Canada has a reputation for being a Bitcoin-friendly country. Multiple organizations have adopted Bitcoin as a payment method for goods and services, and there are more than 1,000 Bitcoin ATMs across the Great White North.
Many Canadian investors are interested in the cryptocurrency that promotes blockchain technology, and for a good reason. BTC, despite market volatility, remains a great way to diversify your portfolio and make a long-term investment.
This article will show you how to buy Bitcoin in Canada and store it safely.
Buying Bitcoin in Canada: How Much Do You Need?
Before financially committing, you should determine how much money you wish to invest in Bitcoin. Buying no more than you’re prepared to lose is probably the safest answer.
As the cryptocurrency market is volatile and price changes can be for the better or worse, many early investors turned millionaires. Still, even more people bought Bitcoin at its peak and have lost a lot of money in the current bear market.
In 2009, Bitcoin was almost worthless. Only programming and cryptography enthusiasts were interested in the project and circulated BTC between them. Today, if you want to buy Bitcoin on a Canada-based exchange, you’ll have to pay around $26,000 for one BTC. In November 2021, the cryptocurrency reached its all-time high of more than $89,000.
Where To Buy Bitcoin in Canada
In Canada, there are various options for purchasing Bitcoin. These are:
- Cryptocurrency exchanges (such as Bitbuy, Crypto.com, and Coinbase);
- Peer-to-peer (P2P) trading;
- OTC (over-the-counter) trading (MogoCrypto and Wealthsimple Crypto);
- Bitcoin ATMs;
- In-person trading.
Cryptocurrency exchanges offer many benefits and are, overall, a great place to buy Bitcoin for Canadians.
Exchanges provide detailed information on each coin, including its price, market cap, and trading volume. This makes it easy for investors to make informed investment decisions.
Since cryptocurrency exchanges are regulated and insured, they offer a secure and efficient way to buy and sell coins. Besides Bitcoin, there are plenty of coins to choose from, so investors can easily find the currency that fits their needs.
These are just some of the reasons why we recommend cryptocurrency exchanges as the go-to option for anyone interested in purchasing Bitcoins in Canada.
One of the most popular methods for trading BTC is through P2P networks. P2P trading platforms connect buyers and sellers directly, cutting the middleman out.
This type of platform typically charges lower fees than traditional exchanges, making it more attractive to users looking to save on trading costs. P2P networks offer more privacy than traditional exchanges, as they do not require users to provide personal information such as their name or email address.
However, P2P trades can be riskier than trades made through exchanges. Before trading on a P2P network, it’s important to research how to buy Bitcoin successfully on such platforms.
BTC investors also have the option of over-the-counter (OTC) trading. OTC trading is conducted between two parties without the need for a centralized exchange. This type of trading is often used by large investors who want to buy or sell large amounts of Bitcoin without affecting the market price.
The main benefit of OTC trading is that it allows you to avoid fees and get better prices when buying large amounts of Bitcoin.
Bitcoin ATMs are a quick and easy way to sell and buy BTC in Canada. Here’s how to do it:
- Find a Bitcoin ATM near you;
- Have a valid ID, a smartphone, and some cash ready;
- After you’ve verified your phone number or provided an ID, you’ll be prompted to select how much BTC you want to buy or sell;
- The ATM will then generate a unique QR code that you can scan with your digital wallet;
- Finally, you’ll insert the cash into the ATM and confirm the transaction.
That’s it! In just a few minutes, you’ll have completed a BTC transaction without having to go through an online exchange.
Buying Bitcoin in person is often seen as a way to avoid paying the fees charged by exchanges. However, this type of trading comes with its risks.
Finding a buyer or seller willing to trade at a fair price can be challenging, and there is also the risk of being cheated or robbed. There is no guarantee that the person you are dealing with is legitimate.
Additionally, in-person trades are often conducted in public places, which increases the likelihood of attracting attention from criminals.
If you are planning to trade large amounts of cryptocurrency, it can be logistically challenging to do so in person. Overall, while there may be some advantages to in-person cryptocurrency trading, it’s generally not recommended.
How To Invest in Bitcoin in Canada: Our Recommendations on Storing Cryptocurrency
When it comes to storing Bitcoin, there are two types of wallets you should consider. These are hardware and software solutions.
Bitcoin Hardware Wallets
Bitcoin hardware wallets are physical devices designed to store your BTC offline. By keeping your assets offline, you reduce your exposure to hacking and other online threats.
Hardware wallets also make it easy to manage your Bitcoin, as they typically come with a built-in display and keypad. This allows you to track your balance and transactions easily.
The main reason we recommend hardware wallets for Bitcoin investors is enhanced security compared to other storage options. Hardware wallets are typically immune to viruses and malware, and they can even be physically damaged without affecting your Bitcoin. Their main disadvantage is price, as they can cost more than $100, while most software solutions are free.
Bitcoin Software Wallets
You can purchase Bitcoins in Canada and store them with various software wallets available as mobile, web, and desktop applications.
The benefits of using software wallets include managing multiple addresses, easily sending and receiving payments, and the increased security that comes with having a private key stored on your own device. There’s the added benefit of increased privacy and security compared to storing your assets on a cryptocurrency exchange.
Remember that software wallets are generally less secure than hardware wallets, as they are often connected to the Internet and, therefore, vulnerable to hacking. Nevertheless, for many people, the convenience and flexibility of software wallets make them the preferred choice for storing Bitcoin.
Bitcoin and Canada-Based Cryptocurrency Exchanges Regulations
All cryptocurrency exchanges operating in Canada are registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as MSBs, or money service businesses. To serve Canadian customers, exchanges must implement different safety measures and protect customer data.
Regulation is important as it protects the end user. However, there are some obligations for users as well. When you register with a cryptocurrency exchange, you need to include your personal details, as exchanges have to keep track of customer transactions and have to adhere to anti-money laundering policies.
Bitcoin and other cryptocurrencies are taxable in Canada. Even though digital currencies aren’t viewed as legal tender, any gains made from these assets are subject to capital gains tax.
How To Purchase Bitcoin in Canada: A Step-by-Step Guide for Exchanges
Registering on any Canadian cryptocurrency exchange is a simple process.
- First, you create an account by providing your email address and choosing a strong password. You’ll have to verify your email address by clicking on a link in an automated message you get upon registering.
- Before you start trading, you need to complete the KYC (know your customer) procedure by providing some personal information and uploading a copy of your government-issued ID.
- Once your identity has been verified, you can deposit Canadian dollars into your account using Interac e-Transfer, wire transfer, credit cards, or debit cards.
- Once the funds have been deposited, you can use them to buy Bitcoin or other cryptocurrencies listed on the exchange.
Remember that cryptocurrency exchanges typically charge a small fee for each transaction, so make sure to compare prices before making a purchase. This is true for any kind of crypto or Bitcoin trading in Canada and abroad. When you’re ready to buy, simply enter the amount you want to purchase and complete the transaction.
The Bitcoin will be stored in your account on the exchange until you’re ready to sell or withdraw it. Withdrawing Bitcoin is usually as simple as entering the wallet address of your hardware or software wallet and selecting the amount you want to withdraw.
Bitbuy: Made in Canada
Bitbuy is a Canadian-made exchange we always gladly recommend. Besides Bitcoin, you can choose among 20+ other coins and tokens. All transactions on the exchange are subject to small fees, including deposits and CAD withdrawals. The exchange applies extensive security measures, and it’s used by almost half a million Canadians.
CoinSmart: Smarter Trading
Wondering where to buy Bitcoin? CoinSmart could be the answer. The exchange is registered with the Ontario Securities Commission (OSC), FINTRAC, and several foreign government agencies. With fees as low as 0.2%, you can trade with some of the most popular cryptocurrencies in the world, such as Litecoin, Ethereum, and many others.
Coinsquare: Safe and Reliable
Adequate security measures are essential to keep your Bitcoin safe. One of the safest cryptocurrency exchanges created in Canada is Coinsquare. It’s a FINTRAC registered business that’s SOC 1 and PIPEDA compliant. It offers 40 cryptocurrencies to its users and hundreds of trading pairs.
We are lucky as there isn’t just one best place to buy Bitcoin in Canada. We can choose between multiple platforms and be safe in knowing that the market is now highly regulated and easily accessible. If you’re interested in expanding your portfolio, there’s no time like the present.
What is the best way to buy Bitcoin in Canada?
The best way to buy Bitcoin in Canada is through a crypto exchange. There are many exchanges available, so make sure to compare prices and fees before making a purchase.
How can I buy Bitcoins with cash in Canada?
You can buy BTC using some of the numerous Bitcoin ATMs across the country. Alternatively, you can arrange an in-person trade, which we don’t recommend.
What banks let you buy Bitcoin in Canada?
There are more than a few banks that allow their clients to buy Bitcoin. The most popular ones include TD Bank, Scotiabank, and CIBC.
Is trading in Bitcoin legal in Canada?
Yes, it is. There are multiple Canadian-based companies that allow you to enter the crypto market. Our guide on how to buy Bitcoin in Canada covers all the essentials you need to get you started.