Bitcoin Rewards Card Upgrade Full Review
Memory card type
The Upgrade Bitcoin Rewards Card is a rewards credit card and one of the few cryptocurrency credit cards to hit the market in the past few years.
There is no annual fee for this card.
Upgrading the Bitcoin Rewards Card does not offer any kind of welcome bonus, which is a disadvantage compared to other cashback and rewards credit cards.
Upgrading your Bitcoin Rewards Card offers 1.5% back in Bitcoin when you pay with your card. This sets them apart from other rewards cards that return points or cash when you shop.
Your Bitcoin earnings are limited. First, your assets are held by the NYDIG crypto platform and you have no option to transfer them to your personal wallet storage or any other crypto exchange. The bitcoins you earn will be purchased within 1-2 billing cycles after you pay your balance; as the price of bitcoins is very volatile, this may affect the value of your rewards. Finally, if you decide to sell the bitcoins you earn as a reward, you will be charged a 1.5% transaction fee, which is deducted from the sale price. You will receive the amount from your sale as a statement credit.
There is no annual fee or foreign transaction fee for upgrading the Bitcoin Rewards Card. There are also no late fees. If you choose to use the card to transfer cash to your bank account, you will not be charged a cash advance fee.
The card calculates APR from 8.99% to 29.99% based on your creditworthiness. If you can’t pay your bill in full, you’ll be assigned a fixed monthly payment plan that pays a flat rate to cover the balance.
If you decide to sell the bitcoins you earn as a reward, don’t forget the 1.5% transaction fee you incur for the sale.
This card doesn’t have many perks. However, it is a Visa Signature card with some shopping and travel protection perks. The specific Visa Signature benefits associated with your card can be found in the card agreement you receive after approval.
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Benefits of Upgrading Your Bitcoin Rewards Card
If you’ve always wanted to get into crypto but haven’t ventured yet, you can try upgrading to a Bitcoin Rewards Card without using your own funds.
Instead of earning traditional rewards with a cash-back credit card, this card gives you 1.5% back in Bitcoin when you make your monthly payment. It’s not the highest return you’ll spend, but a flat-rate premium can help you maximize every dollar.
Upgrade also offers a unique fixed-rate system for one-time balance repayments and monthly fixed payments, more like a personal loan than a traditional credit card. It’s best to avoid spending more than you can afford and pay off your balance in full and on time each month, but this payback program can help you save on interest compared to some other cards.
Disadvantages of Upgrading a Bitcoin Rewards Card
Upgrading a Bitcoin Rewards Card has several drawbacks to consider, including that the 1.5% rate of return is a sub-optimal rewards rate. There are rewards credit cards that give you 2% back on anything you buy. Remember, you can always get 2% or more back and use your rewards to buy Bitcoin in a separate transaction.
This card charges a 1.5% transaction fee to sell your bitcoins for cash, which is deducted from your bitcoin sales proceeds. For example, if you sell $100 worth of Bitcoin, your account will only receive a credit of $98.50 after this fee is deducted.
Another detail that may be important to crypto traders is that your rewards are held in a wallet linked to your card account through NYDIG. This means that you cannot transfer your bitcoins to another crypto wallet you own, and it will be tied to your credit card account until you withdraw it as a credit.
The most important thing to consider when earning cryptocurrency rewards is volatility compared to other rewards. Cards with 1.5% cashback or 1.5x rewards in the issuer’s rewards program offer a common value, but the price of Bitcoin is very volatile. Depending on market volatility, your 1.5% return may be worth more or less. For this reason, when holding cryptocurrencies in general, experts recommend holding no more than 5% of your total portfolio.
How to use the Upgrade Bitcoin Rewards Card
Before you decide to apply to upgrade your Bitcoin Rewards Card, please make sure you qualify for 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 District of Columbia.
If you’re eligible and decide to apply, you can use the card for a flat rate of 1.5% on all everyday expenses. Just make sure you only spend what you can cash out when your balance is due. You can avoid interest costs and earn rewards more efficiently because Bitcoin rewards are not credited to your account until you pay for your purchase.
When it comes to the bitcoin rewards you earn, think of it as a long-term investment. Despite short-term volatility, many Bitcoin proponents believe in its long-term value. If you choose a Bitcoin rewards card just to sell your holdings during the next market downturn, you may be missing out on potential value over time. If the risk associated with Bitcoin or a long-term strategy is not what you want, a credit card with a more traditional cash or points reward may be a more valuable option.
Is Upgrading Bitcoin Rewards Card Right for You?
Credit cards with bitcoin rewards can be a great way to invest in cryptocurrencies without investing too much of your own money up front. While a 1.5% return on spend isn’t the most valuable ratio, it can add value to any purchase you make. Remember, you must pay your credit card bill in full each month. Otherwise, the interest you pay will easily wipe out the 1.5% premium you earn.
If you choose to earn Bitcoin rewards for your purchases, you are giving up the possibility of getting more value from other cards. Bitcoin is a speculative commodity, and the value of your rewards fluctuates, whereas cashback and point rewards provide a fixed value for the dollars you spend.
If you’re looking for a crypto rewards credit card because you’re not willing to risk your money in bitcoin, consider whether cryptocurrency is right for you. Bitcoin is highly speculative and volatile, and while it may have greater returns in the future, this is not a guaranteed outcome.
Before you apply, consider the award that will give you the most value for money. And don’t forget to compare other cash back and rewards credit card options to find the card that’s right for you.