Best Crypto Rewards Card UK
The rise in popularity of distributed networks and blockchain tech is taking the world by storm. Despite recent market events, the interest in cryptocurrencies continues to grow. None more so than in the credit and debit card sector. This report will look at the industry, tell you what you need to know, and examine recommendations for the future.
How they work
When it comes to finding the best crypto rewards card UK, the idea behind cryptocurrency debit and credit cards is relatively simple. Users preload with their favourite cryptocurrency, enabling them to make purchases online, in-store, or simply to withdraw cash from the ATM. Regardless of whether the merchant accepts cryptocurrency or not, the card will automatically convert the purchase for you and debit the amount from your cryptocurrency balance. Most cards are issued through the Visa or Mastercard networks, so their reach and penetration is vast.
That said, it is important to understand the nature of the crypto wallet. Every crypto card issuer is a digital wallet at heart. The wallet is the power behind the card, providing the access to the merchant.
Many experts believe that in the next ten to 15 years, credit and debit cards will be consigned to history as the online wallet becomes ubiquitous and used for every online and real-world purchase. The intricacies of the digital wallet are vast and too long to go into detail here. Suffice it to say, security, versatility, and power are sure to lead to wide-scale adoption.
The main steps for applying for a crypto debit or credit card usually take the following pattern:
Create a wallet.
Apply for your card.
Connect to your wallet.
Fund the card.
Use the card to make purchases.
Almost all crypto debit and credit cards feature some kind of rewards system, which vary from issuer to issuer. However, the most popular reward systems are cashback on purchases, whether they occur online or in-store.
The range and scope of deals are vast and, as you might expect, very competitive. However, while most offer competitive cashback rewards, the general range lies between 1% and 5% cashback on purchases, online or in-store.
Take BlockFi, for example. While BlockFi only offers 15 cryptocurrencies, they do not charge fees to move your crypto in and out of the wallet. When combined with a 1.5% cashback on all purchases made over the Visa network, this makes BlockFi one of the more attractive options available.
However, given BlockFi’s recent problems, users should proceed with caution.
One of the largest names in the industry, Crypto.com, offers users a whopping 8% on purchases made on the Visa network. Furthermore, with no fees, users can preload their cards with more than 80 different cryptocurrencies.
In comparison, Coinbase has a 2.49% cryptocurrency liquidation fee, but users can earn $4 rewards on all purchases made on the Visa network. However, with only eight supported cryptocurrencies, users may find the Coinbase debit card rather limiting.
As you might expect, the deals on offer are very competitive. Your choice will depend on what you feel comfortable with and what you want to use the card for. However, one core theme throughout is the simplicity to set up and the user-friendliness, which, as we all know, is key in attracting and retaining customers.
In your search for the best crypto rewards card UK, you'll find that there is a vast array of rewards designed to appeal to customers looking for ways to earn and spend their digital assets. While cashback on purchases may be the most popular, other rewards come in the form of earning APY on your crypto holdings, auto staking on eligible coins, or discount codes and vouchers.
For example, popular investment platform eToro will automatically stake any coins you hold that are eligible for rewards. While eToro will take a cut of the rewards generated, this is an excellent and hassle-free way to earn passive income from your holdings.
Furthermore, popular wallet Nexo supports 32 coins while allowing users to earn APY on their holdings. While this is a unique idea in the crypto world, Nexo can only be used on the Mastercard network and, therefore, its reach is limited.
A handful of providers give the user a broader array of rewards. Crypto.com is a well-known name in the industry, with large sporting sponsorship deals throughout most of 2022. Anyone signing up for Crypto.com’s mid-tier Visa debit card is eligible for a range of free perks, including Amazon Prime, Spotify, and Netflix monthly subscriptions, alongside airport lounge access and many more.
When searching for the best crypto rewards card UK and choosing your crypto debit or credit card, there are several considerations you must make before making your decision. The following may help you find one which is best for you:
Before looking at other benefits, it is important to find a provider compatible with purchases in your country. Due to crypto's worldwide appeal, this shouldn't be a problem. It is prudent to check the small print just in case they plan to charge you for using the card in your native country.
With Bitcoin remaining the most popular cryptocurrency, it is easy to see why most cards offer Bitcoin functionality. However, if you decide that you would rather spend or earn other cryptocurrencies, you must choose a card supporting your choice.
As we have already discussed, cashback schemes are the most popular form of reward for using a crypto credit or debit card. Shopping around to find one which offers the best rate is important. Other rewards, such as discount codes and vouchers, are available, but are not as common.
The majority of cards available today come with associated fees, whether for use abroad, pre-loading with your favourite cryptocurrency, transferring your crypto, or withdrawing cash from an ATM. Therefore, finding a card with low or zero fees can save you money.
Five of the best
Let's look at some leading cards on the market today:
As we can see, competition among crypto credit/debit card providers and their associated wallets is high. While this may at first appear confusing, it is important to remember that the companies want your business, so each offer should be as competitive as the last.
Applying for and setting up your debit/credit reward card is an excellent way to build your crypto portfolio by earning cashback on your purchases, receiving staking rewards, or generating APY just for holding. Like many other areas of crypto, debit/credit reward cards help to make your money work passively for you, and herein lies their appeal.
With the world becoming increasingly digital and places to use cash becoming scarce, the timing has probably never been better to apply for a crypto rewards card.
Author: Mark Harridge
Mark Harridge first came across Bitcoin and began to use its peer-to-peer payment network in mid to late-2011. He quickly understood that this technology would change the world. Mark is passionate about crypto adoption, from a macro economic and institutional perspective, and the numerous factors that fuel the relentless march towards individual self sovereignty and the decentralised society of the future.