CoinMarketCap has a guide for how to buy cryptocurrency in Canada.
The Canadian government has a relatively positive attitude towards cryptocurrencies and products that use blockchain technologies. The country offers a good opportunity for crypto entrepreneurs and investors, who can take advantage of low electricity prices and high internet speeds, in addition to the government’s accommodating stance. The Bank of Canada and Payments Canada have themselves been researching digital currency in their joint blockchain initiative, Project Jasper.
Additionally, the well-known Russian-Canadian co-founder of Ethereum, Vitalik Buterin, has contributed significantly to the growth of the domestic crypto community and has encouraged many to contribute to the Ethereum ecosystem. Canadians are able to buy and trade cryptocurrencies legally, although they are subject to tax obligations.
Canadian exchanges like Bitbuy and Coinberry offer investors an easy way to buy cryptocurrency in Canada. Canadians can also buy crypto via United States-based and international exchanges, such as Binance and Coinbase. Check out some of the best crypto exchange options in Canada here.
This guide will explain how to buy crypto in Canada and will also outline some things you should take into account when it comes to digital asset ownership.
How to Invest in Cryptocurrency in Canada
Buying and investing in digital currency in Canada is a relatively straightforward process, similar to trading traditional securities. Citizens need only open an account with a crypto brokerage to start trading. Once they have registered for an account, Canadians are free to legally trade, transact and hold various digital currencies.
What Will You Need in Order to Buy Crypto in Canada?
Before setting up an account online with a crypto exchange, you will need to verify your identity by providing official ID documents. Different exchanges will have slightly different rules; in general, it’s good to have the following things to hand in order to make the process faster:
- A Canadian driver’s license, passport, or other acceptable ID
- A private and secure internet connection (public WiFi poses security issues)
- A cell phone you can use for two-factor authentication
- A bank account you can withdraw from to deposit CAD to your exchange
How to Buy Crypto in Canada
Once you have all these things and have set up your account on an exchange, you are ready to buy cryptocurrency — e.g., Bitcoin (BTC) or Ether (ETH) — in Canada. The process will typically go as follows:
- Sign in to your crypto exchange account using your private WiFi connection.
- Select the brokerage’s option to buy cryptocurrency, then make sure you have selected the digital asset you would like to purchase. For example, you can choose Bitcoin (BTC), Ether (ETH), Binance Coin (BNB) or Cardano (ADA). Different exchanges will support various different currencies and you should make sure that the platform supports the crypto you would like to invest in before setting up an account.
- Choose how much you would like to purchase and make sure you have enough CAD or other fiat currency deposited into your brokerage account to cover the transaction.
- Preview your purchase and make sure you are comfortable with the current price of the cryptocurrency, in light of overall market trends at that time.
- If the details look correct, click ‘buy’ to complete your purchase. You can then store your new digital assets using the exchange's native wallet or transfer them to other forms of hot or cold storage.
Cryptocurrency Prices in Canada
Canadian crypto investors will be able to view all crypto pricing data using a crypto exchange interface or via CoinMarketCap’s live pricing tracker, which is the most cited price-tracking website for crypto assets in the world.
Buying Bitcoin in Canada
The process will be the same as outlined above. Since Bitcoin (BTC) has gained so much in value, most users will not want to purchase a full Bitcoin. Instead, brokerages will let you buy fractions of one Bitcoin. For example, you could buy 0.002 BTC or less. Exchanges offer many ways to trade Bitcoin and other cryptocurrencies. You can buy and hold on to your Bitcoin, also known as HODLing, or trade it frequently, i.e., day or swing trading.
Buying Ether in Canada
Ether (ETH) is a popular crypto asset in Canada, especially as its Canadian-Russian co-founder Vitalik Buterin has sparked widespread interest in the Ethereum blockchain. Almost all exchanges will support Ether, which currently is the second-largest cryptocurrency by market capitalization. You are also able to buy fractional amounts of coins such as Ether, just as with Bitcoin (BTC).
Buying Binance Coin in Canada
Binance Coin (BNB) is currently the third-largest cryptocurrency by market cap. The easiest way to buy Binance Coin is by setting up an account at crypto exchange Binance and purchasing it there. The upside is that, as a BNB holder, you can also benefit from reduced trading fees on the exchange.
How to Store Your Crypto After Your Purchase
Once you’ve bought crypto using your exchange account, you will need to choose a way to securely store your new digital assets. Platforms offer their own hot wallets for you to keep your crypto, but these can be more vulnerable to cyber theft. See our full guide to wallet storage here. In principal, the main options available are:
Hot Wallets: Hot wallets are connected to the internet, allowing users to transfer or trade crypto assets quickly. Due to their connectivity, however, hot wallets are more vulnerable to cyber theft or exchange hacks. Hot wallets include exchange wallets, desktop wallets and mobile wallets.
Cold Wallets: Cold wallets store your crypto assets offline, making them more secure. However, they are more difficult to use for quick transactions. Cold wallets include paper wallets (cryptographic keys and QR codes printed on paper and stored safely) and hardware wallets (keys stored on a small electronic device).
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