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Cryptocurrency seems to be everywhere you look these days, with event venues, celebrity endorsements and plenty of headlines pointing to the ups (and downs) of investing in crypto. If you want to get some cryptocurrency of your own without spending your hard-earned dollars, you may be interested in cryptocurrency rewards from your credit card.
Here’s a closer look at what you need to know to earn crypto credit card rewards.
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For those new to the world of digital currencies, cryptocurrencies are a type of digital money tracked using public databases. Bitcoin, Ethereum, Dogecoin, Stellar Lumens, Avalanche, Polkadot, Shiba Inu, Flow, Solana, Maker, Compound and XRP are just a few examples of the roughly 10,000 cryptocurrencies in existence today.
While crypto might sound like Monopoly money, it’s a serious part of the growing blockchain industry. Blockchain is the software used to track all past transactions and the current owners of crypto assets, including coins, tokens and non-fungible tokens (NFTs).
The nature of blockchain technology makes these databases extremely difficult for hackers to penetrate or disrupt, and they are not controlled by a centralized government agency, bank or organization. While it likely wouldn’t be worth anything, anyone could create a cryptocurrency with the right knowledge and skills.
As of this writing, the total value of all Bitcoin, the most valuable cryptocurrency by market capitalization, is about $400 million. That’s a big fall from a peak of around $1.2 trillion in late 2021 — which points to just how risky and volatile cryptocurrencies are as assets.
Most people are familiar with credit card rewards, allowing you to earn cash back or travel miles and points with every swipe, tap or click with a card-based payment. But many people don’t realize that you could opt to earn cryptocurrency rewards instead.
Crypto rewards cards often offer a cash-back rewards rate based on your purchases in United States dollars and then convert your rewards to Bitcoin, Ethereum or other supported currencies when those rewards are redeemed to your cryptocurrency account.
The most flexible crypto rewards cards give you the freedom to choose from a long list of supported currencies beyond Bitcoin and Ethereum. They also allow you to transfer the crypto to any wallet, exchange or cryptocurrency account you choose. Conversely, other crypto rewards programs keep you locked into that specific program, which isn’t ideal.
Like most cash-back cards, you may be able to earn more in specific bonus categories or other flexible redemption options.
However, it’s important to note that once you convert your rewards to a specific crypto product, you’re then subject to the volatility of that particular currency (more on those risks below).
The cryptocurrency landscape — just like the credit card rewards market — is always changing, so you’ll probably see crypto rewards cards come and go over time. Here are a few noteworthy crypto rewards credit cards to know about:
In addition, American Express recently shared that it will get into cryptocurrency rewards, so you may find new crypto rewards credit cards available soon.
*The information for these cards has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
If you earn crypto from a credit card, it is usually deposited into an account automatically. For example, with the BlockFi, SoFi, Gemini and Venmo cryptocurrency credit cards, rewards are redeemed into an account at those financial institutions.
Some cryptocurrency users want to hold their currency in an outside hardware wallet for added security, such as the Ledger or Trezor wallets, or prefer to control it using a software wallet like MetaMask.
Cryptocurrency wallets require a bit more internet and computing knowledge; conversely, keeping it with a trusted brokerage or exchange is more similar to a stock market account. However, as we’ve seen from several past hacks and losses, exchanges are not always as safe as they first appear.
That said, there are many security and backup worries for those holding their cryptocurrency in a self-controlled wallet. If you’re planning to use these tools, it’s important that you do extensive research to understand how they work.
You might wonder why you would want crypto rewards when you can earn cash back or travel miles and points. This is The Points Guy, after all.
Cryptocurrency rewards may interest people who believe the value of these currencies will rise in the future. If you redeem $10 in cash back for Bitcoin and the value then doubles, you suddenly have $20 in cash back. However, there’s also a risk that your $10 could turn to $5 or even $0.
With traditional cash back, you know exactly what you’re getting. A dollar of cash back is always worth a dollar. When using travel rewards programs, you’re likely to find rewards that can be worth more than one cent per point, but that’s not always the case.
At the end of the day, it’s up to you to decide which type of rewards you value most.
One of the biggest concerns with cryptocurrency is the risk of losses. Government regulators have issued stern warnings about potential fraud and investment losses. The Consumer Financial Protection Bureau (CFPB) notes hackers and scammers target cryptocurrency users because of the difficulty of tracing and prosecuting these transactions.
There’s also a risk of sending your currency to the wrong or an incompatible address when doing a transfer or purchase, in which case your crypto is likely gone for good. Unlike a bank account, there is no possible way to reverse a cryptocurrency transaction. In most cases, lost funds are lost forever.
Finally, there’s also a risk of investment losses. Cryptocurrencies could tumble in value, wiping out a substantial part or even the entire value of your cryptocurrency rewards account. While many gurus claim cryptocurrencies are going up “to the moon” or down to nothing, only the future will tell us for sure.
You’re the only person who can decide what type of credit card rewards you want. Whether that’s crypto, cash back or travel miles and points, you have plenty of options to choose from. If you want to cash in your rewards for crypto, expect to see even more choices in the coming months and years — but be sure to fully understand the risks associated with this option before jumping in.
Featured photo by d3sign/Getty Images.
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This card offers a 80,000-point bonus after spending $4,000 in the first three months. Plus, earn 3 ThankYou points per $1 at gas stations, restaurants, supermarkets and on air travel and hotels. 1 ThankYou point per $1 on all other purchases.
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Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
Oops! Did you mean…
Welcome to The Points Guy!
The credit card offers that appear on the website are from credit card companies from which ThePointsGuy.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This site does not include all credit card companies or all available credit card offers. Please view our advertising policy page for more information.
Editorial Note: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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