Cryptocurrencies have been such a big hit in changing our thinking about money. However, while they have been quite successful as an investment option and daily payment method, crypto bonuses are another emerging use case.
Crypto bonuses are incentives in digital form like Bitcoin, Ethereum or other cryptocurrency. They can be handed out to employees to reward them for performance, long-term financial viability, or to support an organization’s innovation culture.
Also, crypto bonuses can be used in other places beyond the workplace, such as online gaming and other digital areas where you receive digital currency for participating in a program or staying loyal. The broader use cases and future of crypto across all industries are now even more evident as crypto bonuses take center stage.
Let’s dive deeper into how exactly crypto is changing loyalty programs
Understanding Crypto Rewards and Bonuses
Some say crypto is the future of money and the financial world, but many businesses are already embracing it rapidly. There’s a recent trend of modern companies offering loyalty programs and bonuses that pay customers in Bitcoin and other cryptocurrencies instead of fiat money.
With e-commerce businesses, these offers are usually cashback deals that offer to pay them an amount provided they meet a certain condition, like a particular purchase amount on their orders.
Likewise, many online casinos and sports betting sites offer crypto rewards via deposit bonuses or VIP perks to attract and retain customers. For instance, crypto rewards could be offered to new customers in the form of betting welcome bonuses.
This type of bonus gives bettors a chance to try a new site without much investment on the player’s part. Platforms like AskGamblers are great resources to find the best welcome bonuses in the market. They help bettors compare offers and ensure they choose the best one out of the numerous sportsbooks in the market.
Here are common crypto rewards programs to participate in:
● Crypto cashback rewards from gaming platforms and other businesses
● Crypto staking on decentralized finance (DeFi) platforms
● Crypto credit/debit card rewards
● Bitcoin travel rewards
How are these kinds of rewards different from conventional ones paid with fiat currencies? Simply put, they pay out rewards in cryptocurrencies instead of the customer’s local currency. They are also more dependable and secure than conventional forms of payment.
What Are the Advantages of Crypto Rewards to Businesses?
While consumers seem like the biggest winners from crypto rewards, businesses also have their fair share of perks. We highlight some of them below.
Zero Chargebacks
Since transactions in crypto are irreversible and must be verified by the customer before being processed, they can’t demand a refund on any transaction. So, if they receive crypto bonuses and play games or purchase items with them, they cannot dispute the transaction afterward.
Borderless Payments
Global businesses — including online casinos, bookmakers, and e-commerce platforms — have customers across various countries. As such, relying on a single fiat currency can be limiting for customers in other regions. For instance, rewarding a European player with South African Rands may make the prize challenging because they need to undergo many processes and conversions to get it in their local currency.
However, if every consumer, regardless of their location, gets paid their rewards in crypto, there won’t be any need for conversions. Instead, everyone gets the cryptocurrency they prefer, and they can either spend it or store it in their crypto wallet.
Besides catering to all customers in every location, the business can be more appealing to a broader audience. Especially at a time when young people are moving away from the stress of traditional finance to the simplicity of using cryptocurrencies.
Limited Financial Liabilities
Another reason enterprises opt for crypto bonuses over conventional ones is lower fees. Crypto transactions typically cost very little unless the coin’s network is congested and users want priority settlements. That’s why more businesses are switching to Bitcoin and other digital assets to reward their users.
For instance, the average credit card fee is between $1.5% to 3.5%. Merchants pay these fees and add them to their operating costs. Conversely, some cryptocurrency blockchains charge no fees, while some charge well below $1 when converted to fiat.
So, with little to no transaction processing fees, it’s obvious why more organizations are tilting toward crypto bonuses.
Limited Failed Transactions
The growing popularity of crypto bonuses among online businesses is also fueled by the better reliability of crypto transactions that can be successfully processed compared to fiat transactions.
From the point of processing the cashback amount into customers’ accounts, the company can be assured of an almost perfect transaction flow from their wallet to the receiving addresses.
Traditional financial institutions, including banks, deal with obstacles like failed transactions and settlement problems along with delays in processing transactions. Enterprises select crypto rewards to benefit from smoother operational experiences.
Why Are Crypto Bonuses Attractive to Consumers?
After seeing all the benefits businesses reap from crypto bonuses, let’s go over to the other side and analyze the reasons behind the advantages for consumers.
Low Fees
No fees or only small fees apply during bonus withdrawals or transactions performed online. Customers can maximize their offers with low fees, preventing large portions of rewards from being lost to fees.
Easy Diversification Opportunities
Modern-day consumers and players fancy platforms with crypto rewards because the extra digital assets they get from the platforms can be used to invest in crypto or diversify their existing portfolios. They can accumulate their rewards across various companies and gaming platforms to build a decent investment portfolio instead of using their own capital.
Some platforms also offer staking opportunities for users to lock up their bonus coins for additional rewards. This creates an avenue for them to earn passive income from their investments.
More Purchasing Power
Rewards from crypto platforms and traditional companies offer users extra funds to purchase more items, play more games, or redeem cash prizes. However, loyalty rewards from crypto-friendly platforms are usually bigger than traditional platforms offer.
For instance, the welcome bonuses on crypto betting sites are usually more rewarding than the standard welcome offers. That allows players to access more games and boost their potential winnings.
Accessibility
Unlike traditional bonuses — which are often location-locked based on the currencies they are paid in — crypto bonuses are globally accessible. Due to its borderless and decentralized nature, anyone deserving of rewards can get them in crypto and convert them on a cryptocurrency exchange.
Some online platforms even offer direct conversions on their built-in exchanges, making it easy for users to change their bonuses from crypto to fiat.
Conclusion: What Does the Future Hold for Bonuses?
Crypto rewards and bonuses are already here — and they’ll be for a long time. With more young people dominating online marketplaces and gaming ecosystems, the demand for cryptocurrency bonuses will continue increasing.
Businesses will equally strive to match the increased demand with various opportunities for consumers to earn more crypto rewards and have the best experiences. As the trend continues, more businesses will strive to give people reasons to choose them for their rewarding crypto deals.
However, challenges like unclear crypto regulations and security issues remain major stumbling blocks to businesses and individuals’ broader adoption of cryptocurrencies.
There is a possibility that there’ll be a change in the status quo in the near future. With friendlier crypto laws, we will see a massive switch in loyalty rewards and how they operate.