The price of a single bitcoin may be around half what it was a few months ago, but that doesn’t mean crypto has run its course. The reality is that cryptocurrency in general has always been volatile and Bitcoin has still shown an upward trend since its inception, albeit with a lot of bumps along the way.
Many experts still believe that Bitcoin will exceed $ 200,000 or more in value in the near future. This includes billionaire venture capitalist and Bitcoin investor Tim Draper, who recently told CNBC Make It that, despite its dramatic fluctuations, Bitcoin will hit $ 250,000 by late 2022 or early 2023.
This is good news if you are just starting out to invest in Bitcoin, but it’s even better if you’re looking for a way to grow your Bitcoin balance without investing your own money. In the past few years, a number of banks and financial institutions have created new ways for Bitcoin enthusiasts to get into the game via bank deposits and even credit card spending.
If you want to invest in Bitcoin while doing banking or using a credit card, there are a few options to consider. Here are some of the bitcoin-themed financial products that you can explore right now.
SAN SALVADOR, EL SALVADOR – 2021/06/24: General view of an Athena Bitcoin ATM. Bitcoin ATM … [+]
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PayPal and crypto
While PayPal has been a popular payment method for a while, this company is constantly innovating and adding new features. Starting in early 2021, PayPal users will now be able to buy, sell, hold, and pay for purchases using cryptocurrencies (including Bitcoin) directly through PayPal.
This option is available for personal and Premier PayPal accounts, but not for business accounts. PayPal also offers resources to help users learn more about cryptocurrency and track crypto prices within the PayPal app, as noted on a PayPal FAQ page.
Bitcoin Rewards credit cards
There is a dizzying range of reward credit cards that use cryptocurrency or issue cryptocurrency as a reward. Since they all work so differently, it’s important to understand how each one works, what is required of you, and what fees apply before signing up.
One of the most popular crypto credit cards right now is the BlockFi Bitcoin Rewards Credit Card, which is currently on a waiting list. This Visa credit card has no annual fee or international transaction fee, but it pays back 1.5% in Bitcoin on all purchases, then 2% back in Bitcoin once you’ve spent at least $ 50,000 on your card in a calendar year.
New cardholders also earn 3.5% back in Bitcoin in the first three months. Other perks include a 2% APY bonus in Bitcoin on stablecoin holdings, a 0.25% trading bonus in Bitcoin on all eligible trades, and a $ 30 bonus in Bitcoin for referrals to the card.
Then there is the SoFi credit card, which allows users to get 2% back in rewards with no annual fee. While this card allows you to redeem earned rewards for cashback, you can also use it to make crypto deposits to a SoFi Invest account, loan payments for SoFi student loans or personal loan balances, or as fractions to your SoFi Invest account.
The SoFi credit card is also a World Elite Mastercard and offers perks like cell phone protection worth up to $ 1,000, three months of free DashPass membership, free ShopRunner membership, and more.
Other credit cards that you can use to earn Bitcoin are the Brex Card, Gemini Credit Card, and Unifimoney Visa Credit Card, to name a few.
Bitcoin debit cards
There are also debit cards that issue Bitcoin and other cryptocurrencies, the most popular of which is the Crypto.com Visa Rewards Card. With this prepaid debit card, you can get 1% to 8% back depending on the “tier” of your card and the amount of crypto you can use.
For example, the top tier Obsidian card offers 8% back on spending with a staking requirement of $ 400,000, while the basic Midnight Blue version of the card offers 1% back with no staking requirement required. The second tier, Ruby Steel, requires users to wager $ 400 and offers 2% back on all expenses.
The Crypto.com Visa Rewards Card has no annual fee, and each card tier allows a certain amount of free ATM withdrawals and other perks each month. However, this card issuer is pretty vague about other fees it charges for this prepaid debit card. On the product page, Crypto.com says the following:
“Information on fees and limits (e.g. free ATM withdrawals, interbank exchange rates, top-ups, etc.) can be found in the” Fees & Limits “section under” Settings “in the Crypto.com app. The fees vary depending on the Map tier so make sure you pick the right one. “
Another new option in the debit area is Bitcoin Rewards Checking from Quontic Bank, which offers 1.5% back in Bitcoin on eligible purchases.
Bitcoin bank accounts
There are also some crypto savings accounts that customers can use to earn Bitcoin on their deposits. The disadvantage of these accounts is the fact that, unlike traditional bank accounts, they are not protected by FDIC insurance.
Still, crypto savings accounts can be profitable if you are willing to take the risk. For example, with the BlockFi Interest Account, users can earn up to 7.5% APY on their crypto deposits, even though the returns on Bitcoin are lower. This account also comes with no hidden fees, no account minimum, and you receive an interest payment every month.
Also check out Outlet Finance which allows users to earn up to 9% APY on their deposits. This financial institution lends money to people who buy cryptocurrency and can thereby offer higher returns. You can add money to your account and earn interest in USD so you don’t even have to deal with cryptocurrency in the backend.
There are other crypto savings accounts out there too, so check out the options from Linus, Gemini, Coinbase, Crypto.com, and more.
The bottom line
Bitcoin Rewards Banking makes it easier than ever to earn Bitcoin and other cryptocurrencies by spending credit cards or getting a higher return on your savings than with a traditional bank account. The fact that there are so many options is mostly a good thing, although you should definitely read the fine print and know beforehand what you are getting yourself into.
Ultimately, you should know that Bitcoin banking products come with risks, mainly because the cryptocurrency itself is largely unregulated and you are not getting FDIC insurance. If you educate yourself and understand the potential downsides, these accounts can help you grow your Bitcoin balance or savings over time.