Like other traditional credit cards, you can use crypto credit cards to make purchases on credit. What makes crypto credit cards different is that, through reward programs, you earn cryptos like bitcoins, ether, and USDT rather than points, miles, or cash back.
With an approved credit check, a financial institution issues a card with a line of credit in cryptocurrencies for a consumer to make purchases and earn cryptos.
VISA inc and Mastercard line up with investment platforms like SoFi, BlockFi, and crypto exchanges such as Gemini in issuing crypto credit cards with crypto reward programs.
Read Also: Crypto Mining Singapore and Is Bitcoin Legal in Singapore
What is a Crypto Credit Card?
A crypto credit card is a consumer account with a line of credit approved by a financial institution like an investment brokerage or crypto exchange upon scrutiny of an applicant’s credit. A crypto credit card allows a client to spend using a credit line and earn crypto rewards by making purchases.
Crypto Credit Cards vs. Crypto Debit Cards
Credit or debit card? The following table explains both features:
| Crypto credit card | Crypto debit card | |
|---|---|---|
| Use of funds | Clients spend using a credit line offered by a financial institution or his funds. | A client deposits his funds into the account and spends up the funds. |
| Fund’s nature | A credit line is a consuming loan to be repaid. | Funds are a client’s own. |
| Credit check | A card issuer goes through credit scrutiny and decides on card issues. | An issuer may require an applicant to stake its native cryptos for some time before approving an application. |
| Main crypto cards |
|
|
Best Crypto Credit Cards
A table below provides a glance at the best crypto credit cards for reference.
| Crypto Credit Cards | Details |
|---|---|
| BlockFi Rewards Visa Signature Card |
|
| SoFi Credit Card |
|
| Upgrade Bitcoins Rewards Card |
|
More details – How to Earn Crypto with the Card
BlockFi Rewards Visa Signature Card
You earn 1.5% in crypto of your choice when making purchases with the credit card. An increase of 2% is available if purchases are over $30,000 or above. You may choose crypto among bitcoin, Ether, Dogecoins, and other stablecoins like USDC, and USDC.
SoFi Credit Card
Cardholders earn 2 points for 1 dollar spent and 3 points per 1 dollar spent for qualified direct depositors. Points credited to an eligible SoFi account, including a crypto account, are available for redemption at 1 cent for 1 point. Besides the option of a statement credit, SoFi also offers bitcoin and ether only for redemption.
Upgrade Bitcoins Rewards Card
You earn 1.5% in bitcoin on all purchases. Upgrade returns the rewards only if you pay off the purchases on the card. The card issuer buys bitcoins and put them in a crypto wallet created by NYDIG, a custody and trading platform. The company charges a 1.5% transaction fee if you sell the crypto and convert the sale proceeds to the statement credit.
1. BlockFi Rewards Visa Signature Card – Best for Crypto Investors, and Enthusiasts
BlockFi Rewards Visa Signature Card offers generous programs for investors to earn rewards while spending among others. Besides, the card offers over 10 cryptocurrencies to cardholders for currency choice. A Refer-A-Friend program is available to increase incentives for using the card.
Highlights
- A reward rate of up to 2% is available for every purchase.
- Up to 10 cryptocurrencies as rewards are on offer.
- A USD loan facility is available to investors with a low-interest rate of up to 4.5% APR.
- Free transfer of rewards to the crypto wallet of your choice
- A referral program for a referrer and referee attracts more clients.
APR
15.74% – 25.74% variable
Rewards
Earning crypto rewards
- An unlimited 1.5% in crypto of your choice, without any conditions attached, each time you spend with the card.
- A 10% reward in crypto if you shop products from Adidas, Finish Line, H&M, Jared, and Shake Shack. The total rewards add up to 11.5% of rewards for eligible purchases.
- A higher rate of 2% instead of 1.5% for spending $30,000 or above within a year starting from the card issue date. But the program will reset to 1.5% at the subsequent beginning of the next anniversary date til hitting $30,000 again.
Crypto choices
- BlockFi’s Rewards Flex Program allows cardholders to choose various rewards cryptocurrencies such as bitcoins, ether, litecoin, or stablecoins like USDC and binance USD. You can change your crypto preferences over your BlockFi account anytime without limit.
- The company pays out the reward on the second Friday of every month. You should know reward value is at the time of the payout, not the date of purchase.
US dollar loan
- You may take out a US dollar loan with a low-interest rate of down to 4.5% as a regular and active customer with a good credit record.
Free crypto transfer
- BlockFi is the only card issuer allowing clients to transfer rewards to crypto wallets of their choice freely.
- You may move your cryptocurrencies into place out of BlockFi if you deem it appropriate.
Signup bonus
- For BlockFi account holders, the company offers $10 in bitcoin to your account if a client signs up using your referral code and funds S$100 or above.
- A credit card referrer will receive $30 in bitcoin if a referee successfully subscribes to a credit card. Besides, the new client can get a Reward Flex crypto of $30 in bitcoin. All rewards are in bitcoin only.
Annual fee
0
Pros
- No annual fees and foreign transaction fees
- Higher rewards for higher spending
- Allowed transfer of rewards to crypto wallets or exchanges outside BlockFi
Cons
- A BlockFi account required to apply for a credit card
- Account balance not allowed to transfer
- High APR
2. SoFi Credit Card – Best for SoFi account holders
SoFi offers offer rewards to cardholders to offset expenses or repayment from other SoFi accounts. Cardholders can redeem points earned by spending for a statement credit and cryptocurrencies.
Highlights
- No annual fee and foreign transaction fees
- 3% cash back on a SoFi account the first year after direct set-up account with SoFi
- 2% on subsequent purchases or paydown of loans or investing
- A fee of 500 reward points to redeem rewards as crypto
- Redemption limited to 2 cryptocurrencies: bitcoins and Ethereum
- SoFi reduces APR by 1% for timely repayments, including minimum payments.
APR
13.74% – 25.74%
Rewards and benefits
- Earn 2 points per 1 dollar spent
- Earn 3 points per 1 dollar spent if you set up a direct deposit with SoFi
- Redeem the points earned for 1 cent per point and credit to your other SoFi account like loans, investing, savings.
- Redemption to statement credit is 0.5 cents per point only
- Bitcoin and Ethereum are only 2 options for redemption
- Crypto can stay in other SoFi account only
- An decrease of 1% APR for consequent 12 monthly repayments.
- Instant digital access is available once an application is approved. A client can get a digital wallet issued by SoFi without a physical card arrival.
- Like other holders of World Elite Mastercard, cardholders can enjoy cell phone protection up to $1,000 and other discounts like Lyft, Shoprunner, and Doordash.
Sign-up bonus
Up to $300 if a deposit account meets requirements.
Annual fee
0
Pros
- Lower interest rates for holders with on-time payments
- Enjoy more benefits offered by Mastercard merchants worldwide
- Use the points earned to invest in cryptocurrencies, investing, and loan repayments.
- Immediate spending of a digital credit card offered by SoFi’s instant digital access service
Cons
- Low redemption points for statement credit due for 0.5 cents per point only
- Points redeemed for loan repayment applies to SoFi student loan only.
- Not-exciting sign-up bonus
3. Upgrade Bitcoins Rewards Card – Best for credit card holders of average credit score
Upgrade Bitcoins Rewards Card allows users to earn and accumulate bitcoins by paying the balance. It has lower credit requirements for applicants.
Highlights
- No annual fee and foreign transaction fees
- 1.5% back in bitcoin rewards when paying down purchases, not making the purchases
- 2 options available after redemption: hold or sell
- Bitcoins non-transferable
- A mandatory holding period of 90 days after redemption
- A transaction fee of 1.5% for the sale of bitcoins
- Cash after sale is available for statement credit
- Installment loans are available for an upgrade card-account opening balance
APR
14.99% – 29.99
Rewards
The credit card offers cash back in bitcoins while making repaying the credit card balance.
Bitcoins earned
- A way to earn bitcoins for a cardholder: spend and balance repayment
- An unlimited 1.5% in bitcoins are available when you make payments.
Benefits
- An pre-approval within a few seconds without impact on credit score
- Pay with “ Apple Pay” or “Google Pay”
- Real and instant balance check with mobile app
- A guarantee of $0 Fraud liability for cardholder
Sign-up bonus
0
APR
14.99% – 29.99%
Annual Fee
0
Pros
- Low bar for credit approval
- Use credit line in a card account as personal loan by drawing down the amount.
- Instant use of the virtual card and quick approval process
Cons
- Rewards are not transferable to other wallets.
- Higher interest rates
- A transaction fee of 1.5% for the sale of bitcoins
Insights: Are Debit or Credit Cards Worth Getting?
Before applying for a crypto debit or credit card, you may consider 2 things. First, you are an enthusiastic crypto investor adding an extra investment tool to your crypto portfolio. The cards are your ideal choice to increase and manage your portfolio through a new option: spending.
Second, if you are new to the crypto world, facing the risk of investing is another headache. You should know how to invest in crypto assets of extremely high risks and understand the crypto greed and fear index. Besides, you must confront the choice: crypto such as bitcoin, cash? You forfeit travel miles, cashback, or discounts offered in return for crypto.
Bottom Up
A crypto credit card is a new spending alternative to traditional ones. Users may look up to the task of managing risky assets and forfeit traditional benefits like travel miles, cash rebates, and shopping discounts. You should weigh factors appropriate to your situation before choosing the best one.
Key takeaways
- BlockFi Rewards Visa Signature Credit Card offers the most generous crypto rewards.
- Clients can choose rewards over various cryptocurrencies.
- Clients can transfer their rewards to other accounts outside BlockFi.
- Crypto cardholders must give up travel miles and cash back in return for crypto.
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