Best crypto credit cards for February 2022

We like the BlockFi Rewards Visa® Signature Card for a lot of reasons. First, it offers more than 10 cryptocurrency reward options beyond bitcoin. It’s also the only one that allows you to move your crypto into your own wallet — a key distinction that will make it attractive to crypto enthusiasts. And the rewards you earn of 1.5% back on every purchase automatically earn interest when held in a linked BlockFi Interest account.

That noted, BlockFi interest accounts, which come with a BlockFi Credit Card, are currently being scrutinized by regulatory agencies in several US states. Though individual card holders are unlikely to be swept into an investigation, it does cast a shadow over BlockFi’s corporate profile, so consider the risks before signing up. 

The Venmo Credit Card is a cash-back rewards card, but you can choose to redeem rewards in crypto — bitcoin, ethereum, litecoin or bitcoin cash — at the end of each month. Unlike some other credit cards, there are no transaction fees for converting rewards to cryptocurrency. Venmo automatically assigns your highest cash-back rate to your highest spending categories. You’ll earn 3% back on your highest eligible spend category, 2% on the second highest eligible spend category and 1% on all other eligible purchases, so you don’t have to strategize your spending to maximize your rewards. The major drawback is that you cannot transfer your crypto from Venmo’s custodial platform to an exchange or your own wallet, which may be a dealbreaker for some.

The Upgrade Bitcoin Rewards Visa is a simple crypto credit card. Though it doesn’t offer anything above and beyond other cards, it’s a satisfactory alternative if the other options aren’t right for you. You’ll only earn bitcoin, but it does offer the same rewards rate as BlockFi at 1.5% back on all purchases. You can use the Upgrade Bitcoin Rewards Visa anywhere Visa is accepted, but you cannot move your bitcoin from the custodial Upgrade platform to your own wallet, limiting your “ownership” to price exposure. The only thing you can do with your bitcoin rewards is hold them in the custodial account or sell them to redeem as a statement credit at a time of your choosing. While this is limiting, it’s still one of the most straightforward crypto rewards cards publicly available right now.

There’s a lot of hype around the Gemini Credit Card, which is not yet available, though you can sign up on the waitlist for early access. This card lets you earn credit card rewards in bitcoin, ether or more than 40 other cryptocurrencies. You’ll earn 3% back on dining (on up to $6,000 in annual spend, then 1%), 2% on groceries and 1% on all other purchases. These rewards rates exceed those of some of our current best crypto credit card picks, and the cryptocurrency rewards selection would be the largest available by far. Rewards are earned the instant you make a purchase, meaning you don’t have to wait for the end of the month to get a payout. You’ll also be able to move your rewards off of the Gemini platform to your own wallet. 

Do I have to pay taxes on my crypto rewards?

While legislation is still being hammered out, it is important to track your cryptocurrency buy-in prices so you can report any capital gains you may owe taxes on. If and when you sell your cryptocurrency holdings, you may be required to report capital gains and losses to the IRS. Major tax software platforms are building out support for reporting crypto on your taxes, or you can consult with a tax professional to determine your specific needs.

Are crypto credit cards safe?

Cryptocurrencies are widely considered high-risk and volatile assets, so the value of your rewards balance may fluctuate significantly over time with no guarantees. Accounts where cryptocurrencies are held are not FDIC-insured like banks, and some have ongoing legal challenges. Legislation is still evolving and has not yet been solidified surrounding cryptocurrencies, so there is inherent risk in the unknown.

Read more: Bitcoin and cryptocurrency regulations in 2022

Are there any crypto debit cards on the market?

There are also some crypto debit cards on the market, including the Crypto.com Visa Card, the Binance Visa Card and the upcoming Coinbase Card. All of these cards allow you to spend your crypto at public merchants and earn crypto rewards on your expenditure. Many new products are likely to hit the market in the next few years, as Visa has partnered with over 60 platforms to work toward enabling crypto transactions worldwide.