Best Crypto Credit Cards 2022
A crypto credit card allows users to spend cryptocurrency while also earning crypto rewards. As more crypto cards become available, consumer interest in earning rewards this way grows. So, in order to find the best crypto credit cards, we will look at a variety of aspects.
6 Finest crypto credit cards
Upgrade Bitcoin Rewards Visa®
Good for flat rewards
Earn $200 bonus on your Upgrade Card after opening a Rewards Checking account and making three debit card transactions*.
8.99% - 29.99%
1.5% bitcoin back on payments
Recommended Credit score
SoFi Credit Card
Good for redemption rewards
13.74% to 25.74% APR
SoFi direct deposits earn 3% cash back annually. Later, earn 2% cash back on purchases or paying down a SoFi loan. And also redeem for crypto.
Good to Excellent
Brex Credit Card
Best for new investors
7 points each rideshare/taxi dollar.
4 points per dollar on Brex-booked travel.
3 points per dollar on all eligible Apple purchases using the link or Brex dashboard.
Recurring software costs 2 points per dollar.
Other purchases: 1 point per dollar.
Recommended credit score
What is a crypto credit card?
Cryptocurrency credit cards work likewise to typical credit cards, except that customers can earn rewards in the form of cryptocurrency tokens. Individuals can borrow money from the card issuer and pay it back with interest later. The credit card issuer gives cryptocurrency tokens as rewards.
Users should be cautious, as with any other financial instrument for borrowing, not to get into debt that they cannot manage to pay back. As these credit cards are a little more complicated.
The rewards are paid in digital currency, like Bitcoin. Visa and Mastercard support cryptocurrency, so you can enjoy flexible spending with enhanced rewards.
Crypto Rewards credit Card
As the crypto rewards credit cards functions transparently as a traditional credit card. You can use the card to buy anything you would usually buy with a credit card and get some of the cost back.
Some, like traditional rewards cards, earn a flat rate on all purchases, while others offer bonus rewards in distinct categories, such as dining or groceries.
Crypto credit cards vs crypto debit cards
Bitcoin debit cards, also called crypto debit cards, can be loaded with cryptocurrency to make online and in-store purchases from non-crypto merchants. It allows people to make purchases and ATM withdrawals using Bitcoin, even if vendors and ATMs don't accept cryptocurrency.
Instead of exchanging Bitcoins for local currency, cardholders load a specified amount of crypto onto their debit card, which is converted at the time of purchase.
Crypto debit cards have been around for years, but crypto credit cards are a newer concept that allows users to instantly spend coin assets. It allows people who want to borrow against their cryptocurrency assets and spend them anywhere Visa or Mastercard is accepted.
Several crypto credit cards are in development that work like traditional credit cards but pay cashback or rewards in Bitcoin.
How do crypto credit cards function?
Crypto cards function as credit cards, so balances must be paid off monthly to avoid interest or late fees. The card issuer will pay for your transaction. The crypto card issuers convert your cryptos into fiat currency and pay you in that. Some cards let you buy things and pay off your card with cryptocurrency in your associated account.
When these cards convert loaned funds into fiat currency for the holder's spending, the issuing entity grants funds immediately or after a grace period in exchange for a percentage of credit. The client repays with cryptocurrency. It's risky because cryptocurrencies are volatile.
If a customer refuses to pay the credit or the grace period runs out, penalties will be applied, and the client may be financially and legally precarious.
When researching crypto credit cards, ask how cardholders are rewarded. It may require extra steps compared to traditional cards, but it could be worth it for cryptocurrency investors. Companies that offer crypto credit cards or debit card require you to open an account, verify your identity, and deposit tokens or crypto or apply for the card for free.
Pros and cons of crypto credit cards
Privileges & Limitations
Several cryptocurrency cards have limited benefits, so if you travel frequently, you may pick more value in a travel rewards credit card. If you want to save funds on your purchases each month, a cash back credit card may be a better option.
State laws prevent everyone from using every crypto cards. Before applying, read the card's terms and conditions to see if you're eligible.
For example, If you manage your cryptocurrency account outside the US, you may be violating international law, so keep your crypto rewards in the US.
Functionality & Taxes
Every crypto card has a unique portfolio of cryptocurrencies in which you can earn rewards. If you want to invest in a particular coins, make sure to check if the card and the exchange that supports it will allow you to do so.
One of several best aspects of a crypto card is the ability to raise rewards that may increase in value, while cash back and travel rewards may lose value due to inflation and devaluation, respectively. However, these rewards aren't taxable, whereas crypto is considered an asset that's taxable if sold. So if you intend to earn or sell a lot of cryptos, consult a tax pro.
1. Upgrade Bitcoin Rewards Visa®
The Upgrade Bitcoin Rewards Visa is a convenient crypto credit card, or should we say bitcoin card? It earns Bitcoin instead of traditional rewards points. Though it does not provide any advantages over other cards, it is a suitable substitute if the other options are not suitable for you.
Although you can only earn bitcoin, it offers the rewards rate which is 1.5 percent back on all purchases. The Upgrade Bitcoin Rewards Visa is accepted everywhere Visa is accepted, but you cannot transfer bitcoin from the custodial Upgrade platform to your own wallet, limiting your "ownership" to price exposure.
You can only keep your bitcoin rewards in the custodial account or sell them to redeem as a statement credit later. While this is a limitation, it is still one of the most simplified crypto rewards cards on the market right now.
2. Venmo Credit Card
The Venmo Credit Card deviates from one-size-fits-all rewards cards by providing extra cashback where you spend the most each month without the need for planning. Simply use the card, as usual, to earn a higher cashback rate on your top two categories.
The card also stays genuine to Venmo's roots as an app that allows friends to easily split costs. Its design includes a QR code that others can scan with their phones, so when you use your card to pay for a restaurant meal, you won't have to chase anyone down to get paid back.
It's also worth noting that the card's sign-up bonus frequently changes (assuming it happens to be offering one at all). The Venmo Credit Card is a cashback rewards card, but you can redeem rewards in crypto such as bitcoin, Ethereum, litecoin, or bitcoin cash every month.
There are no fees to convert credit card rewards to cryptocurrency. Venmo gives you the most cashback for your biggest purchases.
3. SoFi Credit Card
The SoFi credit card is intended to assist cardholders in saving, investing, and paying down debt by utilizing one of SoFi's many account offerings.
If you set up direct deposit using SoFi, you'll get 3% cash back for a year. After that, earn 2% cash back on purchases that can be redeemed for investing, saving, or paying down an eligible loan with SoFi. Mastercard has no annual fee and some additional benefits but no welcome offer.
You can redeem points for cash at a rate of one cent per point towards your SoFi Money account, SoFi loan balance, or SoFi Invest account, which lets you invest in cryptocurrency.
However, you should be mindful that when you buy crypto on SoFi, you are not buying real crypto. What you're really buying is an IOU that tracks the value of the cryptocurrency you're buying.
SoFi's crypto rewards can only be exchanged for cash. You can't trade or c.onvert your crypto, and you can't withdraw it to Coinbase. This makes SoFi less appealing to us for crypto rewards
4. Gemini Credit Card
The Gemini Mastercard is a top crypto credit card. Gemini's bitcoin card is part of a new trend of crypto credit cards that offer cashback in bitcoin and other crypto-assets. It offers rewards in bitcoin, ether, and more than 60 cryptocurrencies. Crypto enthusiasts can earn 3% cash back on everyday purchases with the this card.
These reward rates are competitive, and the cryptocurrency selection is the largest. Instant rewards mean you don't have to wait until the end of the month to cash out. You can move rewards to your crypto wallet, a big plus.
Remember that crypto rewards can be more volatile than cash back or points, so think carefully before applying. It ranks among the best crypto credit cards on our list.
5. Brex Credit Card
The Brex Card is among the best crypto credit cards, which is aimed at startups. It has recently added a new redemption option: the company refers to it as the 1st crypto rewards program for businesses.
The Brex Card is available in two varieties: one that requires daily payment and one that allows monthly payment. You'll be able to select one of these options when you apply for a Brex Card, subject to Brex's approval.
Brex assesses an applicant's creditworthiness by looking at the company's cash balance, spending habits, and investors rather than the business owner's credit score.
Because of this screening method, the Brex Card may be a good choice for entrepreneurs with little to no credit history.
While the Brex Card does earn rewards, you must go through some hoops to get the best rates.
6. Nexo Mastercard
The Nexo MasterCard crypto credit card lets users borrow up to $2 million in crypto. You secure the loan with your crypto in your wallet, so you can only borrow less than that amount. It supports 20 cryptos and also contributes to our list of the Best Crypto Credit Cards.
Nexo's credit card lets users earn 2% back on purchases made in any 15+ Nexo-supported digital assets. The card can be helpful for anyone who wants to access their crypto portfolio without selling the assets. The Nexo app offers cardholders valuable features.
Nexo lets you deposit digital assets to earn a yield or take a loan without selling them. The Nexo card has no annual fee and lets you freeze and unfreeze it with a tap and create free virtual cards for online purchases.
Frequently asked questions
Yes, as we listed above, there are now crypto credit card choices available for those who want to borrow against their crypto assets and spend them anywhere Visa or Mastercard is accepted.
There are many crypto credit cards that are user-friendly, such as SoFi credit card and Upgrade Bitcoin Rewards Visa.
Experts are unsure of crypto credit card value in comparison to rewards cards. These cards allow you to earn cryptocurrency rewards, eliminate the need to buy virtual currency with cash, and provide a low-risk entry point into crypto investing.
It can be considered a leading advantage. However, cardholders should expect fees from both sides of a cryptocurrency and credit card transaction.
Even though the popularity of cryptocurrencies is still a bit of a way off, it has gotten much closer. This article examined crypto credit cards, including the yet-to-be-released Gemini Card. There are now multiple crypto debit cards and credit cards to consider, whereas these options were difficult to obtain only a few years ago.
While the six discussed above are our best choices, there are many more to acknowledge. Despite this, almost all of them allow you to earn rewards when you purchase their goods and services, or even virtual currency.
Nexo Card will meet your needs for loans and related cash backs on card purchases. Unlike all other cards on the market today, the upcoming Gemini credit card will offer instant cashback rewards on purchases. choose what is best for you considering the flexibility, fees, taxes, rewards and drawbacks.