Whether you’re a Canadian crypto enthusiast or simply want to spend cryptocurrency and get the perks of a traditional credit card, crypto credit cards in Canada are an excellent option.
Tokens and coins can be loaded into the card’s account and used just like cash in stores, or online. Many crypto cards even come with special rewards that make using them even more worthwhile, especially if you shop online.
With all the benefits crypto credit cards provide, it’s not hard to see why they’re becoming so popular, but what are these crypto cards? How do they work? Why should you get one? These questions have a lot of people confused, especially since most of the information floating around is fake and misleading.
What are Crypto Credit Cards?:
A crypto card allows you to spend cryptocurrency when you pay for purchases at a point-of-sale terminal in the same way as a traditional bank card. The main difference is that a crypto card changes cryptocurrency in your wallet into Canadian dollars (if that is the fiat currency of your choice), , based on the current market prices of those coins.
More and more cryptocurrency enthusiasts are spending their coins when they go shopping, pay their bills, or dine out. Pretty fascinating, right? The times are truly changing, and it is recommended that one master the waves to avoid being swallowed by them.
But before we go into the nitty-gritty of crypto credit cards, let’s take a look at how they’re different from the credit cards you’re already used to.
Crypto Credit Cards and Regular Credit Cards: What’s the Difference:
A key difference between crypto credit cards and regular credit cards in Canada is that crypto cardholders aren’t actually sending cryptocurrency to merchants when they spend with the card. Instead, their crypto is converted into fiat currency, and that’s what’s sent to the merchant.
Crypto credit cards are a lot like the good ol’ cards you’re used to. While using crypto credit cards, you should consider all the things that the normal credit cardholder has to keep in mind.
In other words, one should not be completely dependent on credit cards. Payments should be made on time, otherwise, the burden of interest rate and late fees may skyrocket.
These cards can also affect your credit score. You also have to pay annual fees for some crypto credit cards, so you should take it only after considering the complete system of crypto cards, your needs, and the benefits. Otherwise, if you focus on crypto rewards, but not on crypto credits, you’re only hurting yourself.
How do Crypto Credit Cards Work?:
There are literally thousands of cryptocurrencies you can have, so each card company differs in how they process and award cryptocurrency for their cardholders. For example, the BlockFi Rewards Visa Signature Credit Card gives cardholders the following benefits:
- 2% back in crypto on all eligible purchases over $50,000 of annual spend
- 5% back in crypto on all eligible purchases
- 5% back in crypto rewards during the first 90 days of card membership
BlockFi can also reward you with their Cryptocurrency Rewards Points. Once the points are deposited, BlockFi will let you convert the points into the cryptocurrency of your choice.
Another alternative is the Gemini Credit Card that deposits cryptocurrency directly into your Gemini account every time you swipe your card. In this case, you can have instant access to your rewards rather than having to wait for a monthly statement.
So be sure to find out what the process is for rewarding cardholders when doing your research about crypto credit cards. It may require an additional step or two compared to more traditional credit cards, but what is worth doing is worth doing well.
What are the Benefits of Crypto Credit Cards?:
- Making payments:
Wanna rush to the store to go get a Twix or some detergent? Your crypto credit card could come in handy. Cards like MedeTrade cryptocurrency credit allow crypto users to make payments for everyday activities such as shopping and paying bills.
- Transferring money:
Crypto credit cards allow users to transfer money anywhere in the world at any time. Such is the global reach and wide-reaching efficiency of these cards.
- Contribution to the increase in the mass adoption of cryptocurrency:
The appeal of a cryptocurrency company can increase significantly if it adopts cryptocurrency cards. Individuals and companies.
Those who are always on the lookout for more efficient means of payment will feel inclined towards the prospect of crypto if crypto cards are readily available.
What are the Downsides of Crypto Credit Cards?:
- There tend to be area restrictions:
Some regions simply don’t have the digital infrastructure to offer these services yet. For example, TenX crypto credit card is currently limited to users living in the Asia Pacific region, Germany, or Austria, but they plan to increase availability in the coming months.
Crypto credit cards are not as widely available as fiat credit cards, which means you may have to put some effort into finding one. But once you do find a crypto credit card that meets your needs, you’ll enjoy more control over your finances and way better rewards. And that will make it all worth it in the end.
- Fees can be relatively expensive:
Crypto credit cards have a lot of potentials. However, there are some drawbacks. Fees can be high and conversion rates may not be ideal yet. In time, the industry will likely smooth out the kinks, but until then you’ll need to decide whether or not a crypto credit card is right for you.
Study the fee rates of the card companies available to you and make a decision based on what you can afford.
All in all, the best thing one can do is always stay informed about the latest trends and policies around cryptocurrency. Fortunately, we live in a digital, so all the verified information you need to stay abreast is at your fingertips.
How safe are Canadian Crypto Credit Cards?:
Understandably, the emergence of crypto credit cards came new concerns and apprehension, but the crypto ecosystem is largely considered safe. In fact, blockchain technology — which underpins cryptocurrencies — is completely transparent, self-regulated and decentralized, meaning data isn’t easy to manipulate.
Credit card rewards can be earned on crypto purchases just like they can be earned on any other type of purchase. Crypto credit cards tend to come with the same protections you get with traditional credit cards. So, there’s no need to panic.
Best Crypto Credit Cards in Canada:
Crypto.com Visa Cards:
- Fee: No annual fee
One of the world’s leading cryptocurrency exchanges, Crypto.com, can give you the options of 5 crypto Visa cards with their own levels of reward. These cards are Obsidian, Ruby Steel, Royal Indigo & Jade Green, Frosted Rose Gold & Icy White, and lastly Midnight Blue.
These cards are issued by Metropolitan Commercial Bank on the Visa payment network and are available in Canada.
To apply, you need to open a Crypto.com account and purchase CRO tokens.
Pros
- Full or partial rebates on Spotify, Netflix, Prime, Expedia, and Airbnb
- Airport lounge access
- 1% to 8% cashback paid in CRO
- Easily apply and manage your card within the Crypto.com app
- Load card via crypto, credit/debit cards, or Interac e-Transfer
- No sign-up or monthly fee
Cons
- Top tier card requires a large CRO stake ($500,000)
- $250 to $1,300 ATM withdrawal limit per month
- Cashback only paid in CRO (many do not like this cryptocurrency)
Shakepay Card:
- Fee: No annual fee
Next up is the Shakepay Visa Card. It allows you to spend your Shakepay dollar balance when shopping online or in the store. You earn bitcoin cashback which is added to your BTC wallet.
Sounds interesting? Here’s a waitlist you can join if you’re in Canada.
Pros
- You can earn Bitcoin cashback
- You can spend wherever Visa is accepted
- Available in all Canadian provinces
- No annual fees at all.
Cons
- Low cashback amount
Gemini Credit Cards:
- Fees: No annual fee
This WebBank-issued card offers up to 3% cashback in Bitcoin and 30+ other cryptocurrencies of your choice.
Pros
- Up to 3% back on dining.
- 2% back on groceries.
- 1% back on all other purchases.
- Easy to use and manage
Cons
- No welcome bonus
- Only two bonus categories
- The card FAQ is short on the details (e.g. we don’t know what “up to” 3% cashback on dining really means yet)
Your crypto rewards are deposited in your Gemini account.
Binance Card:
- Fees: No annual fee
With the Binance Card, you can spend your favourite cryptocurrencies at more than 60 million merchants worldwide. Just transfer crypto from your spot wallet to your funding wallet, and you’re ready to go. It’s easy and efficient to use. Binance will not charge any administrative or processing fees.
It is worth mentioning that Binance Card comes with a one-time cost of USD 15 payable in the form of initial top-up from the user’s crypto wallet to the Binance Card balance. Once USD 15 worth of Bitcoin is transferred to the card balance, the order is processed.
Pros
- You can earn Bitcoin cashback
- You can spend wherever Binance is accepted
- Available in all Canadian provinces
- No annual fees
Cons
- There is a necessary one-time cost of USD 15 payable in the form of an initial top-up from the user’s crypto wallet to the Binance Card balance.
Nexo Mastercard:
- Fees: No annual fee
The Nexo Mastercard is one of two Crypto Mastercard credit cards on this list (the other being the previously discussed Gemini Credit Card).
Nexo is one of the favorites among cryptocurrency enthusiasts because the platform can be used for buying, staking, and getting crypto loans (swapping is also one of the things you can do with it). Its credit card pays 2% cashback and rewards are paid in NEXO tokens or Bitcoin.
Pros
- FX fees? None!
- No annual fees, as already indicated above
- Completely free ATM withdrawals
- Apple Pay and Google Pay compatible
- You get access to a credit line
Cons
- No rebates on popular services
- Processed by Mastercard not Visa
- Only available for early access
- Your crypto must be held on Nexo’s platform
Ratings of the Best Crypto Credit Cards in Canada:
Crypto.com cards:
Rating: 9.0/10
Their Visa Carda offers flexible top-ups using crypto or fiat along with a reward system centred around crypto. They have no annual fees, give up to 8% back on spending, and support 55 different cryptocurrencies. They’re definitely the real deal.
Gemini Credit Cards:
Rating: 9.0/10
They offer up to 3% back on purchases, users can redeem the rewards in a range of coins, there are no annual fees or exchange fees, rewards are deposited in real-time, and it can be used anywhere Mastercard is accepted. Sounds good to me!
Nexo Mastercard:
Rating: 8.5/10
Lets you spend while holding your cryptocurrency, no monthly/annual fees, no FX fees, 2% back on purchases, the option to freeze and unfreeze the card conveniently, can borrow up to $2 million in loans.
Binance Card:
Rating: 8.5/10
You don’t get to pay annual fees with this card, they have more than 60 million merchants worldwide, so they’re trusted, can be used anywhere, with no administrative charge or processing fees. You also get cashback.
Shakepay:
Rating: 8.0/10
They’re commission-free and trusted in Canadian crypto circles (the Montreal-based company has racked up over $6 billion in digital currency bought and sold by over 900 thousand Canadians). You don’t get to pay annual fees on the cards and you can use them outside Canada.
Canada Vendors Accepting Crypto Credit Cards:
-
HGregoire (car dealership company):
The Quebec-based auto dealer HGregoire has over 30 dealerships around Canada. They recently started accepting Bitcoin for customers that want to buy a car. They have an online store and the store staff don’t work on commission.
-
Newegg.ca (online tech retailer):
This tech-centric online retailer in North America now lets buyers pay for their purchases with Bitcoin. They work in conjunction with Bitpay to give their 25 million registered users the opportunity to pay with cryptocurrency.
-
Birks Group (luxury jewelry retailer):
They’ve got it all. Everything from diamonds and pearls to vintage watches and pure gold can now be bought with Bitcoin as Birks group, one of Canada’s oldest and most prestigious luxury jewelry retailers, now accepts crypto in some of their stores.
-
Park and Finch Eyewear (eyewear brand):
The Canadian eyewear brand Park and Finch are taking progressive steps. They partnered with Bitcoin Diamond to become one of the first eyewear businesses around the world where it’s possible to buy merchandise with Bitcoin.
-
Coinkite (cryptocurrency hardware company):
Shouldn’t come as a surprise that a company that makes Bitcoin wallets and related hardware devices accepts cryptocurrency payments. In fact, Coinkite were known to facilitate 10% of all daily Bitcoin transactions at a point in time, so they have always been at the forefront.
-
Silver Gold Bull Canada (gold trading company):
If you feel a need to trade your Bitcoin for gold bars or coins, Silver Gold Bull has got you covered. By paying with cryptocurrency, you can save up to 4% of your purchase. Besides, it’s convenient and comes with next to no transactional fees.
-
Ledger (cryptocurrency hardware company):
This brand started out using the Bitpay platform and recently added crypto.com pay services with the development of customers requesting more cryptocurrency payment options. Crypto companies are understandably very open to crypto payment infrastructure.
Conclusion:
The cryptocurrency point-of-sale payments industry is still in its infancy, but it’s growing fast. And the more that people use these crypto cards to spend their coins in day-to-day life, the more incentive there will be for merchants and retail outlets to incorporate them into their point-of-sale payment systems.
The future looks bright for cryptocurrency cards, with more and more companies launching their own. The next few years will likely bring an even greater acceptance of these funds for the everyday user, meaning that the liquidity and purchasing power of cryptocurrencies may increase substantially.
FAQs:
Which Canadian crypto credit card is the best?
Currently, Nexo Mastercard and Crypto.com cards are generating a lot of buzz in crypto circles, so you might want to check those out.
Alternatively, Gemini and Shakepay can hold a candle to the ones previously mentioned. Ultimately, what is best is subject to your taste to some extent. If it works for you, great!
