The world of cryptocurrency is heating up once again. Bitcoin recently surged past $100,000, reigniting interest in digital assets and prompting many consumers to explore new ways to get involved. One increasingly popular option? Crypto credit cards—financial tools that let you earn cryptocurrency rewards on everyday purchases.
But with excitement comes caution. While the idea of earning crypto as you spend sounds appealing, it’s important to understand how these cards work, what risks they carry, and whether they truly align with your financial goals.
What Exactly Is a Crypto Credit Card?
A crypto credit card functions like a traditional rewards credit card—but instead of earning cash back, airline miles, or points, you earn cryptocurrency. For example, if your card offers 3% back on dining and you spend $100 at a restaurant, you’d earn $3 worth of crypto (such as Bitcoin or Ethereum) deposited directly into your digital wallet.
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However, there's a catch: the IRS treats cryptocurrency as property. That means every time you earn or spend crypto through a rewards program, it could trigger a taxable event. Unlike standard credit card rewards—which are tax-free—crypto earnings may require careful record-keeping and could result in capital gains taxes down the line.
Your Current Options: Gemini and Venmo Lead the Pack
As of now, the market for true crypto credit cards is extremely limited. Prepaid or debit cards offering crypto rewards are more common, but actual credit cards that build credit and offer crypto rewards come down to two primary players: the Gemini Credit Card and the Venmo Credit Card.
Gemini Credit Card
- Annual Fee: $0
- Welcome Bonus: $200 in crypto after spending $3,000 in the first 90 days
Rewards Rate:
- 4% back on $200 of gas and EV charging per month
- 3% back on dining
- 2% back on groceries
- 1% back on all other purchases
- Key Features: Instant transfers to over 50 supported cryptocurrencies; rewards go directly to your Gemini exchange account
Launched in 2022, the Gemini card has outlasted many early competitors. Its structure mirrors top no-annual-fee cards, making it one of the most user-friendly options for earning crypto passively.
Venmo Credit Card
- Annual Fee: $0
- Welcome Bonus: None
Rewards Rate:
- 3% back in your top monthly spending category
- 2% back in your second-highest category
- 1% back on all other purchases
- Key Features: Option to switch to standard cash back; rewards settle at the end of the billing cycle
Venmo’s card automatically identifies your highest-spending categories each month—ideal for those whose spending habits vary. However, it only supports four cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Bitcoin Cash), and rewards aren’t credited until your statement closes.
How Do Crypto Rewards Compare to Traditional Points or Miles?
Traditional credit card rewards—like airline miles or hotel points—typically maintain stable values. A point is usually worth around 1–2 cents, regardless of market conditions.
Crypto rewards, on the other hand, are highly volatile. A $100 reward in Bitcoin today could be worth $150 next month—or $50. This volatility introduces both opportunity and risk.
According to Ted Rossman, senior industry analyst at Bankrate, “The main appeal of crypto is the potential for exponential growth. If it goes to nothing, the worst thing that happens is you lose your credit card rewards.”
But this upside comes with complexity:
- Value fluctuation means you might hold onto rewards longer.
- Tax implications require tracking cost basis and sale dates.
- Spending limitations mean you can’t easily use crypto at most merchants.
Key Risks of Using a Crypto Credit Card
Before jumping in, consider these critical downsides:
No Government Insurance
Unlike bank deposits protected by FDIC or NCUA insurance, cryptocurrency holdings aren’t insured. If the platform fails or you fall victim to a scam, recovery is nearly impossible.
Limited Usability
Despite headlines about companies accepting crypto, most retailers still don’t. You can’t pay your utility bill or buy groceries with Dogecoin at mainstream stores.
Narrow Redemption Choices
With over 11,000 cryptocurrencies in existence (per Coinbase), reward options remain surprisingly limited—usually just major coins like Bitcoin and Ethereum.
Industry Instability
The crypto space has faced major setbacks: FTX’s collapse, Celsius and Voyager Digital’s bankruptcies, and Sam Bankman-Fried’s conviction have shaken consumer confidence. In 2023 alone, Americans lost nearly $5.6 billion to crypto scams (FBI data).
👉 Learn how secure platforms are helping users navigate crypto safely in uncertain markets.
Should You Apply for a Crypto Credit Card?
Here are three key questions to ask yourself:
1. Are You Already Investing in Crypto?
If you're already buying and holding cryptocurrency, a crypto credit card can complement your strategy by adding passive income in the form of rewards.
2. Can You Handle the Tax Complexity?
Each reward earned is a taxable event. You’ll need to track:
- Date of reward issuance
- Fair market value at time of receipt
- Future sale price (for capital gains)
Consulting a tax professional may be necessary.
3. Are You Comfortable with Volatility?
Don’t invest—or earn—more in crypto than you’re willing to lose. Treat crypto rewards as speculative income.
Frequently Asked Questions (FAQ)
Q: Are crypto credit cards safe?
A: They’re generally safe if issued by reputable companies, but the underlying crypto assets lack government insurance and are subject to market swings and security risks.
Q: Do I have to pay taxes on crypto rewards?
A: Yes. The IRS considers earned cryptocurrency as taxable income at its fair market value when received.
Q: Can I use my crypto rewards directly for purchases?
A: Not easily. Most merchants don’t accept crypto payments, so you’d need to convert it to fiat currency first.
Q: Which card offers better rewards: Gemini or Venmo?
A: It depends on your spending. Gemini wins for consistent spenders in dining and groceries; Venmo suits those with shifting monthly categories.
Q: Will more crypto credit cards launch soon?
A: Likely. With increasing regulatory clarity and political support—including a potentially crypto-friendly administration—more financial institutions may enter the space.
Q: Can I build credit with a crypto credit card?
A: Yes. Both Gemini and Venmo report activity to major credit bureaus, helping you build credit history with responsible use.
👉 See how next-gen financial tools are reshaping how we earn and manage digital assets.
Final Thoughts
Crypto credit cards aren’t for everyone—but they represent an innovative way to integrate digital assets into everyday finance. With only two real options currently available (Gemini and Venmo), now is a good time to evaluate whether this aligns with your long-term financial vision.
If you're already invested in crypto, understand the tax implications, and are comfortable with volatility, a crypto credit card could be a smart addition to your wallet.
But if stability, simplicity, and broad usability matter most, traditional cash-back cards may still be your best bet.
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