The cryptocurrency movement has taken the world by storm with an increasing number of people holding some type of digital currency. To assist crypto owners with accessing their assets quickly for real-world spending and go beyond just speculative trading or banking their funds, various types of crypto cards are popping up on the market.
Self-proclaimed as the most widely accepted card of its kind, the Crypto com Visa Card offers its users a convenient way to use funds while also offering perks and other benefits. To avoid market fluctuations, the owner’s chosen crypto coin is converted to U.S. dollars based on the real-time market value and then loaded to the Crypto com Rewards Visa. It can then be used like any other payment card so let’s take a look at how does Crypto com card work and Crypto com card benefits.
How Does Crypto com Card Work and Crypto com Card Benefits
Earning Rewards
The Crypto com Visa Card allows cardmembers to earn cash back in the form of CRO Rewards. CRO rewards are Crypto com’s cryptocurrency token, which can be traded on Crypto com’s platform into other digital coins or even into fiat currency.
Crypto com’s Rewards Visa card is actually a series of cards. Each card level is dependent on how much you stake – the more you stake, the more benefits and perks you can unlock. The highest card, Obsidian, for example, offers up to 5% CRO back on most purchases.
Unfortunately, the amount you need to put up makes the highest card irrelevant to all but the most devoted of crypto enthusiasts. In effect, the two highest levels are out of reach for most, which makes the advertised rate of “up to 5%”somewhat misleading.
Staking
Unlike other traditional credit and debit cards, the Crypto com Visa Card requires you to “stake”funds. “Staking”is more or less locking in your funds for a specified amount of time with the specific platform. In the case of the Crypto com Rewards Visa, that would be Crypto com and its CRO token. CRO token values vary according to the crypto market and are in the $0.39 to $0.41 range as of April 2022. Essentially, users are giving the card issuer a loan with their cryptocurrencies and in return, Crypto com offers an array of benefits.
The staking requirement for the Crypto com Visa Card is fixed in U.S. dollars instead of CRO. Staked funds must be held for six months. Once a cardmember unstakes their CRO, the benefits of each tier will be reduced. To keep rewards and benefits, users can keep CRO staking beyond the initial six-month staking period.
Redeeming Rewards
CRO rewards are earned on eligible purchases, and depending on which tier of card you hold, will earn a certain percent back. Following the transaction, CRO rewards are deposited to your account instantly.
- Obsidian: Crypto’s top-tier and most premium card, this option comes with a huge staking requirement of $400,000. Obsidian earns 5% (active stake) CRO rewards and 2% (no stake) on card spending. Other perks include: a monthly reimbursement on subscription services from Spotify, Amazon Prime and Netflix. Fee free ATM withdrawals are capped at $1,000 per month.
- Frosted Rose Gold and Icy White: Crypto’s second highest cards. Users can choose either the Frosted Rose Gold color or Icy White. The staking requirement for this second tier is $40,000—still incredibly high. The perks also decrease, although they still earn a monthly reimbursement on subscription services from Spotify, Amazon Prime and Netflix. Frosted Rose Gold and Icy White earn 3% (active stake) 1% (no stake) CRO rewards on card spending. Free ATM withdrawals are allowed up to $1,000.00 each month.
- Royal Indigo and Jade Green: Crypto com Visa Card’s third tier cards also come in two options, Royal Indigo or Jade Green. Staking requirements for these cards is $4,000. Royal Indigo and Jade Green earn 2% (active stake) and 0% (no stake) CRO rewards on card spending. Monthly CRO Card rewards are capped at $50. Additional perks include a monthly reimbursement on subscription services from Spotify and Netflix. The fee-free ATM withdrawal limit is $800 per month.
- Ruby Steel: Ruby Steel is the fourth level card. Staking of $400 is required. Benefits include a monthly reimbursement for Spotify subscriptions. Ruby Steel earns 1% (active stake) and 0% no stake, up to $25 a month in CRO rewards on card spending. ATM fee free limits are $500 per month.
- Midnight Blue: The Midnight Blue card is Crypto com’s free option, meaning there is no staking requirement. The card has very few perks and earns no cash back. The monthly fee free ATM allowance is $200.00. Also, unlike higher tiered cards, which are made of metal, the Midnight Blue is made of plastic.
If you are considering cashing out your CRO rewards for fiat currency, you’ll want to keep the market value for CRO rewards in mind. For example, if you have the Ruby Steel card which earns 2% CRO Rewards and you make a $1000 purchase, you will receive $20 value CRO rewards back based on the purchase price on date of issue.
Benefits from spending on the highlighted earning categories are in the form of reimbursements. Cardmembers can earn one reimbursement per merchant per month and are actually capped as following:
- Spotify: $13.99
- Netflix: $13.99
- Expedia: $50.00
- Amazon Prime: $12.99
- Airbnb: $100.00
ATM fees are waived each month, up to a dollar amount depending on the card. After the limit is reached, fees on the withdrawal amount are increased to 2% thereafter.
Rewards Potential
Using data from various government based agencies to estimate and determine the baseline income and average spending in assorted categories for consumer credit cards. Wage-earning households in the 70th percentile bring in roughly $107,908 annually and are reasonably able to charge $32,072 to credit cards each year.
Most families wouldn’t stake more in crypto than a premium credit card would charge, so we’ll base our assumptions on the Ruby Steel card. This card requires a stake of $400.
The Ruby Steel card earns 1% (active stake) back in CRO, so our household could earn $320.72 back in CRO with all charges on the card. The rewards sound a bit more harmonious if you already subscribe to Spotify because this level does get a Spotify rebate of up to $12.99 per month.
Other Crypto com Rewards Visa Benefits
- Airport Lounge Access through LoungeKey: This benefit is available only for the Obsidian, Frosted Rose Gold, Icy White, Royal Jade and Indigo cards. Obsidian, Frosted Rose Gold and Icy White allow cardholders to bring one additional guest for free. Royal Indigo and Jade Green do not include a free guest. Additional guests will incur a fee of $32 per person.
- Crypto com Private: These benefits are tailored for Obsidian, Rose Gold and Icy White cardholders. Benefits are built on existing perks for these cardholders
- OTC block trades of CRO
- Priority access to research reports published by Crypto com
- Inheritance service i.e., assistance with estate handling related to Crypto com assets
- Top industry events access (with priority access for Obsidian cardholders) Priority customer service
- Visa card-related benefits
Obsidian, Icy White, Rose Gold cardholders will also get:
- Crypto Earn additional interest of 8% annually on fixed-term deposits (paid in CRO; not applicable to CRO deposits)
- Crypto Earn increased account limits of $2M for Obsidian and $1M for Icy White/Frosted Rose Gold; $0.5M for the remaining card tiers
Closing Thoughts
High-flying cryptocurrency enthusiasts looking strictly for a way to easily access their digital assets for spending could find the Crypto com Rewards Visa to be a rewarding option. The card, depending on the tier, is full of benefits and value, although sometimes at a very high staking requirement. This may or may not make the card worth it to you – due to the opportunity costs of keeping your crypto money tied up in the program.
For the average crypto hobbyist, at the lower levels the card only makes sense if you already subscribe to digital services and your fee rebates are enough to justify making what is effectively a security deposit. Now that you know how does Crypto com card work, how does it sound to you and would you be getting one?
