Do You Earn Rewards Buying Cryptocurrency With a Credit Card?
This guide explains why crypto purchases often earn nothing, the costs involved, and how crypto reward cards differ.
Why crypto buys usually earn nothing
A large share of issuers classify buying cryptocurrency as a cash-like transaction, so it is processed as a cash advance rather than a purchase. That means no rewards, an upfront cash-advance fee, a higher APR, and interest that starts accruing immediately with no grace period. Other issuers simply decline crypto purchases on a credit card. Either way, it is rarely the rewards win people hope for.
The costs even when it works
If your issuer does treat a crypto purchase as a regular purchase, you might earn your normal rewards, but crypto exchanges typically add their own card-processing fee, often several percent, that outweighs the rewards. Between issuer treatment and exchange fees, funding crypto with a credit card is usually more expensive than it is worth.
Crypto reward cards are different
Do not confuse buying crypto with a crypto reward card, which is a card that pays your rewards in cryptocurrency on ordinary spending. Those earn like any rewards card; the reward just arrives as crypto instead of cash or points. That is a separate decision from whether to buy crypto on credit, which for cost reasons is generally best avoided.
- Many issuers treat crypto buys as a cash advance.
- A cash advance means a fee, immediate interest, and no rewards.
- Some issuers block crypto purchases entirely.
- When allowed as a purchase, exchange fees often eat the value.
- Crypto reward cards that pay crypto back are different.
Frequently asked questions
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