Do you want to know the best Credit Cards to Get Reward When You Buy Crypto? Then you should keep on reading this article. Now there are some credit cards that users can use to get Rewards once they buy crypto.
These cards are usually not known by everyone, but nevertheless as long you are here, on this page you will get all the necessary information needed. All you have to do is to keep on reading and you will get all the info.
Credit Cards to Get Reward When You Buy Crypto
Well from the beginning of credit card rewards, consumers have mostly had 2 main primary options, usually either earning cash-back or travel rewards. Now, there is a new type of rewards card that is hitting the market and could shake up the credit card landscape in a big way, enter crypto rewards cards.
While the crypto industry as a whole is still in its infancy, there are now many companies are jumping at the opportunity to offer crypto rewards through their current products, while the other crypto-native companies are simply building out full-fledged crypto rewards credit card products.
So whether you are already a crypto-enthusiast, or just simply looking for a way to diversify your credit card rewards strategy, then utilizing a crypto rewards card could be of a great fit for you. In this page today, we will take a look at some of these new crypto rewards cards and what they have to offer to users or customers.
How Does Crypto Rewards Credit Cards Work?
In many ways, the crypto rewards cards you see function exactly the same as any other rewards credit card. Simply depending on the credit issuer, you will then have similar underwriting standards that determine your approval and credit line, based on the factors like your income and credit score.
The Crypto rewards cards can also share similar payment processing networks like Visa or MasterCard, so they will be then accepted by any merchant that accepts these cards.
For the most interesting part, the biggest difference between crypto rewards cards compared to others is that you can simply earn rewards in a set cryptocurrency, like Bitcoin, instead of cash-back or airline miles. This effectively allows you to simply invest passively in crypto as you then make your day-to-day purchases.
Best Crypto Rewards Credit Cards
Now here are the Best Crypto Rewards Credit Cards one can use to earn rewards when you buy crypto online:
- BlockFi Rewards Visa® Signature Credit Card.
- Brex 30 Card.
- Gemini Credit Card.
- Nexo Card.
- SoFi Credit Card.
- Upgrade Bitcoin Rewards Card.
BlockFi Rewards Visa® Signature Credit Card
It is difficult to believe that the first Bitcoin payment transaction was simply 11 years ago. Now, BlockFi is the first company to put the Bitcoin symbol on its very own credit card.
For those users unfamiliar with it, BlockFi offers customers the ability to be able to deposit and then get or earn a yield on or take a loan against, their crypto holdings. Now it provides its own credit card that earns an unlimited 1.5% back in Bitcoin on every purchase you make, and at the end of each month, your Bitcoin rewards are deposited into your BlockFi Interest Account.
The BlockFi Rewards card also offers the following benefits:
- You can Earn 1.5% back in crypto on every single purchase.
- There is No annual fee. Also foreign transaction fees are not involved.
- Know if you are been approved without affecting your credit score. A soft credit pull then happens before you have accepted the credit card offer. A hard credit pull occurs when you have accepted your credit card offer, which can then have an impact on your credit score.
- Earn 2% back in crypto on every purchase over $30,000 of annual spend. The Rewards rate increases from 1.5% to 2% after $30,000 of spend has been achieved and also resets on the card anniversary date every year. (effective 7/1)
- Earn up to 10% back in crypto rewards at thousands of brands with the BlockFi Offers.
- On top of the rewards that you can also get from BlockFi, your BlockFi Rewards Visa Signature card also gives you instant access to once-in-a-lifetime travel, fine wine and food, sporting events, shopping and even more.
- Your BlockFi Rewards Visa Signature card comes with a 24/7 access to your Visa Signature® Concierge* for assistance booking travel, transportation, accommodations, event tickets -even restaurant reservations and also golf tee times.
Brex 30 Card
The Brex 30 card is the only small business card that is currently offering crypto rewards as an option to its customers.
If you are not already familiar with the Brex 30 card, then it is quite interesting in that it does not require applicants to personally guarantee the debt on the card, and also instead of credit score, a business’s creditworthiness is then evaluated by factors like its cash balance and spending habits.
Brex users or customers are able to redeem their rewards as a statement credit, or as crypto rewards through the TravelBank at a rate of 0.7 cents per point. As of now, the crypto rewards are simply exclusively limited to Bitcoin or Ethereum.
As far as rewards go, the users or cardholders earn points at the following rates:
- 7x points per $1 on rideshares and taxis (4.9% back when redeemed for crypto).
- 4x points per $1 on travel booked through the Brex portal (2.8% back towards crypto).
- 3x points per $1 on restaurants (2.1% back towards crypto).
- 2x points per $1 on recurring software purchases (1.4% back towards crypto).
- 1x point per $1 on all other purchases (0.7% back towards crypto).
Statement credits and crypto rewards are not just your only options for redemptions, though. Brex 30 cardholders or customers can also redeem points on travel purchases through the Brex’s travel portal at a rate of 1 cent per point, or through one of the program’s 7 airline transfer partners at a 1:1 rate.
Lastly, the card charges no annual fee or any foreign transaction fees. Plus, customers or cardholders do not need to worry about interest charges, as the platform requires any outstanding balance to be paid in full every 30 days.
Gemini Credit Card
The Gemini, one of the largest cryptocurrency exchanges in the U.S. is also launching its very own crypto rewards credit card. Like the BlockFi Rewards card, the Gemini card also have no annual fee charges, but the rewards structure is a little different.
Cardholders will earn:
- 3% back on dining.
- 2% back on groceries.
- 1% back on all other purchases.
Furthermore, your crypto rewards are simply not just limited to Bitcoin, but rather can also be earned in any of one of the 40+ Gemini-supported crypto assets. Rewards that are earned from your spending are also received in real-time, allowing you to simply immediately benefit from any price appreciation.
The card will be available to users or customers in all 50 states, and also will be metal with either a black, silver or rose gold finish.
The Nexo, like BlockFi, is a platform that simply allows you to deposit your digital assets so that you can then earn a yield on, or take a loan against, those assets without selling them. The Nexo offers its own credit card which allows users to get or earn 2% back on all of their purchases earned in any of the 15+ Nexo-supported digital assets.
The card charges no annual fee and also comes with some solid features like the ability to freeze and be able to unfreeze your Nexo card with a single tap and create free virtual cards for safe online purchases.
SoFi Credit Card
The SoFi credit card is designed to simply help customers or cardholders save, invest, and pay down debt through one of SoFi’s many account offerings. There is no annual fee; the card earns 3% cash back for a year when you simply set up direct deposit with the SoFi. After that, you can get or earn 2% unlimited cash back on purchases when redeemed toward investing, saving, or paying down an eligible loan with SoFi.
From there you can then redeem those points at a rate of 1 cent per point as cash towards your SoFi Money account, also towards paying down your SoFi loan balance, or towards your SoFi Invest account which then allows you to invest in crypto.
But, you should take note that when you purchase crypto on SoFi, you are not purchasing real crypto. What you are effectively purchasing is an IOU that tracks the value of the cryptocurrency you purchases.
Your only option for your crypto rewards on SoFi is to simply buy or sell your current balance into cash. You can’t trade or convert your crypto in another, and also you cannot withdraw it off the platform to send to an exchange like Coinbase or even then put it in cold storage. This makes the SoFi significantly less compelling for those looking to earn crypto rewards.
Upgrade Bitcoin Rewards Card
The Upgrade card also offers the least flexibility when it comes to the Bitcoin rewards, and the other cards on this list are likely better options for earning and also investing. If your goal is to simply own Bitcoin as a store of value before eventually selling it, then you can even do that with this card, but you will not be able to hold your coins in your own wallet or exchange them for any other crypto
Upgrade’s Bitcoin Rewards Card, like other crypto rewards options, resembles flat cash back rewards offerings:
- 5% back in Bitcoin rewards when you simply pay down your purchases (not when you make the purchase).
- Bitcoin is also then redeemed within 1-2 statement periods after your payment is received.
- You cannot do much with your Bitcoin rewards besides hold them in your Upgrade account or sell them. There is no option for you to transfer your Bitcoin to another wallet, and there is a 90-day holding period after redemption before you’re eligible to sell.
- Once you have sold your Bitcoin holdings, you will then incur a 1.5% transaction fee and can only receive the money from the sale as a statement credit.
- No annual fee and there is no foreign transaction fees.
- 99%-29.99% APR — if you carry a balance, the Upgrade Card works more like an installment loan; you can pay off equal monthly installments over a fixed period.
Are crypto credit cards safe?
Cryptocurrencies are widely considered high-risk and also volatile assets, so the value of your rewards balance might even fluctuate significantly over time with no guarantees. Accounts, where these cryptocurrencies are been held, are not FDIC-insured like banks, and also some have ongoing legal challenges. The Legislation is still evolving and then has not yet been solidified surrounding cryptocurrencies, so there is an inherent risk in the unknown.
Are there any crypto debit cards on the market?
There are also some crypto debit cards on the market, which are the Crypto.com Visa Card, the Robinhood Cash Card, the Binance Visa Card, and also the upcoming Coinbase Card. All of these credit cards allow you to spend your crypto at public merchants and be able to also earn crypto rewards on your expenditure. Many new products are simply likely to hit the market in the next few years, as Visa has partnered with over 60 platforms to simply work toward enabling crypto transactions worldwide.
Do I have to pay taxes on my crypto rewards?
While legislation is still being hammered out, it is very essential or important to track your cryptocurrency buy-in prices so you can be able to report any capital gains you may owe taxes on. If and also when you sell your cryptocurrency holdings, you might or may be required to report capital gains and losses to the IRS. Major tax software platforms are simply building out support for reporting crypto on your taxes, or you can consult with a tax professional to determine your specific needs.
What is a crypto exchange?
A crypto exchange is just a platform that allows users to be able to buy and also sell digital assets and cryptocurrencies such as Bitcoin and ether. Some may even also support the buying, selling, and also trading of NFTs.
The Crypto exchanges generally let users deposit and also withdraw funds in either fiat (such as US dollars) or cryptocurrencies, buy crypto with US dollars or another currency, trade one crypto for another, then simply send crypto to another individual (or business) and sell crypto for US dollars.
What are the risks in buying, trading, and selling crypto?
There are many risks. Cryptocurrency is simply decentralized, meaning that no central authority controls or oversees it. There is no central bank that is backing it. And your holdings have considerably less protection than you will find with more conventional assets like stocks, bonds, and also mutual funds. In fact, it is worth repeating: Crypto markets remain largely unregulated, the prices are hyper volatile and scams and hacks are prevalent.
Some of the larger crypto exchanges simply provide FDIC insurance up to $250,000, similar to a bank account. But that insurance only just covers US dollar deposits. Some crypto exchanges then provide separate insurance for digital assets, though many do not.
- Journey Student Rewards from Capital One – Journey Student Rewards from Capital One Application
- U.S. Bank Visa Platinum Card – U.S. Bank Visa Platinum Card Application
- American Express Blue Business Cash Card – Activate your American Express Blue Business Cash Card
- www.bankofamerica.com – Checking Accounts of Bank of America
- UI Benefits California – UI Benefits California Requirements to Apply