There are a few different ways to purchase cryptocurrency, and learning how to buy Bitcoin with a credit card isn't particularly difficult. There are several platforms that allow this type of credit card purchase, including MyBTC, Kraken, and Paybis.
Before taking this action, though, you should do a bit of research to see if paying with your credit card is the best option for you. Fees for other methods of payment can be considerably less than the credit card processing fees.
To help start your research, we've created a thorough guide to buying Bitcoin with credit cards.
Never miss an amazing deal again + get our bonus 250+ page eBook for FREE. Join 50,000 other Canadians who receive our weekly newsletter – learn more.
How to buy Bitcoin with a credit card
Really, buying Bitcoin with a credit card – or any other method – is quite simple and very similar to any other type of online shopping.
Select a cryptocurrency exchange
First, you'll need to choose a cryptocurrency exchange platform. When comparing these platforms, pay attention to the credit cards they accept and the fees they charge. Specifically, check for cash advance fees and foreign exchange fees.
If you want the flexibility to purchase different types of cryptocurrency, find out what cryptocurrencies the site offers. Some only offer Bitcoin.
The table below can be a helpful starting point when you're looking for a crypto exchange platform.
Create an account and verify your identity
Usually, it’s free to make an account with a crypto exchange, but it does take a few minutes to do so.
You’ll have to provide a few personal details and upload a government-issued photo ID to prove your identity – platforms require this to prevent identity theft and fraud.
Link your credit card
Head to the "payment method" section of your new account and enter your credit card details.
Double-check to ensure that the credit card you want to use supports crypto purchases. At the time of writing, we couldn't find specific examples of credit cards that don't allow crypto purchase, but it's best to stay wary.
Make your Bitcoin purchase
Choose how much Bitcoin you want to buy and confirm the purchase. The platform will either automatically store your Bitcoin, or you can move it to your own storage option.
Where to buy Bitcoin with a credit card
If you look online, you'll find several places where you can buy Bitcoin with a credit card.
Here are three different services you can use to buy crypto with a credit card. We've also listed the fees that you can expect to pay when purchasing Bitcoin.
| Service | Credit Cards Accepted | Fees | Notes |
|---|---|---|---|
| MyBTC.ca | * Mastercard * Visa | * 9.75% of the transaction amount in CAD | * Canada’s leading source of Bitcoin since 2016 * Non-custodial account |
| Kraken | * Mastercard * Visa | * 3.75% + a spread with a minimum of CAD$12.50 | * Complex trading options that are better for advanced users |
| Paybis | * Mastercard * Visa | * 2.49% transaction processing plus a 6.99% - 8.99% fee for credit card transactions* * Transactions in USD | * Fast and simple to fund, but with high fees * Non-custodial account |
* Paybis doesn't publish fees on its site, but we found these via other third-party sites.
1. MyBTC.ca
MyBTC.ca is a Canadian crypto exchange that offers several ways to buy Bitcoin and a few other currencies. This site only takes Visa or Mastercard.
The fees are quite high – you pay roughly 9.75% of the transaction amount. But the prices it offers for other types of transactions are similar. Plus, it's all done in Canadian dollars, unlike most others that operate in USD.
Of the sites on our list, MyBTC is probably one of the most user-friendly for crypto beginners.
2. Kraken
Kraken is a global cryptocurrency platform that allows you to access nearly 500 cryptocurrencies, but it’s been optimized for Canada. Of the sites we chose, this one is tailored to people who know their way around crypto and value extensive regulation.`
Although Kraken isn’t clear about exactly how much it charges to buy Bitcoin with Visa or Mastercard, you can expect to pay at least 3% plus a spread. Users who sign up for a Pro account may be able to score lower fees.
A standout feature is the site’s 24/7 chat and phone support.
3. Paybis
Paybis is another global crypto platform, but it hasn’t customized its services to Canadians. While it advertises low Bitcoin fees, this is somewhat misleading. You’ll pay an initial Paybis transaction fee (free for your first transaction), followed by a credit card fee, which ranges from 6.99% to 8.99%. These fees add up to make this your most expensive option.
The site lacks some of the customer service of Kraken and the ease of use like MyBTC, but it’s convenient and fast.
Other ways to buy Bitcoin
Unfortunately, as you've seen, the lowest fees you can get by buying Bitcoin with a credit card are around 3% + spread, but that could be higher if you have to pay things like foreign exchange fees.
However, if you’re willing to use a different payment method, you can score much lower fees. For instance, you might get a better rate if you use e-transfer or wire transfer.
| Service | Payment types accepted | Fees | Features |
|---|---|---|---|
| Coinsquare | * Wire transfer (minimum $10,000) * Interac e-Transfer | * Deposit: Free * Withdrawal: 0% - 1.5% * Trade: Spread (0.5% - 1.85%) | * Best option for buying Bitcoin without using your credit card * 60+ cryptocurrencies |
| Wealthsimple Crypto | * Transfer from a linked bank account | * Deposit: Free * Withdrawal: Free * Trade: 0.5% - 2% (depending on customer tier) * Stake: 15% - 30% | * Very convenient for current Wealthsimple clients * 100+ cryptocurrencies |
| ShakePay | * Wire transfer * Interac e-Transfer * Bitcoin * Ethereum * USDC *Shakepay a friend | * Deposit: Free * Withdrawals Free * Trade: Spread (up to 3%) | * Potential for low fees, but it depends on the spread |
1. Coinsquare
One of the biggest crypto exchanges in Canada is Coinsquare. You can get Bitcoin or a variety of other currencies.
To fund an account, you have two methods you can use: wire transfer or Interac e-Transfer.
If you want to complete a wire transfer, you'll need to move a minimum of $10,000. For an Interac e-Transfer, you only need to transfer $20.
Coinsquare's trading fee is quite low, though – it's free, aside from the spread.
Coinsquare
2. Wealthsimple Crypto
One of the many types of investment products Wealthsimple offers is its crypto exchange, Wealthsimple Crypto.
Offering a wide variety of cryptocurrencies, you can trade any amount for a transaction fee of up to 2%, depending on your customer level. Generation clients pay 0.5%, Premium clients pay 1%, and Core clients pay 2%.
If you already have any kind of account with Wealthsimple, setting up a new Crypto account is easy since most of the info is filled in for you. If not, setting up a Wealthsimple account is a fairly straightforward process. You can load your account with a transfer from a linked bank account, which makes funding and cashing out your crypto purchases completely free.
Wealthsimple Crypto
3. ShakePay
ShakePay is a Canadian crypto service that offers fee-free transactions for buying and selling.
Unfortunately, "no fee" has a bit of a catch. As the company has to make a profit, it employs a spread. Users buy and sell directly from Shakepay, with a difference between the buying and selling prices. This difference is typically 0.5% - 2%.
One disadvantage to this is that there are only two cryptocurrencies on offer with Shakepay: Bitcoin and Ethereum. Technically, USDC is a third option, but it's automatically converted to USD, which doesn't really help Canadians much.
You can read more about ShakePay here.
Is buying Bitcoin with your credit card safe?
Generally speaking, it's very safe to purchase Bitcoin with a credit card. It's no different than online shopping, but Bitcoin is extremely volatile, as are all cryptocurrencies. Only invest in Bitcoin if you’re okay with seeing wild swings in value and potentially losing out on money.
If buying Bitcoin with a credit card is something you're interested in, check out our compare cards page to take a look at the best credit cards for you.
Does it count as a cash advance?
Buying Bitcoin doesn't count as a cash advance. The transaction looks like any other purchase you make. So you shouldn't have to worry about additional cash advance fees appearing on your statement.
That said, it may count as a cash advance if you're using your credit card to fund an account and then purchase Bitcoin with those funds. However, with the ones we listed, you're making a direct purchase of Bitcoin.
Pros and cons of buying Bitcoin with a credit card
Before getting into buying Bitcoin, there are a few things to know about using your credit card to purchase cryptocurrency.
Pros:
- It’s fast and convenient: Similar to online shopping, it’s easier than ever to choose crypto and make a purchase with your credit card.
- You have immediate access to your Bitcoin: There’s no waiting period for money to transfer after you make the purchase. You have almost instant access.
- You may be able to earn rewards for your cryptocurrency purchase: It’s always a good idea to read your credit card’s fine print, but your Bitcoin purchases might earn you rewards.
Cons:
- Bitcoin is extremely volatile: While buying cryptocurrency with your credit card might seem like a good idea one day, you might find the value has drops significantly by the very next day. Plus, crypto is almost entirely unregulated.
- You’ll typically be charged processing fees: Even though it’s easy to buy crypto with a credit card, you’ll be hit with processing fees that could outweigh the investment earnings or rewards you get from the card.
- You’re adding to your overall credit card debt: If you carry a credit card balance from month to month, your Bitcoin purchase could end up costing you a lot, especially if you miss payments and are charged late fees.
- Cryptocurrencies use a vast amount of energy: If you’re an environmentally conscious person, be aware that the mining required to process the digital transactions uses an enormous amount of energy.
FAQ
Can I buy Bitcoin with a credit card in Canada?
Yes, Bitcoin can be purchased with a credit card in Canada. However, you can only do so through select crypto exchanges, and the fees can be quite high compared to other methods of purchasing Bitcoin.
Can I buy Bitcoin with a credit card instantly?
Yes, using a credit card to buy cryptocurrency is incredibly fast. You don't have to wait for bank transfers from chequing/savings accounts or anything like that. The Bitcoin appears in your account nearly instantaneously.
What is the easiest way to buy Bitcoin in Canada?
The easiest way to buy Bitcoin is to find a crypto platform you’re comfortable using. Credit cards make it really convenient to get started, but the cheapest way to buy Bitcoin is through a bank transfer.
Does buying crypto with a credit card count as a cash advance?
Generally, no, buying crypto with a credit card doesn’t count as a cash advance on your account. If you're using your credit card to fund an account and then purchasing Bitcoin with the funds, it could be a bit different.
What are the best websites to buy Bitcoin with credit cards?
Platforms that sell Bitcoin are constantly changing as regulations adjust the market, but we love the Canadian focus of MyBTC. That said, if you’re looking for the best website that charges the least, we’d go with Kraken.
Can I buy Bitcoin with a credit card on Cash App?
While Cash App isn't available in Canada, those who do have access to this app can link an active credit card to their account and then purchase Bitcoin. You’ll then see a summary of the transaction on your dashboard.
creditcardGenius is the only tool that compares 126+ features of 229 Canadian credit cards using math-based ratings and rankings that respond to your needs, instantly. Take our quiz and see which of Canada's 229 cards is for you.
GC: 
Comments
Leave a comment
Required fields are marked with *. Your email address will not be published.
Showing 1 comments