Crypto credit cards help a user buy cryptocurrency easily. Card members earn the rewards in form of cashback on their purchases. Cashback is usually used to buy cryptocurrency in a trading account. These credit cards offer rewards in form of cryptocurrency of the choice of the user.
Card members can also buy more cryptocurrency using these credit cards. These credit cards should be used with caution by card members. The world of cryptocurrency is quite volatile, the prices move wildly. For example, in 2021 and 2022 there have been lots of frauds, and windups of exchanges, coins, and cryptocurrencies.
Advantages of crypto credit cards
- Firstly, If you know how to play the crypto market, you can buy and sell the same using your credit card. If a user times their trades well, they can use the free leverage from the credit card.
- These credit cards allow users to redeem their rewards in multiple cryptocurrencies of their choice. Card members can keep these cryptocurrencies in their private wallets or use them to trade on an associated crypto exchange.
- Finally, rewards Crypto credit cards offer to sell and transact cryptocurrencies without triggering a taxable event. Taxes are applicable on changing the crypto assets to fiat currencies. Using these credit cards can be tax efficient in some cases if you trade in crypto regularly.
Disadvantages of buying crypto using a credit card
- Crypto is volatile, so it can rise and fall in value very quickly. Be aware of the fact, and trade carefully. As prices run in a wild swing, taking leverage using a credit card is dangerous. A user may get stuck in a bad trade and owe a credit card debt.
- These credit cards mainly provide rewards in the form of crypto. Also, the rewards are usually flat. Rewards credit cards or retailer credit cards may offer better offers.
#1 Card Name: Venmo Visa Card
Fees: This credit card has $0 in annual fees.
APR: 18.99 – 27.99% variable APR
Rewards: This credit card doesn’t provide any upfront rewards to card members.
Our Ratings: 2 / 5
Pros and Cons: Card members earn 3% cash back on all groceries using this credit card. They also earn 2% cash back on payments of bills & utilities using a Venmo Visa Credit card. For the rest of the purchases, this card offers a 1% cashback.
Venmo credit card currently supports the four most popular cryptocurrencies. For example, Bitcoin, Ethereum, Bitcoin Cash, and Litecoin.
Card members can purchase crypto from the cashback amount every month. They have to just toggle on the Purchase crypto feature and choose their favorite of four types of crypto. When cashback is transferred to the Venmo account at the end of every month, they will use it to purchase crypto without any crypto transaction fee automatically.
Venmo also provides a very neat feature of a unique QR code on the credit card. This QR card can be used by other Venmo users to pay you using the Venmo app.
#2 Card Name: The BlockFi Rewards Visa Signature Card
Fees: $0 in annual charges
APR: 15.74% to 25.74%
Rewards: An unlimited 1.5% crypto back on every purchase.
Our Rating: 2 / 5
Pros and Cons: BlockFi credit cards offer rewards, but users can redeem these rewards in crypto assets. The cryptocurrency is transferred to the user’s BlockFi account where it can be held, traded, sold, or moved to a wallet address of their choice. They offer a user to select the rewards to be in Bitcoin, Ethereum, Litecoin, Dogecoin, or any of the 15+ cryptocurrencies available on BlockFi in the US.
A word of caution though, BlockFi declared Chapter 11 bankruptcy recently in November 2022. So be aware before applying for this credit card.
#3 Card Name: Nexo Credit Card
Fees: This credit card is available for a $0 annual charge.
APR: Nexo offers one of the best APRs in the market. They offer an introductory 0% APR and it never exceeds 13.9% APR.
Rewards: Card members earn up to 2% in NEXO or up to 0.5% in BTC.
Our Rating: 3 / 5
Pros and Cons: Nexo offers easy integration with Apple Pay and Google Pay, helping users transfer funds easier. It helps the crypto users to HODL cryptocurrencies and also trades and earns additional cryptocurrencies in rewards. The Nexo Card allows you to spend without selling your crypto, hence no taxable event will occur.
Another great feature of this credit card is no minimum monthly payment. But the card members need to be careful with this feature, as it may spiral out of control. This card also does not levy any fee on monthly payments or activation fees.
Nexo credit card is offered by Mastercard and is accepted at all places where Mastercard works. Card members can also take advantage of no ATM fee to withdraw funds in case of emergency, Nexo card is integrated with their app and users can control their activities through the app. They can use Apple Pay or Google Pay for paying merchants using Nexo Credit Card.
#4 Card Name: Gemini Mastercard
Fees: This credit card is available for a $0 annual fee, foreign transaction fees, and no exchange fees for acquiring the crypto rewards.
APR: 17.24% to 29.24%,
Rewards: Gemini Mastercard is a typical 3/2/1 credit card. For instance, it offers 3% in rewards for groceries purchase, 2% in rewards for dining out, and 1% in rewards on the rest of the purchases.
Our Rating: 2 / 5
Pros and Cons: This credit card comes in either black, silver, or rose gold stainless-steel card, made from 75% recycled material.
Gemini Mastercard offers rewards in form of crypto. Credit card members can earn rewards in Bitcoin, Ethereum, or 60+ other cryptos currently available. It’s the only credit card that deposits the crypto rewards immediately in the account, just after the card member makes a purchase. That means the crypto a user earns lands in the Gemini account the instant they swipe the credit card, not a month later.
This credit card offers Mastercard Zero Liability Protection on Unauthorized Transactions. Further, this card also offers Mastercard Theft ID protection. This helps in protecting the ID of the card members in case of theft of the credit card.
#5 Card Name: Upgrade Bitcoin Rewards Visa Signature Credit Card
Fees: This credit card is available for a small fee of $2.99 per month. The credit card is available as a plastic card as well as a virtual credit card.
APR: 14.99% – 29.99% in variable APR
Rewards: Upgrade Bitcoin rewards visa credit card offers unlimited 1.5% of cashback rewards. Card members can earn 1.5% rewards in form of Bitcoin when they pay back the spend.
Pros and Cons:
Upgrade Card balances have a fixed rate and term so the user knows when they can pay off the balance and can save on interest. This credit card is available both as a virtual credit card and also as a physical card.
Card members can activate Upgrade Shopping offers from participating merchants via their account dashboard. Customers can then shop online through Dosh or at stores, using their Upgrade Card. Further, they can get up to 10% cash back as a statement credit on qualifying purchases.