Author:
hannah
Last Updated on:
15.09.2024
Table of Content
What is Bitcoin?
Let’s be honest, you can’t go five minutes without hearing something about bitcoin. It’s not just Elon Musk’s fault. Bitcoin is the world’s most popular cryptocurrency for a reason and we expect it to flood our news feeds for decades to come. Bitcoin is the first cryptocurrency and launched back in 2009. Since then it has continued to be the largest digital asset by market share in Canada.
Bitcoin was designed to be a decentralised form of currency that would be free from government interference and operate with lower transaction costs than if you were to use standard online payment methods. Over the last few years, the price of bitcoin has skyrocketed – and yes, it has also dipped too – and today it is widely argued to be the new gold as a hedge against inflation.
In 2021, bitcoin saw its biggest bull run to date, eventually reaching a staggering $60,000 CAD before having its value due to climate issues and acceptance in China. Regardless of its volatility, bitcoin remains the most popular cryptocurrency to buy with a credit card in Canada.
Best Credit Cards in Canada
There are three main providers of credit cards in Canada; Visa, Mastercard and American Express. But not all credit card providers are created equally. We have gone ahead and explained them a little further for you.
Visa
If you’re looking for a credit card in Canada to fund your bitcoin trading account, you’d be forgiven for not looking past the world’s largest credit card company – Visa. Visa provides one of the largest payment networks in the world and there are several options available to Canadian traders.
Almost every bitcoin exchange in Canada will accept Visa as a credit card payment – Visa has quite possibly the widest acceptance of any credit card in Canada. There are also cash back and travel rewards on offer with many Visa credit cards.
Pros
Good returns – The rate of return offered by premium Visa credit cards are better than average – perfect for buying bitcoin in Canada. So if you’re playing on regularly buying a good amount of bitcoin, Visa cards are a solid option.
Premium welcome bonuses – Our Crypto Parrot review of several premium cards put the average welcome bonus at around $80 CAD. That’s considerably higher than the average and that’s $80 Cad you could invest in bitcoin.
Cons
High annual fees – You’ll find the premium Visa credit cards have rather high annual fees. However, many of those same cards will waive the annual fee in the first year. These annual fees can range around $120 – 140 CAD.
Variable rewards – The rewards on offer with a Visa credit card are not as consistent as those offered by American Express. So one Visa card might have excellent rewards while another may offer next to none.
Mastercard
According to our studies, Mastercard is on par with Visa for crypto exchange acceptance and boasts very similar features. Almost every Mastercard credit card in Canada offers bonus features of some sort – be it a welcome bonus or a cashback deal. We found that many Mastercard credit cards didn’t require huge income requirements.
Pros
Better APR over 21 months – From our deep research, we believe Mastercard may offer the best value in terms of interest over a 21-month period. Of course, we recommend you pay off your debt each month as good practice.
Best student cards – Young traders may benefit from better-suited student cards with lower fees and unique rewards. Our research shows that Mastercard offered superior student credit cards.
American Express
There are currently over 20 American Express (AMEX) credit cards available in the Canadian market. With lucrative bonuses and one of the world’s leading rewards programs, AMEX offers a massive range of products to the Canadian bitcoin trader. AMEX are rather forward-thinking too – they even allow for both Android and Apple Pay payments.
Despite higher interchange fees than required by Visa and Mastercard, American Express has gained significant acceptance in recent years and is accepted as a payment method by some of the best bitcoin exchanges in Canada.
Pros
Cashback rewards – While many different credit cards offer cash back returns, American Express typically offers the most rewarding. On a regular purchase, cashback can be up to 5% – far higher than that of Visa or Mastercard.
No spend limit – Could be considered a con by some, but American Express usually offer their cards with no predetermined spend limits. That won’t go for everyone, we’re sure, but no limit will certainly offer great peace of mind when buying the dip or taking advantage of quick movements in the bitcoin market in Canada.
Amazing customer support – AMEX are known for the way they treat and look after their clients. American Express goes above and beyond with complimentary concierge services that can do everything from book travel arrangements for you or find a great table for drinks. They won’t buy bitcoin for you though!
Cons
Famed annual fees – AMEX do charge an annual fee, which is not absurd for a credit card, however, the fee is rather higher than the AMEX fee.
Old school terms – Most AMEX cards require that the account balance must be paid in full at the end of each month – that means the card can’t be used until the next month until it’s paid. So, there are far more restrictive terms and conditions to understand and consider.
How to Buy Bitcoin with a Credit Card in Canada?
Back in the early years of cryptocurrency, buying bitcoin with a credit card in Canada was difficult. To be quite frank, buying cryptocurrency wasn’t the easiest thing in the world anyway. Thankfully, in 2021, cryptocurrency exchanges have significantly simplified the process and it’s super straightforward to use credit cards at bitcoin exchanges in Canada.
Because we know all of our new and loyal Crypto Parrot users are interested in eventually buying Bitcoin, we have put together an easy-to-follow guide detailing how to buy bitcoin with a credit card in Canada. First thing you’ll need to do is register an account with a quality licenced broker:
- Press sign-up and you’ll be prompted to enter in some personal details like name, address, and your contact information. Input the required details and continue.
- You’ll be requested to create a password and user credentials. One you’re all set up, you’ll need to complete a simple Know Your Customer (KYC) procedure. This just requires a few basic documents like a passport and proof of address. You’ll just need to upload copies to the exchange website or mobile app. If you don’t want any delays, then make sure you take high quality photos of your documentation.
- Once you are verified, you will be free to make your first deposit using a credit card.
Funding your account is as easy as it comes. Simply navigate to the cashier section of your chosen bitcoin exchange in Canada.
- Select credit card from the selection of payment methods and choose an amount to deposit. Be sure to meet the minimum deposit requirement designated by the Canadian bitcoin exchange.
- You’ll be asked to input your credit card details. This will be your long card number, expiry date, and CVV number that is located at the rear of the card. Typically, credit card payments are processed instantly.
- Just that simple! Now with your account funded, you’ll be free to buy bitcoin in Canada.
Buying bitcoin in Canada for the first time is just as easy as funding the account. Once again, we have an easy-to-follow guide that’ll have you trading in no time at all.
- Now either enter the cryptocurrency exchange marketplace to check out all the digital assets available to trade. As the most popular cryptocurrency in Canada, you really shouldn’t have a problem finding bitcoin. Failing that, you can always use the crypto exchanges search function to jump straight to the asset.
- The buy window will clearly display everything you need to know about your upcoming purchase. The fees should be clearly visible and how many coins you will purchase for your CAD amount. Hit confirm to finalise the purchase.
- Your bitcoin will be placed into your operating wallet within the cryptocurrency exchange. Should you wish to keep your currency in your own wallet, you can opt to send it using the keys of your chosen wallet.
That’s all there is to it. It’s really that easy to buy bitcoin in Canada with a credit card.
Why use a credit card?
Using a credit card to buy bitcoin at a cryptocurrency exchange in Canada has more than a few benefits. Just to begin with, credit cards provide a safe, smooth and reliable payment method at cryptocurrency exchanges in Canada. With a credit card you can literally buy bitcoin within seconds. Credit cards also often face no transaction fees on the exchange end – you’ll see many bitcoin exchanges promoting fee free deposits and withdrawals.
Then there is the utter convenience. Your credit card is right there, in your wallet ready to go. Some websites even let you save your card details, so you won’t have to keep putting in long card details every time you need to top up your balance at a bitcoin exchange in Canada.
Cons
Cash advance fees – An odd potential issue with using a credit card at a bitcoin exchange in Canada is that some credit card issuers may view a cryptocurrency deposit as a cash advance – essentially treating the crypto purchase as an ATM withdrawal. Most credit cards charge a one-time for every individual advance and can be as high as 3 – 5%.
No rewards – When crypto purchases are considered to be cash advances, they are also exempt from qualifying for rewards, including points and cash back bonuses.
Lower acceptance – Some cryptocurrency exchanges are no longer accepting credit cards and instead favouring debit card payments. For example, Coinbase allows current credit card users to fund their accounts but will not allow a new credit card to be added to their account. So at some exchanges, you may have to buy bitcoin with a debit card in Canada.
Conclusion
If you want to buy bitcoin at cryptocurrency exchanges in Canada, credit cards are a reliable and fast method. With great acceptance online and low fees, credit cards allow Canadian bitcoin traders to fund their cryptocurrency exchange accounts instantly. Withdrawals are pretty fast too, around 3- 5 days, and the security features are of the highest standard.
Once registered to your favoured crypto exchange account, you’ll be able to buy bitcoin in Canada in seconds. To find the perfect Bitcoin exchange for your needs, be sure to consult CryptoParrot.
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