Which Cards Let You Redeem Rewards For Crypto?

Last updated Feb. 9, 2025 by Charles Zemub

In recent years, the world has seen a dramatic rise in the popularity of cryptocurrencies. As digital assets continue to gain mainstream attention, traditional financial institutions and fintech companies are beginning to integrate cryptocurrency into their reward programs. This integration has led to the introduction of various credit and debit cards that allow users to earn and redeem rewards in the form of cryptocurrencies. These innovative offerings enable consumers to dive into the world of digital currencies without the need for direct purchasing or trading. Below, we will explore some of the most popular cards offering crypto rewards, how they function, and their benefits and drawbacks.

Credit and Debit Cards Offering Crypto Rewards

Several companies have capitalized on the burgeoning interest in cryptocurrencies by offering products that incorporate crypto rewards. Some of the standout cards in this space include:

1. Crypto.com Visa Card

Crypto.com’s Visa card is one of the earliest offerings in the market that provides crypto rewards. Users of the Crypto.com card can earn up to 8% back in crypto rewards, depending on their card tier and CRO token stake. The card benefits include no annual fees, ATM withdrawals without fees up to certain limits, and free subscription rebates on streaming services for higher-tier cards. Crypto.com converts a user’s cashback rewards into their supported cryptocurrency, allowing users to either hold it or spend it.

Benefits:

• Multiple crypto reward options
• No annual or foreign transaction fees
• Additional perks for higher tiers

Drawbacks:

• Requires staking CRO tokens for higher rewards
• Cashback percentage relies on cryptocurrency value fluctuations

2. BlockFi Rewards Visa Signature Card

Launched in collaboration with Visa, the BlockFi Rewards Visa Signature Card offers users the opportunity to earn 1.5% back in Bitcoin on every purchase. For holders who spend more than $30,000 annually, the rewards jump to 2% back for the remainder of that year. Additionally, new cardholders may be eligible for a bonus if a specific spending threshold is met within the first few months.

Benefits:

• Bitcoin rewards for every purchase
• Competitive welcome bonus offers
• Visa’s acceptance worldwide

Drawbacks:

• Limited to Bitcoin for rewards
• Requires a BlockFi account for reward management

3. Gemini Credit Card

The Gemini Credit Card, offered by the well-renowned cryptocurrency exchange Gemini, allows users to earn up to 3% back on dining, 2% on groceries, and 1% on all other purchases in Bitcoin or other cryptocurrencies. This card features no annual fee and has immediate reward fee crediting, which means users can access their crypto rewards without waiting for a reward cycle.

Benefits:

• Flexible reward options among several cryptocurrencies
• No annual fees
• Instant reward access

Drawbacks:

• Earning potential varies based on spending categories
• Requires a Gemini account to manage rewards

4. SoFi Credit Card

SoFi, traditionally known for its student loans and financial products, now offers a credit card that allows you to redeem points for cryptocurrency investments. Users can redeem points for Bitcoin or Ethereum, or use them for other SoFi financial products. This system integrates with SoFi Invest to easily transition between traditional reward points and crypto investments.

Benefits:

• Versatile redemption options for financial products or crypto
• No annual fees
• Additional perks through SoFi products

Drawbacks:

• Limited cryptocurrency options
• Requires a SoFi account

5. Coinbase Card

Coinbase, one of the largest cryptocurrency exchanges, has introduced a card that lets users spend their crypto assets while earning rewards. The Coinbase Card offers up to 4% back in crypto rewards in a variety of supported currencies including BTC, ETH, and others, providing more flexibility than some of its competitors.

Benefits:

• Variety of crypto reward options
• Instant access to crypto rewards
• Integration with Coinbase platform for easy management

Drawbacks:

• Requires funding crypto assets for use
• Reward rate depends on chosen cryptocurrency

How These Cards Work

Most crypto rewards cards work similarly to traditional credit cards but with a crypto component. Users can spend using their cards anywhere Visa or Mastercard are accepted and earn rewards as specified by the card issuers. Usually, these rewards are then converted to a cryptocurrency of the user’s choice and deposited into an associated account or wallet.

Steps to Using a Crypto Rewards Card:

1. Application and Approval:

   • Apply for the card via the issuer’s website.
   • After approval, you’ll receive the physical card and terms of service.

2. Staking or Linking Accounts:

   • Some cards, like Crypto.com, might require staking a specific amount of their native token.
   • Others will require you to link to an account on their platform, such as BlockFi or Coinbase.

3. Spending and Earning Rewards:

   • Use the card for everyday purchases to earn rewards back in your chosen cryptocurrency.
   • Rewards are automatically calculated based on your spending.

4. Redeeming Rewards:

   • Earned rewards are usually converted at the prevailing market rate into cryptocurrency and deposited into your account.
   • Users can decide to hold, trade, or spend these crypto rewards as they see fit.

5. Managing and Monitoring Rewards:

   • Keep track of your crypto earnings and market trends through the issuer’s app or online portal.
   • Adjust reward preferences or redeem points based on the platform’s features.

Pros and Cons of Crypto Rewards Cards

Pros:

• Access to Cryptocurrency: Gain cryptographic assets without the need for direct investment.
• Variety of Rewards: Choose from a selection of digital currencies.
• Cardholder Benefits: Enjoy extra perks like discounts, cashbacks, and bonuses.

Cons:

• Market Volatility: Cryptocurrency values can fluctuate greatly.
• Limited Acceptance: Some cards may not be accepted everywhere compared to major credit cards.
• Account Requirements: Needing an account on specific platforms for redemption.

FAQs

What are crypto rewards cards?

Crypto rewards cards are credit or debit cards that allow users to earn rewards in the form of cryptocurrencies rather than traditional reward points or cashback.

How do crypto rewards work?

When you make a purchase with a crypto rewards card, you earn a percentage back as a reward, which is then converted into a cryptocurrency and deposited into a linked account or wallet.

Are there any fees associated with crypto rewards cards?

Most crypto rewards cards aim to eliminate typical annual fees and foreign transaction fees, but specific fees can vary depending on the issuer and cardholder agreements.

Can I choose which cryptocurrency I want to receive as a reward?

Typically, yes. Many cards allow users to select from a variety of cryptocurrencies for their rewards, though the options depend on the card provider.

Are crypto rewards taxable?

Yes, in most cases, crypto rewards are considered taxable income. It’s crucial to consult with a tax professional to understand your obligations concerning crypto asset holdings and transactions.

How does crypto market volatility affect rewards?

Since the value of cryptocurrencies can fluctuate significantly, the worth of your crypto rewards may change after they are earned, increasing or decreasing based on market conditions.