Are you interested in investing in Bitcoin? The cryptocurrency has been around for over a decade, but has experienced a surge in popularity in recent years. If you’d like to get started in investing in it but don’t know where to start, you’re in luck: Quontic has introduced Bitcoin Rewards Checking1, a first-of-its kind account.
Today, there are over 6,000 cryptocurrencies worldwide, with the top 20 believed to make up the majority of the market. Additionally, there are a number of platforms available where you can buy and sell crypto (with varying fees, of course).
It can all be… a lot.
But that doesn’t mean you should turn your back on Bitcoin, especially if you’re interested in dipping your toes in the crypto waters. With Bitcoin Rewards Checking, you can combine crypto rewards with everyday banking. In this article, we’ll provide a refresher on Bitcoin, terms you need to know and how this banking reward can benefit you.
An Overview of Bitcoin and Digital Currency
Before we launch into Bitcoin and the Bitcoin Rewards checking account, it’s essential to have a general understanding of digital currency. Here’s a brief overview:
What is Cryptocurrency?
Cryptocurrency, or crypto, is a digital monetary asset. It doesn’t exist in physical form, and there’s generally no one central bank or governing body, such as with fiat money. (The U.S. dollar is fiat money, which is backed by the U.S. government, for example.) You store and manage your money in a cryptocurrency wallet. From there, you’ll need a private key, which acts like a password, to access the funds in your crypto wallet.
What is Bitcoin?
Bitcoin (BTC) is one of the most popular types of cryptocurrency. Satoshi Nakamoto (a presumed pseudonym) is credited with inventing the digital currency in 2009.
The price of Bitcoin has fluctuated over the years, from $0 to a couple hundred dollars to hovering around the $40K mark in July of 2021. The volatility among Bitcoin and other cryptocurrencies is due to a couple factors, such as scarcity and the lack of a regulatory body.
Bitcoin Cash launched as a peer-to-peer online payment system in 2017. Similarly, there are no regulators for this form of crypto.
What is Bitcoin Mining?
Bitcoin mining is the process of introducing new bitcoins into circulation through verifying payments (via solving cryptographic puzzles on a mining computer) and adding them to the blockchain ledger.
What is Blockchain?
Blockchain is a digital ledger of cryptocurrency transactions. This database technology keeps a record of and tracks digital currencies (Bitcoin, Litecoin, Ethereum, etc.) across connected computer networks. Data is stored in records or blocks, and chained together through cryptography.
How Can You Buy Bitcoin and Other Digital Assets?
You can buy Bitcoin through a cryptocurrency exchange. There are dozens of platforms on the market that allow users to buy and sell Bitcoin and other cryptocurrencies. Robinhood and Coinbase are two well-known examples of such online crypto exchanges.
Bitcoin Rewards and Banking with Quontic
Quontic offers a few types of checking accounts in a quest to serve the underbanked and better service communities at large. On top of offering interest-earning accounts, we now have accounts that earn crypto as a reward, too.
Quontic has launched Bitcoin Rewards Checking. With this account,you can earn rewards in the form of bitcoins when you make qualifying purchases1, with your debit card. Typically, when a customer uses their debit card connected to their checking account, banks earn an interchange fee. With Bitcoin Rewards Checking, Quontic is essentially passing on some of these earnings — in the form of digital currency — to customers.
Here’s some information on the account, at a glance:
- You must be at least 18 years old to sign up.
- To get started, you need a minimum opening deposit of $500.
- There are no monthly service fees2(which you sometimes encounter with other checking and savings accounts).
- You have access to over 90,000 ATMs.
- Quontic accounts are FDIC-insured3, which means your money is protected up to $250,000 per depositor, per qualified account.*
Qualified Point of Sale purchases↿ you make in-store and online with your debit card will earn Bitcoin rewards. ATM withdrawals, ACH payments, wire transfers, writing checks, transfers and bill payments do not qualify as eligible purchases and will not earn you Bitcoin rewards.
You can currently open a Bitcoin Rewards checking account in the following states and U.S. territories: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.
Quontic has plans to add more states in the future, as well.
How Do Rewards Accrue?
After you make a purchase with your Quontic debit card, 1.5% of each qualified point of sale1 (POS) will accrue in U.S. dollars. This will then be used to purchase Bitcoin, on your behalf, the following day at 4 p.m. London Time. This is done on a daily basis.
Each Bitcoin purchase will be added to your NYDIG (a leading technology and financial services firm dedicated to Bitcoin) account until you choose to redeem it or close the account.
Why Choose a Bitcoin Rewards Bank Account?
A Bitcoin rewards account is a truly distinct way to bank and earn crypto assets.
Here are three top reasons why it makes sense to consider the Quontic Bitcoin Rewards checking account.
- You Can Diversify Your Earnings
Bitcoin rewards have the opportunity to appreciate, increasing in value. By using your debit card to make everyday purchases, you can earn rewards without investing any outside money.
- You Can Ease into Cryptocurrency
This account provides a low barrier of entry for consumers looking to get started in crypto — just sign up, make eligible purchases and earn rewards.
This debit card is the first in the U.S. to reward customers with Bitcoin. If you’re new to the world of cryptocurrency, it’s an opportunity to easily get Bitcoin simply by using your card.
- It’s an Alternative to Other Rewards Cards
Rewards credit and debit cards can offer all kinds of perks, from cash to travel. While these are nice bonuses, you might need to meet other requirements, such as have a good or excellent credit score to qualify for a particular card or pay a yearly fee. Sometimes, your rewards can expire, too.
Alternatively, this debit card is a simpler way to earn rewards. Plus, as long as you keep your Bitcoin Rewards checking account open, your Bitcoin rewards will not expire.
Is the Quontic Bitcoin Rewards Checking Account Right for You?
If you’re looking to elevate your rewards game and go with an account that’s different from traditional ones on the market, consider Quontic Bitcoin Rewards Checking.
Whether you shop in-store or online, you’ll earn crypto rewards with each eligible swipe of your debit card. It’s a solid way to bank and get Bitcoin. Unlock your crypto ambitions and open an account today.
1Bitcoin Reward Checking account is a non-interest bearing personal checking account, requires a minimum of $500.00 to open the account, and does not require a minimum daily balance to earn Bitcoin rewards. Qualifying Point of Sale (POS) Debit Card Transactions (“Eligible Debit Card Transactions”) shall receive Bitcoin Rewards at the U.S. dollar value of 1.50% on all Qualifying POS Debit Card Transactions that post and settle to the Bitcoin Rewards Checking Account. Fees and terms are subject to change. Additional terms and conditions may apply. No Bitcoin Rewards will be paid if the Qualifying POS Debit Card Transaction requirements are not met or if the requirements for establishing an account with NYDIG Execution LLC (“NYDIG Account”). The following are not Qualifying POS Debit Card Transactions and do not count toward earning Bitcoin Rewards: ATM-processed transactions; transfers between accounts; purchases made with debit cards not issued by the Bank; cash over portions of POS transactions; Peer-to-Peer (P2P) payments (such as Apple Pay Cash); loan payments or account funding made with your debit card and purchases made using third-party payment accounts (services such as Venmo® and PayPal™ , who also provide P2P payments). Transactions may take one or more business days from the date the transaction was made to post and settle to an account. Bitcoin Rewards Checking has geographic, regulatory, and other restrictions that may apply. Bitcoin Reward Checking is currently available in the states of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, New Hampshire, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Bitcoin execution and custody services are provided by NYDIG Execution LLC (“NYDIG”). NYDIG is authorized by the New York State Department of Financial Services to engage in virtual currency business activity. To receive bitcoin services an account will be opened with NYDIG in which your bitcoin will be held (the “NYDIG Account”). Please refer to NYDIG’s User Agreement for more information, including applicable eligibility criteria. Bitcoin balances in your NYDIG Account are not insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any other public or private insurer. NYDIG does not make any recommendations regarding buying or selling bitcoin. There are risks associated with bitcoin trading, including possible loss of value. See NYDIG’s User Agreement.
Information is published as of September, 16, 2021.