The new financial age is here, and new forms of transactions are developing tremendously. One such technology is the crypto debit card. Crypto debit cards have increased demand, and numerous people are now using them. It’s because of the eminent benefit that comes with them.
Early crypto adopters predicted the legitimization of digital currency similar to fiat currency. But what they didn’t predict was the digital currency adopting the traditional financial products. And now, one of the most exciting things happening in the crypto world is the crypto debit card.
So, are you considering having a crypto debit card? Luckily for you, we’ll be discussing things you need to know before signing up for your first debit card. And most importantly, how you can earn free crypto with your crypto debit card.
What Are Crypto Debit Cards?
A crypto debit card might sound unfamiliar, but it works similarly to traditional debit cards. They have a scan-able barcode or a chip with your relevant bank information embedded into them like traditional debit cards. Also, like the traditional debit card, you can use it for your day-to-day purchases.
However, unlike crypto debit cards, crypto debit cards don’t need a credit check like the Visa debit cards. Additionally, these cards make it easier to use crypto for your daily purchases. How do they do this? The Crypto debit cards link the crypto processing companies like MasterCard and Visa to your crypto wallet.
How do Crypto Debit Cards work?
Want to sign up for your first crypto debit card? First, make sure there is an authorization of these debit cards in your location. While applying for your crypto debit card, your eligibility must get tested. For instance, you will certainly have to submit your address when applying for one.
Then you’ll connect your card to your bank account. By doing this, you allow money transfer to and from your debit card. So, in this case, your will be transferring U.S dollars to the crypto exchange from your bank account. Then debit crypto into your debit card. But before all this, you’ll need to consider wisely the coin to proceed with. Thoroughly look into the volatility of the crypto coin and its transaction fees.
What Are Things To Consider Before Signing Up for A Crypto Debit Card?
- Are Crypto Debit Card Services Available In Your Location?
The adoption of crypto in the world has reached its all-time high. Yet, in some locations, it’s the exact opposite. In fact, some countries like India and China have banned crypto. On the other hand, countries like the U.S have embraced the selling, buying, and trading crypto coins.
Your crypto debit card should work anywhere there is the authorization of debit cards. However, you certainly can’t use your crypto debit card for purchases in places where crypto isn’t authorized. So, it’s better to have a backup at all times.
- What Cryptocurrencies can the Crypto Debit Card support?
There are thousands of cryptocurrencies active in the crypto market today. Yet there are only a few cryptocurrencies supported by crypto debit cards. Thus, choose a debit card that supports your preferred crypto coin to be on the safe side. Luckily, most of these cards support multiple popular crypto coins.
- What Exchange Rates And Fees Apply?
Transaction fees vary with the card providers. In fact, most providers for crypto debit cards charge withdrawal fees but not deposit fees. Also, some of the card providers offer a fees waiver if you hit a certain amount for your annual crypto expenditure.
- Is Tax Applicable On Your Crypto Debit Card Transactions?
Yes! the Internal Revenue Service (IRS) pretty much considers crypto as a capital asset. IRS considers cryptocurrencies to be similar to stocks and bonds. Thus, you need to report any capital gains when purchasing anything with your crypto debit card.
Whenever you purchase with your crypto debit card, know that you owe taxes for your crypto gains. The crypto gain taxes apply when the crypto price is higher than when you acquired it. And your amount of crypto taxes will depend on the time you have held the crypto coins and profits, if you have any.
Risks of Crypto Debit Cards
With the huge amount of crypto circulating globally, crypto thefts and scams have been extremely high lately. Last year, 2021, scammers got away with crypto amounting to $14 billion. Thus these events show that even crypto debit cards are prone to scammers and hackers.
However, you can avoid falling victim by putting across serious security measures for your crypto. One major step you can take is using cold wallets to store your crypto. In addition, go ahead and ask for an insurance policy for your crypto debit card before having one.
Ways of Earning Free Crypto Rewards with Crypto Debit Cards
There are lucrative and ever-changing benefits of using the crypto debit card. On the primary level, this debit card allows you to earn a crypto reward every time you purchase with it. For example, the crypto.com debit card offers cashback rewards ranging from 1% to 8%, depending on the type of card you hold.
If you hold the lowest crypto.com debit card, you get to earn a 1% reward back if you make any purchases. While with the top tiers debit cards, you get to enjoy some remarkable benefits. These benefits include free Netflix, Spotify, and even Amazon prime subscriptions. And these benefits are to mention a few.
Also, you can earn free crypto rewards through staking. If you want to get even high reward percentages, staking is what to go for. For instance, to stake with Crypto.com, you’ll have to buy the native company’s crypto. Then keep it on your crypto.com wallet for six months at a minimum.
Through staking, you help increase the circulation and demand for the currency. Therefore, the value of the blockchain ecosystem increases in the process. Besides, the higher the amount and the longer you stake, the more the rewards you get.
In addition, some crypto debit cards allow you to earn free crypto through referrals. One such card is the Club Swan card. It offers four types of membership-starter, premier, VIP, and chairman. Whenever you refer a person, you earn 20% of the membership fee paid by your referral.
Different types of crypto debit cards have different ways of rewarding cardholders. Therefore, before you sign up for your debit card, make sure to research thoroughly. Take your time and consider the associated processing fees. Also, choose a card that most suits your kind of lifestyle.
The post How To Earn Free Cryptocurrency With A Crypto Debit Card, And What To Know Before Signing Up appeared first on iGaming.org.