Which cards let you redeem rewards for crypto?
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Most of us know rewards credit cards aren’t all the same and that many boast unique offerings when it comes to earning and using your points. Whether you prefer rewards credit cards with rotating categories or ones that offer a flat rate of points on all your spending and bills, you’ll find several cards to choose from that can make sense for how you live your life.
You’ll find even more diversity on the redemption side of the equation, considering some cards let you cash in your rewards for travel, gift cards, merchandise, statement credits, cash back and more. Over the last few years, however, we’ve also seen a new wave of cards that offer rewards in other currencies—specifically crypto cards that let you earn Bitcoin.
Cryptocurrency credit cards
Crypto credit cards give you the chance to rack up rewards for Bitcoin and other cryptocurrencies, based on your spending. From there, you can spend or save your crypto in any way you see fit. One flag for those that are thinking about whether or not a crypto card might be right: weigh your risk tolerance first.
The value of several cryptocurrencies has swung wildly up and down for the last decade, albeit with an overall upward trajectory. Keep in mind that Bitcoin and Altcoins (any other cryptocurrency) like Ethereum, Namecoin, and Dogecoin to name a few, are extremely volatile investments. While any investment is a calculated risk, a market as constantly fluctuating as cryptocurrencies poses a higher level of risk.
Which cards Let you redeem rewards for crypto?
While the new crypto credit cards may be intriguing, you don’t have to get on the waitlist and wait it out in order to earn rewards good for cryptocurrency, including Bitcoin. The key to earning rewards for Bitcoin now is finding the right rewards credit card for your spending and bills, then making sure you can redeem your rewards in a way that lets you cash in for crypto on your own terms.
Which rewards credit cards let you earn points you can use for Bitcoin, Ethereum or any other cryptocurrency you want? There are actually quite a few solid options to choose from.
For example, Chase Ultimate Rewards credit cards let you redeem your rewards at a rate of one cent per point. This means you could sign up for card options like the Chase Freedom Flex℠ or the Chase Freedom Unlimited® (both with no annual fee), earn exceptional rewards on your spending, then use your points to buy Bitcoin or other cryptocurrencies in your own crypto account with a platform like Gemini or Coinbase.
Another option to consider is the Citi® Double Cash Card, which lets cardholders earn 2 percent back for each dollar they spend—1 percent when they make a purchase and another 1 percent when they pay it off. There’s no annual fee, and you can redeem your rewards for a check, a statement credit or a linked bank account once you have a rewards balance of at least $25.
At the end of the day, almost any rewards or cash back credit card can help you rack up rewards you can use to buy Bitcoin and other cryptocurrencies. The key is making sure you can redeem your rewards for a check in the mail or a credit to a linked account, at which point you can use your rewards to buy any crypto you want.
What to consider when choosing cryptocurrency rewards over other rewards?
Opting for a card that gives you crypto rewards can be good for you and your wallet for a number of reasons. Namely, it’s an easy way to test the waters with an investment that can be tricky to understand and costly if you invest a lot of your own money into it because of how volatile it can be.
One perk: the value of cryptocurrency is constantly changing. That means that while you’re earning rewards, the value of those rewards has the potential to increase in value. However, it’s important to remember that your crypto could depreciate in value just as fast.
Another factor to consider is that earning crypto rewards doesn’t provide a ton of flexibility for average, everyday consumers. Many merchants don’t accept crypto as a form of payment, meaning that you’d likely have to trade some of your crypto for cash to make certain purchases.
Opting for a non-crypto credit card could also be a better choice for those who prefer a card that will cater to their spending habits and give them a wider range of crypto options. By choosing a good cashback card and using the cash you earn to purchase any kind of cryptocurrency you prefer, you could keep your options open and explore a wider range of different currencies.
The bottom line
You can earn Bitcoin with a crypto credit card, but should you? That’s a decision only you can make. The potential upside is the fact that your crypto value could skyrocket over time, leading to a higher rewards rate. However, we all know the opposite is also true. The value of your chosen cryptocurrency could also tank, leaving you with a lower rewards rate (or no rewards at all) in the end.
If you’re on the fence or you want to hedge your bets, you can always pick up a rewards credit card that offers cash back then split your points across Bitcoin and other types of rewards, like gift cards or merchandise. That way, you can expose yourself to potential crypto growth but also have some fun along the way.