You may have heard of credit cards that let you earn cryptocurrency instead of cash back or points, but how do you go about choosing a card? There are a couple factors to consider when looking for a crypto rewards card, including your credit score, your spending habits, and where you live. It also depends on whether you want to earn Bitcoin on your rewards card or an altcoin.
Why does my credit score matter?
Your credit score plays a major factor in what type of crypto rewards card you can qualify for. Most rewards credit cards in general are only available to people with credit scores above 650+, but there is one Bitcoin rewards that is available to people that are new to credit or have below average credit called the Upgrade Bitcoin rewards credit card. If you have above a 650+ credit score, you have several more options. You could potentially qualify for the BlockFi cryptocurrency rewards card, the Gemini credit card, or the SoFi rewards card (this one has an option for crypto redemption as well.) If you don’t qualify for a crypto credit card yet, try using a tool to rebuild your credit.
Get a Card Based on Your Spending
Spending categories matter here because there are some cards that have special rewards categories. For example, if you dine or go out to eat frequently, you should look into the Gemini credit card since it has a 3% rewards rate for dining. However, if shop at a wide variety of stores, the BlockFi card may be a better fit for you because they have rotating special categories. The categories change frequently, but we have seen places like Costco and Target appear occasionally. Make sure to check the fine print before applying for any of these cards.
Why does it matter where I live?
Credit card companies can only issue cards in certain countries and states, depending on where they’ve gotten authorization. Each crypto rewards credit card has a list of states that they can and cannot issue in. Unfortunately, most of the cards are only available in the United States, but companies such as Wirex and Nexo are available in other parts of the world. Check the terms and conditions for the card you are considering to see if your state or province is included.
How to choose your rewards
Most people opt to get Bitcoin as their reward since it’s the most popular and established cryptocurrency. However, altcoins are also available to earn as your reward if you go with the Gemini, BlockFi, or SoFi card. You should do extensive research on the cryptocurrency you plan to use as your reward, because many alt-coins do not survive the bear market. Other popular currencies include Etherum, Cardano, Doge, Shiba, and Solana.
Getting a crypto rewards credit card is a fun way to accumulate cryptocurrency without having to put down any extra money. It’s a great way to start building up your digital assets without any risk. If you’re looking for a card that offers Bitcoin as a reward, we recommend the BlockFi or Gemini credit card. If you’re interested in an altcoin, go with the SoFi credit card so you can choose from a variety of different rewards. If you want to learn more about buying Bitcoin with a credit card, there’s other nuances to consider and these cards usually aren’t the best option to do that.
Keep in mind that these cards often come with zero annual fees and varying interest rates, so make sure you pay your balance in full every month. Crypto is a volatile market, so consider using your rewards to buy cryptocurrency when the prices are low. Lastly, have fun and happy earning!