5 Best Crypto Credit Cards for Rewards
Credit card rewards are awesome! They’re like free money you get after paying your bills. Who doesn’t want that?
Because everyone wants them, millions of rewards credit cards have been produced, and more keep coming. Most offer cashback rewards, while others provide card points or travel miles as rewards.
This article discusses an emerging type of rewards credit cards — the ones that offer crypto as rewards. We will discuss the five best crypto credit cards that offer rewards and guide you in picking which one is best for you.
Nexo Card — The best no-fee crypto rewards credit card
BlockFi Rewards Visa Signature Card — The best Bitcoin rewards crypto credit card
Gemini Credit Card- The best overall and most versatile crypto rewards credit card
SoFi Credit Card — The best crypto credit card with diverse investment options
Upgrade Bitcoin Rewards Card — The best crypto credit card for skeptical Bitcoin investors
The Nexo card was launched on April 13, 2022, by Nexo, a crypto lending giant. It is a MasterCard that allows users to spend their cryptocurrencies without selling them. In this way, it sets itself apart from many other crypto rewards cards that convert cryptocurrencies to fiat at the point of sale.
There are two types of Nexo cards — virtual and physical. The virtual Nexo card is available to any user of the Nexo platform with at least a $50 portfolio worth. On the other hand, the physical card requires that you maintain a portfolio balance of at least $500, with at least 5% of your portfolio in NEXO tokens. Both cards are free.
- You can earn crypto rewards in either NEXO (up to 2% cashback) or BTC (up to 0.5%).
- Foreign transaction fees are waived for transactions up to 20,000 euros per month. If you spend beyond that in a month, you’ll pay a 0.5% FX fee for the rest of your transactions in the month.
- There are no monthly or inactivity fees.
- You enjoy up to 10 free ATM withdrawals per month, up to a limit of 10,000 euros.
- You have control over the card and can easily freeze and unfreeze it from your Nexo account.
- The interest rates range from 0% APR to 13.9% APR.
How It Works
Whenever you purchase with your Nexo card, Nexo lends you the fiat currency you need and uses your crypto as collateral. This means you don’t need to give up your crypto. You just repay your debt when you’re ready.
Nexo can easily do this because its main product is lending and borrowing cryptocurrency. Thus, its card is just an extension of its services. So, the amount of credit you can spend will depend on your current LTV ratio.
Something else to note about the Nexo card’s operating mechanism is that it operates according to Nexo’s tiered loyalty system. There are four tiers, each with its benefits. They are:
- Base Level (doesn’t need you to hold NEXO tokens): Offers 0.1% BTC or 0.5% NEXO cashback.
- Silver Level (requires holding at least 1% of your portfolio in NEXO): 0.2% BTC or 0.7% NEXO cashback.
- Gold Level (requires holding at least 5% of your portfolio in NEXO): 0.3% BTC or 1% NEXO cashback.
- Platinum Level (requires holding at least 10% of your portfolio in NEXO): 0.5% BTC or 2% NEXO cashback
Pros And Cons
- There are no card fees attached.
- You can easily freeze and unfreeze the card from your Nexo account.
- It is integrated with Google and Apple Pay.
- It offers a virtual card for safer online transactions.
- It offers up to 10 free monthly withdrawals.
- You will not enjoy the card fully if you don’t hold NEXO tokens.
- You are still exposed to liquidation risk because of your crypto collateral.
The Nexo card is the cheapest crypto rewards credit card on this list. However, you need to be a platinum member of the Nexo loyalty system before fully benefiting from it.
BlockFi Rewards Visa Signature Card
This card is BlockFi’s platform card developed in partnership with VISA. It works anywhere Visa is accepted. BlockFi is another platform, like Nexo, that offers crypto lending and borrowing. However, unlike Nexo, BlockFi actually sells your crypto assets when you make a transaction with the card.
The crypto rewards of the BlockFi card are further amplified by a program known as BlockFi Offers. This rewards program enables BlockFi cardholders to benefit more if they use the card in supported stores. For example, if a store offers 4% cashback on BlockFi Offers, customers will get 4% cashback plus the standard 1.5% cashback whenever they use their card in that store.
- An introductory offer of 3.5% for the first 90 days, up to $5,000 worth of transactions
- It offers 1.5% cashback rewards up to a total yearly card spend of $30,000. If you spend beyond that, your rewards jump to 2% for the rest of the year.
- Rewards are distributed once per month, on the second Friday of the month.
- It comes with other perks like dining, travel, and shopping bonuses
- You can choose between 15 different cryptocurrencies, but you can only earn in one crypto asset per month.
- The card’s APR ranges from 11.74% to 21.74%.
How It Works
The BlockFi card distributes rewards in a somewhat unique way. It does not immediately convert your rewards to cryptocurrencies. Instead, you get 1.5 reward points per dollar spent when you make a purchase. These rewards accumulate until the second Friday of the month when they are converted to cryptocurrencies at a ‘1 reward point to $0.01 ratio’.
To illustrate, if you spend up to $30,000 with your card for a month, you get 45,000 reward points at the end of the month. These reward points are then multiplied by 0.01 to give you $450 worth of crypto rewards as cashback at the end of the month.
Pros And Cons
- It has a wide variety of crypto options for earning cashback.
- The benefits go beyond crypto cashback and extend to other categories like travel, dining, etc.
- It doesn’t charge annual or foreign transaction fees.
- There are no upper limits on the crypto rewards.
- The reward structure is a bit complicated.
- You can’t spend your rewards instantly; you must wait until the month’s end.
- There are no bonus categories.
The BlockFi Rewards Visa Signature card is the best Bitcoin rewards credit card. You can earn up to 2% BTC with this card, which is more than we can say for other crypto rewards credit cards.
Gemini Credit Card
The Gemini card was launched on April 14, 2022, and is one of the few cards available to residents of all 50 US states. It is offered in partnership with MasterCard and WebBank and also comes with no annual fees.
There are three designs to choose from — rose gold, black, and silver. They are all made with 75% recycled material and do not have the card number written on them for security purposes.
- It offers crypto rewards in three spending categories: up to 3% on dining purchases, up to 2% on groceries, and 1% in other categories. The first two categories are applicable till you’ve spent up to $6,000 yearly with the card. After the $6,000 threshold passes, the rewards revert to 1% cashback.
- There are more than 60 cryptocurrencies that can be redeemed as rewards.
- You can only access your card number via the Gemini app.
- The purchase APR ranges from 13.24% to 24.24%, while there is a penalty APR of 30.24% and a cash advance fee of 3% or $10.
How It Works
The Gemini credit card gives instant rewards after making purchases. The rewards are immediately sent to your Gemini account and can instantly be sold, traded, or used in any other way.
Unlike the BlockFi card, which only allows you to change your reward currency once per month, the Gemini crypto credit card allows you to change your reward type whenever you want.
Pros And Cons
- It is the most versatile crypto rewards credit card with credit card rewards in over 60 different cryptocurrencies.
- It is available in all 50 US states.
- It taps from the immense security of the Gemini exchange.
- The cards do not expose sensitive financial details.
- If the card is stolen or lost, it can be locked from the Gemini app.
- The purchase APR is on the high side.
- It doesn’t offer any welcome bonus.
- The exchange is not entirely transparent about the earning limits of the card.
The Gemini credit card is the best crypto credit card for US citizens, as it is available in all 50 US states. It is also the most versatile card with rewards in more than 60 crypto assets.
SoFi Credit Card
SoFi (short for ‘Social Finance’) is a social investment platform that allows users to invest in different financial instruments like stocks, ETFs, mutual funds, and cryptocurrencies. The SoFi credit card is one of the most straightforward credit cards, but it initially didn’t offer crypto rewards.
That changed on April 29, 2021, when the platform announced that it now offers crypto redemptions on its credit card. The rewards are redeemable in Bitcoin or Ethereum and sent to the user’s SoFi crypto account.
- You earn up to 3% cashback, instantly redeemable as crypto.
- It offers a welcome bonus on the SoFi app, where you tap a welcome box to earn up to $10,000.
- It offers special perks by virtue of MasterCard’s partnership with Lyft, Shoprunner, and Doordash.
- There are no foreign transaction fees or annual fees.
- The APR ranges between 13.74% and 25.74%.
How It Works
The SoFi credit card rewards users with card points that can be redeemable in various ways. However, you must accumulate at least 500 reward points before redeeming into crypto.
For crypto redemption, the points are given out in a ‘1 dollar to 1 point’ ratio and redeemed at a ‘1 point to 1 cent’ rate. Therefore, if you spend $30,000 with the SoFi card in a month, you get 30,000 points redeemed as $300 worth of BTC or ETH.
You can redeem rewards whenever you like or set your account to redeem into crypto automatically once a month.
Pros And Cons
- Apart from crypto, it offers other redemption options. You can also redeem rewards such as cash, stock shares, or a statement credit.
- You have the opportunity to reduce the APR by 1% if you make on-time payments for the first 12 months.
- It offers cell phone protection for up to $1000.
- You can’t withdraw the crypto rewards into another account; you must first trade them for fiat before withdrawing.
- Few crypto redemption options.
- In theory, the card claims to offer 3% cashback rewards, but in reality, the crypto rewards amount to 1%.
The SoFi credit card is not an exclusive crypto rewards credit card, but it offers users the opportunity to redeem their rewards in several ways.
Upgrade Bitcoin Rewards Card
The Upgrade Bitcoin rewards credit card is a Visa card issued by Upgrade, a fintech company. The card is issued in partnership with Cross Bank and allows users to accumulate cryptocurrencies without committing cash.
Thus, this card is suitable for skeptical crypto investors who want to taste the crypto pie but are wary of the volatility that comes with it. You don’t need to hold your assets in crypto. You can hold it in any fiat currency of your choice and get crypto rewards nevertheless.
- A flat 1.5% cashback in BTC
- Integrated with Google Pay and Apple Pay
- APR ranges between 8.99% to 29.99%
- The credit line ranges from $500 to $50,000
- The card can’t be used to withdraw cash at an ATM
- A $200 Bitcoin bonus when you activate an Upgrade checking account and make three card transactions within the first 60 days
How It Works
Whenever you purchase with the Upgrade Bitcoin rewards card, 1.5% of your purchase amount is set apart and used to buy Bitcoin 1–2 months later. The Bitcoin bought is then sent to your NYDIG wallet (the only wallet that works with the Upgrade Bitcoin card).
But there is a drag. The Bitcoins bought and sent to your NYDIG wallet cannot be transferred to another wallet. Thus, you have little control over it. You can only sell them into statement credits after paying a 1.5% transaction fee.
Pros And Cons
- The most risk-free way to stack Bitcoin
- APR range is lower than many other cards
- It doesn’t require a security deposit.
- You can use the card to get a personal loan and pay it back in installments.
- Cardholders cannot use the card at ATMs.
- You have little control over your Bitcoin rewards.
- You still pay a fee before getting your rewards.
The Upgrade Bitcoin rewards card may not be the most flexible crypto rewards credit card, but it is the best option for a skeptical Bitcoin investor.
What Is A Crypto Credit Card?
A crypto credit card is a credit card centered around cryptocurrencies. It could be that it lets you spend your digital assets easily or gives you crypto rewards as cashback after making a purchase or paying your bills. In most cases, it’s both.
There are usually three parties to a crypto credit card — the credit card issuer, the issuing bank, and the issuing platform. For example, Gemini is the issuing platform for the Gemini credit card, MasterCard is the card issuer, and WebBank is the issuing bank.
Crypto Credit Cards Vs. Crypto Debit Cards
Many people confuse the two, but there is a big difference between a crypto credit card and a crypto debit card. In a nutshell, crypto credit cards allow you to spend now and pay later, while crypto debit cards draw from your existing crypto balance.
For crypto credit cards, you must repay your balance before the statement period ends (usually within 30 days). If you don’t, you will have to pay with a higher interest and sometimes a late payment fee.
For crypto debit cards, you do not need a credit line. You pay on the spot and forget about interest. They also usually come with a higher rewards rate than crypto credit cards. However, you can’t build a credit history with a debit card. You also miss out on perks like fraud protection, theft protection, etc.
Factors To Consider Before Choosing A Crypto Credit Card
Before choosing a crypto rewards card, you should consider the following factors:
The Fine Print
It’s best to go for a card with no annual fee. You should also consider the interest APRs and whether or not it has an introductory offer. What other fees does it charge? Where can it be used? What are the perks? How much credit score do you need to land it? Those are important points to note.
The Rewards Rate
That is the incentive, isn’t it? So you should check out for this before getting the card. Also, note the conditions that come with getting the highest rewards rate. For example, the Nexo card offers up to 2% cashback but only if you are a platinum member.
Do you have an affinity for a particular coin? Does the credit card you’re considering offer rewards in that coin? If not, you might want to explore other options.
We have discussed the best rewards crypto credit cards in various categories. We have seen that it goes beyond just considering the rewards rate. You also need to consider the flexibility of the rewards, the different fees, and the supported coins.
As a parting thought, we would like to remind you that a crypto credit card, like traditional credit cards, can profoundly impact your credit history. So, make on-time repayments and watch out for the fees!