Buying Bitcoin in Canada – A Step-by-Step Guide

In Canada, Bitcoin has gained popularity as a digital currency and investment option. Investors see this as an opportunity to turn to crypto, especially Bitcoin, as an alternative to traditional stocks and bonds. With the increasing popularity, many Canadians are seeking to understand how to buy and invest in this digital asset.

Bitcoin is a digital currency which operates independently of a central bank. It was invented in 2008 by an unknown person or group of people known as Satoshi Nakamoto and started in 2009 when its implementation was released as open-source software.

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Ways to Buy Bitcoin in Canada

In Canada, cryptocurrency exchanges are the most common and convenient way to buy Bitcoin, but they are not the only option available. Here are several methods through which you can purchase Bitcoin in Canada:

Cryptocurrency Exchanges

Cryptocurrency exchanges offer a user-friendly interface, a range of cryptocurrencies, and various payment methods. They are the most popular platforms for buying Bitcoin. Some of the best cryptocurrency exchanges in Canada are Coinbase, Kraken, Bitbuy, and Coinsquare.

Peer-to-Peer (P2P) Platforms

P2P crypto trading platforms like LocalBitcoins or Paxful allow you to buy Bitcoin directly from other individuals. This method offers more privacy and flexibility in payment methods including cash transactions, but it also requires more caution to avoid scams.

Bitcoin ATMs

Bitcoin ATMs are physical machines in various places where you can buy Bitcoin using cash or debit card. They are straightforward to use but often come with higher transaction fees. Websites like CoinATMRadar help you locate a Bitcoin ATM in Canada.

Buy Bitcoin E Transfer

Buying Bitcoin using an e-transfer is a convenient and popular method in Canada. This process usually involves choosing a cryptocurrency exchange, creating an account, setting up payment methods, and depositing funds to buy Bitcoin.

Buy Bitcoin Interac

Buying Bitcoin using Interac e-Transfer is a popular method in Canada for purchasing cryptocurrencies directly from your bank account. Interac e-Transfer allows users to send money between personal and business accounts at participating Canadian banks and other financial institutions. It offers a secure and fast way to fund your cryptocurrency exchange account without the need for a credit card.

Buying Bitcoin in Canada

Buying Bitcoin in Canada involves several steps and it’s essential to proceed with caution.

This is a step-by-step guide to how to buy Bitcoin in Canada through cryptocurrency exchanges.

 

1. Research Cryptocurrency Exchanges:

First, find a cryptocurrency exchange that operates in Canada. Research their fees, security measures, and user reviews.

2. Create an Account:

Once you’ve chosen an exchange, you must create an account. This process typically involves providing your email address and creating a password.

3. Verify Your Identity:

Due to regulatory requirements, you’ll need to verify your identity with the exchange. This process requires you to upload documents such as a passport, driver’s license, or utility bill.

4. Set Up Payment Method:

Link a payment method to your account. Most exchanges in Canada accept bank transfers, credit cards, and sometimes even e-transfers.

5. Deposit Funds:

Deposit Canadian dollars (CAD) into your exchange account. The time it takes for the funds to appear depends on the method of deposit.

6. Buy Bitcoin:

Once your account is funded, you can buy Bitcoin. This typically involves selecting Bitcoin from a list of available cryptocurrencies and entering the amount you wish to purchase.

This is a step-by-step guide to how to buy Bitcoin in Canada through a crypto broker.

1. Select a Crypto Trading Platform:

First, choose a trading platform or broker. Some popular options in Canada include Wealthsimple and Mogo. These platforms are similar to traditional financial trading platforms but tailored to cryptocurrency trading.

2. Set Up an Account:

Visit the website of the chosen platform or download their application. You will need to provide some personal information and verify your account through an email and phone number.

3. Add Funds to Your Account:

Most platforms offer various payment methods including debit cards, credit cards, PayPal, wire transfers, or even gift cards. Be aware that platform fees vary depending on the method used. Credit card payments usually have higher fees but are faster, while wire transfers have lower fees but take longer to process.

4. Buy Bitcoin:

Once your account is funded, you can select Bitcoin from the list of cryptocurrencies. Crypto brokers usually have a limited selection of cryptocurrencies compared to exchanges, so check the available options before investing.

Remember, storing your cryptocurrency securely is crucial. You can leave it on the exchange or use a crypto wallet for additional security. There are mainly two types of wallets known hot wallets (online) and cold wallets (offline). Each has different features in terms of security and convenience.

Additionally, these steps are the same for all cryptocurrency platforms and exchanges.

Best Platforms in Canada to Buy Bitcoin

There are several popular platforms in Canada for buying Bitcoin.

Kraken

Kraken is a well-established cryptocurrency exchange that has been operating since 2011. It is known for its robust features, strong security measures, and a wide range of supported cryptocurrencies, including Bitcoin. Kraken’s features include:

• Kraken supports various cryptocurrencies including Bitcoin.
• It provides advanced trading features such as spot trading, margin trading, and futures trading.
• Kraken also emphasizes high-security measures.
• This platform allows you to deposit and withdraw funds in various fiat currencies.

Bitbuy

Bitbuy is a Canadian-based cryptocurrency exchange that provides a platform for buying, selling, and trading cryptocurrencies. Bitbuy’s features include:

• Bitbuy is known for its user-friendly interface.
• It primarily caters to the Canadian market. It offers features and services tailored to Canadian users including support for Canadian dollars (CAD).
• Bitbuy supports other cryptocurrencies but primarily focuses on Bitcoin and Ethereum.
• This crypto exchange emphasizes security measures including cold storage of funds and 2FA, to protect user accounts and assets.

Coinsquare

Coinsquare is a Canadian cryptocurrency exchange that offers a variety of cryptocurrencies, including Bitcoin. It’s known for its security measures and user-friendly platform. Coinsquare’s features include:

• Coinsquare supports fiat currency deposits and withdrawals which makes it convenient for Canadian users to trade cryptocurrencies with Canadian dollars (CAD).
• This exchange emphasizes security and implements various security measures including two-factor authentication (2FA).
• Coinsquare’s Wealth service is designed for high-net-worth individuals and provides access to personalized advice, market research, and portfolio management.
• It also offers a mobile app for trading on the go that provides convenience for users to manage their portfolios from their smartphones.

NDAX

NDAX is a Canadian cryptocurrency exchange that focuses on providing a secure and compliant trading environment for Canadians. It offers a variety of cryptocurrencies including Bitcoin. NDAX’s features include:

• NDAX works closely with Canadian regulatory authorities.
• The exchange offers an advanced trading platform with features like charting tools, order types, and customizable trading interfaces for experienced traders.
• NDAX provides an Over-the-Counter (OTC) desk for users looking to execute large cryptocurrency trades with personalized assistance.
• The exchange emphasizes high security measures including 2FA and cold storage of funds.

Final Words

In Canada, the cryptocurrency market is experiencing a significant surge and growing interest. Canadians can buy, sell, and trade cryptocurrencies including Bitcoin through various platforms including NDAX, Kraken, etc.