May 15, 2023

“It is better to be roughly right than precisely wrong.”

- John Maynard Keynes

In today's issue: What if you could earn crypto from everyday purchases?

Crypto credit cards work the same way as any other Visa or Mastercard, but rather than getting your cashback rewards as fiat currency or a statement credit, you can receive it in BTC or other cryptos.

This makes for an easy, automated way to add to your crypto holdings on a regular basis. Consider it part of your dollar-cost averaging strategy.

Today, we've updated our popular list of Best Bitcoin Credit Cards for 2023 as rated by our editors. Read on!

Memecoins Continue to Dominate DEX Volumes (The Defiant)

Memecoin season is upon us, with meme projects like PEPE, TURBO, and LADYS rewarding risk-taking moonboys.

At the same time established crypto projects like BTC and ETH are trading modestly lower, memecoins have hit all-time highs. PEPE is up over 2,800% in the past month, and LADYS, a token inspired by the recent craze around Milady NFTs, is up nearly 29,000% over the past week.

However, analysis indicates it's the insiders making money on these moves, drawing liquidity and capital away from the rest of us.

Investor takeaway: There's a big difference between long-term investing in quality crypto projects and buying memecoins.

Memecoin projects rise solely on hype. Some of them even advertise their lack of usefulness as badges of honor, but usefulness matters.

As always, we advocate for a conservative approach to crypto investing, using dollar-cost averaging to slowly build a valuable portfolio of the best quality crypto assets. Don't let hype and FOMO drive your investing decisions.

Premium Power-Ups

Level up your crypto investing game.

New Blockchain Risk Scorecard: Algorand (ALGO)

Algorand is a decentralized network that was built to solve the blockchain trilemma (achieving speed, security, and scalability simultaneously). The network supports a wide range of decentralized applications and use cases. It's powered by ALGO, its native token.

While all that is valuable for blockchains, the ALGO token hasn't been reflecting that value. Currently, at under $0.17, the price of ALGO is near an all-time low and has dropped by nearly 95% since its June 2019 ICO price of $2.40. Amazing value proposition, or is this a coin on its way out?

In our new blockchain risk scorecard, we delve into the many potential risks of ALGO like financial, regulatory, and team-related risks. Premium members can download the Algorand Risk Scorecard here and visit our Premium page to compare the risks with other top tokens.

Not yet a Premium member? Sign up now for just $10 a month and get instant access to our complete library of industry-leading investor scorecards.

The Best Bitcoin Credit Cards of 2023

by Sharon Moran

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 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.)

Typically, crypto credit cards are issued by banks or financial institutions who give you credit lines. Alternatively, you may have your credit limit linked to your crypto balance.

There are various benefits of crypto credit cards including:

• Earning rewards in crypto (like cashback rewards, but in crypto)
• The ease of making purchases directly with crypto
• Withdrawing cash from ATMs 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 balances 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 Credit Card

Gemini is a crypto exchange that also offers a crypto credit card.

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



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

Fees

No annual fees. 17.74% – 29.74% variable APR. $10 or 3% (whichever is greater) for cash advances. No ATM withdrawal fees.

Cryptos Supported

Offers rewards in bitcoin and 50+ other currencies. (Full List)

Rewards

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

Availability

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

Pros:

• Crypto awards converted in real-time.
• Cashback on dining, groceries, and other purchases.
• No annual or exchange fees.
• Change your crypto reward type at any time.
• Available to residents of all 50 states.

Cons:

• High ATM withdrawal fees.
• Rewards are held in your Gemini exchange account with no option for self-custody.

Conclusion: The Gemini credit card is good for US residents who dine out regularly, want to earn rewards in real-time, and earn cashback for everyday spending. A huge plus is the ability to change your choice of crypto for receiving rewards.

Upgrade Bitcoin Rewards Card

Upgrade’s offering is a bitcoin credit card that allows you to earn BTC rewards when 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 bitcoins, they’re then applied as statement credits.

Your bitcoin rewards are subject to a 90-day holding period.

Fees: 

None except 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 or North Carolina.

Pros:

• Lower monthly payments and no annual fees.
• Flexibility. Users can spend their crypto at Visa-accepting merchants or transfer funds to their bank accounts.
• Fixed rate monthly payments.

Cons:

• You can use the card to buy from retailers and e-commerce 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.
• You won’t receive rewards until purchases on the card are paid off.

Conclusion: The Upgrade Bitcoin Rewards Card serves as a good intro to crypto. However, because BTC transfers are not supported, it’s not the best choice for individuals who want to take custody of their own crypto.

Brex Corporate Credit Card

The Brex corporate credit card is a good choice for business owners.

Cardholders are offered exclusive rewards intended to have positive impacts on their businesses. Also, card holders can redeem points for either bitcoin or Ethereum via Brex’s partner TravelBank.

There's also a Brex exclusive tier that offers cardholders the highest cashback multipliers available. It’s a good choice for business owners who want to streamline their spending and enjoy crypto rewards.

Fees:

No annual fee.

Cryptos Supported:

Bitcoin and Ethereum

Rewards:

Offers exclusive rewards meant to have business impacts using points to buy billboards, offsite and event planning, executive coaching services, and mental health sessions with Spring Health. 

Availability:

Available in all 50 states. A qualifying business must be located in the U.S. and must be a C-Corp, S-Corp, LLC, or LLP.

Pros:

• Available to residents of all 50 states.
• Rewards optimized for business owners like executive coaching services.
• Additional discounts available for multiple business services.

Cons: 

• Rewards are only offered in bitcoin and Ethereum.
• Card is exclusively for business owners.

Conclusion: The Brex Corporate Credit Card is a good option for business owners who want to enjoy crypto rewards. The additional discounts on business services are extra bonuses.

Venmo Credit Card

Venmo is a mobile payment service that was founded in 2009. In 2021, they added functionality for users to buy and sell cryptos. Now, they offer a credit card that allows users to convert cashback incentives to crypto.

The card is a good choice for existing Venmo users. It also offers newcomers a light intro to crypto. Card holders can benefit from cashback in the form of crypto before deciding to make larger digital currency purchases.

Fees:

3% fee to send money.

Cryptos Supported:

Bitcoin, Ethereum, Litecoin, Bitcoin Cash

Rewards:

3% cash back on eligible top spend category, 2% cash back on secondary category, 1% on all other eligible purchases.

Availability:

Not available in Hawaii.

Pros:

• No transaction fee to purchase crypto with cashback rewards.

Cons: 

• Limited crypto options to receive rewards in.
• Must have a Venmo account in good standing and open for at least 30 days to qualify.

Conclusion: This card is a good fit for people who like the convenience of mobile payments, but want to dabble in crypto in a low-pressure way. It’s a no-brainer for those who already have a Venmo credit card.

Comparing Crypto Credit Cards

Here are our editorial picks for best crypto credit cards in each category.

Top Crypto Credit Card for Rewards

Winner: BlockFi Bitcoin Rewards Credit Card 

With 3.5% in bitcoin for the first 90 days, and regular, special offers for new users, the BlockFi card stands out.

Ongoing, BlockFi offers up to 2% cashback. Also, its Rewards Flex program allows cardholders to choose Ethereum, Litecoin, Chainlink, PaxGold, Basic Attention Tokens (BATs), or Uniswap, or to select from a range of stablecoins if they prefer. 

Top Crypto Credit Card for Crypto Support

Winner: Gemini

Gemini offers incredible flexibility with over 50 cryptos for users who want more than bitcoin or Ethereum.

Top Crypto Credit Card for Low Fees

Winner: Upgrade Bitcoin Rewards Card

The Upgrade Bitcoin Rewards Card has no annual, FX, or draw fees. 

Best Crypto Credit Card Overall 

Winner: Venmo Credit Card

Venmo has over 77 million mobile payment users. The Venmo Credit card is a sensible extension to serve existing users while allowing them to enjoy the added perk of cashback in the form of crypto rewards.

Tips on Using Bitcoin Credit Cards

At Bitcoin Market Journal, we’re all about helping you make smart financial decisions using crypto. This goes double with bitcoin credit cards, which come with their own sets of cautions.

Read the Fine Print

Problem: Crypto cards have complicated fee structures and, there's a lack of consistency between cards. This is because the “bridge” between digital and traditional payment systems (e.g., VISA and crypto) is still being built.

In an ideal world: Do your homework. Some of these cards don’t have the same perks as traditional credit cards. They also have higher annual fees. As sexy as it sounds to earn bitcoin rewards, you may still be better off with a traditional credit card (once a year, you can still use your cash back rewards to buy bitcoin).

Make Sure It’s Really a Credit Card

Problem: Although many companies label their products as “crypto credit cards,” they don’t work the same as traditional credit cards. Many are really crypto debit cards, where you’re taking funding from the crypto in your account rather than establishing a credit line.

In an ideal world: Credit card companies should be clear about the differences between a “crypto credit card” and a “crypto debit card” and educate investors on the pros and cons of each (as we’re doing here).

Be Sure It’s Available in Your Country

Problem: Because this industry is new, most cards are only available in certain jurisdictions, and all cards have conversion fees if you want to use them internationally. These international fees can be confusing. Sometimes, it’s cheaper to just pay cash.

In an ideal world: Bitcoin credit card apps and websites should auto-detect your country and give you clear language on where the cards can be used and their international fees.

Beware of Processing Delays

Problem: Consumers are used to credit cards making instant transactions, but crypto doesn’t work that way. A single crypto transaction can vary from a few minutes to over an hour, or even a few days.

In an ideal world: Bitcoin credit card apps should include clear communication on the transfer process and constantly-updated “tracking numbers” (like FedEx tracking) that show what’s happening.

Beware of Volatility and Fees

Problem: If you’re holding your native assets in crypto, understand it can swing wildly in price from day to day. As mentioned above, some “bitcoin credit card” providers convert you into a native token, meaning you now have volatility and a different token.

In an ideal world: Bitcoin credit cards should have easy, three-swipe “tutorials” that walk you through how digital assets work, clarifying how your holdings may change over time.

Why Use Bitcoin Credit Cards?

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 BTC.

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 long term.

However, like regular cards, crypto credit cards are subject to interest if you don’t pay your balance monthly. This can impact your credit record. Annual fees, monthly fees, and charges for ATM withdrawals may also apply.

Pay off your balance each month and watch for fees.

Investor Takeaway

If you use credit cards already and you’re a crypto adopter, there’s little reason not to consider one of the crypto cards highlighted. They have fees and rewards that are similar to any other Visa or Mastercard in your wallet, but rather than receiving your cashback rewards in fiat, you can receive it in bitcoin, Ethereum, or other crypto. This makes for an exceedingly easy and automated way to keep growing your portfolio.

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