If you're in the market for a credit card that'll help you grow your crypto portfolio, you might want to hold off on adding your name to the Coinbase One Card's waitlist.
The latest Coinbase card offers up to 4% back in bitcoin for your purchases. However, the reward rate is based on how many assets you're holding with Coinbase, and those details aren't yet disclosed. When asked for clarification, a representative for Coinbase said they'll announce more information about the reward tiers in the fall.
The card is currently waitlisted with a planned fall rollout. You'll need to be a Coinbase One member to qualify, which will cost $49.99 annually when it becomes available "soon."
There's also one important caveat you'll need to keep in mind before you redeem your rewards.
What does the Coinbase One Card bring to the table?
The new Coinbase card will offer up to 4% back in bitcoin on your purchases, depending on how many assets you're holding with Coinbase. Those assets could simply be USD or USDC, so you won't necessarily need to invest heavily in crypto right away to reach the higher bitcoin-back rate.
However, it's not clear whether you'll need $10,000 in assets or $1,000 to reach that 4% rate. Since Coinbase said it won't provide any clarification until the card rolls out, I'd hold off on signing up for now.
It does look like the card starts at 2% back in bitcoin, which is a decent rate for a no-annual-fee card. But with a $50 annual fee required to maintain a Coinbase One membership, you can find a free comparable cash-back rate.
Because it will also be an American Express card, it'll come with a number of shopping and travel protections, including retail protection, extended warranty protection, lost luggage insurance and trip cancellation/trip interruption insurance, among others. It's also a stainless steel card, if you're into that type of thing.
You can sign up for the waitlist here.
How do crypto rewards differ from cash back?
When you earn rewards in crypto for making purchases, they'll be added to your Coinbase wallet. How much your bitcoin is worth will also fluctuate, whereas cash back is always worth 1 cent per percent. Another difference is what happens when you realize gains.
If you cash out the bitcoin you earned, you'll need to report it and pay taxes on it. When you use your cash back, for example, as a statement credit, you don't need to report it when tax season comes around.
If that sounds too risky to you, I'd recommend you stick with a traditional cash-back card that fits your spending habits. For example, the Wells Fargo Active Cash® Card* is a good, flat-rate, no annual fee rewards card that provides cash back for every purchase. Or, if you're looking for a higher rewards rate for specific purchases, consider the Blue Cash Preferred® Card from American Express.
*All information about the Wells Fargo Active Cash Card has been collected independently by CNET and has not been reviewed by the issuer.
