Did you know that you can lose your entire fund in a snap? It is also possible to lose your hardware wallet to hackers.
But there is a way you can overcome these negatives. Every day, people lose over 1,500 Bitcoins, which is roughly 18.5 million dollars’ worth.
After going through these studies, we came to the conclusion of helping you buy Bitcoin in Canada. Not only that, but we will also explain everything you need to know before buying Bitcoin from an online exchange.
Steps On Making A Bitcoin Account
A simple and direct answer to the above question on how to buy Bitcoin is to sign up with a crypto exchange. This is simple.
- Create an Account: Create a cryptocurrency account on any cryptocurrency exchange website, click on get started via their homepage, enter your email address, enter your preferred username, and create a safe password.
- Deposit: Funding your new account is simple and easy. All you need to do is use wire transfers or bank transfers. Using the bank transfer option, you can deposit a minimum of 100 USD or less if acceptable.
- Purchase Bitcoin: Click on buy Bitcoin on the trading page. You can also enter the desired amount of Bitcoin you wish to buy.
If you still don’t understand the above brief detail, here is a simple summary of how to buy Bitcoin in Canada.
This post will go through the procedures you must follow to buy Bitcoin, the leading trading exchanges, and where and how you can buy Bitcoin right now – with minimal trading costs!
How To Buy Bitcoin In Canada? (Explained)
Many people throughout the world are purchasing Bitcoin in order to make a fast profit or to seek long-term rewards. Others are turning to Bitcoin as a more convenient and flexible means of transferring money. Crypto transactions are appealing since the transfer from one account to the other is digital and relatively speedy.
Most crypto investors purchase Bitcoin to make transactions easier, faster, cheaper, independent, and secure. You can buy crypto as much as you want with a crypto account.
Cryptocurrency transactions have relatively low trading fees as opposed to wire transfers or bank transfers since the whole system is virtual. Some people utilize cryptocurrency to make anonymous drug purchases online, and others make unpredictable Bitcoin investments in the expectation of making large profits.
However, you must have a Canadian bank account before you can be able to fund your crypto account. Your Canadian bank account must be funded with Canadian dollars to enable you to transfer a bank wire to your crypto exchange account for funding.
Complete Guide On Bitcoin Purchase In Canada
We will provide you with a complete guide that will help you to buy Bitcoin in Canada. This guide will give you the step-by-step information and guides you will need to sell Bitcoin, buy Bitcoin, online exchanges, and possibly how much Bitcoin you can buy.
Design A Buying Strategy
People want to buy Bitcoin, but what next do they do with it when they have it? Some primary areas outline what you should do with your Bitcoin when you purchase it in Canada.
- Carryout Payments With Bitcoin
More merchants now accept Bitcoin as a means of payment. Although cryptocurrency may have been successful as an asset, internet firms, travel websites, and electronic commerce are making it reach its full value as a form of payment.
Bitcoin may be used to make purchases online, but before sending any money to a business or individual, be sure to verify their identity. All cryptocurrency transactions are irreversible once done.
You might want to stay with well-known merchants when you use Bitcoin to make payments to become used to the procedure. To give the retailer money through blockchain, you must know their address.
You can use any regulated crypto exchange to make your transactions. This authorized regulated crypto exchange has a superb reputation in the crypto trading scene.
- Buy and HODL
Buy and HODL refers to the process of holding out your cryptocurrency asset for a longer time and selling for little price gains before taking the profits.
According to a 2018 report by the Canadian bank, over 50% of Canadian citizens purchase Bitcoin just for investment.
They further said that by 2021, Canadians will still purchase and sell cryptocurrencies to shop online, send money to friends and family, and transfer money abroad. By far, investment is the most common justification for Bitcoin ownership.
Crypto investors may be divided into buy-and-hodl (hold) investors and short-term traders. Currently, the value of Bitcoin and other cryptocurrencies fluctuates; you should be aware of this.
You may store Bitcoins in Canada on a crypto exchange or a hardware wallet, and you may also send Bitcoin to any acceptable Bitcoin wallet. Also, you can utilize a software wallet (mobile or desktop) or hardware wallet (USB drive or paper) with a distinct blockchain address.
- Trade Other Cryptos With Bitcoin
While Bitcoin is the most popular cryptocurrency, other cryptocurrencies are on the market. You can purchase these cryptocurrencies with Canadian dollars, including Bitcoin cash, Dogecoin, Ethereum, etc. You can buy them with Bitcoin.
Select A Bitcoin Purchase Location
It is crucial to research before deciding where to purchase Bitcoin. Several cryptocurrency exchanges across Canada and globally provide various features, payment methods, transaction fees, and options such as Bitcoin atm and P2P.
- Bitcoin Exchanges
Does it surprise you to see many crypto exchanges lately? The growth of cryptocurrency exchange came from the popularity of Bitcoin, Ethereum, and other cryptocurrencies. These exchanges came to make the buying and selling of Bitcoin and other cryptos easier for people.
We have a recommended Bitcoin exchange, Bitbuy, where you can carry out an online cryptocurrency exchange. Although there are other cryptocurrency exchanges out there, Bitbuy is one of the most accessible for people living in Canada.
While you can trade Bitcoin on these exchanges, there is a free crypto wallet app you can use to store your crypto assets. Crypto investors also sell cryptocurrency on these exchanges too.
- Bitcoin ATMs
Although it has a cost, buying Bitcoin anonymously in Canada is possible via Bitcoin atms. High fees are a common complaint about Bitcoin ATMs, and you have probably encountered a Bitcoin ATM in your neighborhood convenience shop or the local mall.
On the other hand, Bitcoin atms are kiosks that enable people to buy Bitcoin with their credit or debit card. These ATMs are not so widespread yet, and although they charge high fees, they are still ideal for Bitcoin purchases.
Consider transaction costs while choosing where to purchase Bitcoin. You can lose money using Bitcoin exchanges in various ways, including purchasing and selling, fiat withdrawals and deposits, and Bitcoin withdrawals and deposits.
- In-store Purchase
Similar to P2P trading, in-store purchasing is a sort of purchasing that takes place outside of online crypto exchanges. However, in-store brokers are those that assist large clients in trading cryptocurrencies for millions of dollars. This implies that their transactions are probably not recorded in the public blockchain, making them covert.
- Peer-to-Peer (P2P)
Another option is purchasing and selling Bitcoin straight from other users on P2P exchanges. You may also purchase gift vouchers and other goods, but you should watch out for con artists who can trick you into purchasing fake gift vouchers.
The technologies are still fast and simple to use while steadily becoming safer. Price volatility percentages for selling Bitcoin fluctuate, so evaluate markets and choose whichever is safe and most advantageous for you.
Purchase Bitcoin From Cryptocurrency Exchange In Canada Or Abroad
Compared to your other choices, exchanges provide more ease and security. Although they can vary greatly, trading fees or transaction fees will be greater than P2P transactions but cheaper than Bitcoin atms.
You may not find foreign exchanges as handy if you’re a Canadian because few embrace them, forcing you to pay expensive exchange rates. The amount of Bitcoin Canadians are allowed to purchase on foreign exchanges is even capped at a tiny amount.
The ideal outcome when working with Canadian crypto exchanges is:
- A transaction with favorable bank connections in Canada
- Easy Bitcoin to Canadian dollar exchanges
- There are no restrictions on the amount of Bitcoin you may purchase at once
The most suitable place to buy Bitcoin is a Canadian Bitcoin exchange.
Most exchanges charge a fee to use their platform. When you add or remove cryptocurrency, these costs are deducted. Such expenses include deposit fees, currency conversion, and transfer fees. We suggest that you select the major exchanges that are well-ranked compared to others.
Sign Up And Verify Your Account To Buy Bitcoin
Crypto exchanges streamline the procedure. Simply confirm your phone number, email, and other information, and they will instantly authenticate your identification. You can also present a government-issued picture ID to prove your identification. After that, you can conduct Bitcoin transactions.
Crucial Canadian banking regulation is KYC. Its acronym, KYC, is employed to stop money laundering inside a number of sectors, including stocks, real estate, gold dealers, casinos, and now cryptocurrencies. A Canadian cryptocurrency exchange requires you to verify your identity for KYC purposes.
Deposit Money Into Your Canadian Crypto Exchange Account
After registering, you must fund your crypto account to be able to buy Bitcoin. Canadians frequently have difficulties using foreign exchanges in this area, which is why Canadian cryptocurrency exchange may significantly improve things.
You must learn to purchase Bitcoin without paying exorbitant fees if you’re a Canadian. Your sole payment option on foreign exchange can be a credit card, but the costs and processing times are unattractive.
Companies that accept credit cards make it difficult to purchase Bitcoin and charge exorbitant transaction fees. An increasing number of businesses interpret Bitcoin transactions as advance payments, which entitles them to higher interest rates and transaction fees. Additionally, there may be costs levied by the Bitcoin exchange.
Funding your account on a cryptocurrency exchange can be done via bank wire or Interac eTransfer. There are costs and processing timeframes associated with each form of payment.
Wire Transfer: The ideal method for significant deposits is wire transfer. Although processing takes one working day, the price is negligible at 0.5 percent. Wire transfer deposits have about 20,000 dollars minimum and no restriction. Wire transfers can be the best option if you are a prominent investor or use Bitcoin to pay suppliers and contractors.
Interac eTransfer: An eTransfer typically processes within one to four hours and costs 1.5%. The minimum and maximum deposits are 50 dollars and 3,000 dollars, respectively. Your account can be funded quickly, securely, and safely with Interac eTransfer.
Other Means Of Storing And Purchasing Bitcoin
Apart from doing your personal research to find out how to buy Bitcoin in Canada, we have also deemed it necessary to explain to you where to buy Bitcoin or sell Bitcoin in Canada. However, the information below is the results from our research on the safest places you can store your Bitcoin, and below are the results we came up with.
Cryptocurrencies should, wherever feasible, be kept in wallets, which are effectively digital bank accounts. Crucially, the exchanges technically control the Bitcoin if you store it on a cryptocurrency exchange.
However, you have full control over all your digital assets if you move them to a wallet. This is crucial: if you store your money in exchanges, there’s a possibility that the company may fail or that the proprietors will flee with the money.
Be careful to consider backup and security measures when selecting a Bitcoin wallet. The two kinds of wallets that are most common are cold and hot wallets.
While there are two common types of wallets, there are also hardware wallets. One of the finest methods for storing your Bitcoin is using hardware wallets. You can be confident that you will be the only person with access to your money because it is not accessible online and hence unhackable. If you want to know more about bitcoin wallets, then you must go through this article.
- Cold Wallet
The best approach to safeguard your Bitcoin from hackers is to keep it in a cold wallet. Cold wallets have a possibility of encountering physical dangers; you have no recourse if someone steals them or if you lose them.
In addition, they might be destroyed physically or lose their contents in a flood or a fire. Your private and public keys are physically stored in cold wallets. Paper wallets and hardware wallets are the two most common types, although you can use anything.
Even some physical gold coins have the wallet’s private keys printed on them by Bitcoin owners.
Hardware wallets keep the private keys on a USB stick or other devices that can stay offline or online. This offers the ideal balance between convenience and safety. Your coins become more prone to attack the more they stay online.
Check your hardware wallet’s compatibility with the online exchange or wallet you are using to buy Bitcoin. It can cost a little more to use a hardware wallet.
A paper wallet is among the most secure methods of storing Bitcoins offline. The private and public keys should be noted or printed out, and QR codes are frequently used as security keys in paper wallets. You can transfer money using your private key and Bitcoin address.
You must store your paper wallets safely, preferably in a bank’s safe deposit box. Paper will deteriorate physically and is easily destroyed by fire.
A hot wallet, also known as a software wallet, is constantly online. Hot wallets can be divided into three primary categories: mobile, desktop, and online.
Cloud technology powers online wallets and is reachable through any internet-connected device. A cloud wallet retains your money conveniently available if you enjoy the ease of having access to your Bitcoin via any gadget and frequently use it for payments.
Since online wallets are the most exposed, they may need additional security measures. Online wallets also raise certain security issues because some have a reputation for defrauding users.
Mobile wallets, which are mobile applications, allow you to use Bitcoin as payment at merchant locations precisely as you would with any other mobile payment application.
A mobile wallet’s main security risk is losing your smartphone, making it more secure over cloud wallets. If your smartphone malfunctions physically, you could potentially lose your possessions.
Desktop wallets may be accessed by downloading and installing them on your desktop or laptop computer. It is a quick and straightforward method to keep and retrieve Bitcoin, yet it is just as vulnerable to malware and hackers as your computer is.
Once the computer becomes bad or faulty, it can be a hindrance to accessing your money. Before purchasing Bitcoin, research the security precautions you may take to safeguard your assets in desktop, mobile, and online wallets.
Trading Bitcoin In Canada
Any province in Canada allows for the purchase, sale, and trading of Bitcoin. The government of Canada recognizes cryptocurrency as an acceptable investment asset, in contrast to other countries where government authorities forbade them.
The legality of trading Bitcoin in Canada will see to the influx of other trading platforms that will strengthen the Bitcoin market in Canada.
Furthermore, this approval has helped Canadian exchanges to gain more recognition.
FAQs Related To Bitcoin In Canada
Which Bitcoin trading platform is best in Canada?
There is no definite answer to this question. The Bitcoin trading platform makes trading easier. Most will ask for KYC. Be sure to check their customer’s reviews to see how they have been serving.
What is the legality of Bitcoin in Canada?
The Canadian government has made Bitcoin legal in Canada even though digital currencies are not formally acknowledged as money. The government of Canada recognizes it as a valid financial asset. Therefore, there is no harm in knowing if you can sell Bitcoin or buy Bitcoin in Canada.
Is Bitcoin subject to taxation in Canada?
The Canada Revenue Agency has made it absolutely clear that cryptocurrency is liable to Taxable Income. You must pay tax for any cryptocurrency profits from sales of your cryptocurrency and any extra income you make from cryptocurrency, including any profit you make from staking or receiving crypto payments and digital currencies.
Also, the revenue agency states that income tax will add to any goods you buy with a digital currency.
Is Bitcoin ATM working in Canada?
If you can access one nearby, how you should use a Bitcoin ATM is easy. While the procedures for every Bitcoin ATM vary significantly, they all generally include using a special QR code or scanning your IDs. Additionally, for security reasons, they could ask for your phone number.
To make using their service more effortless for you, certain Bitcoin ATM operators may provide “how-to” videos for their customers on their sites. It could be more challenging to locate Bitcoin ATMs that allow both purchasing and selling, as the majority just provide purchasing.
Is Bitcoin now at a peak or low?
Right now, there is a period of volatility in the digital currencies and Bitcoin prices and investing in them has the same dangers as doing so with volatile stocks or fiat money. Use your hardware or software wallet to store your Bitcoin on a Canadian Bitcoin exchange.
Conclusion: Is Buying Bitcoin Legal In Canada?
Now that you have read about Bitcoin Canada and how to buy Bitcoin in Canada, it is good you start making decisions on creating an account with a reputable exchange. Always look for Bitcoin cryptocurrency exchanges that offer the lowest trading fees, BTC price, and where you can buy Bitcoin instantly.
These lower fees will help save you stress, unlike Bitcoin ATMs, which may charge higher fees. One good thing about Bitcoin and digital assets is that they can make you rich overnight. For example, BTC prices peaked in April 2021, making a positive mark in the market.
It is risky if you want to hold Bitcoin long-term, but it depends on your decision. You should keep your crypto assets safe to prevent loss.
Before purchasing Bitcoin, always keep an eye on the price, particularly if you want to make it an investment. The price of Bitcoin and other cryptocurrencies fluctuates and prepares for unexpected price fluctuations. The cryptocurrency market volatility is an advantage for buying cheaper and selling higher. If you want to buy Bitcoin in Canada straight away, use the best exchange. As previously said, there are top-recommended cryptocurrency exchanges with minimal costs, superficial deposits, and good trading features. Good luck with making your subsequent profit in Bitcoin Canada.