What's the Deal with Crypto Credit Cards?

Crypto is having a moment again, with Bitcoin hitting $100, 000 recently. If you want to dip your toes into crypto, a crypto credit card might seem like a good idea. These cards let you earn crypto as rewards instead of cash or points. But they're not for everyone, and there aren't many options. Let's break it down. Back in 2020 and 2021, crypto was booming. Credit cards started offering crypto rewards. Companies like Upgrade and BlockFi gave it a shot, but they didn't last. The crypto winter hit, and things cooled down. Now, the incoming Trump administration seems more crypto-friendly. So, what is a crypto credit card? It's like a regular credit card, but instead of cash back, you get crypto. The taxes can be tricky, though. Every time you use the crypto you earned, it's a taxable event.

Right now, your best options are the Gemini and Venmo cards. Gemini offers more types of crypto, while Venmo's rewards adjust to your spending habits. But crypto is volatile, so your rewards could be worth more or less depending on the market. Crypto cards come with risks. Your rewards aren't insured, and you can't spend crypto easily just yet. Plus, the industry has had some serious problems. Companies like FTX and Celsius have faced bankruptcy and scandals. Before you apply, think about how you'd use the card and what you want to get out of it. Look at the fees and other products the companies offer. Don't rush, though. New crypto-friendly policies might bring more card options soon.

Actions