If you are looking for ways to buy cryptocurrency with a credit card in Canada, this guide covers some of the best options available.
While buying Bitcoin using a credit card used to be more accessible, the number of trading platforms and card issuers that support crypto purchases using a credit card appears to have dropped in recent years.
For example, you can no longer link a credit card to your Coinbase account. And, for Binance, buying crypto using a credit card means you have to pay in USD and a few other currencies, but not Canadian dollars.
Read on to learn about the best places to buy crypto instantly using a credit card, the fees you will pay, and the pros and cons of buying Bitcoin with a credit card.
How To Buy Crypto With a Credit Card
To buy Bitcoin or any other cryptocurrency with a credit card, you will want to follow these steps.
- Open an account: Set up an account at a cryptocurrency that supports crypto purchases using a credit card. Since not many of these are available, you could start by looking at the platforms listed below. Registration generally involves providing your basic personal information and passing a KYC that confirms your identity.
- Add a funding method: You can fund your account with fiat currency using a direct bank transfer, a debit or credit card, or via crypto deposits from an external wallet.
- Purchase crypto: Place a ‘buy’ order for your preferred crypto coin and pay using a credit card. You will need to enter your card details, including the card number, expiration date, and CVV.
Best Sites To Buy Crypto With a Credit Card in Canada
While these crypto trading platforms allow you to purchase cryptocurrency with a credit card, some credit card companies do not allow it. If this is the case, your transaction may not be completed.
CoinSmart is the best place to buy bitcoin and other crypto assets instantly using your credit card. Based in Canada, this crypto exchange now operates in multiple countries in Europe as well.
It is one of a few Canadian crypto sites that support multiple fiats, funding methods, and crypto credit card purchases.
When buying crypto using any other funding source, you pay one of the lowest trading fees at 0.20%. However, with credit card purchases, a fee of up to 6% is charged.
Funding using a credit card occurs instantly, with a minimum of $100 and a maximum of $5,000.
Offer: Get a $50 bonus when you deposit $200 or more in your new account.
CoinSmart Crypto Exchange
Top crypto exchange in Canada
Great for new & advanced traders
0.20% trading fee
Get a $50 bonus when you deposit $200
2. Trust Wallet
The Trust Wallet is a software wallet for holding various crypto coins. It helps crypto investors take ownership of their private keys to protect their investments.
Along with keeping your coins safe, you can use Trust Wallet to buy and sell cryptocurrency.
For example, you can use it to buy Bitcoin with a credit card starting at a minimum of $50 USD and up to $20,000 USD.
Trust Wallet is available on the App Store and Google Play.
While it does not charge you directly, you can expect to pay a 3.5% transaction fee on credit card purchases to Simplex or a minimum of $10 USD (whichever is greater).
Bitbuy is a Canadian crypto exchange offering multiple coins and a way to pay with your Visa or Mastercard credit card.
Like Trust Wallet, Bitbuy uses Simplex to process credit card transactions with a 6.50% processing fee.
For non-credit card purchases, the transaction fees on Bitbuy are up to 0.50%.
MyBTC is a crypto brokerage for Bitcoin and Ethereum.
To buy Bitcoin on MyBTC, you can fund your purchase with a credit card, Interac e-Transfer, bank wire, or Flexepin vouchers.
The following fees apply, and they are on the high side when compared to the other platforms on this list.
- Credit card: ~ 9.75%
- Flexepin: 9.75% or $5 minimum (whichever is greater)
- Bank wire (4.75%)
- Interac e-Transfer: 7.75% or $10 minimum (whichever is greater)
Purchase limits for credit card transactions are $75 minimum and $25,000 maximum.
CEX.io is a crypto exchange available in multiple countries. It allows credit card crypto buys in Canada.
Credit card transactions will cost you 2.99% for deposits, and for withdrawals, you pay a service charge and commission as follows:
- Visa: Service charge (up to 3% + $1.20); Commission: Up to $3.80.
- Mastercard: Service charge (up to 1.8% + $1.20); Commission: Up to 1.20% + $3.80
Alternatives To Buying Crypto With a Credit Card
Buying crypto with a credit card will cost you more in fees.
If you plan on funding your account using bank transfer, debit card, or Interac e-Transfer, these crypto sites also come in handy:
- Wealthsimple Crypto
Trade several cryptocurrencies
Excellent trading platform
1.5% to 2% trading fee
Get a $25 bonus when you deposit $200+
Trade several popular coins
Excellent crypto broker for newbies
Up to 2.20% trading fee
Get a $25 bonus when you trade $100
Trade Bitcoin & Ethereum fast
Works for new & advanced traders
1-3% trading fee, free withdrawals
Get a $5 bonus when you trade $100
Pros and Cons of Buying Crypto With a Credit Card
- Instant purchase of cryptocurrency
- You can buy crypto even if you don’t have cash available
- Credit cards have hefty fees if you don‘t pay off your monthly balance
- Some credit cards charge a cash advance fee
- FX fees may apply if your purchase is in a different currency
- Higher trading commissions when paying with a credit card
- Some platforms offering crypto purchases with a credit card are scams
Should I Buy Cryptocurrency With a Credit Card?
Cryptocurrencies are speculative investments and the risk you take only increases when you use borrowed funds.
If you can avoid it, only buy crypto using the money you can afford to lose.
We do not recommend buying crypto using a credit card.
Buy Crypto With Credit Card FAQs
Yes, it is legal to buy crypto using a credit card in Canada. That said, some credit card companies and crypto exchanges do not support this payment method.
It can be safe to buy crypto with a credit card if you are purchasing a legit platform like CoinSmart.
Most crypto exchanges that support crypto credit card purchases only accept Visa and Mastercard.
Paying directly with your credit card may appear as a regular purchase. If you deposit funds in your crypto account using a credit card, cash advance fees typically apply. Some credit card companies charge cash advance fees on all crypto purchases.
The best site to buy crypto using a credit card in Canada is CoinSmart.
Yes, you can buy crypto using a credit card on Binance.
Yes, if you have already linked a credit card to your Coinbase account, you may be able to use it to purchase crypto.
Banks that allow crypto purchases in Canada include TD, CIBC, RBC, BMO, National Bank, HSBC, Scotiabank, and Desjardins. While they usually allow Interac e-Transfers, wire transfers, and debit cards, some block credit card payments.
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- Binance vs Coinbase
- Newton vs CoinSmart
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Disclaimer: Cryptocurrency is a volatile and speculative investment. If you decide to invest, we recommend you do your own research and only commit funds you can afford to lose. The author may own one or more of the crypto assets mentioned in this article.