Please explain

You can check your balance at
http://commerce.microsoft.com In order to use the funds, you have to choose your Microsoft account balance as your payment method when you make a purchase (if you're purchasing 360 content it has to be done on the console).

You unlock the level by earning points in the program. That just shows what you can earn if you buy from Microsoft, not that you did.

Yes but i didnt buy anything on microsoft store ever so i dont understand how did i unlock level 2

Hi Shadow S, my name is Daniel. I am an independent advisor who is willing to help you.

For me, it is an honor to write to you and try to help you in any way possible, for my part I will do my best to try to solve any questions/problems you are presenting.

What the previous message says is correct, for each dollar spent you earn a certain amount of points, I also couldn't tell you exactly how many points you could get for each dollar spent. Although I could tell you as Draft Badger mentions, the rewards have decreased compared to previous times.

As additional information (A similar topic), you can take a look at the following link: https://support.xbox.com/help/account-profile/manage-account/earn-points-microsoft-rewards

I hope you understand, I wish you good luck.

Best regards,
Daniel.

Basically,for every $ you spend on the Microsoft store you earn a certain amount of reward points.

Not sure what the ratio is but it's not much.They've been nerfing the amount of rewards points you can earn quite a bit lately.