—TechRound does not recommend or endorse any financial, investment or trading advice or practices. All articles are purely informational—
With the rise of digital assets and crypto payments, several platforms are now offering cashback incentives that can turn your everyday spending into real savings. Whether you’re buying groceries, filling up at the gas station, or shopping online, the best crypto debit card for cashback can help you earn while you spend.
What Is a Crypto Debit Card?
A crypto debit card works just like a traditional debit card, except instead of withdrawing funds from a bank account, you’re spending from your cryptocurrency wallet. When you make a purchase, the card converts your crypto into fiat currency (like USD, EUR, or GBP) in real-time, allowing you to pay for goods and services anywhere that accepts Visa or Mastercard.
In addition to the ease of using crypto in daily transactions, many of these cards offer cashback rewards, making them a great way to make your crypto work harder for you. Let’s dive into how you can earn cashback with these cards and which ones are worth considering.
How Does Crypto Cashback Work?
Cashback rewards on crypto debit cards function similarly to traditional credit card rewards. You make a purchase, and a percentage of that spending is returned to you in the form of cryptocurrency. This cashback is usually paid out in Bitcoin, a stablecoin like USDC, or the native token of the platform you’re using.
For example, when you spend $100 using a cashback crypto debit card with a 2% cashback rate, you would receive $2 worth of crypto deposited back into your account. This reward can grow in value if the price of the crypto increases, adding a unique twist to your earnings.
Tips That May Help Maximise Your Cashback
To make the most out of your crypto debit card and earn the highest cashback, keep the following tips in mind:
1. Pick the Right Card for Your Spending Habits
Some cards, like the Crypto.com Visa card, offer higher rewards if you’re willing to stake their native token. If staking isn’t your thing, then a card like Coinbase Visa or Binance Visa might suit you better. Assess your spending habits and decide whether you’re willing to lock up some funds in exchange for higher rewards.
2. Focus on High-Reward Spending Categories
Most crypto debit cards provide cashback on all purchases, but some might offer better rates in certain categories like dining, travel, or online shopping. Pay attention to these categories, and try to use your card for purchases that will yield the most cashback.
3. Take Advantage of Extra Perks
Many cards come with additional perks like subscription reimbursements or travel rewards. For instance, Crypto.com offers free Spotify and Netflix subscriptions on certain card tiers, while Binance has no foreign exchange fees, making it ideal for travelers.
4. Stack Rewards with Crypto Earnings
Don’t forget that crypto cashback rewards have the potential to grow in value over time. If you receive Bitcoin, Ethereum, or other cryptocurrencies as cashback, you can hold onto them and potentially benefit from price appreciation in the long run.
Understanding Fees and Limits
Before choosing a crypto debit card, it’s essential to understand the fees and limits associated with each option. While many cards offer attractive cashback rewards, they may also come with transaction fees, withdrawal limits, or foreign exchange fees that can eat into your earnings. These fees can vary significantly between providers, so comparing them is crucial to maximise the benefits of your card.
One common fee to watch out for is the monthly maintenance fee. Some crypto debit cards charge a small fee for simply having the card active, which can be a downside if you’re not using it regularly. Additionally, ATM withdrawal fees can quickly add up, especially if you frequently need cash. Some cards offer a limited number of free ATM withdrawals each month before charging a fee, while others may have different fee structures depending on your location.
Additionally, it’s important to check withdrawal limits—both daily and monthly. Some cards might limit the amount of fiat currency you can withdraw from ATMs, while others might restrict the amount of crypto you can spend per day. By understanding these restrictions ahead of time, you can better plan how to use your crypto debit card without running into unexpected costs or limitations.
—TechRound does not recommend or endorse any financial, investment or trading advice or practices. All articles are purely informational—