There’s no shortage of credit card reward programs available and a wide variety of perks to choose from, from cash back to airline miles to retail rewards. In recent years, cryptocurrency reward cards have filled a niche for those interested in earning digital currency from their card swipes.
With cryptocurrency reward cards, users can earn Bitcoin, Ethereum and other digital currencies from their purchases.
“Crypto reward cards can offer a unique twist on your typical rewards card and can help you build up your cryptocurrency wallet while you make everyday purchases,” says Carter Seuthe, CEO of Credit Summit, a firm that offers advice for consumers on building credit and getting out of debt.
As with all credit cards, users should refrain from overspending and pay off balances each month if possible to avoid interest charges. Users of cryptocurrency cards should be cognizant that digital currencies are volatile assets, and the dollar value of holdings can shift quickly upward or downward.
“Cryptocurrency values can change dramatically in a very short amount of time, so you may find that your rewards become worth next to nothing very soon after you earn them,” says Nicholas Creel, an assistant professor of business law at Georgia College & State University. “Of course, that is a sword that cuts both ways in that a cryptocurrency’s value could spike after you earn it.”
This volatility is the most significant potential issue with cryptocurrency rewards cards, Creel says, but there are benefits. In some cases, these cards allow users to access cryptocurrency without going through a third-party exchange, he says. That means users may be less susceptible to leaked financial data or hacks and less vulnerable to a potential exchange failure.
If you believe a cryptocurrency rewards credit card is the right fit for you, here is a detailed list of the top options.
What Are Crypto Rewards?
Cryptocurrency reward cards allow users to earn Bitcoin or other digital currencies with everyday purchases, offering cryptocurrency as a reward in lieu of traditional cash-back bonuses. Cryptocurrency rewards cards can be used to directly earn cryptocurrency through purchases or swap other rewards into cryptocurrency. Such cards can be attractive to cryptocurrency enthusiasts and newbies looking for a low-risk option to dip their toes in the digital currency waters.
What to Look For in a Crypto Rewards Card
When searching for any credit card, familiarize yourself with key credit card terms such as annual percentage rate, annual fees, balance transfers and potential penalties. It is important to shop around and compare offers since interest rates and annual fees can significantly impact the time and costs to pay off a credit card balance.
With cryptocurrency rewards cards, Seuthe says it’s important to be aware of the types of cryptocurrency the cards offer, the percentage of rewards and if there are any limits on the rewards.
Rewards – cryptocurrency or otherwise – should be just one factor in determining the best credit card for you. When comparing cryptocurrency rewards, look for rewards in the cryptocurrencies you are interested in, such as Bitcoin or Ethereum, and the percentage of rewards you’ll earn with each purchase. Make sure the percentages are comparable to other rewards cards, because you always have the option to accept regular cash back and purchase digital assets with those rewards.
Pros and Cons of Crypto Rewards
- Easily earn cryptocurrency with purchases without having to buy and sell on an exchange.
- Rewards could appreciate in value if cryptocurrency prices rise.
- Can carry lower APR than other cards in some cases.
- Volatility of cryptocurrency can reduce award values.
- Could complicate your taxes if cryptocurrencies are later sold for a profit.
- Potential security risks if cryptocurrencies are held on an exchange.
Best Card for Rewards: Gemini Credit Card
The Gemini Credit Card is the best crypto credit card for rewards because it offers users the flexibility to earn rewards in Bitcoin, Ethereum and dozens of other digital assets available on the Gemini cryptocurrency exchange platform. Crypto rewards are deposited immediately into users’ Gemini accounts at the time of purchase, and users can change the cryptocurrency reward type to spread the rewards across different assets.
Rewards: 1% on all purchases, plus 2% on groceries and 3% on dining.
Best Card for Flexibility: Venmo Credit Card
The Venmo Credit Card is the best crypto credit card for those seeking flexibility since it provides users with the option to accept traditional cash-back rewards or switch to cryptocurrency rewards with the press of a button. Card users can turn on crypto auto purchase to buy Bitcoin, Litecoin, Bitcoin Cash or Ethereum with their cash-back rewards at the end of each month with no transaction fees.
Rewards: Choose one of eight spending categories to earn 3% cash back, then earn 2% on your second choice and 1% on all other eligible purchases.
Best Card for Businesses: Brex Card
The Brex Card is the best crypto credit card for businesses, with a bevy of business-friendly features such as custom spend limits and controls, real-time expense tracking and automatic receipt collection and memo generation for tax and compliance purposes. Brex offers a traditional points-based rewards system in which points can be redeemed for cash, gift cards and travel, and users can also redeem points for Bitcoin or Ethereum. However, not all companies are eligible for the Brex card, which is designed for mid-market companies and venture-backed startups.
Sign-up bonus: 30,000 points after spending $3,500 in 30 days or 50,000 points for spending $9,000.
Rewards: Users can earn unlimited points through purchases, with certain categories qualifying for 2x, 3x, 5x and 7x multipliers.
Best Card for Major Purchases: Upgrade Bitcoin Rewards Visa Credit Card
The Upgrade Bitcoin Rewards Visa Credit Card is the best crypto credit card for major purchases because it carries a fixed rate and term similar to a personal loan. The Upgrade Bitcoin Rewards card carries lower interest rates than typical credit cards and offers credit lines from $500 to $25,000. Users earn 1.5% back in Bitcoin with each payment.
Sign-up bonus: $200 bonus with the opening of a Rewards Checking Plus account and three debit transactions.
Rewards: 1.5% back in Bitcoin on payments.
Best Card for Long-term Crypto Holders: Nexo Card
The Nexo Card is the best crypto credit card for long-term cryptocurrency holders because it allows users to use their cryptocurrency holdings as collateral. The Nexo Card is linked to Nexo’s Instant Crypto Credit Lines and no minimum payments are required. Users can keep their digital asset portfolios whole while borrowing up to 90% of its value. The Nexo Card also carries lower interest rates than typical credit cards, and users can earn up to 2% in Nexo or up to 0.5% in Bitcoin crypto rewards on purchases.
Rewards: Up to 0.5% Bitcoin or 2% NEXO on purchases