If you’re considering buying Bitcoin in Canada but feel uncertain about where to begin, you’ve arrived at the right destination. Bitcoin, a digital currency, has captured the attention of people worldwide and has seen a surge in popularity as an online currency.
As interest in Bitcoin continues to rise, individuals are increasingly using it for peer-to-peer transactions, eliminating the need for traditional banks and intermediaries. If you’re new to this market, navigating how to buy Bitcoin in Canada and choosing a reputable company can be daunting.
Fear not, as we’ll delve into all the essential information you need to understand the process of acquiring Bitcoin in Canada. Let’s jump right in and make this journey enjoyable and informative.
How to Buy Bitcoin in Canada
When it comes to buying Bitcoin in Canada, there are several avenues to explore, but the most reliable method is through a cryptocurrency exchange. These platforms serve as intermediaries, facilitating the conversion of regular currencies such as CAD, USD, and EUR into cryptocurrencies like Bitcoin.
Cryptocurrency exchanges offer you the flexibility to buy and sell Bitcoin by setting your preferred pricing, making the process customisable to your needs. If you’re eager to learn how to purchase Bitcoin in Canada using cryptocurrency exchanges, follow the steps outlined below to embark on your Bitcoin journey.
1. Establish Your Budget
Begin by determining the amount you’re comfortable investing in Bitcoin. Your budget can vary, catering to your financial capacity, but clarity is crucial to avoid overspending. Many individuals commence with modest budgets and gradually expand their investments as they gain confidence. There’s no one-size-fits-all approach; it hinges on your unique requirements. Just ensure you stay within your budgetary limits.
2. Select a Cryptocurrency Exchange
To enter the cryptocurrency world, you’ll need a trustworthy crypto exchange to purchase your Bitcoin. With numerous options available in Canada, comparing at least two before choosing is prudent. This precaution is vital because diversifying your holdings across different exchanges can safeguard your funds should you encounter issues. Prioritise selecting an exchange with security measures aligned with your needs for added peace of mind.
3. Choose Your Payment Method
Once you’ve decided on an exchange, it’s time to pick your payment method. Options include Interac e-Transfer, credit cards, debit cards, and direct bank transfers (wire transfers). Each method has its advantages and drawbacks, so consider your priorities carefully. For instance, if convenience is paramount, a crypto credit card or traditional credit card may be suitable. On the other hand, if speed is a priority, opt for an e-Transfer, which typically processes within minutes. While fees for these methods are generally comparable, some exchanges may charge higher fees for specific payment options. Thoroughly review your options before making a selection.
4. Select a Bitcoin Wallet
Regardless of whether you intend to store your Bitcoin on an exchange or in a wallet, a secure storage solution is essential. Bitcoin wallets are secure repositories for storing, sending, and receiving Bitcoins. There are two main types: hot wallets and cold wallets. Hot wallets are connected to the internet, providing easy accessibility but making them more vulnerable to hackers. In contrast, cold wallets are offline, enhancing security but restricting access to times when the wallet is physically available. Your choice between the two depends on your convenience and security preferences.
5. Complete Your Bitcoin Purchase
To acquire Bitcoin, you must link your wallet to a bank account, debit card, or credit card. Alternatively, you can initiate a wire transfer from your bank to the exchange or utilise Interac online if supported. Once the purchase is complete, promptly transfer your Bitcoin to your wallet. This step is crucial because many cryptocurrency exchanges lack regulation and can be susceptible to theft or hacking. By moving your Bitcoin to a wallet, you gain full control over it, provided you safeguard your wallet password.
Best Platform to Buy Bitcoin in Canada
With many options available, selecting the ideal exchange to buy Bitcoin in Canada may seem daunting. To help streamline your decision-making process, here’s a curated list of the most reputable cryptocurrency exchanges in the country:
1. Bitbuy
- Coins: 15, including Bitcoin
- Trading fees: There is a trading fee of up to 0.20%, a CAD deposit, and a withdrawal fee of up to 1.00%; crypto withdrawal fees vary
- Account funding options: Bank wire and Interac e-transfer
- Bonus: Get $40 free when you make a first deposit of $250 or more.
Bitbuy, a reputable Canadian Bitcoin exchange, has operated since 2016, providing a reliable platform for cryptocurrency enthusiasts. This exchange allows Canadians to make deposits through bank transfers or Interac e-transfers, simplifying the process of entering the world of digital currency trading.
Designed with Canadian users in mind, Bitbuy offers a user-friendly interface tailored to beginners, making it a welcoming choice for those new to cryptocurrency. Transparency is a hallmark of Bitbuy, with no hidden fees or arduous verification procedures, ensuring a straightforward user experience.
For added convenience, Bitbuy offers a mobile app allowing you to trade cryptocurrencies on the go, giving you the flexibility you need in today’s fast-paced world. Bitbuy’s commitment to user satisfaction is evident in its easy funding options, making it an appealing choice for those looking to start their cryptocurrency journey.
Read our Bitbuy review for more details.
2. Coinsmart
- Coins: 13, including Bitcoin
- Trading fees: CAD-to-crypto trades incur a 0.2% fee, fiat deposits are free, withdrawals are subject to a 1% fee
- Account funding options: Bank wire, Interac e-transfer, credit, debit cards, and bank draft
- Bonus: If you deposit at least $100 into your new account, you will receive a $20 bonus
Coinsmart is one of Canada’s premier cryptocurrency exchanges, enabling Canadians to purchase Bitcoin via their bank accounts and credit cards seamlessly. Coinsmart delivers a swift and user-friendly experience for acquiring major cryptocurrencies as a dedicated Canadian cryptocurrency exchange.
Coinsmart’s primary mission revolves around rendering cryptocurrency accessible and secure for all Canadians. With a user-friendly mobile app and an intuitive website, they cater to both beginners and seasoned traders. Notably, Coinsmart boasts a modest trading fee of just 0.20%, appealing to cost-conscious users while offering advanced trading features to cater to the needs of experienced traders.
Read our CoinSmart review for more details.
3. Newton
- Coins: Over 55, including Bitcoin
- Trading fees: Fiat deposits and withdrawals are free; the buy and sell price margin is 0.70 %.
- Account funding options: Bank wire and Interac e-Transfer
- Bonus: Trade at least $100 of cryptocurrency, and you’ll get a $25 bonus.
Newton is a prominent cryptocurrency exchange in Canada, offering an ideal entry point for newcomers seeking to purchase Bitcoin in Canadian dollars (CAD). The user-friendly Newton mobile app further simplifies the crypto-buying process, making it accessible and hassle-free for beginners.
Newton’s features include support for Interac e-Transfer, enabling swift deposits and withdrawals through bank wire transactions. Notably, Newton is renowned for its robust security measures, providing peace of mind for those concerned about online privacy and data protection.
When it comes to safeguarding your personal information, Newton takes privacy seriously, ensuring that your data remains confidential unless mandated by law enforcement agencies. Your privacy is a priority, and Newton maintains a commitment to maintaining the security and anonymity of its users.
Read our Newton review for more details.
4. NDAX
- Coins: Over 28, including Bitcoin
- Trading fees:20% for buying and selling trades; fiat deposits are free. CAD withdrawals have a flat fee of $25; crypto deposits are free, and withdrawal fees vary for cryptos
- Account funding options: Bank wire transfer, Interac e-transfer, and bank draft
- Bonus: If you open a new account and deposit $100, you’ll get a bonus of $10
NDAX is a prominent Canadian cryptocurrency exchange presenting a diverse array of cryptocurrencies available for trading. Among the notable distinctions, NDAX sets itself apart by providing trading options for all major cryptocurrencies, encompassing stalwarts such as Bitcoin, Litecoin, and Ethereum.
With a user-centric ethos at its core, NDAX offers a versatile platform boasting advanced trading tools, a spectrum of order types, and an intuitively designed interface. This ensures accessibility for beginners while delivering the robust functionality experienced traders seek.
Notably, NDAX prides itself on its commitment to affordability, featuring one of Canada’s most competitive fee structures. Both maker and taker orders incur a mere 0.20% fee, making it an attractive choice for cost-conscious investors. Furthermore, NDAX distinguishes itself by refraining from imposing any deposit fees, amplifying its appeal to cryptocurrency enthusiasts nationwide.
5. Wealthsimple Crypto
- Coins: over 35, including Bitcoin
- Trading fees: There is a spread of 1.5% to 2% on buy and sell prices; withdrawals and deposits are free
- Account funding options: Bank transfer
- Bonus: Trade and deposit $150 of cryptocurrency to get $100 in Wealthsimple Crypto
Wealthsimple stands at the forefront of online wealth management platforms in Canada, providing a seamless experience for individuals seeking to invest in Bitcoin and various other cryptocurrencies, all at your fingertips through Wealthsimple Crypto.
Distinguished by its significant milestone, Wealthsimple Crypto has earned the distinction of being the inaugural cryptocurrency platform in Canada to secure approval from the Canadian Securities Administrators (CSA). This regulatory recognition underscores the platform’s commitment to operating within a structured framework.
What truly sets Wealthsimple Crypto apart is its user-friendly design tailored to beginners. Navigating the complexities of digital currency trading becomes remarkably straightforward. Upon creating and funding your account, the Wealthsimple Crypto app empowers you to engage in cryptocurrency trading effortlessly with just a few clicks. It’s your passport to a world of financial opportunities in the digital age.
Read our Wealthsimple Crypto review for more details.
What is Bitcoin?
Bitcoin stands as the foremost and globally recognised cryptocurrency, leading the pack in terms of popularity and widespread adoption. Its hallmark feature lies in the utilization of a blockchain, a decentralized ledger system, to record all transactions made within its network.
The fundamental ethos driving Bitcoin is the liberation from the conventional reliance on centralised entities like banks and governments to instil trust in transactions between parties. In essence, it decentralises trust. Instead of a single controlling authority, Bitcoin relies on peer-to-peer technology, an intricate network of participants, to facilitate its operations.
Here’s how it works: Miners, the key players in the Bitcoin ecosystem, are responsible for validating and processing transactions. They achieve this by adding these transactions to a distributed blockchain, a digital record accessible to everyone participating in the network.
While the blockchain is open for public scrutiny, it maintains the anonymity of users. In other words, while transaction data is visible, the parties’ identity remains undisclosed. Only the originating and receiving addresses are discernible.
Nevertheless, it’s important to note that while Bitcoin obviates the need for intermediaries, it doesn’t offer complete privacy. This is due to the transparency of the blockchain, which permits anyone to inspect the number of bitcoins someone possesses and the destinations of their transactions by merely examining their public address on the blockchain.
How To Store Your Bitcoin
To safeguard your Bitcoin, it’s essential to utilise a wallet that connects to your smartphone or computer. Bitcoin wallets function as software repositories for your private and public keys, enabling you to interact securely with the Bitcoin blockchain.
Here’s a breakdown of key concepts:
1. Public and Private Keys: Your public key is akin to an email address, allowing you to receive Bitcoins. In contrast, your private key acts as the password, enabling you to spend your Bitcoin. It’s crucial to keep your private key confidential.
2. Bitcoin Address: Think of your Bitcoin address as your public key; it’s what you share with others for receiving funds. Conversely, your private key, like a password, should remain known only to you.
When it comes to storage, be cautious when storing your Bitcoin on exchanges. When you do so, the exchange controls your private keys. If the exchange experiences a security breach or financial troubles, your Bitcoin may become inaccessible. It’s generally recommended to leave small amounts of Bitcoin on exchanges for extended periods.
Also, you can opt for self-storage to have full control over your Bitcoin. You can either install a wallet application on your computer or smartphone or create a “paper wallet” for each Bitcoin you own.
- Software Wallets: These digital wallets on your computer or smartphone offer convenience and accessibility. Ensure you regularly back up your wallet and employ strong security measures to protect your device from hacking.
- Paper Wallets: While paper wallets are secure, they require careful handling. Generate a unique paper wallet for each Bitcoin you own and store it safely, ensuring it remains dry and free from damage. Losing a paper wallet can result in permanent loss of your Bitcoin.
Final Thoughts on How to Buy Bitcoin in Canada
Buying Bitcoin in Canada is an exciting journey into the world of cryptocurrency. As I’ve shared throughout this guide, the process is accessible and straightforward, allowing you to join the ever-growing community of crypto enthusiasts.
Now that you know how to buy Bitcoin in Canada, it’s time to take that first step towards securing your digital assets and growing your investment. Don’t hesitate—seize the opportunity to explore the world of Bitcoin today!
FAQs on How to Buy Bitcoin in Canada
Is Bitcoin Legal in Canada?
Yes, Bitcoin is legal throughout Canada, and it may be bought, sold, and traded in all Canadian provinces. Moreover, the Government of Canada has accepted it as a legitimate investment asset, and its trade is, in fact, regulated by the Ontario Securities Commission, BC Securities Commission, etc.
Is it legal to buy Bitcoin in Canada?
Yes. Canadians can buy and sell cryptocurrencies on open exchanges that function similarly to traditional stock markets.
Is Bitcoin taxed in Canada?
Buying or holding cryptocurrency does not trigger taxes in Canada. However, if a taxpayer sells or mines cryptocurrency, they must pay capital gains or business income tax.
Can I transfer Bitcoin to my bank account?
Yes. You can convert Bitcoin to cash and then move it to your bank account in several ways.
Is it hard to sell Bitcoin?
No. You can even have computers do it automatically. Bitcoin markets, however, have limited liquidity, making this impossible at the moment. Nevertheless, some Bitcoin owners have difficulty selling their Bitcoins when the market is hot.
