According to a new crypto credit card report from Finder.com, about 5% of Americans own a crypto reward credit card. Also, about 1 in 5 Americans claims to be interested in getting one. This is not shocking, because owning a crypto rewards card has many advantages, such as a 3-8% reward in crypto that can increase even further when the market appreciates.
How Do Crypto Rewards Credit Cards Work?
Crypto rewards cards are very similar to other rewards credit cards. Underwriting standards and credit line are in both cases based on factors such as your income and credit score. Furthermore, they are accepted by any company that accepts crypto rewards cards. Crypto rewards cards, however, lets you earn rewards in the form of crypto instead of cash-back or points.
Who is more likely to own a crypto reward credit card?
About 5% of all Americans own a crypto rewards credit card. About half of them are women, with 5% of all American women owning a crypto rewards credit card in comparison to 6% of all men. Overall, men are more likely to soon own a crypto credit card, with 22% indicating they are interested in crypto credit cards. 16% of American woman claim to be interested as well.
The most popular ages to own a crypto reward credit card, are between 25 and 34 and between 45 and 54 years old with 7% of both age groups representing crypto credit card owners. People that are 55 and older not only own less crypto credit cards (about 4%), but are also less interested to own one (around 9%).
Advantages of owning a crypto rewards credit card
- It’s a clever way to passively invest in cryptocurrency.
- You can get 3 – 8% of your spendings back in cryptocurrency, which is much higher than many other investment methods.
- Rewards from crypto credit cards may increase in value. When the price of cryptocurrencies goes up, crypto rewards that are not redeemed yet will also increase in value.
Disadvantages of owning a crypto rewards credit card
- Cryptocurrency are still pretty volatile, making them more risky than standard cashback cards. The 3-8% cashback really depends on the crypto market.
- When you cash out on your crypto rewards, you’re to pay a capital gains tax, which is not something to worry about with a traditional cashback card.
- You’re limited to earning the type of cryptocurrency supported by your card.
Which crypto reward card should you consider?
It all depends on your preferences when it comes to your crypto of choice and which purchases you make more often. Popular options include a BlockFi credit rewards card, a Brex crypto credit card and a Gemini crypto rewards card.