Shake Shack Announces Free Crypto Rewards — What You Should Know Before You Collect

Shake Shack recently announced a new rewards program that will give customers free Bitcoin — a bid to attract younger customers to the fast-casual burger chain, according to reporting by the Wall Street Journal.

Rewards programs like this and the free money they offer are nothing new to consumers: Credit cards have sign-up bonuses, bank accounts earn interest, and there are even tools to get cash back when shopping online.

But with the rise in popularity and mainstream adoption of cryptocurrency, you can increasingly get many of those same perks issued in cryptocurrency instead of credit card points or U.S. dollars.

If you’ve already added cryptocurrency to your investment portfolio, these options offer some extra coin on top of your initial investment — but you should know exactly how it works before diving in. You should also be prepared for the added responsibilities free crypto may require, especially when tax season approaches.

While some forms of free crypto, like crypto credit card rewards, are only taxed on the capital gains you earn when you cash out (just as any other crypto you buy with your own money), others may be considered taxable income when you receive it, and it’s your responsibility to report that to the IRS. Do your research to know your own tax obligations beforehand.

But if you’re already in on crypto, and prepared to do a little extra tracking of your coins, here are some other ways to bolster your holdings — for free.

Before You Start

Evaluate any opportunity for free crypto critically before participating. Many of the more legitimate ways to earn “free” crypto require at least some upfront work, like taking lessons on Coinbase Earn or navigating a shopping portal for crypto rewards. And promises of free money are ripe for manipulation from scammers. Never accept an unsolicited offer for free cryptocurrency, and do your own research into any opportunity before you take part.

1. Shopping Rewards

Lolli, a Google Chrome or Firefox browser extension, offers “Bitcoin Back” when you shop with its retail partners. It works similarly to browser extensions like Rakuten or Honey that offer discounts and cash back when you use the portal or extension to shop online. Like those programs, Lolli rewards you for spending regular money just as you normally would when shopping online — not for making purchases with crypto.

Retailers on Lolli range from Nike to Sephora to Malaysia Airlines. Rewards go from 1% to as much as 30% Bitcoin back, depending on the retailer and product. Your rewards will go into your Lolli account, and then you can transfer them to your crypto wallet or exchange account.

2. Credit Cards

A cryptocurrency credit card works similarly to other rewards credit cards, but instead of earning cash back or points with every swipe, you’ll get cryptocurrency. While we love simple cash back rewards (and you can always buy crypto with your cash back earnings), these cards can help you more seamlessly pad your crypto portfolio.

Gemini and other exchanges have announced plans for cryptocurrency rewards credit cards, along with fintech companies like BlockFi and Upgrade. The rewards categories on these cards are similar to many traditional cash back credit cards. BlockFi Credit Card, for example, earns a flat 1.5% back in Bitcoin on every purchase you make, after earning 3.5% back for the first 90 days after account opening.

In addition to varying rewards rates, each of these cards offer different redemption values. The Gemini card will let you choose which crypto to redeem rewards in, while BlockFi earns Bitcoin rewards, and others limit your rewards to only certain altcoins.

As with any credit card, the rewards you earn with these cards are only valuable if you avoid their high interest rates. If you use a card to earn crypto rewards, make sure you charge only what you can afford to pay off in full and on time each month, without carrying a debt balance.

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