The Best Crypto Cashback Credit Cards
Credit cards and debit cards that offer cryptocurrency cash back rewards can be an easy and stress-free way to get into crypto or to increase your holdings. Yes, there is still some risk with any crypto holdings, but you won’t be sinking large amounts of money into crypto, nor will you have to research 500 or more types to figure out which one you want. In most cases, you will have 1-50 types of cryptocurrency to choose from, making it a little easier to choose.
What is Crypto Cashback?
Crypto cashback is what you would expect. Most cash back credit cards offer a percentage of your spend in cash. So, for example, if you spend $1000 on eligible purchases you get anywhere from $10 to $60 in cash. You can then apply that to your balance on the card, or get it a check for that amount.
With a crypto cash back card, Instead of receiving, say $20 USD back from your credit card for spending $1,000 on eligible purchases, you get $20 worth of cryptocurrency.
In some cases there will be multiple steps to earning crypto cash back. Instead of getting cryptocurrency, you get regular cash back which you can use to purchase cryptocurrency. These cards may waive their transaction fee when purchasing cryptocurrency with your rewards, or provide other incentives when you use your rewards this way.
How Crypto Cashback Cards Work
Many crypto cashback cards are debit cards or prepaid cards. Crypto credit cards are not as common. When looking at the different cryptocurrency cards offered, make sure you understand what type of card you are interested in because this will impact how the card works.
Outside of the specifics of each card, here is a rundown on the differences between crypto debit cards, credit cards, and prepaid cards.
Credit Cards: You have a credit limit and can spend up to that limit. Payments are generally required on a monthly balance, and with many cards you can either pay the balance in full or make smaller payments and incur interest.
Debit Cards: These cards are linked to a bank account. When used to make a purchase, or at an ATM, money comes directly from the linked bank account to make the purchase.
Prepaid Cards: You load money on these cards ahead of time, and when you make a purchase, the amount is deducted from that balance.
Each card in each category will have its own set of terms and conditions, but the list above provides a general set of guidelines.
Why would anyone choose a prepaid card or debit card instead of a credit card? The main reason is they don’t generally require a credit check to qualify. Some consumers also feel these cards help them avoid running up balances they can’t pay off quickly. In addition, these cards are less likely to charge annual fees, though there may be transaction fees or other fees.
What to Look for in Crypto Cashback Rewards
As you would with any credit, debit, or prepaid card, you want to read the terms and conditions of the crypto card you’re considering to understand the basics including:
APR (interest rates)
Minimum balances (for debit or prepaid cards)
Depending on the type of card you get, there will be different terms and conditions. Reading the fine print is key as you’ll see when you review some of the cards below.
Other factors to consider:
Types of crypto offered
If staking is required (see below)
Cashback percentage earned or crypto cashback percentage earned
Types of eligible purchases
Minimum credit score requirements to qualify
Certain cards have a wide range of cryptocurrencies for cardholders to select from, while other companies only offer the option to earn only one type of cryptocurrency. The cryptocurrency you are receiving should be one you think will rise in value over time. Cryptocurrency exchange rates will vary depending on the market price when it is purchased.
You also need to see if the card you are interested in has staking requirements. Staking essentially means holding the currency for a minimum time period. Some cards base their reward percentages on staking time, which is why this is important.
As you look over the card requirements, look at each spending category and the associated cashback you can earn. That may help you make that final decision between two or three cards you’re considering.
For example, let’s say you are comparing two cards that both offer rewards in Bitcoin and have no staking requirements. One card allows you to earn 4% in Bitcoin on eligible travel purchases up to $5,000, while the other allows you to earn 2% in Bitcoin on dining and entertainment purchases of up to $7,000. If you do not eat out – or if you do not travel– then the choice has been made for you. Most comparisons won’t be that straightforward, but purchase categories can be useful as one point to consider.
Remember, you can always get a credit card with a solid cash back offer in dollars and use the money you earn to buy cryptocurrency. You don’t have to have a card that specifically offers crypto rewards.
Also keep in mind that cryptocurrency transactions may have tax implications. Your crypto wallet provider may report transactions to the IRS.
The Best Crypto Cashback Credit Cards
There are a lot of factors that should be considered when looking at any type of crypto card. While many crypto debit and prepaid cards are offering some decent cryptocurrency rewards, many cardholders feel more comfortable with a credit card because of the superior fraud protection they offer.
Here we share some of the best currently available crypto rewards cards. There are others out there with waitlists, but the details are still relatively vague so we’ll focus on those that are currently available.
SoFi Credit Card
For every dollar spent using your SoFi credit card, you receive 2 points which are worth 2 cents. You can then use these points to add crypto to your SoFi Invest account. Currently, there are two types of cryptocurrency available to purchase: Bitcoin and Ethereum.
You will need a SoFi Invest® account and a SoFi crypto account to redeem rewards points into cryptocurrency. A minimum balance of 500 rewards points (worth $5) is required before you can redeem for cryptocurrency. SoFi will assess a fee for each crypto transaction outside of rewards redemption.
Blockfi Rewards Visa Signature Credit Card
The BlockFi Rewards Visa® Signature Card is a personal credit card that offers an unlimited 1.5% cash back in bitcoin. However you will earn 3.5% for your first 90 days, capped at $100 in bitcoin. If you spend over $50,000 in one year, you get a 2% rewards rate on the amount you spend over $50,000.
There is a referral bonus of $30 in bitcoin when you refer a friend.
While the site advertises bitcoin cash back rewards, cardholders may choose any currency on the BlockFi platform, including stablecoins. You can choose the crypto currency you want by the end of the month for the next rewards payout.
There is no annual fee and no foreign transaction fee.
Venmo Credit Card
With the Venmo Credit Card, you can buy one of four cryptocurrencies with the cash back you earn: Bitcoin, Litecoin, Bitcoin Cash, and Ethereum. Venmo waives the additional transaction fees attached with buying crypto when you set up auto purchase of cashback to crypto. Cashback rewards range from 1-3% and purchases are automatically categorized based on your spending.
Brex Credit Card
You earn points with your Brex credit card when you make eligible purchases. The points you earn depend on the category the purchase falls under, but they range from 1 to 8 points per dollar. One option is to redeem points in the form of cryptocurrency. Currently, that includes Bitcoin and Ethereum. (You will need to set up a Coinbase wallet.)
You can earn additional points by hitting spending milestones with your card. Brex requires a minimum of 1000 points per transaction. Up to 1 million points can be redeemed for cryptocurrency.
Upgrade Bitcoin Rewards Visa Signature Card
When you use the Upgrade Bitcoin Rewards Visa Signature Card you can earn 1.5% back on purchases in the form of Bitcoin, once you pay off the purchase. If you also open an Upgrade Rewards Checking account you can earn a $200 sign-up bonus when you make three eligible purchases with your debit card.
It’s important to understand that this card is not a traditional credit card. Instead it is tied to a credit line from Upgrade. You can only redeem bitcoin you earn as a statement credit.
Crypto.com Visa Card
The Crypto.com Visa Card is a prepaid card, not a credit card. To open one, you’ll need to first sign up for a Crypto.com app, purchase CRO tokens and put them in your digital wallet. Except for the most basic card, you’ll need to stake a certain dollar amount of CRO for a period of 180 days. Then you’ll need to continue staking a minimum amount to maintain the tier of card you’ve received.
Once you get the card, you can earn rewards, paid in CRO and deposited automatically into your Crypto Wallet in the app. Since this is a prepaid card you’ll need to load funds in fiat currency; for example from a bank checking account.
The amount of rewards you’ll earn depends on the tier of card for which you qualify. Midnight Blue earns 1% and requires no staking. Ruby Steel earns 2% and requires staking $400; Frosted Rose Gold and Icy White require staking $40,000 and earn 5% while the top level card, Obsidian, earns 8% but requires staking $400,000.
Other card benefits include airport lounge access for the top three tiers. All cards except Midnight Blue can earn 100% Spotify subscription rebate (up to a specific dollar amount), while the top three tiers can qualify for Netflix reimbursement, and the top two tiers can qualify for Amazon Prime reimbursement. Obsidian cardholders can earn reimbursement of 10% of Airbnb purchases up to $100 a month, and the top two tiers earn 10% Expedia reimbursement. Purchases made at some retailers (using Merchant Category Codes or MCCs) don’t earn rewards at all.
Free ATM withdrawals are limited to $200 to $1000 per month depending on the card tier.
Overall this is a fairly complicated crypto rewards card with some high staking requirements. However, some enthusiasts will find the benefits appealing.