What the Coinbase One credit card is
The Coinbase One credit card is a rewards card issued by Coinbase in partnership with a bank, designed for people who buy cryptocurrency or use Coinbase's platform regularly. Unlike most credit cards that reward you in cash back, this card rewards you in cryptocurrency — specifically Bitcoin, Ethereum, or other coins Coinbase supports. You earn a percentage of what you spend returned as crypto, which sits in your Coinbase account until you decide to sell it or move it.
The card itself works like any other credit card: you swipe it, pay a monthly bill, and build a credit history with the card issuer. The difference is in how the rewards land. If you spend $100 and earn 2% back, you get $2 in Bitcoin (or your chosen coin) added to your Coinbase wallet, not $2 in your checking account.
Coinbase also offers a paid membership called Coinbase One, which is separate from the credit card but often bundled with it. The membership costs money per month and includes perks like higher rewards rates on the card, fee discounts on trades, and early access to new features. You do not have to buy the membership to use the card, but the rewards rate is lower without it.
Key Takeaways
- The Coinbase One credit card earns rewards in cryptocurrency, not cash, and those rewards stay in your Coinbase account until you convert or sell them.
- Without a Coinbase One membership, the card typically earns 1% back on most purchases; with the membership, the rate is higher but you pay a monthly fee.
- You need a Coinbase account and a U.S. bank account to get the card, and Coinbase will run a credit check before approval.
- The card has an annual fee if you want the higher rewards tier through Coinbase One membership, so you should calculate whether the extra rewards cover that cost.
- Crypto rewards are taxable income in the year you receive them, and their value can rise or fall before you sell, which is different from cash-back cards.
How rewards work and what they cost
The base card (without Coinbase One membership) earns 1% back on all purchases in the form of cryptocurrency. That means every $100 you spend returns $1 in Bitcoin, Ethereum, or another supported coin. There is no annual fee for the base card itself.
If you pay for a Coinbase One membership — the cost varies but is typically $10 to $15 per month depending on your region — the rewards rate jumps to 2% or higher on certain categories like dining, travel, or gas, and 1.5% on everything else. Some versions also offer bonus rewards on specific merchants or spending categories. The membership also includes other perks like reduced trading fees and priority customer support, but the credit card is the main draw for most people.
The math matters here: if you spend $500 per month, the base card earns you $5 in crypto per month, or $60 per year. The Coinbase One membership costs roughly $120 to $180 per year. You would need to spend enough to earn back that membership fee through higher rewards. If you spend $2,000 per month and earn an extra 0.5% to 1% through the membership, you might break even or come out ahead. If you spend $500 per month, the membership probably costs more than it saves.
Approval and what you need to open the card
To get the Coinbase One credit card, you need three things: a Coinbase account (which is free to create), a U.S. bank account for the card issuer to verify, and a credit history that the bank is willing to approve. Coinbase will run a hard inquiry on your credit report, which temporarily lowers your credit score by a few points.
You do not need to hold cryptocurrency or have money in your Coinbase account to open the card. The account just needs to exist and be verified. The card issuer will ask for your Social Security number, address, income, and employment history — the same information any credit card company requests.
Approval decisions usually come within minutes to a few days. If you are denied, Coinbase will tell you the reason (often a low credit score, recent delinquencies, or too many recent credit inquiries). You can reapply after your credit improves, but each process triggers another hard inquiry, so space them out by at least a few months.
How crypto rewards differ from cash back
The biggest difference between this card and a traditional cash-back card is that your rewards are not money — they are an asset that can change in value. When you earn $10 in Bitcoin rewards, that $10 is worth $10 at the moment you earn it. But Bitcoin's price moves constantly. By the time you check your account tomorrow, that $10 might be worth $9.50 or $10.50.
This creates two complications. First, the IRS treats crypto rewards as taxable income in the year you receive them, based on the fair market value at the time you earned them. If you earned $100 in Bitcoin rewards in 2024, you owe income tax on $100 in 2024, even if Bitcoin's price drops to $80 by the time you file your taxes. You will also owe capital gains tax if you sell the Bitcoin later at a different price. A cash-back card does not trigger this second tax layer.
Second, you have to actively convert your rewards to cash if you want to spend them. With a cash-back card, the $10 lands in your account as money and you can use it when ready. With this card, you have to log into Coinbase, sell your Bitcoin (or other coin), wait for the sale to settle, and transfer the money to your bank. That process usually takes a few business days and may involve small fees.
Annual fees and other costs to know
The base Coinbase One credit card has no annual fee. You pay nothing to hold the card itself.
The Coinbase One membership, if you choose to buy it, costs money each month. The exact amount depends on your location and Coinbase's current pricing, but it is typically in the $10 to $15 range. You can cancel the membership at any time without penalty, and the card continues to work — you just earn the lower 1% rewards rate instead of the higher rate.
There are no foreign transaction fees if you use the card abroad, though Coinbase may explore a currency conversion rate that includes a small markup. If you carry a balance (do not pay off the full statement by the due date), you will pay interest at the card's APR, which varies based on your creditworthiness but is typically in the mid-to-high teens. Like any credit card, late payments trigger late fees and can damage your credit score.
How to use the card and manage your rewards
Once approved, Coinbase will mail you a physical card or offer a digital card number you can use when ready in Apple Pay, Google Pay, or other digital wallets. You use it exactly like a regular credit card: swipe, insert, or tap at checkout. The merchant has no idea you are earning crypto rewards.
Your rewards land in your Coinbase account automatically, usually within a few days of the purchase posting. You can see them in the "Rewards" section of the Coinbase app. From there, you can hold the crypto, sell it for dollars, or transfer it to another wallet if you use crypto elsewhere.
If you want to convert rewards to cash, log into Coinbase, find your rewards balance, click "Sell" or "Convert", choose how much to sell, and confirm the transaction. The dollars land in your Coinbase Cash account (a feature Coinbase offers), and you can transfer them to your bank account. The whole process takes a few minutes, though the bank transfer itself takes one to three business days.
Comparing this card to other rewards cards
A traditional cash-back card might offer 2% back on all purchases or 3% to 5% on specific categories like groceries or gas. The Coinbase card offers 1% to 2% depending on membership, which is competitive but not exceptional. The real difference is the form of the reward.
If you believe cryptocurrency will increase in value over time, the Coinbase card is appealing because your rewards grow with it. If Bitcoin goes up 20% in a year, your $100 in rewards becomes $120 without you doing anything. A cash-back card's $100 stays $100.
If you are skeptical about crypto or do not want the complexity of managing a second asset, a traditional cash-back card is simpler. Your rewards are money you can spend when ready, and there is no tax complication beyond the initial income tax on the rewards themselves (which most cash-back cards do not trigger).
If you already use Coinbase regularly to buy or trade crypto, this card makes more sense because your rewards stay in the same account where you manage your other holdings. If you do not use Coinbase, opening an account just for the card rewards is probably not worth the effort.
Frequently Asked Questions
Do I have to hold the crypto rewards or can I convert them to cash right away?
You can convert them to cash when ready if you want. Log into Coinbase, sell your rewards for dollars, and transfer the money to your bank account. There is no requirement to hold crypto, and you can do this as often as you like. Some people convert when ready to avoid price swings; others hold and hope the value rises.
What happens to my rewards if Coinbase shuts down or has a security breach?
Your rewards are held in your Coinbase account, which is insured up to $250,000 per account holder for cash balances through FDIC insurance (though crypto itself is not FDIC-insured). If Coinbase faces legal trouble, your account may be frozen while the issue is resolved. This is a real risk with any crypto platform, so only keep rewards in Coinbase if you trust the company.
Can I use this card if I have bad credit?
It depends on how bad. Coinbase does not publish a minimum credit score, but most credit card issuers approve people with scores in the 650+ range. If your score is lower, you will likely be denied. You can reapply after paying down debt or disputing errors on your credit report, which takes months.
Do I owe taxes on my rewards when I earn them or when I sell them?
You owe income tax when you earn them (based on their value at that moment) and capital gains tax if you sell them later at a different price. If you earn $100 in Bitcoin and sell it for $120 a month later, you owe income tax on $100 and capital gains tax on the $20 gain. Keep records of when you earned each reward and what price you sold it at.
What if I close my Coinbase account — do I lose my rewards?
Before closing your account, you can convert your rewards to cash or transfer your crypto to another wallet. If you close the account without doing this, Coinbase's terms allow them to hold or liquidate the balance, so move your rewards out first. Once you close the account, you cannot reopen it under the same email address for 90 days.