Cryptocurrency investing has become increasingly accessible in Canada, with multiple payment options available—including credit cards. This guide explores the best platforms, fees, and considerations for buying crypto with a credit card.
Why Invest in Cryptocurrency?
- Decentralization: Bitcoin and other cryptocurrencies operate without central bank control, offering transparency and lower fees.
- Borderless Transactions: Transfer funds globally in seconds with minimal costs.
- Limited Supply: Bitcoin’s capped supply (21 million) contrasts with inflationary traditional currencies.
Risks to Consider
Cryptocurrencies are highly volatile. Prices can swing dramatically, making them a high-risk investment. Only invest what you can afford to lose.
Top Platforms to Buy Crypto With a Credit Card
1. VirgoCX
- Pros: Zero deposit/withdrawal fees, 63+ cryptocurrencies, NFT marketplace.
- Cons: 3.99% credit card fee (minimum $10).
- Process: Verify account → Deposit via credit card → Confirm purchase.
2. Kraken
- Pros: Strong security, 95% offline storage, 5% fee.
- Cons: Higher fees, requires Intermediate/Pro account.
- Process: Add credit card → Verify → Buy crypto.
3. Crypto.com
- Pros: 250+ cryptocurrencies, crypto debit card.
- Cons: 3.99% transaction fee.
- Process: App download → Credit card payment → Instant purchase.
4. Coinbase
- Pros: User-friendly, educational rewards.
- Cons: 3.84% fee.
- Process: Add card → Buy crypto instantly.
5. MyBTC.ca
- Pros: Canadian-based, multiple payment methods.
- Cons: 9.75% fee (highest on this list).
- Process: Verify ID → Link external wallet → Buy Bitcoin.
Pros and Cons of Credit Card Purchases
Pros
- Instant Transactions: Avoid bank transfer delays.
- Ease of Use: Simple for beginners.
Cons
- High Fees: Up to 9.75% on some platforms.
- Credit Score Impact: Unpaid balances harm your score.
- Card Restrictions: Many issuers block crypto purchases.
FAQ
1. Which credit cards allow crypto purchases?
Visa/Mastercard are commonly accepted, but issuers like RBC/Scotiabank often block transactions.
2. Are there alternatives to credit cards?
Yes! E-Transfers and bank wires offer lower fees.
3. What’s the cheapest platform?
VirgoCX (3.99%) or Coinbase (3.84%) for lower fees vs. MyBTC.ca (9.75%).
4. Can I store crypto on these platforms?
Most require external wallets (e.g., Trust Wallet, Exodus).
Final Verdict
While possible, buying crypto with a credit card is expensive and restrictive. Opt for e-transfers or bank deposits where feasible. For urgent purchases, use low-fee platforms like VirgoCX or Coinbase.