 TITLE: What Is a Crypto Rewards Credit Card? CONTENT: The Pros and Cons of Crypto Rewards Credit Cards\n------------------------------------------------\nIf you're considering a crypto-earning credit card, it's important to go over both the benefits and drawbacks before you submit any applications.\n### Pros\n*   **It's an easy way to get into crypto.** If you're interested in getting in on crypto, but you don't want to risk any of your own money, you can start earning some with your everyday spending—there's no need to change anything about your finances to make it happen other than the card you use to make purchases.\n*   **You can earn money on your credit card rewards.** Cryptocurrencies are often used as a speculative investment, which means that you can actually earn money on top of the rewards you earn with your credit card. That's not an option with points and miles, and it only happens with cash back if you invest your reward earnings.\n### Cons\n*   **The value of cryptocurrency is volatile.** While you can get outsized value from your crypto rewards, you could also lose a lot of it if the value drops. For example, the price of Bitcoin surged to an all-time high of nearly $65,000 in early 2021 before it was cut in half in just over a month. If you had earned Bitcoin rewards at the top, you would've lost a good chunk of value in the short term.\n*   **You'll lack flexibility.** Some crypto credit cards don't give you many options to redeem your rewards. With the SoFi Credit Card, for instance, there are just two currencies from which you can choose, and the BlockFi Rewards Visa Signature Credit Card offers just one (Bitcoin). You can exchange your rewards for cash and use that to buy other cryptocurrencies, but that's another step you have to take to get what you want—and it'll involve added fees.\n*   **Cryptocurrency profits have tax implications.** Traditional credit card rewards typically aren't considered to be taxable income, and you won't be taxed on the crypto you earn either. But if you receive crypto rewards and trade them for a profit in the future, you'll be on the hook for taxes on the amount you gained. END