update bitcoin rewards card full review
the bitcoin rewards card upgrade is a rewards credit card and one of the few credit card options for earning cryptocurrencies to hit the market in recent years.
This card does not charge an annual fee.
Reading: Is card with bitcoin rewards
This card offers a welcome bonus equal to $200 in bitcoins on your upgrade card account after you open a rewards checking account and make 3 debit card transactions*. Many cash back card options also offer welcome bonuses, with no additional account required.
the bitcoin rewards card upgrade offers 1.5% back in bitcoin when you make payments on your card. this makes it different from other rewards cards that offer points or cash back as you shop.
There are limitations to your bitcoin earnings. To begin with, your assets are held by the Nydig crypto platform, and you will not have the option to move them to your personal wallet storage or another crypto exchange. the bitcoin you earn is purchased within 1-2 statement periods after paying your balance; This can make a difference in the value of your rewards as the price of bitcoin is very volatile. Finally, if you decide to sell the bitcoin holdings you earn as a reward, you will pay a 1.5% transaction fee, which is deducted from the sale price. you will receive the amount of your sale as a statement credit.
The bitcoin rewards card upgrade does not charge an annual fee or any foreign transaction fees. It also does not charge any fees for late payments. If you choose to use the card to send cash to your bank account, you will not be charged a cash advance fee.
The interest rate on the card ranges from 8.99% to 29.99%, depending on your creditworthiness. If you are unable to pay your statement in full, you will be assigned a fixed monthly payment plan at a fixed rate to pay off the balance.
And if you decide you want to sell your bitcoin holdings that you get as a reward, don’t forget the 1.5% transaction fee you’ll incur on the sale.
This card does not have many additional benefits. however, it is a visa signature card, which comes with some travel protection and purchase benefits. You can find specific visa signature benefits associated with your card within the card agreement you will receive after approval.
Bitcoin Rewards Card Upgrade Benefits
If you’ve wanted to get into crypto but haven’t taken the plunge yet, the bitcoin upgrade rewards card lets you experiment without committing your own cash.
Instead of earning the traditional rewards of a cash back credit card, this card gives you 1.5% back in bitcoin as you make monthly payments. That’s not the highest bang for your buck available, but flat rewards can help you maximize every dollar.
upgrade also offers a unique system of fixed installments to pay balances with a fixed rate and a fixed monthly payment, more similar to a personal loan than a traditional credit card. It’s always best to avoid spending more than you can afford and pay your balance in full and on time each month, but this payment program can help you save on interest compared to other cards.
cons of upgrading bitcoin rewards card
There are several drawbacks to consider with the bitcoin rewards card upgrade, including the fact that 1.5% back is a less than optimal reward rate. there are quite a few rewards credit cards that dole out 2% on everything you buy. And remember, you can always get 2% or more back and use your rewards to buy bitcoins in a separate transaction.
This card charges a 1.5% transaction fee to sell your bitcoin for cash, which is deducted from the proceeds of your bitcoin sale. if you sell $100 worth of bitcoin, for example, you will only receive a $98.50 statement credit to your account after deducting this fee.
Another detail that might be important to crypto traders is that their rewards are trapped in the wallet associated with their card account through nydig. this means you cannot transfer your bitcoin to any other crypto wallet you have, and it will be tied to your credit card account until you withdraw it for statement credits.
The most important thing to consider when earning crypto as a reward is the volatility compared to other rewards. A card with 1.5% cashback or 1.5x rewards within an issuer’s rewards program will offer generally standard value, but the price of bitcoin is highly volatile. your 1.5% return can be worth much more or much less, depending on market fluctuations. That’s why when it comes to holding crypto in general, experts recommend keeping no more than 5% of your overall portfolio in crypto.
how to use bitcoin rewards card upgrade
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Before you decide to apply for an upgrade bitcoin rewards card, make sure you are eligible based on your location. This card is not available to residents of the following states: Hawaii, Indiana, Iowa, Louisiana, Nebraska, Nevada, New Hampshire, North Carolina, Washington, West Virginia, Wisconsin, and the District of Columbia.
If you’re eligible and decide to apply, you can max out the card by using it for all your regular spending to get the 1.5% flat rate. just be sure to only spend what you can afford when your balance comes due. You’ll avoid interest costs and accumulate rewards more efficiently, since bitcoin rewards aren’t applied to your account until you pay for your purchases.
And when it comes to the bitcoin rewards you earn, consider them a long-term investment. many bitcoin advocates believe in its long-term value, despite short-term volatility. If you choose a bitcoin rewards card just to sell your assets during the next market downturn, you could lose potential value over time. If the risk associated with bitcoin or the long-term strategy isn’t what you’re looking for, a more traditional cash or points rewards credit card may be a more worthwhile option.
update bitcoin rewards card compared to other cards
Is the bitcoin rewards card upgrade right for you?
A credit card that earns bitcoin rewards could be a good way to start investing in crypto without committing too much of your own money up front. And while a 1.5% return on your spending isn’t the most valuable rate, it can add value to every purchase you make. Just remember, you’ll need to pay your credit card bill in full each month. otherwise, the interest you pay will easily wipe out the 1.5% you earn in rewards.
That said, when you choose to earn bitcoin rewards for your spending, you give up the opportunity to potentially earn more value with other cards. bitcoin is a speculative asset, and the value of your rewards will fluctuate, while cash and points rewards offer a fixed value in the dollars you spend.
If you’re looking for credit cards with crypto rewards because you’re not willing to risk investing your own money in bitcoin, consider if cryptocurrency is a good fit for you. bitcoin is highly speculative and volatile, and while it may pay off with higher value in the future, that’s not a guaranteed outcome.
Consider the rewards that may give you the best value for money before you apply. And don’t forget to compare other cash back and rewards credit card options to find the card that’s right for you.
* to qualify for the $200 bitcoin welcome bonus, you must open and fund a new rewards checking account and make 3 debit card transactions within 60 days of opening your card account update. the value of the $200 bonus will be based on the value of bitcoin at the time of purchase (within 1-2 statement periods from the date the bonus is earned) and may change in price at the time where you choose to sell it. see program terms. your upgrade card must be current to receive a bonus.