, have an advanced way of rewarding users depending on the level of the card they have. For example, Crypto.com rewards a 1% crypto-back if you have the lowest card tier. And if you have the highest level of the card, you can earn 8% cashback for every purchase you make. Another card that works similarly to Crypto.com is the Binance Visa card, which allows customers to earn up to 8% in BNB Cashback. Like other cards, all cashback rewards go to the funding wallet, which means you get free cryptocurrencies with every purchase.
Are you looking for the best way to earn lucrative rewards with your cryptocurrency debit card? Cryptocurrency staking is precisely the way forward. Staking is the process of committing your cryptocurrency to support a blockchain network. And by betting, the demand and circulation of the currency increase. For example, Crypto.com allows you to wager an amount from $0 to $400,000 for a minimum period of six months. And all you have to do is keep the native CRO token in your Crypto.com wallet. The more and the more you bet, the bigger your rewards.
Referrals are a marketing strategy whereby active users bring in new potential customers to register for a program. And in most cases, these users earn rewards in the process. One debit card that uses the referral program is the Club Swan debit card. The Club Swan debit card rewards users with 20% of the membership fee paid for the referral. Membership fees vary by membership levels. If the referral registers for the highest association -president-, the more you earn.
What are the things to consider when choosing a cryptocurrency debit card?
In addition to free cryptocurrency rewards, you should consider other factors before choosing a crypto debit card. Some of the factors you should pay attention to when choosing a crypto debit card include:
1. Transaction Fees
Different card providers will have different transaction fees. However, most crypto debit cards have no withdrawal fees. You may encounter other fees when choosing a crypto debit card such as settlement, monthly fees, foreign transactions and handling fees. So when looking for the best debit card, choose a card with the lowest transaction fees.
2. Compatible with cryptocurrencies
Cryptocurrency support is one of the factors to consider before signing up for a debit card. The good news is that most crypto debit cards support most popular cryptocurrencies, with some supporting over 20 different cryptocurrencies. Also, some cryptocurrency debit cards support stablecoins like Tether (USDT) and USD Coin (USDC). The benefit of stablecoins is that, unlike cryptocurrencies, these coins have remarkable price stability. Therefore, when cryptocurrency prices fluctuate tremendously, the price of these coins remains stable. So you want the convenience you’re looking for in a cryptocurrency debit card? Remember to choose a card that supports the cryptocurrency of your choice.
Security is something to look for when it comes to digital payment methods. So getting a card that provides the next level security measures is the best choice. In fact, some cryptocurrency debit cards provide users with state-of-the-art security measures for their cryptocurrencies. These measures include two-factor authentication, a password and a biometric scan. Most cryptocurrency debit cards come with an app or website where you can fund your crypto debit card. And in case your card is lost or misplaced, you can lock it or change the password remotely. So, to prevent the theft of your hard-earned cryptocurrency, robust security is a factor to add to your checklist.
4. Geographic availability
So far, most cryptocurrency debit cards are only available in the EU and US. So, you might want to get a card that favors your geographic location. Additionally, you can opt for a MasterCard or Visa compatible card. Crypto debit cards in partnership with Visa or MasterCard are internationally accepted. So you can use them anywhere, anytime. If you are an enthusiastic traveler, these cards might be a good option for you. Now that you know ways to earn free cryptocurrencies with debit cards, it’s time to get to work. And when choosing your crypto debit card, take your time and consider the above factors. For cryptocurrency investors, a crypto debit card can be a great addition to your wallet. This makes spending your cryptocurrency easier and you enjoy many benefits in the process.