5 Credit Cards with Crypto Rewards to Watch Out for in 2022
A credit card that offers cryptocurrency rewards is a convenient way to help you save money on the things you already buy!
The way it works is simple: you get points every time you use your card, and those points can be used to earn cryptocurrency. The more often you use your card, the more crypto rewards points you get. In fact, some cards even offer automatic redemption of your points for cryptocurrency so that you don't have to worry about using them at all.
It's a great way to save money while still getting all the benefits of using a credit card—and if you're interested in investing in cryptocurrency, this is an excellent opportunity.
How Do Crypto Credit Card Rewards Work?
If you want to earn extra rewards on certain purchases, a crypto card might be a good option. One way to maximize your earnings is by combining them with an existing rewards credit card. Crypto rewards cards are just like any other rewards card. They come with the risk of high-interest debt if you don't pay your balance in full when your monthly statement is due.
They have the same variable interest rates as that of the other credit cards, typically ranging anywhere between 10% to 20% APR. However, crypto rewards hold potential value over time since you can redeem them for a cryptocurrency currently seeing rapid growth in value.
Co-branded crypto rewards credit cards can offer value over other rewards cards. However, the process is different. Instead of receiving the cash back or statement credits, you will typically be able to redeem your rewards in cryptocurrency.
Is it Worth Choosing Crypto Rewards Card Over Other Rewards?
Crypto investing through credit cards has its perks. Even though there aren’t guarantees like those for cash back or travel rewards, the potential for the increased value of rewards is still enticing.
But it's also important to prioritize your financial needs before opening a new credit card or putting money into speculative investments like cryptocurrency. Make sure you have an emergency fund saved up and any high-interest debts paid down before investing in crypto—whether with rewards or your own cash.
When you're certain you can spare the cash, here are a few more reasons these cards might be worth it:
- You can earn cashback from a traditional rewards credit card, then use your rewards to buy more cryptocurrency yourself. But by earning cryptocurrency directly, you can circumvent some of the trading fees exchanges charge for converting U.S. dollars to crypto.
- Crypto rewards cards are issued by established financial institutions in partnership with the crypto community. They're just as safe and secure as any other credit card, so you can use them wherever Visa or Mastercard is accepted.
- After you’ve invested your own money in crypto, rewards can be a useful tool for practicing dollar-cost averaging with crypto, especially if you choose a card that automatically redeems your rewards or regularly deposits them into your bank account.
When it comes to credit card rewards, cashback, points, and miles are the most common incentive. But crypto-earning reward cards are starting to crop up everywhere. These products enable you to either earn crypto directly through your spending or convert rewards into cryptocurrency. Whether you wish to join the cryptocurrency bandwagon or simply want to add to your growing stash, earning rewards with a credit card is certainly a low-risk way of doing that.
Here are the top 5 credit cards with crypto rewards that you can watch out for in 2022.
1. SoFi Credit Card
SoFi credit card offers 3 SoFi reward points for every $1 purchase for a year when you create a direct deposit with SoFi, and after that, it sets up 2 SoFi rewards points per $1. You can also get a sign-up bonus of up to $200 when you fund an Invest, Checking, and Savings account after getting your approval for the SoFi Credit Card. The annual fee for this card is $0.
With the SoFi Credit Card, you can earn 2 points per $1 spent (3 points per $1 for one year). You can redeem these points for 1 cent each while depositing them into an eligible SoFi account, including the SoFi crypto account. Right now, Bitcoin and Ethereum are the only cryptocurrency redemption options available. Please note that you need to check where the crypto redemption is not available. For more information, you can visit the official website of SoFi.
2. Venmo Credit Card
Venmo credit card offers good rewards in crypto. It is one of the best credit cards with crypto rewards. You can avail of 3% cashback in your top spending category and 2% back in your second-place spending category for the month. There is no sign-up bonus and no annual fee as well.
If you hold a Venmo Credit Card you can choose to automatically purchase cryptocurrency using the cashback rewards earn from the card with its unique feature called Cash Back to Crypto. Choose from four cryptocurrencies to purchase, namely Bitcoin, Litecoin, Ethereum, and Bitcoin Cash. You will then be able to either sell or hold your cryptocurrencies through Venmo’s app.
When you enable the auto-purchase feature of the Cash Back to Crypto option, you will not have to pay any additional transaction fee. However, a cryptocurrency conversion spread will be built into each monthly transaction. This basically means that Venmo will charge a small margin between the crypto market price as well as the current exchange rate. You can change which crypto you wish to purchase and also turn off the auto-purchase at any time.
3. Upgrade Bitcoin Rewards Card
Like any other crypto rewards option, Upgrade's Bitcoin Rewards Card has flat cashback rewards. For instance, you get 1.5% back in Bitcoin rewards when you pay down your purchases (not when you make the purchase). Bitcoin is redeemed within 1-2 statement periods after your payment is received. Moreover, you cannot do much with your Bitcoin rewards besides holding them in your Upgrade account or selling them. There isn’t any annual fee and no foreign transaction fees either.
Having said that, the Upgrade card offers the least flexibility as far as Bitcoin rewards are concerned. If you simply wish to own Bitcoin as a store of value before eventually selling it, then Upgrade’s Bitcoin Rewards Card is a good option. Note that you won’t be able to hold your coins in your own wallet or exchange them for any other crypto.
4. Gemini Credit Card
Gemini is one of the most popular cryptocurrency exchanges globally, and it has also launched a cryptocurrency rewards card. You will need to join a waitlist for early access and see if you qualify. The Gemini credit card does not have an annual fee and allows you to choose between 40+ cryptocurrencies to earn. You can earn 3% back on dining, 2% back on groceries, and get 1% back everywhere else. (For more information, please check Gemini’s official website). The crypto rewards get deposited in your Gemini account within no time except for purchases that take time to clear (for instance, gas station refueling). The card does not have any foreign transaction fees, and you will require a Gemini account to use its credit card.
5. Coinbase Card
Coinbase is also a leading cryptocurrency exchange paving its way into the crypto card game. Right now, the Coinbase Card needs users to join a waitlist just like Gemini. Its feature also looks promising. For instance, there isn’t any annual fee; you can spend crypto or US dollars from your Coinbase account. The Coinbase card enables you to earn 4% back in crypto rewards. Earning 4% back seems lucrative; however, you should also be mindful of the fees. Coinbase charges 2.49% to convert crypto to USD for daily spending unless you pay with USDC. Thus, the best way to use a Coinbase Card would be to buy USDC with USD from your bank account for daily spending.
With the above credit cards with crypto rewards, you can earn crypto for free just by the simple use of these recommended cards. Using a crypto credit card is not only safe and secure, but it also gives you the freedom to make payments with your favorite coins without having to convert them into fiat currency first. This means that you won't have to pay any additional fees when using your crypto credit card, which saves you money and time as well!
Crypto credit cards make it easier for people who don't have access to traditional banking systems because they don't require any kind of ID verification or other documents as long as they're willing to pay upfront for their services. Using a crypto credit card means that you can buy and sell Bitcoins and other cryptocurrencies from just about anywhere—and at any time. You don't have to worry about carrying cash around or setting up an account with an exchange platform; all you need is your phone and an internet connection.
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