A new crypto-earning credit card is entering the fray, promising no annual fee and the chance to snag up to 3% back in digital currency through everyday spending.
The $0-annual-fee Gemini Credit Card was announced in January 2021 and will be available to U.S. residents in every state in summer 2021. (For now, you must join a waitlist to get early access to apply.)
Gemini is a company offering products that allow you to buy, sell and store your cryptocurrency. Here’s what to know about its forthcoming credit card.
Gemini Credit Card: Rewards structure
The Gemini Credit Card is issued by WebBank and will run on the Mastercard payment network. The metal card — available in black, silver and rose gold — will earn rewards in bitcoin and the more than 30 other cryptocurrencies available on Gemini. It will offer:
1% back on all other purchases.
The card can be used instantly upon approval. You don’t need to be an existing Gemini customer to get it, but when you apply for the card, a Gemini cryptocurrency trading account will be created for you if you don’t have one.
Any rewards you earn will be automatically deposited into that Gemini account, and those rewards are earned in real time as you make purchases. This is different from most rewards cards, which tend to pay out rewards at the end of each billing cycle. It also means you can benefit from any appreciation in the price of your rewards from the moment of the card transaction.
You’ll be able to decide which cryptocurrency you earn rewards in and can earn only one cryptocurrency at a time. However, you can switch which cryptocurrency you earn any time between transactions.
You can also opt to transfer your crypto rewards into Gemini Earn, an interest-bearing account that earns up to 7.4% APY at the time of this writing, depending on which cryptocurrency you hold in the account. You can transfer money (and earned interest) back into your Gemini trading account at any time. Gemini Earn can be likened to a high-yield savings account, whereas a normal Gemini account for cryptocurrency trading is like a brokerage account.
Background on the Gemini Credit Card
The Gemini Credit Card came about after Gemini’s recent acquisition of Blockrize, a company that already had a cryptocurrency credit card in the works.
If you previously signed up for Blockrize’s waitlist, you’ve already been added to the waitlist for the Gemini Credit Card. It joins an emerging market of credit cards that reward users in cryptocurrency instead of more traditional cash back or travel rewards.
For instance, the Gemini Credit Card comes on the heels of the BlockFi Bitcoin Rewards credit card, which was announced in December 2020 and also has a waitlist. By comparison, the BlockFi Bitcoin Rewards credit card will charge a $200 annual fee, but it will also offer a sign-up bonus.