Update: 25/01/2021
Wirex - Visa cards will become invalid from 16th March Added:
Fold Ever want to spend your crypto in the real world? A crypto Visa card allows you to spend crypto anywhere that accepts Visa. These are structured as debit cards not credit cards, so you can’t spend more than the value of the crypto in your account. This means no credit checks, but it generally does requires AML/KYC.
Today we’re going to learn how to get started with a crypto Visa card. I’ll draw on my experience with one card in particular so we can dig into the details.
- Goal: Learn how to select and get started with your first crypto Visa card
- Skill: Beginner
- Effort: 1-2 hours
- ROI: Spend crypto in the real world—card perks can generate ROI but do the math first
Before we begin—no, crypto Visa cards aren’t the full bankless revolution we signed up for. This is an interim step. It’s using crypto money as a value store (no central bank!) but wrapping it in a credit card payment networks so you can spend it in the real world. Partially bankless. Remember the early internet days when people uploaded pdfs of their magazine instead of using web native html? This is like that.
Why a crypto card?
Yes, a crypto card is useful for spending crypto in the real world. But, the deeper question—why would you want to spend your crypto in the first place?
I subscribe to the “
hold your ETH spend your DAI” school of thought.
So generally I see store-of-value crypto reserve assets like
ETH and BTC as investment assets. You hold these, you use them as collateral, you lend them out to accrue more—you don’t spend these unless you have to, and if you do spend them, you replace them with more.
Stablecoins? Different story. Spend away. These don’t appreciate in value over the long-run. These are meant for daily spending not long-term holding. (This is why I like DAI so much—backed by ETH so it’s still bankless but also perfect for daily spending).
So, I’d primarily use a crypto card to spend stablecoins rather than ETH or BTC.
That said I might also use a card to spend:
- Interest earned from ETH/BTC I lend out
- Small amounts of ETH/BTC I planned to sell anyway
- Non-money crypto assets I didn’t have high enough conviction to hold
Ideally, a crypto card is somehow paired with a lending service. That way I could park some of my
store-of-value crypto money in an interest-yielding account and spend only the interest proceeds. I’d be spending the house money. I’ll admit the difference between spending interest vs spending principle is purely psychological—but then again, good crypto investing is mainly a psychological game. Better to train your brain to HOLD your crypto money—holding is often the hardest part.
The last reason for a card is perks. Do I get cash back? Do I pick up rewards? Does spending with card provide a higher ROI than other options?
So card makes sense for some types of spending. Time to select one.
Selecting a crypto card
There are many crypto cards available. Here’s a
list.
Here’s
another.
As in traditional finance the availability of cards is geography dependent.
| Wirex |  | Wirex - supports DAI, monthly cost, cashback for in-store purchases, have heard fees are high for loading card and spending it.
Just a quick heads up Wirex are finishing their association with Visa and you can no longer order one - their Visa cards will become invalid from 16th March. They will be using MasterCard. |  |
| Monolith |  | Monolith - still new, supports DAI, card charging fee 2% (less if you use token), smart contract wallet means self-custody! (I’d try this if it was available in U.S) |  |
| Coinbase |  | Coinbase - no DAI support, 2.49% fees domestic, good place to start if you’re a Coinbase user |  |
| Blockcard |  | Blockcard - supports DAI, easy setup, not confident on their custody solution, their TERN token is Stellar not ERC20 |  |
| Linen |  | Linen - uses Compound to generate interest while USD is idle, tested product, good UX, self custody on mobile (most bankless option in U.S. but still in beta) |  |
| Crypto.com |  | Crypto.com - solid UX, custody by Ledger Vault, good compliance certifications, does not support DAI w/ card, use a speculative utility token (pros/cons to this) |  |
| SWIPE |  | SWIPE - Visa Card comes in four options that enjoy benefits such as up to 8% cash back, no foreign transaction fees, Apple/Google/Samsung Pay, top-brand rebates, virtual cards, and real time security features.
Swipe Wallet Bitcoin
All Cash Back is paid in Bitcoin |  |
| Fold |  | Fold - is building the payments stack for a new economy— one that puts privacy and bitcoin within reach of every shopper. |  |
The MCO Visa Card from Crypto.com
There were a few things about Crypto.com I had to get past.
First, they raised funds through an ICO token called MCO. The MCO token is a utility token used for perks within the Crypto.com economy. In the context of Visa cards, you can stake MCO (lock it up for a period of time) to receive better perks. The MCO token reminds me of Binance’s BNB, however MCO does not entitle holders to a share of Crypto.com profits as BNB tokens do for Binance. Think of MCO tokens as a membership points system of sorts.
Second, this is a crypto bank, so you have to give up custody of your crypto assets and trust both Crypto.com’s
custody and risk management processes. While they don’t have the longevity and trust of a Coinbase or BitGo yet, they use
Ledger Vault so they’re not rolling their own security, they’re audited by one of the Big Four accounting firms, and they’ve attained some hard to get ISO and PCI compliance. Enough good stuff here for me to risk loading a Visa card.
Third, their marketing is slick. So slick that it turned me off at first. But the best way to separate the substance from the sizzle of a product is to use it and when did so I was pleasantly surprised. Their mobile app is well put together, the process of ordering and activating a card straight-forward, and their packages and fees easy to understand—at least, once you wrap your head around the MCO token…we’ll get to that.
Picking an MCO Visa Card
You can see the five different options for a MCO Visa card
here. The Blue card doesn’t require you to buy and stake MCO, the rest do. In exchange for staking MCO, these higher-tier cards rewarded your with additional perks like a free Spotify subscription and
LoungeKey Airport lounge access.
With all of the cards you get a % of your spending back denominated in MCO.
Are the higher-tier cards worth it?
Here’s how I think about higher-tier cards—let’s take the Red card for example:
- You need to buy 50 MCO tokens (at $2.68 per token that’s $134)
- You need to lock up (e.g. stake) the 50 MCO tokens for at least 6 months
- You can sell the MCO after lock up but if you do your perks will disappear
Essentially, you’re incurring opportunity cost on the $134 you invest in MCO tokens, which isn’t much. But you’re taking speculative risk on the value of MCO tokens themselves which at one point were valued over $22 per token but have also dropped below $2—your $134 investment could do very well or you could lose it all.
You’ll want to run your own calculations, especially if you’re interested in the higher card tiers. But below is a deal that’ll help you get another $50 worth of benefits.
Get $25 worth of MCO tokens
Get $25 worth of MCO tokens when you sign up for any of the Crypto.com metal cards. (Note: all cards
listed here are metal aside from the Blue card).
Use referral link to sign up for Crypto.com and get $25 USD 
Ordering & activating your card
After you determine the card you want the process of ordering it is simple:
- Download the Crypto.com app
- Complete AML/KYC via the in-app instructions
- Order your card in-app
You should receive your card a week or two later:
Now, activate and top-up card:
[1.]Active your card through the Crypto.com app
[2.]Add BTC/ETH to Crypto.com wallet by depositing to the address provided in app
[3.]Once BTC/ETH is in Crypto.com wallet top up your Card by converting it USD
Congrats! Once topped up your card is all set. Go buy some coffee with your crypto.
Source:
https://newsletter.banklesshq.com/p/how-to-get-your-first-crypto-visa
