Crypto Credit Cards Canada – Your Options, And How They Work

Crypto credit cards essentially work like prepaid cards, except that they’re loaded with your cryptocurrency.

Still, there are key differences, which we’ll dive into before discussing whether or not crypto cards are a good idea. There are only a few cards available to Canadians, so let’s get into it.

Crypto credit cards in Canada

As you can see, there aren’t too many crypto credit card options available right now, but that could always change.

1. Crypto.com Prepaid Visa

This is the card you've probably seen advertised most – the Crypto.com Prepaid Visa. These cards are available in several countries worldwide, including Canada.

There are six levels to this card (although you have two colour choices for a couple of the tiers). Which level you get all depends on the value of the crypto you have loaded – they use CRO.

Here are the levels, and what you'll earn for rewards on each level.

2. Shakepay

Shakepay is a Canadian company that offers a prepaid crypto card with no annual fee.

Shakepay uses Bitcoin as its currency of choice. On all your purchases, you'll earn 1% back in Bitcoin. Shakepay also offers a welcome bonus that nets you an additional 2% on the first $3,000 for 90 days.

Unlike crypto.com’s prepaid Visa, Shakepay’s card doesn't offer much in terms of other benefits or rewards, but it could be a good option for someone starting out with Bitcoin.

3. Coincard Prepaid Visa

The Coincard Prepaid Visa is a little different than the others.

Coincard is a company that allows people to use their cryptocurrency to purchase gift cards, including a Visa Prepaid card that’s loaded with Canadian currency, not crypto. No need to worry about fluctuating exchange rates.

You can purchase $25, $50, $100, $200, and $250 Visa Prepaid cards, but you’ll be charged an activation fee of $3.95 to $7.50, as well as the 5% GST you’re charged. That said, you do have lots of options when it comes to using crypto to buy the card.

Coincard currently accepts:

• Bitcoin (on-chain, lightning, and lightning LNURL)
• Monero
• Litecoin
• Dogecoin
• Zcash (experimental)

With the high fees involved, we would suggest not going this route. If you do want to use your crypto in this way, stick with the regular gift cards. There's still a 5% convenience fee, but there are no activation fees involved.

What are crypto credit cards?

First off, we should clarify that even though they’re called credit cards, they do not next extend a line of credit that you borrow from. Instead, a crypto card is essentially a debit or prepaid card, but instead of loading the card with cash, you load it with cryptocurrency.

As you spend, your purchases are paid to the retailer in the local currency, and your account is deducted based on the current price of the type of crypto loaded. These cards may also come with rewards and benefits.

We should also point out that you may be able to purchase a standard prepaid card using crypto, but the card is loaded with Canadian dollars.

How to choose a crypto credit card

Since your list of crypto credit cards is pretty limited, it’s fairly easy to choose a card. Ask yourself:

• Do I want a physical or digital crypto card? Crypto.com offers a range of stylish physical cards (and even lets you choose the colour for 2 of the tiers), while Shakepay is solely a virtual card.
• Am I okay with a card’s transaction limits? Each crypto card option has different daily transaction limits, so read each card’s terms and conditions carefully, especially if you’re selecting a tiered card.
• How do I load currency onto the card? Find out if you have to already own crypto in order to get the card or learn whether you can buy it on the website’s platform.
• Is the card compatible with the crypto I own or trade? Again, take a minute to read the terms and conditions so you’re not unpleasantly surprised to learn your crypto isn’t supported.
• What are the fees associated with the card? Check for things like conversion fees, ATM withdrawal fees, inactivity fees, foreign transaction fees, and more.

Pros and cons of a crypto credit card

Some of these products can make for an interesting alternative to standard prepaid credit cards, but before you apply for one, consider all the benefits and drawbacks.

Pros

• No foreign exchange fees: Most unsecured credit cards charge a 2.5% foreign transaction fee, which can add up fast if you’re travelling abroad. Fortunately, many crypto cards don’t charge fx fees, which saves you money.
• Opportunity to earn rewards: Depending on the card (and tier you select), you could earn cash back rewards, which are simply a percentage of cash back that you receive as crypto.
• Convenience and flexibility: Crypto can be a little inaccessible unless you have a crypto card to make purchases. This can make it easier for someone new to cryptocurrency to navigate this admittedly confusing investment option.
• Won’t go into debt: Unlike unsecured credit cards, crypto cards don’t run the risk of landing you in debt, since you’re not actually borrowing and repaying funds.

Cons

• Potential loss of value: One of the biggest risks of cryptocurrency is that it’s not regulated and its value can fluctuate wildly.
• Transactions are taxable: The Canada Revenue Agency will tax you if you’re exchanging your cryptocurrency for a prepaid card that uses Canadian dollars, so be prepared to pay a little extra.
• Security risks: Any online platforms are at risk of being hacked and crypto sites are no exception. Consider the security of any trading platform before you purchase crypto.
• Limited credit card options: You don’t have the same number of choices when it comes to picking a crypto credit card as you would when picking any other type of credit card.

Our tip – be cautious with cryptocurrencies. You never know what might happen with them.

FAQ

Is there a credit card that uses crypto?

There are no unsecured credit cards that allow you to borrow crypto as a line of credit. Instead, crypto credit cards are essentially prepaid credit cards that you load with crypto (or CAD credit cards you buy with crypto).

Can I buy crypto with a credit card in Canada?

While you can buy crypto from a number of cryptocurrency exchanges, you’ll be charged quite a few fees if you use a credit card to make the purchase. It might make more sense to use a debit card.

Is Crypto.com Visa card available in Canada?

Yes, you can select from six different Crypto.com Visa prepaid cards, each with different rewards, staking requirements, and bonuses. Be sure to read each card’s terms and conditions before you pick one.

Which is the best crypto card?

The Shakepay Visa is a great no annual fee option that offers 1% back in Bitcoin on all purchases. However, if you want other perks and the opportunity to earn more rewards, check out Crypto.com prepaid cards.

Can I use my crypto card at an ATM?

You can’t use a Shakepay Visa card at an ATM because it’s a digital card, but you can use any of the Crypto.com prepaid cards to withdraw funds at an ATM. Check your card’s terms for potential fees.