You’re probably familiar with regular rewards credit cards that can earn you airline miles, cash back, or points, but you might not have heard of a relatively new credit card, the crypto rewards credit card. With cryptocurrency becoming more popular, it isn’t surprising that some companies have started to offer credit card rewards in the form of crypto. There are a lot of benefits to having one of these cards, and we’ve broken them down for you below!
What is a Crypto Rewards Credit Card?
A crypto rewards credit card, or crypto card for short, is a regular credit card that offers rewards in the form of cryptocurrencies. Crypto rewards are earned as you use the card for regular purchases. Crypto rewards are collected in your exchange account and are held just like any other crypto. They can increase in value as the market price of the cryptocurrency rises, allowing you to sell your crypto rewards for a higher value than what you received them at.
Crypto rewards cards are offered by many crypto exchange companies. Popular crypto cards include the Gemini Credit Card, Sofi Credit Card, and BlockFi Credit Card. Crypto credit cards are differentiated by the reward structure they offer, which cryptos you can earn rewards in, and fees. Like regular credit cards, crypto credit cards require you to apply to have their card, and applicants can be approved or denied.
How to Sign Up for a Crypto Rewards Credit Card
Here’s the steps you need to take to sign up for a crypto rewards credit card.
Step 1: Decide Which Card To Apply For
There are a lot of options for crypto credit cards. Some cards offer better rewards at select stores and websites. Other cards offer better rewards if you earn in Bitcoin vs other cryptocurrencies. Certain crypto cards have no annual fees while others do. We recommend you spend time researching different cards to evaluate which one would work best for you.
Step 2: Create an Account
Once you decide which card you want to apply for, you’ll have to make an account. If you already have an account with that exchange, you’ll just sign in. Making an account is easy, just simply enter your first and last name, email, phone number, and create a password. You’ll probably have to verify your phone and email using codes they send.
Step 3: Enter More Information
After your account is set up, you’ll have to enter information so they can verify your identity. This includes your address, birthdate, and social security number. After providing this info, you’ll submit your application. Some card companies allow you to check if you prequalify by providing a picture of yourself and a picture of your ID. If you’re pre-approved, you won’t have to wait for your application. However, if you aren’t pre-approved, it may take a few days for them to process your application.
Step 4: Set Up Your Card
If you got approved, you can expect your physical card to arrive in the mail. Once you receive your card, you’ll have to activate it just like any other credit card you’ve used before. If you’ve never set up a card before, just follow the instructions they include with the card, it’s an easy process.
Step 5: Select Your Crypto Rewards
A lot of card companies offer different cryptocurrencies to earn rewards in. When you go into your account via an app or browser, you can often choose or change which currency you’ll receive rewards in. Make sure you look to verify that it’s set up to give you the rewards you want.
Step 6: Watch Your Rewards Grow
As you use your crypto card regularly, you’ll begin to see your rewards build up. If the coin’s market value goes up after you’ve received rewards, you’ll see your rewards portfolio increase in value. Just like any other crypto, you can choose to sell the rewards that you earn. It’s important to note that you will be taxed on any gains you receive from the sale of your crypto rewards.
Which Companies Offer a Crypto Rewards Credit Card?
Many of the most popular exchanges offer crypto credit cards. One of the first crypto credit cards was created in 2021 by BlockFi. Right now some of the more popular cards include the Gemini Credit Card, Sofi Credit Card, BlockFi Rewards Visa Card, and the Nexo Credit Card. Each has its unique features, so start researching to see which one best fits your needs.
By now you should be prepared to sign up for a crypto credit card. If you follow our simple 6-step process, you won’t have any hiccups in the sign up process. Crypto rewards credit cards are such a great option for credit cards due to their rewards structures. As you become more comfortable with crypto credit cards, you’ll realize the great investment that crypto credit cards are!
Below we’ve listed some frequently asked questions associated with crypto rewards cards.
Why Should I Earn Rewards in Crypto Instead of Cashback or Points?
Earning rewards in crypto is unlike any other type of credit card rewards. Crypto rewards can grow in value over time as you accumulate them. Other credit card rewards such as cash back or points, stay at the same value over time. If you want to get involved in crypto or perhaps already have an account with an exchange that offers a card, you will definitely want to look into getting a crypto credit card.
What is the Difference Between a Crypto Credit and Debit Card?
Yes, there are crypto debit cards and crypto credit cards. The difference is the same as the difference between regular debit and credit cards. Crypto debit cards connect to the user’s crypto wallet with that exchange. As the user spends money, the crypto is taken right from their wallet as crypto. Crypto debit cards are nice because they save the hassle of converting your crypto into fiat and transferring it to your bank account connected to your bank’s debit card.
Crypto credit cards differ in the way that users have a credit allotment amount per month. Like any credit card, you’ll be charged interest after a certain time period of not paying the balance off. Crypto credit cards affect your credit score in the same way that regular credit cards do, so you’ll want to make sure you’re paying your balance off in a timely manner.
We’ve covered what the popular crypto credit cards are, but some popular crypto debit cards include the Coinbase Card and the Crypto.com Visa Card. Both cards allow users to earn crypto rewards like crypto credit cards.