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Health, Wealth, and Happiness

January 30, 2023

“Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.”

- Peter Lynch

In today's issue:When we created our first list of bitcoin credit cards several years ago, it quickly grew into one of the most popular features on our site.

Get paid in bitcoin instead of rewards points? Yes, please!

Like a rewards credit card, these credit cards allow you to get paid in bitcoin for everyday purchases. So long as you pay off the card balance in full each month, these cards can be a great way to do steady-drip investing in bitcoin.

Today we unveil our list of best bitcoin credit cards for 2023. Read on.

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Must Read

Today's most important story for crypto investors.

Outdated: Remarks Before the Digital Assets at Duke Conference(SEC.gov)

We've long championed SEC Commissioner Hester Peirce as being one of the most thoughtful voices in crypto.

After the meltdown of 2022, her latest remarks are both thoughtful and courageous.

To the crypto industry, she says start policing yourselves better.

To the SEC, she says regulation has been undisciplined, arbitrary, and late.

Using the analogy of online dating services in the 1960s (yes, that was a thing), she shows that those early creators could not possibly have imagined Tinder in 2023. Similarly, we cannot imagine how blockchain and crypto technology will evolve over the next 50+ years. We must let innovation flourish.

Investor takeaway: It's not easy to criticize the federal agency that pays your salary, which makes Peirce's piece all the more worthwhile. Read it... She's important.

Best Bitcoin Credit Cards for 2023

by Matthew Du

Crypto credit cards (sometimes called bitcoin credit cards) are the next generation of credit cards. They look like typical credit cards and act like typical credit cards. You can generally use them anywhere Visa, Mastercard, or Amex cards are accepted.

(Don’t confuse crypto credit cards with crypto debit cards, which are more like prepaid cards. See our list of best crypto debit cards here.)

Crypto credit cards are typically issued by banks or financial institutions that give you credit lines. Alternatively, you may have your credit limit linked to your cryptocurrency balance.

There are various benefits of crypto credit cards including:

Earning rewards in cryptocurrency (like cashback rewards, but in crypto)
The ease of making purchases directly with crypto
Withdrawing cash from an ATM without converting it back into fiat currency first

However, while these cards have benefits, smart investors must remember to spend responsibly, beware of tax obligations, and pay the balance off every month to avoid excessive interest fees.

Bitcoin Credit Cards Compared

We’ve rated and reviewed the best crypto credit cards on the market. Read on for our top picks.

Gemini Crypto Credit Card

Gemini is not just a leading cryptocurrency exchange. It also offers a crypto credit card.

The company lets you spend your digital currency anywhere in the world as you would with any other credit or debit card. The exchange provides over 50 types of cryptocurrencies and account holders get their rewards immediately.

The card doesn't charge extra fees for purchases or ATM withdrawals. It also offers features like 24/7 customer support and fraud protection.

Fees

No annual fees. 17.24% – 29.24% variable APR. $10 or 3% (whichever is greater) for cash advances. No ATM withdrawal fees.

Cryptos Supported

Offers rewards in bitcoin and 60+ other currencies (full list here).

Rewards

3% crypto rewards for dining (up to $6K annually, then 1%), 2% for groceries, and 1% for everyday purchases.

Availability

U.S. residents only. Cardholders can use the Gemini card anywhere in the world that accepts Mastercard.

Pros:

Cryptocurrency awards converted in real-time.
Cashback on dining, groceries, and other purchases.
No annual or exchange fees.

Cons:

High ATM withdrawal fees.

Conclusion: The Gemini credit card is good for U.S. residents who dine out regularly, want to earn rewards in real-time, and earn cashback for everyday spending.

SoFi Credit Card

SoFi is a US-based financial services company that offers personal loans, mortgages, and other banking services. It’s teamed up with Mastercard to offer cryptocurrency credit cards.

Sofi’s credit card comes with multiple benefits including cashback for spending with high-profile brands like Lyft and DoorDash and Mastercard ID theft protection.

Along with the 2% cashback, SoFi gives customers two rewards points on every dollar spent when making eligible purchases.

Fees:

No annual fees. Balance transfer and advance fees attract a $10 or 5% fee (whichever's greater). Late payment and returned payment fees cost up to $39.

Cryptos supported: bitcoin and Ethereum.

Rewards: 1% if used against your SoFi credit card account. 2% when paying off qualifying debt, saving, or investing with SoFi.

Availability: You can use the SoFi crypto card wherever Mastercard is accepted.

Pros:

No foreign transaction fees
Users who pay 12 minimum monthly credit card payments on time qualify for an APR reduction of 1%.
Unlimited cashback.

Cons:

To get the full 2%, card holders must use their rewards to pay down loans or redeem as cash back to qualifying SoFi accounts. If you use rewards to pay off credit card debt, your crypto rewards falls to 1%.

Higher transfer fees and cash advance fees than some competitors. Cash balance transfer fees are $10 or 5%, while cash advance fees are 3-5% or $10 (whichever's higher).

Conclusion: SoFi looks like a great deal, but it’s wise to look at the small print. To get the highest levels of rewards, cardholders must hold qualifying accounts offering less value. On the plus side, SoFi offers some great additional bonuses like MasterCard anti-fraud protection.

Upgrade Bitcoin Rewards Card

Upgrade’s offering is a bitcoin credit card that allows you to earn bitcoin rewards while making purchases.

You can pay down your balance in equal monthly payments in return for a fixed interest fee, making it easier to budget.

Another advantage of the Visa card is the ability to use it to access a personal loan that gets paid directly to your account.

Once you’ve earned your bitcoin rewards, you can let the balance grow and the NYDIG platform stores your coins. When you sell the bitcoin, they’re then applied as statement credits.

Your bitcoin rewards are subject to 90-day holding periods.

Fees: None except for bitcoin fees of 1.5% when you sell.

Cryptos supported: bitcoin

Rewards: Unlimited 1.5% cashback. Other benefits include baggage insurance, purchase protection, and extended warranty coverage.

Availability: Not available in Hawaii and North Carolina.

Pros:

Lower monthly payments and no annual fees.
Flexibility. Users can spend their crypto at any merchant that accepts Visa or transfer funds to their bank accounts.
Fixed rate monthly payments.

Cons:

You can use the card to buy from retailers and ecommerce stores, but not for withdrawing cash from ATMs.
1.5% fee applies if you sell your bitcoin rewards.
Bitcoin rewards are stored on the NYDIG platform with no choice to transfer them to your crypto wallet.
There's a 90-day holding period after your first BTC sale for redemption.

Conclusion: Although the rewards could be more generous, the bitcoin reward credit card serves as an introduction to cryptocurrencies and their associated volatilities. It also wins points for not having any fees other than bitcoin sales fees and the usual APR. However, the limitations on how cardholders can use the crypto rewards may seem too restrictive for some.

Venmo Credit Card

Venmo is the popular mobile payment service that provides everyone a means to send, receive, and store their money.

The peer-to-peer payment platform has partnered with Visa for the Venmo credit card. It works like a traditional cashback card, but you can convert your "Cash Back to Crypto," meaning they will buy crypto on your behalf, which you can hold or sell anytime.

The Venmo card is printed with a personal Venmo QR code on the front that takes friends and businesses straight to your Venmo profile when scanned and activated.

Notifications will be sent straight to your phone and email when transactions are completed, so you can easily keep tabs on your card activity.

Fees: 3% standard fees when used to make person-to-person payments. A cash advance fee of $10 or 5% of each cash advance amount (whichever's greater) also applies.

Cryptos supported: bitcoin, Ethereum, Bitcoin Cash, and Litecoin

Rewards: The Venmo Credit Card has three tiers of cashback rewards depending on eligibility:

3% cashback on the top spend category
2% cashback on the second top spend category
1% on other eligible purchases

The card calculates your top spend categories each statement period and subsequently applies the reward rates. Remember: all cashback rewards can be converted to crypto.

Availability: Can be used anywhere in the world Visa credit cards are accepted.

Pros:

Competitive cash back rewards
No annual fees or foreign transaction fees
Printed QR code to connect directly to Venmo account

Cons:

No low intro APR
Currently limited to select Venmo account holders

Conclusion: As Venmo is becoming ubiquitous for paying friends and family, a Venmo credit card could make sense, especially if all those cashback rewards can be converted to crypto.

Investor Takeaway

For most investors, the best deal is a credit card that allows you to pay off your monthly balance in dollars while giving you cashback rewards denominated in bitcoin.

In this way, you get the best of both worlds. It behaves like a regular credit card, but with the added bonus of earning crypto, which has delivered eye-popping returns over the last decade.

From a crypto investor standpoint, bitcoin credit cards offer a huge benefit. They let you keep earning crypto while making everyday purchases. It’s another form of steady-drip investing.

However, this only makes sense if you're paying off your cards in full every month. Otherwise, the exorbitant interest rates will eat up any possible gains you could make on your crypto investments.

Credit cards are tools to make payments easier, but don’t let them drag you into debt. It’s better to cut up the cards and pay cash rather than using cards to buy crypto on credit.

ICYMI