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Will Reeves created the Fold app in 2019 with the intention of making Bitcoin more accessible to the general public. With Fold, users can use a debit or credit card to purchase gift cards from their favorite retailers such as Uber, Amazon, and DoorDash, and earn cash in the form of Bitcoin rewards. After the app’s launch, a co-branded debit card soon followed, offering consumers similar benefits, namely the ability to earn Bitcoin as cashback for everyday purchases.
Below, Select explains how the Fold app and debit card work and highlights similar products that consumers can use to earn cryptocurrency rewards.
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the Fold app is free to download via the App Store and Google Play. In order to purchase gift cards from certain retailers, including Adidas, Amazon, AMC, Chipotle, and DoorDash, among others, users must link a debit or credit card through the app. Each retailer offers different redemption rates on gift cards, while, according to Reeves, users can earn bitcoin rewards at the time of purchase at current market value. Fold gift cards can then be used to make in-store and online purchases through the retailer.
Before purchasing a gift card, users can check how many “sats” or satoshi, the smallest denomination of Bitcoin, they will earn. For reference, a “sat” is one hundred millionth of a Bitcoin.
“Users earn Bitcoin directly and can withdraw it to a personal account [crypto] wallet whenever they want,” says Reeves. “In other words, users are not converting their points into cryptocurrency.
Through the Fold app, users can also spin a virtual wheel, giving them the chance to earn Bitcoin rewards every day, ranging in value from a handful of “sats” to thousands of them. . When it’s time for users to redeem their rewards, all they need to do is transfer them to a personal Bitcoin wallet. Note that according to the website, Fold currently only processes withdrawals to on-chain wallets such as the one offered by Coinbase, among others, and also accepts native SegWit addresses.
The Fold app can be a good option for users planning to purchase items from certain retailers, as it gives them the opportunity to earn Bitcoin rewards on items they would normally buy anyway.
In addition to the app, Fold has its own co-branded debit card. Although the Fold Spin debit card does not perform a credit check or have an annual fee, it comes with an attached checking account, into which cardholders can deposit money via direct deposit or ACH transfer.
With the Fold Spin debit card, users can either earn a flat 1% cashback rate on their purchase or try their luck by spinning the app’s virtual wheel for a higher cashback rate.
1% Bitcoin cash back or spin for the chance to earn up to 25% Bitcoin cash back
Foreign transaction fees
N/A — cannot be used internationally
According to Reeves, users can earn between less than 1% and up to 25% cash back on their purchases by spinning the wheel. They can also earn extra spins by making regular purchases, depositing money, and collecting spins through the augmented reality, or AR, in-app rewards experience, which allows users to track Bitcoin rewards and trader hidden in the environment around them in a way that is similar to Pokémon GO.
Those who want to potentially earn bigger rewards can opt for the Fold Spin+ debit card, which has an annual fee of $150. With this premium option, cardholders can get up to 100% cash back on their purchases by spinning the wheel and can earn up to three extra spins per week – the Fold Spin Card, on the other hand, is n only offers a maximum of one additional round per week.
Although the Fold Spin+ card offers consumers the opportunity to earn a higher cashback rate on their spins, it may not be an investment that is necessarily worth the $150 annual fee – cardholders will still win. 1% cash back guaranteed on purchases if they don’t. t choose to spin the wheel. Since it’s a bit of a gamble to spin the wheel, you might even end up earning less than 1% cash back.
On the other hand, the Fold Spin card could be a good choice for those looking to earn bitcoin rewards on their daily spending, especially since there is no annual fee and you will receive a spin for all your purchases of $3 or more. Consumers, however, should be aware of the volatility of cryptocurrency if opting for a bitcoin rewards card.
Coinbase, one of the largest cryptocurrency trading platforms based on trading volume, offers a debit card that allows users to earn crypto rewards. Unlike the Fold debit card, which uses US dollars to pay for transactions, the Coinbase card actually connects to your Coinbase account and converts any cryptocurrency to dollars at the time of purchase (this also allows you to spend US dollars). The Coinbase Card offers up to 4% back in the form of various cryptocurrencies on every purchase, and although there is no annual fee, you can pay a fee to spend certain types of cryptocurrencies that you own.
SoFi credit card
the SoFi credit card offers cardholders 3% cash back for one year when you set up direct deposit with SoFi. After that, earn 2% unlimited cash back on purchases when redeeming their rewards as Bitcoin or Ethereum if they choose. The card has no annual or foreign transaction fees. SoFi is a personal finance company that provides financial products such as student loans, personal loans, bank and investment accounts for crypto stocks. With the SoFi credit card, you can get your rewards deposited directly to you SoFi checking and savings accounts and can then use them however you want, whether it’s for crypto, paying off your student loans, or just paying your credit card bill.
the Fold app and the debit card can be a good option (if you opt for the regular Fold Spin debit card instead of the Fold Spin+, which has a $150 annual fee) for those looking to dip their toes in the world of cryptocurrency, while the opportunity of the virtual wheel also adds an element of excitement and risk.
That said, the bitcoin rewards you will earn through the app and debit card are not substantial. Consumers can likely earn more in rewards from welcome bonuses and point rewards on everyday purchases with credit cards than with the Fold app or debit card. Cardholders should be aware that while the value of Bitcoin tanks, their Fold rewards won’t be worth much either.
Editorial note: Any opinions, analyses, criticisms or recommendations expressed in this article are those of Select’s editorial staff only and have not been reviewed, endorsed or otherwise endorsed by any third party.