Crypto Credit Cards: Earn Crypto Rewards on Your Purchases

The financial landscape is evolving, and crypto rewards credit cards represent a fascinating trend. These cards operate similarly to regular credit cards, but instead of traditional rewards, they give you cryptocurrency. This means you can earn digital currencies simply by making your usual purchases. 

However, the 2022 crypto market downturn and the subsequent FTX collapse have significantly impacted this market, leading to a decrease in the number of these cards being offered. This guide provides a concise overview of how these cards function and helps you decide if they're the right fit for your financial journey.

>>MORE: Should you use a credit card to buy cryptocurrency?

Crypto credit cards in Singapore offer a unique blend of traditional credit card functionalities and the opportunity to earn cryptocurrency rewards for your everyday spending. These cards allow you to accumulate digital currencies, like Bitcoin or stablecoins, instead of conventional cashback or loyalty points. This presents an exciting way to participate in the crypto market while managing your daily expenses.

However, it's crucial to select a card that aligns with your individual financial situation, risk tolerance, and understanding of local regulations. Consider factors such as the type of cryptocurrency earned, the rewards rate, associated fees, and the overall ease of use to determine the card that offers the most value for your needs.

Rewards: Varies depending on card tier

Annual fee: None

How to use the crypto card

The Crypto.com Visa Card is a prepaid card that rewards your spending with CRO, the native token of the Crypto.com platform. You'll earn CRO rewards on eligible purchases, and these rewards are credited directly to your Crypto Wallet within the Crypto.com App. It's important to note that purchase rebates are calculated based on the USD equivalent of your spending, and the rebate cap for these rewards resets on the first day of each calendar month. Depending on the specific card tier you hold, you can earn up to 8% back on your everyday spending and potentially even higher rewards, reaching up to 10%, on travel-related expenses.

To access the various card tiers and their respective benefits, Crypto.com App users typically need to own and stake (or "lock up") CRO tokens for a period of 365 days. The Crypto.com Visa Card programme offers 6 distinct tiers, each with its own set of rewards and perks. It's crucial to be aware that associated fees, such as those for ATM withdrawals, interbank exchange rates, and card top-ups, can also vary depending on the chosen card tier.

While the Crypto.com Visa Card itself has no monthly or annual fees, it's essential to consider other potential costs associated with using the Crypto.com platform. These may include trading fees (e.g., 3.5% for credit card transactions, and maker/taker fees starting from 0.4% for 30-day trading volume below US$25,000) and cryptocurrency withdrawal fees (e.g., 0.0004 BTC). Additionally, you might need to use a third-party payment gateway to deposit fiat currencies into your Crypto.com wallets, which could incur separate charges.

>>MORE: Full Review of the Crypto.com Visa Card

When considering crypto credit cards, it's essential to be mindful of the regulatory landscape in Singapore. While cryptocurrencies are not legal tender and cannot be used for direct payment of goods or services, much like Singapore Dollars, the Monetary Authority of Singapore (MAS) has established a framework for dealing with digital payment tokens. This means much like stocks, buying, selling, and exchanging cryptocurrencies is generally allowed. Therefore, it's important to choose a crypto credit card that operates within these regulations and offers clear terms and conditions.

The right crypto credit card for you depends on your individual financial goals, spending habits, and your level of comfort with cryptocurrency. If you're interested in accumulating a specific cryptocurrency and are comfortable with the associated risks, a card that offers rewards in that currency might be a good fit. 

However, if you prioritise simplicity and lower risk, you might prefer a card with more traditional rewards. Before applying for a crypto credit card in Singapore, thoroughly research the available options and consider consulting with a financial advisor to determine the best approach for your financial situation.