The Gemini Credit Card: Turn Every Purchase Into $BTC - Milk Road

Crypto-Back Magic

Imagine effortlessly growing your Bitcoin portfolio every time you fill up at the gas station, grab a coffee, or buy groceries – without even thinking about it.

Well, the Gemini Credit Card1 makes that a reality.

Gemini’s Credit Card turns your everyday purchases into a passive investment in crypto, letting you earn crypto rewards on each transaction.

Whether it's 4% back on commuting2, 3% on dining, or 2% on groceries, you’re consistently building your crypto holdings. No need to time the market, and no need to actively trade.

So, how does it work?

I’m glad you asked! Buckle up, as I run you through the Gemini Credit Card’s inner workings, how it mimics dollar-cost averaging (DCA), and how its rewards have compared to regular cashback since it was released.

Gemini Credit Card Overview

Up to 4% Back On Everyday Purchases

The Gemini Credit Card offers a unique rewards structure by allowing users to earn crypto back, instead of traditional cash back or points.

You can earn up to 4% crypto back on many everyday purchases. This includes 4% on gas, EV charging, transit, taxis and rideshare (up to $300 in spend per month, then 1% after), 3% on dining, 2% on groceries, and 1% back on all other purchases.

These rewards can be received in Bitcoin, Ethereum, or one of over 50 other cryptocurrencies available on the Gemini available on the Gemini platform. A key feature is that your crypto rewards are deposited instantly into your Gemini account, allowing you to benefit from any potential price appreciation immediately.

Card holders can add up to five authorized users to maximize their crypto rewards, through family members or trusted friends.

No Annual Fee4, No Hassle

Beyond the rewards, the Gemini Credit Card offers plenty of perks.

The card comes with no annual fee and no foreign transaction fees, making it a cost-effective option for frequent travelers.

To sweeten the deal even further, there are no exchange fees when receiving your crypto rewards – setting it apart from typical crypto purchases that often come with transaction fees. (If you decide to sell or convert your crypto rewards into fiat later on though, fees will apply).

Whether you’re just dipping your toes into the crypto world or looking for a more passive way to invest, the Gemini Credit Card gives you the tools to build your portfolio while going about your daily routine.

Passive Crypto Investment, DCA-Style

The greatest magic lies in how Gemini Credit Card rewards function as a form of passive Dollar-Cost Averaging (DCA)5.

DCA is an investment strategy where regular, small investments are made to help mitigate the risk of volatility. This is done by spreading purchases – usually of a similar amount – over different points.

By accumulating rewards in Bitcoin (or your choice of one out of more than 50 crypto assets supported on Gemini) with everyday purchases, this resembles a DCA strategy quite closely.

Gemini Credit Card Rewards Vs. Cash Back Performance

Let’s take a look at how the rewards earned via the card might stack up vs. regular cashback rewards.

The Gemini Credit Card has been available for a little over two years. To simulate returns, we’ve used a handy DCA calculator from Bitcoin Counter Flow.

For this example, we assume a user put all their rewards into $BTC – but remember, 50+ other cryptos are available!

We’ll also assume the user earned a steady stream of $2 in crypto back daily for the last two years. This would be the equivalent of spending $100 a day, at an average of a 2% rewards rate. This is a hypothetical scenario. Your actual results may vary and depend on your credit limit, average daily spend, and crypto you select.

In this Simulation, the Gemini Credit Card User’s Rewards Were Worth 84% More

Taking the total value of the rewards at the time each instant payout was made, they added up to $1,458 – an amount that would have remained the same if received as traditional cash back. However, because the rewards were given in Bitcoin, their value would have increased along with the rise in BTC’s price, appreciating to $2,685.

That’s an 84.12% difference compared to what they would have earned with regular cash back rewards.

Of course, past performance doesn’t guarantee future results, and there’s always a possibility of Bitcoin going down.

But think about that for a moment:

With a typical cash back card, you’d have the same $1,458, but with no opportunity for growth. On the other hand, the Gemini Credit Card’s crypto rewards can give you exposure to Bitcoin’s long-term potential appreciation – without the need to buy Bitcoin outright or worry about market timing.

For a crypto-savvy consumer, this kind of rewards structure offers a unique advantage. You're essentially dollar-cost averaging into Bitcoin without the stress of managing an investment account.

And with the option to choose from multiple cryptocurrencies, you have the flexibility to diversify your rewards or adjust your strategy as the market shifts.

Perfect for Beginners

The Gemini Credit Card is perfect for beginners and passive investors looking to build a Bitcoin or crypto portfolio without active involvement.

• Automatic & Stress-Free: It offers a simple, hands-off way to invest in cryptocurrency without needing large upfront capital, making it ideal for those uncomfortable with big, lump-sum investments in a volatile market.
• No Manual Effort: You earn crypto passively with everyday purchases

Not to mention that there are no fees to acquire your crypto rewards.

Pretty neat, huh?

Gemini Credit Card vs. Standard Credit Card Comparison

The Gemini Credit Card outshines regular cards by offering instant crypto rewards – no more waiting for cash back or points.

Every purchase earns Bitcoin, Ethereum, or one of 50 cryptos, deposited instantly into your account, giving you the chance to capitalize on market growth right away. With up to 4% back on gas, plus 3% on dining and 2% on groceries, you earn competitive rewards, but with the added potential for your crypto to increase in value.

Best of all, there are no annual fees or foreign transaction fees, making Gemini a smarter, future-focused alternative to traditional rewards cards.

What Else Should I Consider?

What’s The APR On The Gemini Credit Card?

The variable interest rate you’ll pay on balances on your Gemini Credit Card, known as the variable annual percentage rate (APR), ranges from 17.24% to 29.24% for purchases.

This is based on your creditworthiness.

The APR you pay for cash advances (i.e. your balance owing from withdrawing cash) is a slightly higher rate, sitting at 30.24%.

There are no annual fees, but cash advances come with a fee of $10 or 3% – whichever is greater.

Gemini Credit Card Customizability

The Gemini Credit Card has the option to customize your card’s look by choosing between black, silver, or rose gold metal designs, made from 75% recycled materials.

When does DCA work?

While DCA helps you avoid making big crypto purchases at the wrong time, you might miss out on buying at the lowest price. The value of your rewards will also go up and down with Bitcoin’s price, so there’s always a risk of losing value if the market drops.

Gemini Credit Card rewards would be most effective during uncertain markets, or early in a market cycle when prices are stabilizing. DCA-style investing by earning crypto on everyday purchases will spread your risk and help you benefit from market dips.

On the other hand, during market peaks, you might risk buying at higher prices and facing a market downturn.

To Sum It Up

In short, the Gemini Credit Card offers an incredible way to effortlessly turn your everyday spending into a passive crypto investment.

With instant crypto rewards of up to 4% back on purchases, and no annual fees or foreign transaction fees, it can outperform typical cashback cards by a wide margin.

Whether you’re a beginner looking for an easy entry into crypto, or a seasoned investor seeking a hands-off DCA strategy, the Gemini Credit Card is a smart, future-focused way to grow your portfolio – without the extra effort.

1 The Gemini Credit Card is issued by WebBank.

2 4% back is available on up to $300 in spend per month (then 1% on all other Gas at the pump, EV charging, transit, taxi and rideshare purchases that month). Spend cycle will refresh on the 1st of each calendar month.

3 Some exclusions apply to instant rewards in which rewards are deposited when the transaction posts. See Rewards Program Terms for more info.

4 The standard variable APR for purchases will be between 17.24% - 29.24%, based on your creditworthiness. After that, your APR will vary with the market based on the Prime Rate. The standard variable APR for cash advances will be 30.24%. This APR will vary with the market based on the Prime Rate. The variable penalty APR is 34.24% and may be applied if you make a late payment or make a payment that is returned. Annual fee--None. Fee for foreign purchases-None. Cash advance fee-either $10 or 3% of the amount of each cash advance, whichever is greater. Late payment fee-up to $8. Returned payment fee--up to $35.

5 This content is for general information purposes only and is not investment advice. Buying, selling, and trading cryptocurrency involves risk. You should consult a qualified, licensed advisor before engaging in any transaction. Past performance is no guarantee of future results.

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