Cryptocurrency has become a mainstream form of payment, and more individuals are looking for ways to integrate it into their everyday spending. Whether it’s for investment or practical use, buying crypto can be a bit tricky if you don’t have the right tools. One of the most convenient ways to buy cryptocurrencies like Bitcoin, Ethereum, or stablecoins is through credit cards. But not all credit cards are created equal when it comes to crypto purchases.
In this article, we’ll explore the top credit cards for buying crypto, highlighting their fees, benefits, rewards, and any hidden pitfalls. Whether you’re an experienced crypto investor or someone looking to get started, choosing the right credit card can make your crypto purchases smoother and more cost-effective.
What to Look for in a Credit Card for Crypto Purchases
Before diving into specific credit cards, it’s important to know what factors to consider when choosing a credit card for cryptocurrency transactions.
- Transaction Fees: Many credit cards charge fees for cryptocurrency purchases. This can range from foreign transaction fees to cash advance fees, which can quickly eat into your funds. Look for cards that either waive or minimize these fees.
- Rewards: Some credit cards offer rewards for every purchase. While most cards offer points, cashback, or travel miles, there are specialized cards that offer crypto rewards, allowing you to earn more digital currency while you shop.
- Supported Platforms: Not all cryptocurrency exchanges accept credit card payments. Ensure the credit card you choose is supported on the platforms you plan to use for purchasing crypto.
- Interest Rates: Credit card interest rates can be steep, and crypto purchases may be classified as cash advances, which often carry higher rates. Be mindful of the interest you might accumulate if you don’t pay off your balance in full.
- Security: Buying crypto comes with risks, including the potential for fraud or hacks. A good credit card should offer robust security features, including fraud protection and easy dispute resolution.
Top Credit Cards for Crypto Purchases
1. BlockFi Rewards Visa® Signature Credit Card
The BlockFi Rewards Visa® Signature Credit Card is one of the most popular choices for crypto enthusiasts, especially those invested in Bitcoin. This card allows you to earn rewards in the form of cryptocurrency, rather than traditional cash back or points.
Key Features:
- Rewards: Earn 1.5% back in Bitcoin on every purchase, with no limits on how much you can earn. After spending $50,000 annually, the rewards increase to 2%.
- No Fees: This card boasts no annual fee and no foreign transaction fees, making it a great option for those who want to avoid extra costs.
- Sign-Up Bonus: You can earn up to $250 in Bitcoin as a welcome bonus when you spend $3,000 within the first three months.
Why It’s Good for Crypto: The BlockFi card is directly tied to a crypto platform, making it easy to accumulate Bitcoin with your everyday purchases. Plus, you avoid the hassle of conversion or redeeming points for crypto – you earn it directly.
Downside: You can only redeem rewards in Bitcoin, and BlockFi does not currently support other cryptocurrencies for rewards.
2. Crypto.com Visa Card
The Crypto.com Visa Card is another top contender, offering a tiered rewards system based on how much CRO (Crypto.com’s native token) you stake. There are multiple tiers, from the basic Midnight Blue card to the top-tier Obsidian card.
Key Features:
- Rewards: Earn between 1% and 8% cashback, depending on your card tier.
- No Annual Fee: None of the Crypto.com Visa cards come with annual fees, and some tiers even offer perks like free Spotify, Netflix, and airport lounge access.
- Supported Cryptos: You can spend or earn rewards in multiple cryptocurrencies, including Bitcoin, Ethereum, and CRO.
Why It’s Good for Crypto: This card gives you the flexibility to earn rewards in various cryptocurrencies. The cashback rates are highly competitive, especially for the higher-tier cards. The seamless integration with the Crypto.com app allows you to manage your spending and crypto rewards efficiently.
Downside: To unlock the higher cashback tiers, you need to stake a significant amount of CRO, which can be a barrier for some users. Additionally, fluctuating token prices may affect the value of your staked CRO.
3. Gemini Credit Card
The Gemini Credit Card is a great option for people looking to diversify their crypto rewards. With this card, you can choose from over 60 cryptocurrencies, allowing more flexibility in how you accumulate digital assets.
Key Features:
- Rewards: Earn 3% back on dining, 2% on groceries, and 1% on all other purchases.
- Instant Rewards: Rewards are deposited instantly into your Gemini account, so you don’t have to wait until the end of the billing cycle.
- No Fees: There are no annual fees or foreign transaction fees with this card.
Why It’s Good for Crypto: The Gemini Credit Card stands out because it allows you to earn rewards in a wide variety of cryptocurrencies, giving you the freedom to diversify your portfolio with every purchase. The instant rewards feature is also a plus, as most cards require you to wait until your statement closes.
Downside: Gemini’s cashback rates on general spending are slightly lower than some competitors. Also, as with most credit cards, the interest rate can be high if you carry a balance.
4. Coinbase Card
The Coinbase Card offers flexibility for crypto enthusiasts who already have a Coinbase account. This card allows you to spend cryptocurrency directly, making it ideal for those who want to use their crypto holdings for everyday purchases.
Key Features:
- Rewards: Earn up to 4% back in cryptocurrency on every purchase.
- Direct Spending: You can spend your cryptocurrency directly from your Coinbase account, without needing to convert it to fiat currency first.
- Supported Cryptos: Choose from a variety of cryptocurrencies for your rewards, including Bitcoin, Ethereum, and Litecoin.
Why It’s Good for Crypto: The Coinbase Card is perfect for those who already hold cryptocurrency and want to use it as a spending tool. You can easily choose which crypto you want to use, and the rewards system offers competitive rates for earning more crypto.
Downside: There’s a 2.49% transaction fee for crypto spending, which can add up if you use the card frequently. Additionally, the Coinbase Card is only available in certain countries.
5. Venmo Credit Card
The Venmo Credit Card is a solid choice for people who want to dip their toes into the world of cryptocurrency while also enjoying traditional rewards.
Key Features:
- Rewards: Earn up to 3% cashback on your top spending category, 2% on your second-highest, and 1% on everything else.
- Crypto Integration: You can automatically use your cashback to buy Bitcoin, Ethereum, Litecoin, or Bitcoin Cash through Venmo.
- No Annual Fee: Like many other cards on this list, the Venmo Credit Card comes with no annual fee.
Why It’s Good for Crypto: The Venmo Credit Card is ideal for people who are new to crypto. You can convert your cashback into cryptocurrency without needing to open a separate exchange account. It’s a simple and easy way to start building your crypto portfolio.
Downside: Unlike other cards on this list, the Venmo card doesn’t offer direct crypto rewards. Instead, you earn traditional cashback, which you can then choose to convert into cryptocurrency.
Other Notable Mentions
While the cards above are some of the top choices for crypto purchases, there are a few other credit cards worth mentioning:
- SoFi Credit Card: This card allows you to redeem cashback rewards into cryptocurrency through a SoFi account. It offers 2% cashback on all purchases, with no annual fee.
- Nexo Card: Linked to the Nexo platform, this card allows you to spend your crypto without selling it. You earn up to 2% cashback in Bitcoin or NEXO tokens, and there are no foreign transaction fees.
Also Read: Inheritance Tax: What You Need to Know
Which Credit Card Should You Choose for Crypto?
When it comes to picking the best credit card for crypto purchases, it largely depends on your specific needs and financial goals.
- For maximum rewards in Bitcoin: Go for the BlockFi Rewards Visa® or the Gemini Credit Card.
- For spending crypto directly: The Coinbase Card offers flexibility, but watch out for fees.
- For the highest cashback with perks: The Crypto.com Visa Card offers the most flexibility in terms of rewards, but requires staking.
- For newcomers: The Venmo Credit Card is a great entry point, with an easy way to convert traditional rewards into crypto.
Each card has its own strengths and weaknesses, so be sure to consider fees, rewards, and spending habits when choosing the best card for your cryptocurrency purchases. With the right credit card, you can easily buy and earn crypto, bringing you one step closer to maximizing your digital investments.