CryptoTrading Guide

BlockFi Credit Cards Review: Earn Bitcoin Rewards

Ever wondered what it will look like if you have crypto cards that make it possible to earn more cryptocurrency and not just cash? Luckily for you, the BlockFi credit card is one of those.

Even though the BlockFi Rewards Visa Card does not provide a customary sign-up bonus, you can still earn a higher rate of 3.5% in cryptocurrency back in the first 90 days after opening your account. 

The maximum amount of this bonus is $100, which you’ll get after spending just under $3,000 over that time. You will receive the normal 1.5% rate if you spend more than that.

BlockFi Credit Cards Review

Through the introduction of conventional financial services for the cryptocurrency business, BlockFi first gained notoriety in the bitcoin and larger cryptocurrency ecosystem. 

More importantly, BlockFi is well-known for providing cryptocurrency savings accounts that let owners of bitcoin earn up to 6% on their holdings in exchange for turning over their private keys to the crypto bank. 

BlockFi was a driving factor behind the decision to allow bitcoin owners to earn interest on their cryptocurrency holdings, and with the BlockFi Visa card, they hope to advance the market once again.

The BlockFi Visa card will be among the first credit cards that enable users to earn bitcoin-denominated rewards on their fiat-denominated purchasing habits, despite the fact that there are many crypto debit cards available on the market. 

Let’s investigate why BlockFi’s new bitcoin credit card is receiving so much attention.

BlockFi Visa Card Pros & Cons

Pros

  • It is not a crypto debit card, but a legitimate credit card.
  • Earn 1.5% back in cash whenever the card is used, and you get bitcoin rewards.
  • 3.5% Bitcoin cashback is given to new customers for the first 90 days.
  • Profit from your bitcoin rewards.

Cons

  • Cashback is only available on Bitcoin
  • BlockFi is a fully custody-based cryptocurrency bank.
  • After the first year of use, the card’s bonuses become less obvious.

What is the BlockFi Visa Card?

The BlockFi Visa card is a legitimate credit card that offers 1.5% cashback benefits on all purchases to its members. The main selling feature of the card for bitcoin users is the fact that the cashback incentives are paid out in bitcoin. 

Since the major purpose of these cards was to enable owners of crypto assets to swiftly spend the value associated with their holdings everywhere Visa or Mastercard is accepted, practically all Visa and Mastercard card products related to cryptocurrencies up to this point have been of the debit variety.

The BlockFi Visa card aims to function like a typical credit card used in the conventional banking system while also enabling users to acquire bitcoin through cashback rewards. 

Because the rewards are automatically transferred into a user’s linked BlockFi interest account, this card is intimately connected to the larger BlockFi banking platform. 

It should be emphasized that because the BlockFi Visa card has not yet been released, many of the finer details are still unclear.

Benefits of BlockFi Rewards Visa Card

blockfi credit card

The BlockFi Rewards Visa Card is something to think about if you’re seeking ways to expand your cryptocurrency holdings or are interested in investing in cryptocurrency. With this card, you can make rewards-based purchases much like with a credit card that offers cash back. 

Your rewards, however, are given to you in cryptocurrency and are sent to your BlockFi Wallet. From there, you can keep your coins, hold them in a different wallet, sell them, or trade them for another cryptocurrency.

This card differs from various other crypto credit cards in that you have complete control over your cryptocurrency assets. 

The Upgrade Bitcoin Rewards Card, for instance, offers 1.5% cash back in bitcoin as well, but you are unable to move your bitcoin to another private wallet or cryptocurrency exchange.

Even while the BlockFi Rewards Visa Card doesn’t have a customary welcome bonus, it does give a respectable bonus of 3.5% back in bitcoin for the first 90 days (up to a maximum of $100). 

If you’re a heavy buyer, you can also get 2% cashback in bitcoin after spending at least $30,000 in one cardmember year (starting on 7/1).

Drawbacks of BlockFi Rewards Visa Card

This card has a few significant drawbacks, including the rewards program itself. Cryptocurrencies may be worth more or less on any given day, unlike cash back or even points and miles rewards. 

A single Bitcoin, for instance, spiked to over $60,000 in October 2021 before plummeting to less than $37,000 by the end of January 2022. 

This indicates that in a relatively short period of time, consumers who earned bitcoin with the BlockFi Rewards Visa Card in 2021 had the value of their rewards decline by close to 40%.

Of course, you only actually lose that money if you sell, and many users are holding onto their holdings while they wait for the value of Bitcoin to rise once more. 

In either case, investing in cryptocurrencies is risky, and the value of your rewards may increase or decrease over time.

The 1.5% back earning rate, which is less than what you may make with many other cards, is another drawback of this card. Only after spending more than $30,000 on your card within a year may make you use the BlockFi Rewards Visa Card to get 2% back. 

Additionally, the earning rate “resets” every cardmember year, so you must fulfill this spending criterion every year. If you chose a 2% cash-back credit card that allows you to convert incentives into cash back, you could start earning that rate right now and invest in cryptocurrencies at your own pace.

Potential BlockFi Visa Card Deal Breakers

The BlockFi bitcoin credit card is one of the items that the cryptocurrency industry is most looking forward to in 2023, however, there are still some drawbacks to this product that may deter some customers.

The fact that this is a credit card, as opposed to the typical cryptocurrency debit card that most people are used to seeing in the business, is just one reason. As a result, cardholders will have to successfully pass a credit check in order to use the card. 

In addition, some crypto users could prefer this option to borrow money to earn bitcoin rewards over being able to convert their cryptocurrency into usable cash that can be put on a card.

The BlockFi bitcoin Visa card’s continued unavailability is another possible deal-breaker. There are already a number of other crypto cards on the market, and details on fees, availability, and other aspects of the card are also not yet public.

Last but not least, keep in mind that BlockFi is effectively a bank, which may conflict with the moral principles of many conventional bitcoin users. 

The legacy financial system has a ton of regulations, therefore cypherpunks will want to stay away from this credit card.

How to Use the BlockFi Rewards Visa Card

With the BlockFi Points Visa Card, earning the most rewards is simple because there are no extra categories to remember. You can earn bitcoin for every purchase you make if you use it for bills and other expenses. 

When people you know sign up, you can earn an additional $30 through the BlockFi Rewards Visa Card, which means you can increase your bitcoin earnings.

But just as with any credit card, always make purchases that you can afford to pay back when your statement balance is due. 

Pay down the balance on your credit card in full each month to prevent interest fees. The high variable APR that this card imposes will negate the value of your rewards if you carry a balance.

Is the BlockFi Visa Card Right for Me?

Getting a BlockFi Visa card is undoubtedly an intriguing way to get additional bitcoin. It doesn’t function like the majority of other cryptocurrency Visa cards because the goal is to help customers acquire bitcoin rather than make it simpler for them to spend their crypto holdings in the real world.

Anyone searching for a long-term, passive approach to growing their bitcoin holdings should think carefully about using this credit card as their default payment method whenever they go out.

Conclusion

Instead of using your own financial contributions, the BlockFi Rewards Visa Card offers a means to invest in cryptocurrency using rewards on your purchases. Just bear in mind that not everyone is qualified to receive the card; at the moment, residents of New York are not eligible to do so.

This card provides a little bit more flexibility when it comes to how you use your rewards than some crypto credit cards do. For instance, you cannot transfer your holdings out of the platform or into your personal wallet using the Upgrade Bitcoin Rewards Card. 

You can sell or trade on BlockFi with the BlockFi Rewards card, or you can transfer your holdings to a personal wallet or another exchange account.

FAQs

How Much Bitcoin do you Earn With BlockFi Credit Card?

You’ll earn 0.25%.

Every valid trade earns 0.25 percent back in cryptocurrency, every purchase earns 1.5 percent back in cryptocurrency, and after spending $30,000 a year, you can earn 2% back in cryptocurrency.

Your BlockFi Wallet will be updated with your cryptocurrency rewards, and cardholders can choose to keep their earned cryptocurrency rewards there or to withdraw the funds to an external wallet.

Yes, you can.

Sure, you can.

Bitcoin Miners gets the Bitcoin block reward.

0.1% to 7.5%.

No, Coinbase is a better choice than BlockFi.

$20 for local wire withdrawals and $30 for international wire withdrawals.

Hodlnaut is better than BlockFi.

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