Cons of Crypto Rewards Cards

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Crypto credit cards also come with some notable downsides and risks:

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Volatility:

The same thing that’s a pro (your crypto can increase in value) is also the biggest con – it can decrease in value too. Crypto is famously volatile. The value of your rewards can swing wildly with the market. If you earned $50 in a smaller altcoin and then that coin’s value drops 50%, your rewards effectively halved to $25. By contrast, $50 cash will always be $50. In late 2022, the crypto market had a major downturn (“crypto winter”), and many who earned crypto rewards saw their reward balances shrink drastically. There’s no guarantee your crypto won’t lose value by the time you want to use it.

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Uncertain Future & Availability:

The crypto rewards card landscape has been in flux. Some pioneering cards have been discontinued. For example, the BlockFi Bitcoin Rewards Card was one of the first, but BlockFi faced issues and that card is no longer open to new users. Another fintech card called Paceline (which had a fitness angle + crypto) shut down for a while. The offerings can change quickly based on crypto market conditions and even regulatory pressures. This means a card you sign up for might change its rewards program or terms if the company hits a rough patch.

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Opportunity Cost – Could Have Had Cash:

Earning 2% in Bitcoin is great if Bitcoin goes up, but what if it doesn’t? You could have just taken 2% in cash. There’s a real possibility that in a year’s time, the cash back you didn’t take would have been more beneficial than the crypto you did take. Essentially, you’re speculating with your rewards. If you’re risk-averse or prefer guaranteed value, crypto can be disappointing.

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Limited Redemption/Use:

With cash back or points, you often can redeem in various ways (cash, gift cards, travel, etc.). Crypto is, well, crypto. Until you sell it, you can’t use it to pay your credit card bill or buy groceries. Some cards (like the ones that work via an exchange) will let you sell your earned crypto for cash within the account, but that adds a step. Also, you might incur taxes when you sell (more on that shortly). In short, crypto rewards are less liquid.

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Tax Implications:

This is a tricky area. In the U.S., credit card rewards are generally not taxable when earned (they’re considered a rebate on spending). Earning crypto via a credit card reward likely falls under the same principle at the moment of earning. However, if that crypto appreciates and you later sell it or use it, you could owe capital gains tax on the increase. For example, you got $50 in Bitcoin as rewards (not taxable then). It grows to $100 and you decide to sell or spend that Bitcoin – the $50 gain could be subject to tax. This adds complexity; cash back never has tax consequences, but crypto might.

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Requirements and Complexity:

Some crypto cards have extra hoops. The Crypto.com Visa, for instance, has tiers where you must hold (stake) a certain amount of their native token (CRO) to get higher rewards rates. This effectively locks up some of your money in crypto to maximize rewards – not everyone will be comfortable doing that. It also means the best advertised “8% back” or such might only be for people willing to commit a lot to crypto upfront. Additionally, managing a crypto wallet or exchange account alongside your credit card adds a layer of complexity for users not already familiar with crypto.

Top Crypto Reward Cards in 2025

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Despite some downsides, a handful of crypto credit cards are available in 2025 and might appeal to certain users. Here are a few of the notable crypto rewards cards and what they offer:

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Gemini Credit Card –

‍No annual fee. Earn 3% back in crypto on dining (up to a monthly cap), 2% on groceries, 1% on everything else. You can choose Bitcoin or any of 50+ cryptos for your rewards, and they are deposited instantly into your Gemini exchange account. This card is user-friendly since Gemini is a regulated U.S. exchange, making it straightforward to hold or convert your crypto. It’s a good option if you want flexibility in which crypto you earn (not just Bitcoin). Keep in mind the 3% and 2% categories have spending caps per year, after which those revert to 1%, similar to many tiered cards.

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Venmo Credit Card –

‍No annual fee. This is actually a cash-back card (3% back in your top spend category, 2% in the second, 1% on rest), but what makes it “crypto” is the optional feature: you can have Venmo automatically use your cash back to purchase crypto (Bitcoin, Ethereum, Litecoin or Bitcoin Cash) each month, with no transaction fee. Essentially, you still earn cash back, but then you turn it into crypto. The advantage here is you can always choose not to – flexibility. If crypto is down, you might hold off and keep the cash. If you enable it, it’s a hands-off way to dollar-cost-average into crypto. Note though, Venmo’s 3%/2% structure is great for tailored spending, but it only offers four crypto choices for auto-purchase.

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Crypto.com Visa Card –

‍No annual fee (various tiers). This is a prepaid rewards card rather than a traditional credit line. You have to top it up (so it works more like a debit card), but it made waves for offering up to 5% or even 8% back in crypto (CRO coin) at its peak. In 2025, the program has been scaled back a bit due to the crypto market changes. For example, without staking any CRO, you might get 1% back; with staking a substantial amount of CRO, higher tiers unlock 2% to 5% back on purchases, plus perks like rebates on Spotify/Netflix. It’s a bit complex and only worth it if you’re deep into the Crypto.com ecosystem. The rewards are paid in CRO (which you can convert to other crypto or use on their exchange). This card is best for crypto enthusiasts who don’t mind the commitment.

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SoFi Credit Card –

‍No annual fee. While not branded as a crypto card, the SoFi card earns 2% back which you can redeem directly into various financial assets – one option is crypto via SoFi’s invest platform. You could take your 2% rewards and have SoFi convert it to Bitcoin or Ethereum in your account. The nice thing is SoFi also offers other options (cash, paying down loans, stocks). So if you want a simple flat 2% card with the option to put rewards into crypto occasionally, SoFi is a solid, flexible choice.

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(Note: The landscape is evolving – new crypto reward cards can pop up, and terms can change. Always check the latest details. For instance, cards from startups like BlockFi or product announcements like the Coinbase card have come and gone. The above list focuses on cards accessible to U.S. consumers that have some track record.)

Tips: Should You Get a Crypto Rewards Card?

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Now for the big question – is a crypto credit card right for you? Here’s how to decide:

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Consider your belief in Crypto:

If you strongly believe in the long-term growth of cryptocurrency and you’re okay with the short-term ups and downs, a crypto rewards card can be a low-effort way to accumulate more crypto. It’s like a “set it and forget it” investing method. However, if you’re just dabbling or you get anxious about volatility, you might prefer the certainty of cash back. You can always take cash back and manually invest it in crypto on your own schedule – that gives you more control.

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Evaluate the Card as a Card:

Don’t get blinded by the word “crypto.” First make sure the card itself is good. Does it have a decent rewards rate (comparable to other cash back cards)? Is there an annual fee or any catches? If a crypto card only gives 1% back in Bitcoin but you could get a different card that gives 2% in cash, you’re essentially giving up value for the novelty of crypto. Ideally, the card should be rewarding on its own merits. The Gemini and Venmo cards, for instance, have competitive reward structures akin to normal cards. Avoid any card that is subpar just because it’s crypto-themed.

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Tax and Management:

Are you prepared to handle the minor tax complexity if your crypto grows and you sell it? If not, sticking to cash might be simpler. If you do go the crypto route, keep records of what dates you earned crypto and at what values (the platforms usually do this for you), so if you ever cash out, you know your cost basis.

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Long-Term Strategy:

Think about what you want to do with the crypto you earn. Are you planning to HODL (hold on for dear life) hoping it appreciates significantly? Or would you periodically convert it to cash or use it? If you don’t have a plan, you might end up holding a small bag of crypto that you forget about or that fluctuates without purpose. Having an end-goal (“I’ll hold until it reaches X price, or I’ll use it to dabble in crypto investing”) can make the card more purposeful.

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Backup Option:

Ensure you have at least one “normal” rewards card in your wallet too. It’s totally fine to dedicate some spending to a crypto card, but it’s wise to not put all spend there. For example, you could use a crypto card for certain fun purchases, but keep using a high-rate cash back card for other bills. This way, you’re diversified – you’ll always get some guaranteed rewards and some speculative rewards.

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Using Tools:

Just like with any multi-card strategy, a tool like Kudos can assist if you’re mixing a crypto card with others. Kudos could recommend your crypto card for, say, dining if it knows that’s your highest reward card for that category, and your other card for different purchases. This ensures you maximize rewards across both crypto and non-crypto cards seamlessly.

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In summary, a crypto credit card can be worth it for enthusiasts who are comfortable with risk and see it as an easy way to invest in crypto. If you enjoy watching your rewards potentially grow (and can stomach if they shrink), it adds an interesting dimension to credit card perks. However, if you prefer stability, or if the concept sounds confusing, you’re likely better served by a traditional cash back card. Remember, there’s no rule that you must choose one or the other – some people get a crypto card and use it alongside regular cards, which can be the best of both worlds.

Bottom Line

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Crypto credit cards bring together two worlds – credit card rewards and cryptocurrency investing. In 2025, the excitement has tempered a bit: we have a clearer picture of the benefits and drawbacks. The remaining crypto reward cards can be quite rewarding (especially if crypto prices rise), but they’re not for everyone.

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If you do go for one, pick a card that fits your spending and uses a reputable platform. Enjoy the process of earning crypto on coffee and groceries, but keep an eye on your rewards’ value. And if all this sounds like more risk than reward, don’t worry – you’re not missing out on a must-have; a great 2% cash back card and then buying a bit of Bitcoin outright might serve you just as well (with less complexity).

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Ultimately, are crypto cards worth it? For a niche of users – yes, they can be fun and potentially lucrative. For the average person – you won’t go wrong sticking to cash back or points. As always, make sure whichever card(s) you choose, you pay on time and in full. That way, whether your rewards are in dollars or Dogecoin, you’re always coming out ahead.

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Frequently Asked Questions

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Do I pay any fees when earning crypto rewards?
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Generally, no direct fees. When you earn crypto through a credit card reward, you’re not paying an extra commission – the card issuer handles the conversion. For instance, if you earned 1.5% back in Bitcoin on a purchase, you get the full 1.5% value in Bitcoin (no  transaction fee like you would have on a crypto exchange). However, some platforms have small spread fees or custody fees when you eventually sell or move that crypto. It’s good to read the card’s terms or the crypto platform’s terms to see if any fees apply on the backend. But at the earn stage, it’s typically fee-free.

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Are crypto credit cards safe to use?
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In terms of spending, yes – they function like normal Visa or Mastercard credit cards with the usual $0 fraud liability protection. Your crypto rewards are usually held in a partner account (like an exchange). There is a security consideration there: you’ll want to secure that account (use a strong password, enable two-factor authentication) just as you would for any financial account. The main “safety” concern is the volatility of the asset you’re earning. But using the card itself is as safe as any other credit card. Also, ensure the card issuer or platform is reputable; all the ones mentioned (Gemini, Venmo/PayPal, SoFi, etc.) are well-known companies. Avoid little-known crypto card schemes that might not have the same level of consumer protection.

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What happens if the crypto I earned drops in value? Do I lose money out of my pocket?
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You don’t lose money out-of-pocket, but the reward’s worth is less. Think of it this way: If you earned $10 in crypto rewards and then the market value halves, you now have $5 worth of crypto. It’s as if you had $10 cash back, left it in an investment that went down to $5. You didn’t spend that $5 difference – it was a paper loss of your reward’s value. It can feel disappointing, but it’s not debt or a charge to you, just lost potential reward. Conversely, if it goes up, you gain value. If the idea of your reward value fluctuating bothers you, you can always convert crypto rewards to stablecoin or cash soon after earning to lock in the value (if the platform allows). Just be mindful of any minimums or tax implications if you do that frequently.

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Should I just get cash back and buy crypto separately?
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This is a very reasonable strategy. With a normal 2% cash back card, for example, you could take your rewards (say $50 cash) and buy $50 of crypto on an exchange. The end result (you owning crypto) is similar. The advantage of doing it this way is flexibility: you can choose when and what to buy, and you’re not locked into a specific platform. You can also decide month-to-month – maybe one month you buy Bitcoin, the next month you keep the cash. The downside is a bit more effort on your part (manual transactions, and possibly exchange fees when buying). Crypto cards automate it and sometimes give you more selection or slightly higher rewards in promos. Ultimately, if you’re disciplined, getting cash then buying crypto can work just as well, with the bonus that if you change your mind about crypto, you can just keep the cash. There’s no one-size-fits-all answer; it depends on whether you value convenience or flexibility more.

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Do I need a crypto wallet to use a crypto credit card?
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Not initially – the cards usually create some form of wallet or account for your rewards. For example, the Gemini card deposits into your Gemini account (custodial wallet on the exchange), Venmo holds the crypto in your Venmo app’s crypto section, etc. You don’t need to manage a separate crypto wallet (with private keys) unless you want to withdraw your crypto to your own wallet. If you do decide to self-custody (move it to a personal crypto wallet), most platforms will allow you to transfer out to an external wallet address, but it’s optional. Many users simply leave the earned crypto in the provided account until they decide to sell or use it. So, you can get started with crypto rewards without any prior crypto setup – the card issuer handles the “wallet” part for you behind the scenes.