Interested in earning crypto on your credit cards? Here’s what you need to know

Editor’s note: This is a recurring post, regularly updated with new information and offers.

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.

What is cryptocurrency?

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, Flow, Solana, 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 with the right knowledge and skills could create a cryptocurrency.

As of this writing, the total value of all Bitcoin, the most valuable cryptocurrency by market capitalization, is about $2 trillion.

How to earn cryptocurrency with a credit card

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).

Related: Why transferable points and miles are worth more than other rewards

Credit cards with cryptocurrency rewards

The cryptocurrency landscape — just like the credit card rewards market — is always changing, and we’ve seen crypto rewards cards come and go over time. There used to be more cryptocurrency rewards, but many have been discontinued. Here are a few crypto rewards credit cards still available:

• Gemini Credit Card*: Gemini is a major cryptocurrency exchange with its own branded Gemini Mastercard. It has no annual fee, a modest welcome offer and offers up to 4% back, redeemable for over 50 supported digital currencies.
• Crypto.com Visa Card*: The Crypto.com card is a bit more complex, with several tiers, each with varying rewards depending on your cryptocurrency balances. With $500 or more in the CRO currency, the native currency created by Crypto.com, you can earn 2% to 8% back on regular purchases.
• Venmo Card*: Offers up to 3% cash back. Cardholders can toggle a setting in the app to automatically redeem for Bitcoin or other cryptocurrencies in their Venmo account with no transaction fees.

*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.

Where to store cryptocurrency after earning

If you earn crypto from a credit card, it is usually deposited into an account automatically. For example, with the 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.

Crypto vs. cash back and travel rewards

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 into $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, but we must stress cryptocurrency rewards can lose or gain value at any time.

Related: How (and why) you should earn transferable credit card points

Is cryptocurrency safe?

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.

Bottom line

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.

Related: Cash back vs. travel rewards: How to choose a credit card