There are more and more applications of crypto in everyday life. Where Bitcoin was once launched as an alternative means of payment, in recent years we have seen more and more possibilities to use crypto as a means of payment. Despite the crypto world being weighed down by a volatile market that moves both upwards and downwards, there are more and more opportunities to use these assets to make your regular payments. One of the advantages is the attractive cashback percentages, which makes investing with your crypto card so interesting. Find out here what Binance Visa Card is and how you can get up to 8% cashback on expenses you make with this card.

What is the Binance Visa Card?

We are all familiar with a visa card by now and the majority of the world's population uses it regularly. Perhaps the biggest advantage is the worldwide acceptance of a visa card. No more hassle with adjusting settings so that you can pay on the other side of the world, but a worldwide network where payment has become child's play. But what is Binance Visa Card and how does it work?

The Binance Visa Card is an extension of the Binance trading platform. It works like a traditional debit card. Correct, it is not a credit card where you can make purchases on installment, but a regular debit card where you can only use your current accounts. Instead of paying here with fiat money such as euros or dollars, you use a whole range of digital assets such as Bitcoin (BTC), Binance Coin (BNB), Cardano (ADA) and Polkadot (DOT). Your personal card is linked to your Binance account and in this way you can add currency to your Pay-Wallet.

Charging currency

You can easily load money onto your card via your Binance App or dashboard. Because it is a debit card, you can only call on your current assets. It is not the case that the value of your spot wallet on your Binance account is immediately transferred to your Binance Visa Card. You can choose which coins you add and for what value.

In the example below you can see that the current value of my personal pay wallet is 0 euros, which means that I first have to add currency. You do this simply by navigating to 'transfer'. Here you see an overview of where to where you will transfer currency. You can choose to move assets from your spot wallet to your pay wallet and therefore your Visa Card. But you can also choose to move currency from your pay wallet back to your spot wallet, for example if you want to use these assets to make a trade.

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You can then choose which currency you want to use and which share you want to upload. You also immediately see the full value of your spot wallet, so that you can decide here what percentage you want to make available.

Perks

No costs
With a traditional visa card, annual costs are charged. This is a small cost that you pay to use a credit card. Binance believes that crypto and the financial future should be accessible to everyone and has therefore decided to offer the Binance Visa Card completely free of charge. So they don't charge any administrative or processing fees, but they do warn that third parties may be able to do this.

Cash back up to 8%
The goal of many investors is to increase their position in the market. And preferably with as little risk as possible and preferably also in a passive way. Passive income is a return that you get without having to actively trade the market for it. Now the Binance Visa Card offers a cashback on every purchase you make, with this cashback being paid out in Binance Coins (BNB). Specific? Where you make a purchase with a regular card, you can now make this purchase via the Binance Visa Card and also earn crypto.

This cashback is transferred daily to your own account, your pay-wallet. These cashbacks have an upper limit of a maximum of 8%. The percentage you actually receive depends on the amount of BNB tokens you have in your wallet. With this, Binance naturally wants to promote its native token as much as possible. Binance distinguishes between different card levels to determine the percentage:

As you can see, these differ quite widely. At the time of writing, one BNB is valued at $359, according to CoinGecko. This means that you must have at least $215,000 worth of BNB tokens to be entitled to a full 8% cashback. Of course, there is only a select group that can benefit from this. Nevertheless, there are other card levels where you can still enjoy a nice cashback.

Do you have one full BNB? Then you are already entitled to a cashback of 2%. Although this is much less than the 8% you can get, this is still a nice way to passively earn crypto. Finally, don't forget that when you purchase a traditional visa or debit card, you don't get cashback. In that respect, the use of the Binance Visa Card is interesting for those who want to get more BNB tokens in this way. Each cashback is paid out daily and you can consult your transaction history.

To use this cashback, it is not necessary to have the entire value of your BNB tokens in your pay wallet. Binance takes the entire value of your account into account when paying out the cashbacks. This way you can use your currency to bet in a launch pool or the like, without these being on your pay-wallet, and still get a cashback based on your entire position.

Cashback operation
With a cashback, the BNB amount paid is settled under the equivalent of the euro. If you currently make a purchase worth USD 360, you pay one full BNB coin today. Depending on your current spot wallet, you will receive a cashback for this. This always has the same euro value as was initially allocated, but it can have a different BNB value. This is due to a volatile market and different exchange rates.

Limit
Unfortunately, there are limits on this cashback. This way you cannot continue to make unlimited purchases and continue to earn unseen cashbacks. Binance has therefore set a limit on an amount of 1,800 euros per month. Are you spending more that month? Then you will not receive any cashback for the other purchases. In a new month you will of course get cashback rewards on your investments made with your Binance Visa Card.

Protected by SAFU
SAFU stands for Secure Asset Fund for Users and is an emergency fund for all users of Binance. Here they lock in 10% of all trading fees and this amount is used as an emergency fund. Since 2018, Binance has been using SAFU for the entire platform and this security also applies to the Binance Visa Card. Specific? If you fall victim to a scam or any other scam, you will be assisted by this fund.

But how do you pay with crypto when the market is so volatile? That is a question many young investors have. Originally Bitcoin (BTC) was also created as an alternative means of payment, but it is true that it is currently volatile to use as a means of payment without linking it to a fiat variant.

A euro equivalent is deducted with every purchase. In the long term, the value may fluctuate to such an extent that your euro equivalent may differ in the future; both positive and negative. This volatility is characteristic of the crypto market. The payment process is also identical to any electronic payment that is made by means of a unique PIN code.

Where can you pay with Binance Visa Card?

Binance itself announces that you can use the Binance Visa Card at more than 60 million locations worldwide. In principle, you can use this card in all places where you can pay electronically with a Visa Card. Although it is not a credit card, it is seen as a visa card where you may not be able to pay if their payment system does not support visa cards. You can use your Binance Card at most points of sale and supermarkets.

Withdraw money

Just like with a regular debit card, the Binance Visa Card also allows you to withdraw money at an ATM or an international ATM machine. The principle remains the same, where you will withdraw a certain amount that is equal to a certain value of your favorite crypto at that time.

Binance wants to make crypto accessible to everyone worldwide. That is why they have decided that anyone can apply for this Visa Card completely free of charge. This is done through the Binance website itself. The signup process is done in just a few steps. This simplicity is possible because you must already have a Binance account, which has been preceded by an extensive Know-Your-Customer procedure. You have already provided the necessary information about your identity.

Fill in a number of basic details, including your address, and the Binance Visa Card will be sent immediately to your place of residence. Shortly afterwards, the card is automatically activated and you can load money using different crypto currencies from your personal dashboard or the Binance App. Make sure you change your personal PIN on your Binance account. This way, your card is always protected against theft.

Now that we get less and less interest on our savings, we are massively looking for alternatives to actively use our money to get maximum returns. In addition to investing in various digital assets, we can now also use the Binance Visa Card to even get a cashback on our spending. Pay for your groceries with this card and even receive a cashback, paid in BNB coins. Binance is not the first platform to offer this option, but it is the platform that offers the most cashback where you pay no costs at all.

The only downside is the volatility of the market. You pay in crypto, which at that time is a euro equivalent of the amount. Suppose you buy a new laptop worth 600 dollars, which at the time of writing is roughly equivalent to 2 BNB coins. When the value of the Binance Coin (BNB) starts to rise exponentially over the years, to, for example, $ 1,000 per coin, you have purchased a laptop for $ 2,000 at that time. Of course, this also works in reverse. In addition, we must not forget that the value of fiat money is also not stable and it is also subject to a changed purchasing power due to, among other things, inflation.