Crypto credit cards are similar to ttraditional credit cards with rewards, but with cryptocurrency exchanges.
Crypto rewards vary by card, including cash back paid in BTC, welcome rewards, gift cards and travel bonuses – just like your traditional regular credit card.
However, crypto credit cards are designed and tailored to the needs of crypto users, with benefits that appeal to both longtime enthusiasts and complete beginners.
The following guide will cover crypto credit cards, how they differ from crypto debit cards, the best crypto credit cards available in 2022, and the best promotions available.
What exactly is a crypto rewards credit card?
Crypto rewards credit cards are similar to most traditional rewards credit cards; they can be used for transactions through payment processing networks such as Visa and Mastercard, as long as that network recognizes the card you have chosen.
So, chances are your crypto credit card is accepted wherever cards are accepted, but there may be some restrictions.
Instead of traditional rewards like airline miles, cash back or points, owners earn rewards in the form of Bitcoin and other cryptocurrencies. These include Bitcoin rewards for grocery shopping, cashback for trading and additional bonuses after meeting certain spending limits.
Most companies will give users the option between a virtual crypto card or a physical card that can be swiped.
It is important to don’t confuse crypto rewards credit cards with crypto rewards debit card since they have very different functionalities and features.
What are Crypto Rewards Debit Cards?
Crypto rewards debit cards allow users to spend crypto without having to directly withdraw from a crypto wallet.
Previously, crypto holders could use their crypto to HODL or trade. In order to use cryptocurrency for the vast majority of real-world purchases, owners would have to transfer their cryptocurrency to fiat. Not only was this slow and inefficient, but it also created a tax liability every time someone “exited” their crypto position.
All of this has reduced the use of cryptocurrency as a real-time medium of exchange.
Crypto Rewards Debit Cards overcome this problem by giving cardholders easy access to their crypto card. Each card works like a traditional debit card, but instead of being backed by a bank, it’s backed by the user’s crypto wallet.
It doesn’t really have the same functionality as a traditional debit card – think of it as something more like a prepaid debit card that needs to be topped up regularly.
In order to use the card, the user must first select a fiat currency to convert their cryptocurrency into via the card. Once sent, purchases are made in the chosen fiat currency with rewards earned as the cryptocurrency that comes with the card.
Most crypto debit cards earn crypto rewards for everyday spending on networks like Visa and Mastercard and allow you to withdraw cash from ATMs around the world, making them quite useful for everyday purchases.
In comparison, crypto credit cards enable the same user experience, but essentially you open a line of credit with the company that issued you the loan. So you don’t need to have real cash or crypto in an account to use your crypto credit card, and as long as you pay your balance every month (or any period), you won’t accrue any fees.
With these differences in mind, we’ll take a look at the 7 best crypto credit cards in circulation, including their rewards, their different tiers, and the cryptocurrencies you can earn.
The best crypto rewards credit cards
Gemini Credit Card: Big spend bonus for restaurants and groceries
One of the best crypto credit cards, the Gemini Credit Card allows cardholders to earn rewards in the form of Bitcoin and 60 other cryptocurrencies. Emphasizes dining and grocery shopping, with 3% cash back on meals up to $6,000, 2% cash back on groceriesand 1% on all other purchases, which makes it great for people who have large shopping accounts and want to earn crypto rewards.
Unlike most cards that reward monthly, Gemini awards are instant and can be sent directly to the cardholder cryptocurrency wallet fee-free, removing the hassle of transferring between wallets.
The card has a variable APR between 13.24% – 24.24% and there is no annual fee for card ownership.
Another great feature is that Gemini does not charge fees for foreign transactionsmaking it a great option for those who like to use their credit card for international travel and avoid annoying exchange offices.
If you are interested, you can apply for your crypto credit card for Gemini Credit Card at their address Web page.
BlockFi Rewards Visa® Signature Card – a card for big spenders
The BlockFi Rewards Visa® Signature Card offers more than 15 cryptocurrency options, including Bitcoin and Ethereum. It has a lucrative welcome bonus of 3.5% cashback for the first three months, although this is limited to $100 in cryptocurrency.
After the welcome bonus, cardholders earn 1.5% back on every purchase, which increases to 2% back after $30K in annual spending, which resets at the start of each card anniversary year.
The card has a variable APR between 15.74% – 25.74% and no cardholder fees. To apply, candidates must use their BlockFi account and have a “good” to “excellent” credit score.
Upon application, BlockFi will complete a soft credit check and once the application is approved, BlockFi will conduct a detailed credit check known as a hard credit pull.
There are no foreign transaction fees, and rewards are paid monthly directly to the cardholder’s BlockFi account.
Crypto.com Visa Card – Pix n Mix for Crypto
The Crypto.com Visa Card is a prepaid crypto debit card with five cardholder options, each with its own benefits. Each level is determined by the amount the cardholder is willing to invest Crypto.com and ranges from $0 to $360,000.
Rewards are paid out in CRO (Crypto.com Coin) and start at 1% for the second tier Ruby card and go up to 5% for Obsidian, Crypto.com’s top tier card. Tiers also offer lucrative rewards like Amazon Prime, Spotify, Netflix, 10% off Airbnb, airport lounge access and more.
Each card is limited to $10,000 ATM withdrawals per month and free currency exchange of up to $2,000 at the lowest level.
Despite being somewhat different from the other crypto credit cards on this list, the Crypto.com Visa Card tiers are a great way for new crypto investors to try out crypto credit cards without having to invest everything.
If this sounds like a good fit for you, you can complete your crypto credit card application for a Crypto.com Visa Card through their place.
SoFi Credit Card – Best for SoFi Investors
If you’re already investing in SoFi, then the SoFi Credit Card is a great option. It allows investors to earn 2 points on every US dollar spent, with each point worth 1 cent for personal accounts and 0.5 cents for SoFi credit card accounts.
You can apply for the card via SoFi website.
During the first year, cardholders earn 3% cash back when setting up direct deposit and 2% on purchases when used to invest, save or pay in a SoFi account.
A total of 20 different types of cryptocurrencies are available, and the apps do not affect the credit score until the offer is accepted, after which a hard credit pull is performed.
Tomo credit card – an easy introduction to cryptocurrency
Tomo Credit Card is a good choice of crypto credit card for new cryptocurrency users.
It gives cardholders three crypto options to choose from; Bitcoin, Ethereum and Litecoinand can be applied for directly via Tomo website.
Interestingly, the card has no fees and no interest rate (APR), but is instead designed to help users build their credit score and save money. To achieve this, no credit history is required. Instead, Tomo uses its own algorithm to determine whether a user can be accepted for a card.
Since it is a relatively new option, there is not much information available about the rewards available. Starting June 2022, cardholders get 1% cash back on spending and can earn additional rewards with DoorDash, Lyft and Hello Fresh.
These rewards can be redeemed 28 days after paying for the previous month’s statement. In an interview with Forbes AdvisorCEO and founder of TomoCredit, Kristy Kim, stated that more rewards will be available later.
Venmo credit card – an upgrade to classic Venmo credit cards
Venmo has been around since 2009 and now offers users crypto rewards. These rewards come in the form of cashback in 3 different levels:
- 3% on $250 spend
- 2% on $150 spend
- 1% on $125 spend
Although not officially labeled as a crypto credit card, its “Cash Back to Crypto” feature allows cardholders to claim rewards in the form of cryptocurrency. Instead of earning fiat currency, cardholders can earn their rewards in the form of Bitcoin, Ethereum, Litecoin or Bitcoin Cash.
The Venmo Credit Card is only available to US citizens (excluding Hawaii) and may be applied to Web page through a standard credit card application instead of a crypto credit card application. A small fee is charged for withdrawals based on the difference between the US dollar and the paid crypto asset, on top of the transaction fee shown during the sales process.
Upgrade Bitcoin Rewards Visa – Best for Bitcoin Enthusiasts
Upgrade Bitcoin Rewards Visa is for you if you like Bitcoin. Cardholders earn 1.5% back in Bitcoins on all transactions held by them New York Digital Investment Group LLC (NYDIG), a Bitcoin-focused investment group.
You can apply for the Upgrade Bitcoin Rewards Visa via Web page, and once accepted, can be used anywhere Visa is accepted and incurs no account or transaction fees. However, a fee is charged for selling Bitcoins, although the fee itself will depend on how many Bitcoins the cardholder chooses to sell.
Final Thoughts: The Future of Crypto Credit Cards
Given that 70% of people already use traditional credit cards, do crypto credit cards have the potential to do so?
Well, it depends.
Although crypto credit cards provide users with lucrative crypto rewards, these rewards will usually need to be converted back to fiat currency in order to be used. Most everyday stores still don’t accept cryptocurrencies, which makes redeeming rewards a bit complicated compared to your traditional options.
To add to this, recent fluctuations in the cryptocurrency market have made people more hesitant to invest than ever. Consequently, they would be more likely to choose a traditional credit card reward like airline miles and fiat cash back over the risky, crypto option.
However, we shouldn’t completely rule out crypto credit cards. They are a great option for current crypto enthusiasts, and the best crypto credit cards are easy access for those who want to get involved in crypto but don’t want to risk their funds. In addition, virtual crypto cards could also influence the way they are used in the future.
Cryptocurrency adoption and people’s perception of the cryptocurrency market will determine the future of crypto credit cards.