Earning bitcoin rewards offers a unique bonus with every purchase. It’s a modern perk that goes beyond traditional rewards programs. Bitcoin rewards offer potential growth unlike points or miles, which typically offer only discounts or specific products.
Exploring Bitcoin Rewards Programs
Many platforms offer bitcoin rewards. Some provide rewards in Bitcoin or “sats,” its smallest unit. Others use traditional points/miles systems. Let’s explore common checking accounts and credit card reward types, along with savings accounts that let you earn rewards through a month CD.
Cashback Rewards
Cashback programs offer a percentage of purchases back in bitcoin. Smiles Bitcoin is a browser extension. Users earn Bitcoin cashback rewards at over 100 online shops.
It’s free, simple, and rewards vary between retailers. This is a good option for those seeking to earn crypto while online shopping.
Staking Rewards
Some cryptocurrencies offer staking rewards. Coinbase supports Tezos, Cosmos, and ETH staking. Payouts can be as high as 6% APY (though APY varies).
Staking is like earning interest. You contribute to a blockchain’s operation by locking up some cryptocurrency. This earns you staking rewards.
Learning Rewards
Learning about crypto can earn you crypto rewards. Some platforms offer videos and quizzes that issue crypto rewards upon completion.
Coinbase Earn lets users try new cryptos while learning the basics. Since its launch, Coinbase Earn has distributed over $100 million in free crypto.
Rewards Cards
Similar to credit card rewards, spending on certain cards may grant Bitcoin rewards. This typically earns less Bitcoin than dedicated platforms like Fold or Lolli.
Those platforms specialize in maximizing earnings. You can start earning today by finding the right rewards card.
Here’s a comparison of how these methods fare with $1,000 in online purchases:
| Platform | Bitcoin Rewards on $1,000 Purchase |
|---|---|
| Fold Card (1% cashback) | 0.00001 BTC (approx. $2.57 based on 02/09/24 price) |
| Gemini Credit Card (1% back on purchases) | 0.00001 BTC |
| Lolli (5% average cashback) | 0.00005 BTC (approx $12.87) |
| Smiles Bitcoin (Up to 35% Cashback – varies by retailer) | Up to 0.00035 BTC (approx. $89.54 based on $257 bitcoin value on 2024-02-09) |
The actual Bitcoin value earned depends on many factors. Look into the details about each checking account and savings account if they support rewards and any requirements, and also which rewards card has the most perks and rewards.
Getting Started with Bitcoin Rewards
Getting started with bitcoin rewards is simple:
- Get a Crypto Wallet: Use Coinbase Wallet or another self-hosted crypto wallet. Consider a trading tools account to get familiar with professional-grade trading tools.
- Choose Your Platform: Options include Fold , Lolli, or the Smiles Bitcoin browser extension. Each offers different return rates, store selections, and reward opportunities. Explore staking and crypto learning rewards, and consider completing tasks and earn rewards as alternatives. Also you may want to compare self-hosted crypto wallets and wallets with buy, sell, and card spend features built-in.
- Link Accounts and Start Earning: Sign up for your chosen platform and add any apps or extensions. Activate offers, use affiliated cards, or browse supported retailers. Monitor how earnings are added to your wallet or if a separate claiming process exists. See if anything links to credit cards or a checking account.
Understanding the Tax Implications of Bitcoin Rewards
Even small Bitcoin earnings have tax implications. Bitcoin gains are treated like other investments. Track your bitcoin rewards’ fair market value when earned; this becomes your cost basis.
Selling or spending afterward triggers short- or long-term capital gains depending on the holding duration. Make sure you get your cost basis setup from your rewards received after card spend to understand the full implication.
Conclusion
Bitcoin rewards add financial upside to daily spending and learning. Earning bitcoin can be engaging. With careful strategy, these methods add an intriguing element to personal finance. Begin your crypto journey today by selecting how you will earn bitcoin rewards.
