Buying Bitcoin and other cryptocurrencies with a credit card is fast and convenient.
However, there are a few factors to think about before you opt for this payment option, including the cost and impact on your credit rating.
Stick around to learn how to buy crypto with a credit card in Canada as we take a closer look at the benefits, drawbacks and the exchanges that support this deposit method.
How to Buy Crypto With a Credit Card in Canada?
Using a credit card is one of the fastest ways to purchase digital assets. Unlike bank wires and e-transfers, it only takes a few minutes to complete the transfer.
In this part, we will show you how to buy Bitcoin with a credit card.
1. Choose a Crypto Exchange
The first step is to find a crypto exchange that allows you to buy crypto with a credit card (providing that your credit card issuer permits it) and open an account. You will be required to verify your identity, usually with a photo ID, such as a passport or a driver’s licence, and complete the KYC procedure.
This process is quick and necessary to protect your personal information.
Purchasing Bitcoin is considered as a cash advance by most credit card issuers, so before moving forward, make sure you are aware of all the fees the card issuer or exchange may impose.
Related reading: Is Crypto Legal in Canada?
2. Set up a Wallet
Most exchanges come with an integrated wallet so any assets you purchase with a credit card will be deposited there. However, if you are dealing with a non-custodial exchange, you will need to download a wallet, set it up and secure it before providing the address to the exchange.
3. Purchase Crypto
The final step is to actually buy crypto with a credit card. Enter your credit card information, such as the full credit card number, expiry date, CVV code, and other relevant details.
Then, you can enter how much you want to deposit and purchase the coins.
Credit card deposits often clear minutes after the transaction.
Note: A market order that lets you make a purchase at the next available price is the easiest. Those with more experience in dealing with cryptocurrencies can also set up a trigger or recurring order to buy cryptos.
Crypto Exchanges that Accept Credit Cards in Canada
Where can you purchase crypto with a credit card?
Thanks to its low trading (0.20%) and credit card fees (up to 6%), CoinSmart may be one of the best Canadian exchanges to buy cryptocurrency by credit card.
CoinSmart has 17 coins to choose from and accepts three fiat currencies (CAD, USD and EUR). The platform offers other handy features, including advanced trading tools and real-time charting, 24/7 support, coin swapping as well as industry-leading security measures.
Bear in mind that you need to spend between $100 and $5,000 to purchase crypto with a credit card on the platform. Bank wire transfers and Interac e-Transfer come with better terms and lower fees, although these transactions are not processed instantly.
You can learn more about CoinSmart in our full review.
Bitbuy is another trusted and popular Canadian crypto exchange that supports credit card deposits but only for BTC, ETH and USDC. It also limits the use of credit cards for crypto purchases to the website as this feature is not yet available on the mobile apps.
Even so, Bitbuy is a great choice to buy Bitcoin with a credit card—it has a low flat fee of 0.50% and 0.10% maker and 0.20% taker fees for professional traders, while credit card processing, powered by Simplex, comes out to 6.5% of your transaction.
BitBuy also boasts some great features including instant verification, outstanding customer support and over 25 coins to trade in.
If you need more info about the platform, take a look at our Bitbuy review.
Crypto.com, one of the best crypto exchanges in Canada, not only provides access to over 250+ coins, but also accepts deposits made with credit/debit cards. What’s more, the platform has an ongoing promotion that lets you buy cryptocurrency with a credit card without any fees for 14 days after your first purchase.
In addition to competitive trading fees (which can go down to zero should you stake the platform’s native coin), Crypto.com offers users the chance to earn interest on their crypto, access advanced charting and trading tools and even get a loan by using their digital assets as collateral.
Finally, users can spend crypto assets with the company’s Visa Crypto Cards, a tiered cashback scheme which can be used for online purchases or at ATMs.
Shakepay and Netcoins also issue a crypto Visa card in Canada that lets you spend crypto as actual currency while earning generous cashback rewards. However, these crypto exchanges still do not support the purchase of crypto currency with a credit or debit card.
MyBTC.ca partners with Simplex and MoonPay to process credit card payments, so when you pay by Visa or Mastercard on the platform you are actually using their services, fees and verification methods.
Speaking of fees, MyBTC.ca charges a rather steep 9.75% commission for trading crypto by credit card, although it does have a low minimum deposit of just $75 and a maximum of $25,000, which is much higher than other Canadian-based platforms.
It also gives access to a wide range of assets—MyBTC.ca currently offers 93 different cryptos you can buy with your credit card, so it’s a great choice for anyone interested in trading popular and lesser-known coins.
5. Trust Wallet
Trust Wallet is a mobile crypto wallet used for buying and storing digital assets. It supports over 4.5 million assets and accepts Visa and Mastercard while charging users a low transaction fee of just 3.5%.
iOS and Android users can easily install the wallet on their mobile devices and make instant crypto purchases with their Mastercard or Visa (it takes about 10 minutes to half an hour to get the coins in the wallet).
Note that there is a daily limit of USD$20.000 and a monthly limit of USD$50.000, which should be enough to meet the appetite of most investors, although high-volume traders might find this to be too low.
CEX.io is a UK-regulated platform where Canadains can buy Bitcoin with a credit card or bank transfer.
Using the platform to purchase crypto is incredibly easy and just like shopping with plastic—simply enter card details and the amount you wish to buy. The assets will be transferred to your account in less than 5 minutes.
You can pay via Visa and MasterCard and get unlimited daily deposits. Visa withdrawals are capped at $50,000 and MasterCard at $2,500, which is lower but still pretty generous.
However, users are required to pay deposit and withdrawal commissions, as well as a service charge, which can easily cause costs to add up.
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How to Choose the Right Platform?
There are a few important features that every reliable crypto trading app should have in addition to convenient and flexible payment methods.
Security is a must for a crypto exchange, which is why you need to look for apps that implement the strictest security protocols and offer 2-FA (Two Factor Authentication), full transparency of location and an HTTPS address. Also, go for an exchange that retains the majority of clients’ assets in cold wallets to avoid possible hacking attacks.
If you want to turn a profit while trading crypto, you need to find an exchange that offers low fees. When it comes to trading fees, most platforms employ a percentage-based fee model with prices determined by trading volume, so the more you trade, the less you will pay.
Deposit and withdrawal fees, on the other hand, are typically determined by your chosen payment methods. It should be noted that credit cards incur higher deposit charges than other payment options, which is definitely something to consider when using this funding method.
3. Variety of Currencies
Some crypto exchanges like Binance, Coinbase and Kraken support over 300 cryptocurrencies, including popular assets as well as coins set to attract the traders’ attention.
See what cryptocurrencies your selected exchange supports and whether you can buy your preferred coins and tokens with a credit card. Bear in mind that many crypto exchanges do not support crypto purchases with Visa or Mastercard for all coins.
4. Transaction Limits
The majority of platforms have a minimum and maximum deposit requirement, which is higher for credit cards than bank and e-transfers. A trader might only be permitted to withdraw $10,000 worth of fiat or cryptocurrency each day, for instance.
So if you want to move around big sums of money, consider account restrictions both for deposits and withdrawals.
5. Customer Support
Most exchanges provide customer support through phone, e-mail, live chat or a help centre complete with FAQs and helpful videos. Avoid platforms that do not offer several methods of reaching out—these are probably a scam.
How Much Does it Cost to Buy Crypto With a Credit Card?
Although using a credit card to purchase cryptocurrencies is fast and simple, it can also be rather pricey. This is because your transaction may incur a number of fees, both from your card issuer and the cryptocurrency broker.
The following are some of the charges you might need to pay when you buy cryptocurrency with a credit card.
Cash Advance Fees
Buying crypto with credit card is considered a cash advance by many credit card providers, so, as a result, your transaction will typically be subject to a cash advance fee and higher interest rates than typical purchases. The cash advance fees range from 3% to 5% of the total transaction amount.
You will be charged a transfer fee by the platform you are using to purchase Bitcoin or other crypto coins, which will be disclosed at the time of the transaction. It usually varies from 4% to 6%, but in some cases, it can go higher.
Credit Card Surcharge
You might also be requested to pay a credit card surcharge as well as foreign transaction fees if the exchange is based outside of Canada.
Benefits and Drawbacks of Buying Crypto With a Credit Card
So do the advantages of buying crypto by credit card outweigh the drawbacks? Here is a helpful list breaking down the pros and cons.
You only need to enter the credit card details and the amount you want to buy to get started.
Is Buying Crypto With a Credit Card Worth It?
Purchasing cryptocurrencies with a credit card may be fast and super convenient but it also comes with risks. Using credit to invest in an unstable market could lead to high transaction costs and even higher interest fees.
Plus, you don’t have a wide range of exchanges to choose from as only a few support credit card deposits. Not a lot of credit card companies let you use their cards to purchase digital assets either.
Luckily there are other readily available and more cost-effective ways to fund your crypto wallets such as a bank wire or e-transfer, so it’s worth giving these a try first.
Yes, you can buy crypto with a credit card if your crypto exchange and credit card issuer allow it. Keep in mind that you might be charged more than with other transaction methods.
Although most banks and credit card issuers do not allow users to buy crypto with their credit cards, some exchanges partner with payment processing company Simplex to support BTC purchases with Visa or Mastercard.
Crypto.com not only allows you to buy crypto with a credit/debit card, but it also has its own Visa card (virtual and physical) that lets you spend crypto as actual money.
Buying Bitcoin with a crypto Visa card in Canada is available on many platforms, and the process requires signing up and verification, entering the credit card details and depositing the amount.
In general, yes as long as you opt for a trusted crypto exchange and your credit card data is secure. The issue is that you are limited with your options and the fees are higher.
However, if you are set on this payment method and want to learn more about where and how to buy crypto with a credit card in Canada, contact your credit card provider and enquire if they allow it. Then choose a platform from the ones outlined above and start your investment journey.