What is a Crypto Credit Card?
A "crypto credit card" can work in a few different ways. But generally, it marries the convenience of your typical credit card with the lower fees and easier global transactions made possible by cryptocurrency by allowing users to earn crypto rewards.
Most of them work just like a normal credit card, except you earn cashback rewards in the form of cryptocurrency.
Some of them even allow you to pay off your fees and balance using cryptocurrency.
And the best part?
Just like your existing cards, the more you use your crypto credit cards (and pay it off), the more rewards you earn.
6 Credit Cards with Crypto Rewards
You can try the 6 following cards to earn cryptocurrency rewards with your credit card purchases. Some are more direct and straightforward that others. For example, cards like the BlockFi Visa allow you to earn Bitcoin automatically. Very straightforward.
Unfortunately not ALL of them are currently available yet. For example, Celsius currently has a waitlist open for those who are interested in their crypto rewards card. They are still a fairly new concept
Gemini Credit Card
Gemini is also good because it carries a wider range of cryptocurrencies. So, if you're looking to pay one of those covered cryptocurrencies like Ethereum, you can.
Fees for annual membership and exchange transactions are waived with a Gemini card. It also takes advantage of the global acceptance of the Mastercard network and all its user perks and exclusive offerings.
The Gemini credit card may not be available yet, but it is currently putting applications from any of the 50 states on its waitlist. Once it’s out, you will receive a metal card in a sleek design, with three color choices, namely: silver, black, and rose gold. If you are interested in using Gemini, check out our security review of the Gemini exchange.
BlockFi Rewards Visa® Signature Credit Card
BlockFi Allows you to earn interest on your crypto holdings and this card allows you to use your crypto as collateral for you line of credit.
- First Bitcoin earning credit card
- 14.99% - 24.99% APR
- No annual fees
BlockFi launched one of the first cards that allows you to earn crypto rewards in the summer of 2021. It automatically allows you to earn Bitcoin on all of your purchases.
Venmo Credit Card
Venmo is trusted brand that almost everyone recognizes when it comes to sending money. They launched their credit card and recently added the option for users to convert their cash back rewards to Crypto via their "Cash Back to Crypto" program. You can choose the type of cryptocurrency that you purchase and luckily their isn't crypto transaction fees but Venmo might upcharge a small margin.
- 15.24%-24.24% Variable APR
- Auto-purchase available for "Cash Back to Crypto"
- You can earn rewards in Bitcoin, Ethereum, Litecoin or Bitcoin Cash
The Venmo Credit card isn't for those with little or no credit, it's recommended t have at least a 690 FICO score to be approved for this card. However, it is still a great option to earn crypto rewards if you are looking for a rewards credit card and you frequently use Venmo anyways. You can easily turn the feature on and off and change which cryptocurrency you are purchasing.
SoFi Credit Card
SoFi is a lending and credit company that was the first to offer crypto rewards through their credit card. They launched the feature in May of 2021.
- 12.99% - 24.99% Variable APR
- Mastercard ID Theft Protection
- No Annual or Foreign transaction fees.
The SoFi Credit card allows SoFi members to redeem their reward points by depositing them to a SoFi Crypto account. It's a bit complicated since you aren't automatically earning in Crypto rewards, but it's still a solid card and SoFi offers a variety of lending services.
Upgrade Bitcoin Rewards Card
The Upgrade Bitcoin Rewards Card is one of the most straightforward on this list. However, you don't instantly earn rewards, the Bitcoin is actually purchased for you by a trading platform called NYDIG. You do have the option to sell the Bitcoin after a period of 90 days however they charge a 1.5% transaction fee.
Other than that, it's a pretty typical Visa card.
- APR: 8.99%-29.99%
Upgrade's Bitcoin Rewards Card is an extremely simple way to make payments and earn Bitcoin. Their mobile app even allows access to Apple Pay or Google Pay. As long as you don't mind waiting 90 days or so until you can cash out, this is one of the most straightforward ways to earn crypto credit rewards.
Celsius Credit Card
Celsius is another cryptocurrency lending platform that decided to open a credit card for their customers. The card isn't available yet but the waitlist is currently open.
Celsius is well known for their crypto rewards program that allow you to earn interest just by keeping crypto in your Celsius crypto wallet. They offer lending so it's no surprise that they decided to offer a credit card that allows you to earn crypto on your purchases as well.
As mentioned, Celsius also has a waiting list available for their credit card offering crypto rewards so i's not quite available yet. But the waitlist will give you updates and will let you know when you can apply for the card.
If you want to learn more, you can check out our complete guide on Celsius Network here.
Why are Crypto credit cards popular?
The idea of a crypto credit card isn't all that surprising. Given the tremendous popularity of Bitcoin, more and more retailers, as well as consumers, are demanding crypto payment processing.
Even if the purchase is in fiat currency, consumers still want an opportunity to earn crypto as a means to invest.
Given its decentralized architecture and relatively fast processing, cryptocurrency is fast becoming a popular alternative payment system. This is quite surprising because Bitcoin was only released in 2009.
On top of the ease, convenience, and borderless nature of cryptocurrencies, they are also viewed as a store of value. After all, there's only 21 million possible units of Bitcoin available.
As the demand for this asset continues to grow, its supply cap ensures that the value of each Bitcoin will continue to go up. This is what explains its amazing growth from almost zero from right after it launched to its current price of around $50,000.
According to some analysts, given the fact that Bitcoin has a maximum supply cap unlike the US dollar, it shouldn't be a shock to see its price hit 6- or even 7-figures given enough time.
While that is a very optimistic forecast, it's easy to see where the positivity comes from. Bitcoin's decentralized nature as well as its low maximum supply and its popularity all combine to make this a very powerful store of value.
This has tremendous benefits for the consumer. Can you imagine buying Bitcoin with your cryptocurrency credit card and having your balance go up in value over time?
Are Crypto rewards worth it?
Crypto reward credit cards work in the same way as ordinary credit cards with a rewards program. Every time you swipe your card to buy something, you gain a reward in the form of Bitcoin.
Keep in mind that Bitcoin can be measured in very small units. A lot of people think that to own Bitcoin, you have to pony up $50,000 to buy a whole coin.
That's not true.
You can get a tiny fraction of a bitcoin for as little as $2. That unit is called a satoshi. It’s a tiny fraction of the full price of a bitcoin, but it's still bitcoin. When you do your purchases on your crypto credit card, you earn rewards in bitcoin. If you keep shopping and paying for stuff on time, you can get even more crypto rewards.
Why choose a crypto reward card?
Unlike typical credit cards that pay you a few dollars at the end of every month or something more significant at the end of every year, your accumulated Bitcoin rewards might actually be worth several thousand dollars at the end of the year depending on the price of this cryptocurrency.
Whether you are looking to keep adding to your existing cryptocurrency investment or just want to start earning a bit of crypto from your normal purchases, finding a credit card with crypto rewards is a pretty low risk way to do this.
Alternatively, you might want to look into a debit card that takes directly from your digital currency wallet if you want to pay with cryptocurrency directly.
One Key Limitation
Please understand that there's still not a whole lot of businesses taking bitcoin payments directly, so you aren't using crypto directly to purchase with these credit cards, you just pay off your credit line and earn in cryptocurrency.
Usually, when you use a prepaid crypto credit card, if you're using stored crypto, it is converted into fiat money or regular money, and that is what is paid to the merchant. This process involves converting Bitcoin into currencies like the US dollar or Euro, and these are the funds used to process the transaction.
How to Pick the Right Crypto Credit Card
When comparing credit cards, it's important to focus on the reward that you get and what you need to do to get it. This means that you have to focus on how much spending you plan to do or where you spend it.
Let's put it this way. If you are a frequent traveler and you have to book flights and hotel rooms, you best believe you're going to rack up a lot of rewards in a fairly short time. Not only are these expenses tax-deductible, but you get to earn bitcoin as well. It's a win-win situation.
Or if fees are important to you, make sure to get one with no annual fee or ATM withdrawal fees.
But not all cards have their rewards program set up this way. Look for crypto credit cards that mirror your spending pattern so you can maximize its reward program.