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 credit cards that let you earn Bitcoin.
The allure of crypto rewards
Why would you want a rewards credit card that lets you earn Bitcoin? Probably for the same reason you would pick up a card that lets you earn travel rewards or cash back. Crypto credit cards give you the chance to rack up Bitcoin or other digital currencies based on your spending. From there, you can spend or save your crypto in any way you see fit.
One big potential advantage of crypto credit cards is the fact that, unlike other types of rewards, Bitcoin and other digital currencies have the potential to grow dramatically in value. After all, we all saw how the price of a single Bitcoin surged above $60,000 in April of 2021, and that’s after being worth less than $10,000 just a year earlier.
Imagine if you had used a crypto credit card to earn rewards all along and that you had been an early adopter. If you had invested $100 in Bitcoin on July 28, 2010, your investment would be worth $72,902,650 by February of this year, according to an analysis from Yahoo Finance.
While the value of Bitcoin is lower today than it was in February of 2021, keep in mind that the value has swung wildly up and down for the last decade, albeit with an overall upward trajectory. Some experts even suggest the value of Bitcoin could increase to over $200,000 or more by the end of 2021. However, keep in mind that Bitcoin (and all other cryptocurrencies) is an extremely volatile investment. While any investment is a calculated risk, a market as constantly fluctuating as cryptocurrencies poses a higher level of risk.
Learn more: How to responsibly invest in Bitcoin
While the potential to double your rewards or better is definitely worth considering, crypto credit cards come with generous earning rates already, or at least they plan to. For example, the BlockFi Rewards Visa Signature Card is currently on a waitlist, but it plans to pay 1.5 percent cash back on every transaction in U.S. dollars, which it then converts into bitcoin. There’s no annual fee, and you also earn 2 percent back in Bitcoin on every purchase after you spend $50,000 on your card within a year and 3.5 percent back in Bitcoin during your first three months of card ownership, up to $100 in Bitcoin.
The Gemini Credit Card is another crypto credit card you can eventually get, although it’s currently on a waitlist as well. Cardholders who choose this option will get the chance to earn rewards on qualifying purchases that translate to Bitcoin or 30 other cryptocurrencies available on the Gemini platform, and all with no annual fee.
Specifically, this card will give out 3 percent back on dining purchases, 2 percent back on groceries and 1 percent back on regular spending. The rewards earned will be automatically added to your Gemini account where you can use them however you want.
Which rewards credit cards let you redeem rewards for Bitcoin?
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 for a check in the mail 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.
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.