Buy crypto with a credit card in Canada

When buying crypto in Canada, exchange platforms often enable the option to pay with a credit or debit cards — but buying crypto with a credit card can come with a hefty extra cost plus added risk.

Keep reading to learn which exchange platforms allow you to buy crypto with a credit card, and what you should consider before you do.

Can you buy crypto with a credit card?

Yes, many crypto exchanges in Canada accept credit card payments when buying crypto — including exchanges like Uphold, Paybis, MyBTC.ca and Kraken. After visiting an eligible platform, you simply enter your credit card details as the payment when purchasing your crypto.

Exchange platforms that let you buy crypto with a credit card

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Product GXFCY	Finder Score	Fiat currencies	Cryptocurrencies	Deposit methods	Offer	Disclaimer
Uphold	8Great	27	238	Bank transfer, Credit card, Debit card, Apple Pay, Google Pay			Go to site Capital at risk View details Compare	loading Fetching your data...
Paybis Cryptocurrency Exchange	7.4Great	60	87	Bank transfer, Credit card, Debit card, Neteller, Skrill, Apple Pay	Use code Finder25 to get a 25% discount on all commission for 1 transaction. T&Cs apply.		Go to site Capital at risk View details Compare	loading Fetching your data...
Kraken	8.8Great	7	208	Bank transfer, Credit card, Cryptocurrency, Debit card, Apple Pay, Google Pay		Certain trading features are limited or unavailable to residents of Ontario and Quebec.	Go to site Capital at risk View details Compare	loading Fetching your data...
VirgoCX Cryptocurrency Exchange	7.3Great	2	78	Credit card, Cryptocurrency, Debit card, Interac e-Transfer, Wire transfer	Get a $20 bonus when you open a new account and deposit $100+. T&Cs apply.		Go to site Capital at risk View details Compare	loading Fetching your data...
Bitget	8.6Great	45	874	Bank transfer, Credit card, Cryptocurrency, Debit card	Sign up and receive a 6,200 USDT newcomer's gift package.		Go to site Capital at risk View details Compare	loading Fetching your data...
MyBTC.ca Cryptocurrency Exchange	5.2Standard	1	2	Cash, Credit card, Debit card, Flexepin, Interac e-Transfer, Bank Wire			Go to site Capital at risk View details Compare	loading Fetching your data...

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Finder Score for crypto exchanges

To make comparing even easier we came up with the Finder Score. Supported coins, account fees and features across 28 cryptocurrency trading platforms are all weighted and scaled to produce a score out of 10. The higher the score the better the exchange - simple.

Read the full methodology

How to buy crypto with a credit card in Canada

If you’ve thoroughly researched the fees and risks and decided to buy cryptocurrency with credit card, here are the four steps you’ll need to take.

1. Choose a platform that accepts credit cards

First you will need to find a platform that actually accepts credit card payments. There are several platforms in Canada that let you pay by card. To help you narrow down you options, we’ve compiled a list of crypto exchange platforms that let you make purchases with credit cards here.

2. Create an account

Regardless of which platform you decide on, you’ll need to create an account with an email and password before you can start buying crypto with your credit card. Most exchanges will then require you to complete a Know Your Customer (KYC) process involving photo ID.

3. Make your purchase

The next step is to actually purchase the cryptocurrency of your choice with a credit card. This requires you to provide your full credit card details — card number, the name on the card and the CVV number.

You’ll also likely have to provide the billing address associated with the card. Once the details of the credit card have been entered, then you can choose the amount of crypto you would like to purchase.

4. Store your crypto

Trading platforms typically offer an built-in wallet to hold your crypto on your behalf. Any crypto you buy with a credit card will be deposited directly into the platform’s associated wallet.

If you don’t plan on trading frequently, it’s a good idea to consider transferring most of your funds to a personal crypto wallet for added security. Setting up a wallet is as easy as downloading a wallet and following the steps to secure it. Once the wallet has been initialized, you can copy the crypto address and paste it into the service.

Can you buy crypto with a credit card and no verification?

While you may be able to find the odd decentralized platform that lets you buy crypto with a credit card and no verification, it’s generally considered unwise to buy crypto from an exchange that doesn’t require ID.

That is because any legitimate crypto exchange in Canada will be registered with securities regulators, like the CSA or OSC, which require proof of identity as part of the KYC verification process. Make sure you only deal with reputable, regulated platforms to keep your crypto investments and Canadian dollars safe.

Can you buy crypto anonymously with a credit card?

While it some platforms like peer-to-peer exchanges, may allow you to make an anonymous purchase, the credit card you use will still be linked to your ID, which means your crypto purchase will still be traceable.

Which Canadian credit cards allow cryptocurrency purchases?

Credit card companies that allow cryptocurrency purchases in Canada include Visa, Mastercard and American Express. That said, some credit card issuers don’t allow crypto credit card purchases even if the credit card company does. For example, RBC prohibits crypto purchases with any RBC credit card.

Double check your specific credit card’s fee schedule to find out if it allow cryptocurrency purchases.

It’s also important to note, that even if a credit card processes a crypto payment, it may be charged as a credit card cash advance instead of a standard credit card transaction.

Fees to buy crypto with a credit card

While buying crypto with a credit card is quick and easy, it can also be quite expensive. There are several fees that can add to the cost of your crypto purchase, not only from the crypto platform but also from your credit card issuer. These additional charges can include:

Cash advance fee

Many card issuers treat a cryptocurrency purchase as a cash advance. This means your purchase will incur a cash advance fee, typically of around $3.50 to $5, and will also attract a higher interest rate compared to normal purchases — usually around 23% interest.

Exchange trading fee

The platform you use to buy crypto may impose its own trading fee whether you purchase coins with a credit card or not. These trading fees tend to range around 0.01% to 0.5% or higher depending on the platform type of transaction, but some platforms don’t charge any trading fees for certain transactions.

Cryptocurrency network fees

Network fees are charged for each coin network and can range anywhere from 0.5% up to around 5%. This fee is charged by the crypto coin network itself, independent of the exchange platform, and can go by different names. For example, Bitcoin (BTC) calls this fee a network fee, while Ethereum (ETH) calls it a gas fee, and Solana (SOL) calls it a transaction fee.

Currency exchange fee

If you’re using a US credit card on an overseas exchange, you might be paying credit card currency conversion rates. Consider getting a 0% foreign fee credit card in that case, in case you think you encounter this fee a lot when buying crypto.

Higher interest rates

Credit card providers typically charge interest rates of around 19.99% to 21.99% on purchases. Unless you pay off the balance immediately, the interest rate you’re charged could offset any gains made from buying cryptocurrency with your card.

Should I buy crypto with a credit card?

You should be cautious when buying crypto with a credit card. While credit cam see, like a convenient way to buy crypto when you don’t have the cash on hand, it can be risky compared to using funds in your bank account.

Using a credit card means you are taking on debt, which will build up quickly if you don’t pay it off right away. That could lead you to losing more than your initial investment.

As a general rule, taking on debt to invest in anything — especially a volatile asset like cryptocurrency — is not recommended compared to investing with cash. If you do plan on buying crypto with a credit card, make sure to have a plan in place to pay off your card as soon as possible.

Pros and cons of buying crypto with a credit card

Pros

• Speed. Buying crypto with a credit card can be processed almost instantly, allowing you to purchase crypto and get it in your wallet in mere minutes.
• Convenience. Buying crypto with a credit card can be less complicated than some other payment methods like transferring money from your bank account to your crypto exchange account.
• Earn rewards. Some credit cards offer rewards or cashback for purchases made on the card, which could help offset the cost of buying crypto. Just ensure that crypto purchases are eligible for earning rewards.

Cons

• High fees. Buying crypto with a credit card can be more expensive if your card issuer categorizes crypto purchases as cash advances. That will incur a fee with the purchase and a higher interest rate that begins to be charged immediately.
• Interest. If you don’t pay off your credit card balance in full each month, you will be charged interest on the purchase, which will not only add significant costs over time, but could negatively offset any gains you earn from your crypto’s increases value.
• Debt. Using a credit card to purchase crypto means you are going into debt. If the price of the cryptocurrency drops, you will still need to repay your debt for the full original amount, plus interest.
• Payment blocks. Credit card issuers have been known to freeze the accounts of customers who use their cards to buy crypto, so it’s a good idea to check if your bank is crypto-friendly before making a purchase.
• Credit card fraud. As with any online purchase, there is a risk of credit card fraud when you buy crypto with a credit card. You can minimize this risk though, by buying your crypto on legitimate, regulated exchange platforms only — like the ones listed here.

Alternatives to buying crypto with a credit card

Credit cards are only one way to purchase crypto — and arguably a riskier way compared to other options. There are several other more cost effective ways to buy crypto, including.

• Bank transfer. You can use a cryptocurrency exchange that accepts bank transfers as a payment method. Many major exchanges allow you to deposit funds via bank transfer and then use those funds to buy crypto, usually costing anywhere from $0 to 1%.
• Interac e-Transfer. Many exchange platforms enable Interac e-Transfers for cryptocurrency purchases. You just have to deposit money into your crypto exchange account using the Interac e-Transfer method, and then pay for your crypto from those funds. Fees for Interac e-Transfers can typically range from $0 to 0.5%.
• PayPal. Some crypto exchanges support PayPal deposits, allowing you to transfer funds from your PayPal onto the exchange, and then trade them for crypto.
• Cash. You can buy crypto with cash through a variety of methods, including depositing cash at an ATM and then transferring that money to your exchange account, or via a peer-to-peer crypto marketplace.

It’s important to remember that each of these methods have their own advantages and disadvantages. Research and compare the different ways to buy cryptocurrencies like Bitcoin before making a decision, and always use reputable a provider to help secure your funds.

Bottom line

While it’s possible to buy crypto with a credit card, it may not be the best move financially because you could get slapped with high interest rates and extra fees, which can offset any potential gains from your crypto assets. If you do plan on buying cryptocurrency with your credit card, have a plan in place to immediately pay off your card to avoid as many extra costs as possible.

FAQs about buying crypto with a credit card

• Can you buy crypto with a credit card and no KYC?

  Although you can likely find some peer-to-peer platforms that may let you purchase crypto using a credit card without having to complete the KYC process, they may not be safe. It is much safer to buy crypto on registered platforms that follow all procedural guidelines, including requiring customers to complete KYC.

• Do credit cards allow crypto purchases?

  While credit card brands, like Visa and Mastercard, allow crypto purchases, specific credit card issuers may not. For example, you cannot buy crypto using RBC credit cards unless you take a cash advance from the card first. Check with your bank to see if they allow crypto transactions on their credit cards.

• Why is it so hard to buy crypto with a credit card?

  It can be hard to buy crypto with a credit card because many banks and financial institutions will block crypto transactions from going through on their cards. The reason for that is because cryptocurrencies are highly volatile assets intermingled with a variety of possible scams on the market. That poses a higher risk for banks who may have to investigate scam transactions.

Written by

Chelsey Hurst

Publisher

Chelsey Hurst is a publisher at Finder, specializing in banking and investments. She loves empowering people to avoid financial pitfalls and make better decisions with their money. Chelsey has a Bachelor of Science from Redeemer University, a Master of Science from McMaster University, and has won multiple awards for research communication. In her spare time, Chelsey enjoys cooking and taking long walks in nature. See full bio