Gemini Credit Card Review

 

Gemini Credit Card Review

This card is a crypto rewards credit card pretty similar to the block fight credit card which has been out for a while you can earn rewards in the form of cryptocurrency and you can earn either bitcoin or in over 50 other currencies 

The card earns three percent on dining on up to six thousand dollars in spending per year then down to one percent two percent on supermarkets unlimited and one percent on everything else 

Now these rates are okay but not great I mean if you have a lot of non-category spend you might as well just go for the block fight card because it earns 1.5 on everything 

I'll put a link for that below if you're interested but if you do spend a lot in the dining category for example then three percent is pretty good two percent on supermarkets 

That only really matches like the city double cash that earns two percent on everything and this is assuming though that you definitely want a crypto reward earning card 

Because you could just get an assortment of no annual fee cash back cards and earn great cashback rates in all different categories 

Then use that cashback to go and buy bitcoin or any other crypto but i get it some people they don't want to think about that they don't have to manage that system and invest the cash and stuff 

They just want it seamlessly invested as they spend and a cool thing about the rewards on the gemini credit card is that you get them immediately you swipe 

So you don't have to wait a month and get affected by fluctuations in price in the crypto market before you get your awards they actually say that they are the only crypto credit card that doesn't make you wait a month for your rewards little dig at the block fight credit card 

There i think also they show you this statistic as well that over a five year period you would have earned 25 times more earning bitcoin as a reward than regular cashback now that is on a time frame from 2016 to 2021 and of course 

If you held bitcoin for that whole time then yeah that would be the case but that is from five years in the past where bitcoin was growing at a really fast rate is bitcoin gonna grow at that speed now my guess is that it won't 

But it gets the idea across okay if you're earning rewards in three percent or two percent category they're worth three percent or two percent 

Now but in the future if you huddle all right you hold that currency actually your rewards could double or triple you could actually effectively be earning like six percent seven eight nine percent or whatever depending on 

How much those cryptocurrencies go up but conversely if you had got the rewards uh paid to you when bitcoin was at its all-time high of 68 000 then 

Now you're cashing them out well you would have lost almost half their value so you wouldn't be earning three percent you'd be earning 1.5 percent or you wouldn't be earning two percent 

You'd be only one percent something like that that's kind of like the idea but ideally obviously you're going to try and just continuously own rewards and cash them out at a point when you are up on those investments 

So those are the rewards which i think is the part that a lot of people find most interesting but let's now have a look at the fees and then we'll go on to have a look at the cards themselves 

Because they are metal they are pretty cool looking but first fees so gemini is going the apple card route of having a card with almost no fees there's no annual fee no foreign transaction fees and no exchange fees 

To acquire your rewards which to be honest is kind of obvious because it really probably wouldn't be worth it 

If you had to pay exchange fees in order to get your cryptocurrency rewards there are some fees however 

So it's not completely fee-free but you get those fees told to you after you go through the first part of the application like the apple card you can actually get pre-qualified or offered a card without affecting your credit score 

They just perform i believe a soft pull and they will offer you a you know proposed credit limit range and interest rate range 

So i went ahead and entered my information and they offered me a credit limit of between five 2 dollars and twenty five thousand dollars to be honest 

I think this was just the credit limit that gets offered to everyone who is pre-qualified 

So as long as your credit score is good enough they'll give you you know between two thousand five hundred and twenty-five thousand dollars in credit and then they also offered me an apr range from 12.99 to 23.99 again 

I think probably everyone gets offered that then after you have entered your income only then will 

They give you the full terms and conditions of the card and we can see here there is a cash advance fee of ten dollars or three percent whichever is greater that's pretty normal 

I never recommend doing cash advances though and then we have a late payment fee of 20 reasonably low and a return payment fee of 35 and then we have a card replacement fee of 20 

But it's only for the third card replacement and each one after that in a 12 month period so for most people that's not likely to happen unless you want to do something crazy like 

I don't know testing if your credit card is bulletproof who would do that check that out it's actually bulletproof but before you laugh the card may actually protect you against some kinds of very small caliber rounds since it is a metal credit card 

It comes in three colors which are mysteriously very similar to the american express colors cameron winklevoss goes for the black one his brother tyler gets the platinum and satoshi nakamoto himself has the rose gold 

So what do i think of this card well i think it is a reasonably good offering but i know people are probably just going to point out why don't you just earn cash back at probably slightly higher rates on other cards and then invest that cash back in crypto 

I mean that is a strong argument and that's probably why gemini point out that you don't have to pay exchange fees on the crypto rewards okay because obviously 

If you had to pay exchange fees that would probably make the war rewards not worth it however if you buy small amounts of crypto through gemini's own exchange as long as you are set to gemini active trader 

That's like the pro version like the gemini equivalent of coinbase pro the fees are actually very very low all right here i'm buying ten dollars worth of bitcoin and the fee is four cents all right that's zero point zero four percent all right 

It's nothing but if you use other apps with higher fees and coinbase oh did i say that out loud you would be paying a higher fee and i think some people might just find 

It convenient just to be constantly dollar cost averaging into crypto without actually having to worry about buying it then you may worry about taxes on the rewards so how does that work well the irs considers credit card rewards a rebate 

So you will not be taxed uh on that crypto when you receive the reward however you will be taxed on the gains for example 

If you have a hundred dollars worth of crypto rewards given to you from the card you will not pay taxes on it when they give it to you 

But say you hold it for a period of time and it goes up to 150 with the price rise in whatever cryptocurrency it is and then you decide to sell it you will be taxed on the gain which would be that extra fifty dollars 

You would pay taxes on that now if you have held the investment for less than a year it would be short-term capital gains rates on that fifty dollars which would be 

You know income tax rates so 10 20 all the way up to 37 depending on how much you earn and if you had held it for longer than a year you would be paying the long term capital gains rates on that 50 which would be 0 15 or 20 depending on how much you earn 

So i really wouldn't worry about paying taxes on the rewards because it doesn't affect the published rates of three percent two percent and one percent you don't pay tax on that you only pay tax on the possible appreciation that you may get if the currency rises in value which is kind of a bonus anyway 

So all in all it's a good card but for the serious credit card enthusiast especially someone who wants to do travel and stuff with credit cards 

It's not really something that i would consider however you might think differently but if you want a higher rate in crypto rewards you could conversely consider the coinbase debit card which earns four percent in some crypto currencies 

Not all and they're kind of volatile ones so you have to sell them immediately if you want to lock in that four percent otherwise they kind of sometimes go down um but anyway that is worth considering however that is a debit card 

It doesn't offer anywhere near as many protections and stuff as the gemini credit card which is a mastercard and it also has a daily or actually a transaction limit of two thousand five hundred dollars so you can't spend any more than two thousand five hundred dollars in one transaction on the coinbase debit card.

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