Cryptocurrency and the underlying blockchain technology have revolutionized global finance, with digital assets becoming increasingly popular as a method of payment across the globe.
Today, millions of businesses accept Bitcoin and other cryptocurrencies as payment. And as more and more people are paying with crypto at various merchants and outlets, a new trend has emerged: the use of crypto debit cards.
An example of the magnitude of this trend is Visa’s recent announcement that crypto-linked cards accounted for $2.5 billion in payments during its first fiscal quarter of 2022. Its growth which also saw the Crypto-payment processors like BitPay and Strike are increasing support.
Overall, crypto debit cards are on the rise, and with them comes a chance for users to earn free crypto.
But what are these crypto debit cards and how do they work? We take a look at this and more importantly we look at how one can easily earn free cryptocurrency with their crypto debit card.
What are crypto debit cards?
Think of crypto debit cards as similar to conventional debit cards. In this case, you can use the crypto debit card to make in-person or online payments for goods and services just like you would with any traditional debit card.
However, unlike conventional debit cards, crypto debit cards use crypto as the primary currency to load them. Therefore, instead of cash in a bank account, crypto debit cards use Bitcoin, Ethereum, Rippleor other digital assets held in your crypto wallet.
What is remarkable about crypto debit cards is that they are widely accepted. Major 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 crypto wallet to use it. It is a simple process that allows you to top up the card with crypto.
When you shop or seek to pay at a location that accepts debit cards, a payment processor will convert your crypto into the merchant’s preferred currency.
Note, however, that different debit cards convert crypto to fiat at different times. Some of these cards will automatically convert crypto to fiat currency during the top-up process.
Meanwhile, others will hold the crypto and only convert it when you complete a transaction. That said, you can choose your crypto debit card based on the timing of the crypto conversion.
Thanks to the convenience and flexibility of this card, you don’t have to worry about exchange rates. With a crypto debit card, your card directly converts your crypto into any fiat currency of your choice.
Therefore, you can use these cards to make purchases from your local retailer. For example, you shop 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 to earn free cryptocurrency with crypto debit cards?
Crypto debit card providers want to incentivize users, just like conventional loyalty programs work.
But instead of common rewards like cashback, points, and miles, crypto debit cards let you earn crypto rewards. In other cases, you can use the earned points to buy cryptos.
So, although different crypto debit cards have different strategies for rewarding their users, there are three common ways to do it.
These are crypto-back rewards, staking and referral systems, the latter strategy made popular by the Swan Club menu.
Let’s see how each of these strategies offers customers a chance to earn free crypto with crypto debit cards.
1. Crypto-back rewards
When it comes to most crypto debit cards, crypto-back rewards are the primary reward. All
When you make a purchase with your debit card, you’re automatically rewarded — not cash, miles, or points — but crypto. The amount of crypto-back reward available can vary greatly, mainly depending on the provider.
For example, after making a purchase, a Coinbase debit card gives you a 4% reward. On the other hand, BlockFi will reward you with a 3.5% cashback for all purchases you make. However, this reward amount is only valid for 90 days.
Then the amount is automatically reduced to 1.5% cashback.
Some cards, however, have an advanced way of rewarding users based on the level of card held. For example, Crypto.com rewards 1% crypto back if you hold the lowest card tier. And if you hold the highest card tier, 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, meaning you get free crypto with every purchase.
Looking for the best way to earn lucrative rewards with your crypto debit card? Crypto staking is precisely the way to go. Staking is the process of committing your cryptocurrency to support a blockchain network. And by staking, the demand and circulation of money increases.
For example, Crypto.com allows you to wager an amount from $0 to $400,000 for at least six months. And all you have to do is keep the native CRO token in your Crypto.com wallet. The longer and higher your bet, the higher your rewards.
Referrals are a marketing strategy by which active users bring new prospects to sign up 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 membership fees paid by referral. Membership fees vary by membership level. If the referral registers at the highest level of membership – president – the more you earn.
What are the things to consider when choosing a crypto debit card?
Apart from free crypto rewards, there are other factors you need to consider before choosing a crypto debit card. Some of the factors you need to 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 do not have withdrawal fees. You may encounter other fees when choosing a crypto debit card like liquidation, monthly foreign transactions, and maintenance fees. Therefore, when looking for the best debit card, choose a card with the lowest transaction fees.
2. Supported Cryptocurrency
Cryptography 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.
Additionally, some crypto debit cards support stablecoins such as Tether (USDT) and USD Coin (USDC). The advantage of stablecoins is that, unlike crypto, these coins have remarkable price stability. Therefore, when crypto prices swing wildly, the price of these coins remains stable.
So, do you want to get the convenience you are looking for in a crypto debit card? Consider choosing a card that supports the crypto of your choice.
Security is something to look for when it comes to digital payment methods. So getting a card that gives you the next level security measures is a top choice.
In fact, some crypto debit cards offer users state-of-the-art security measures for their crypto. These measures include two-factor authentication, password and biometric scan.
Most crypto debit cards come with an app or website where you can fund your crypto debit card. And if your card is lost or misplaced, you can lock it or change the password remotely. So, to prevent your hard-earned crypto from being stolen, robust security is something to add to your checklist.
4. Geographic Availability
So far, most crypto debit cards are only available in the EU and the US. Therefore, you might want to get a map that favors your geographic location. Also, you can decide to choose a card supported by MasterCard or Visa. Crypto debit cards in partnership with Visa or MasterCard are international
acceptable. Therefore, you can use them anywhere and anytime. If you’re an avid traveler, these maps might be for you. Now that you know the ways to earn free crypto 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 crypto investors, a crypto debit card can be a great addition to your wallet. This makes it easier to spend your crypto and you get a lot of benefits in the process.