Cryptocurrencies, especially Bitcoin, have grown in popularity in Canada. According to a report by the Ontario Securities Commission, over 70% of Canadians know about crypto, and 35% plan to own a digital currency in the future.
Are you one of the Canadians looking to buy Bitcoin but don’t know where to start? Do not worry! This guide explains the various ways to purchase BTC in Canada. Read on to find out more.
Is Bitcoin Legal in Canada?
Before learning how to acquire BTC, it is vital to understand whether Canadian authorities allow crypto trading. Fortunately, the Canadian government recognizes Bitcoin and other digital currencies and supports their trading. Regarding crypto taxes, the Canada Revenue Agency considers Bitcoin a commodity and imposes capital gain taxes on holders.
Do Canadian Banks facilitate Crypto Trading?
Canadian banks continue to play a massive role in promoting crypto adoption subject to stipulated federal regulations. As of August 2024, these financial institutions have installed more than 2,700 Bitcoin ATMs across Canada, allowing people to buy and sell Bitcoin conveniently.
Some reputable banks in Canada that support crypto trading include ATN and Coast Capital, Royal Bank of Canada, National Bank of Canada, and Canadian Imperial Bank of Commerce.
Alongside Bitcoin ATMs, Canadian banks let customers purchase Bitcoin using debit cards and wire transfers. If you wish to use any of the payment options, you are required to link your bank account with your ideal regulated crypto exchange.
Where to Purchase Bitcoin in Canada
If you cannot access a Bitcoin ATM, there are two types of platforms to use to buy BTC in Canada. They include crypto exchanges and brokers. While these platforms offer a simple way for users to grab some BTC, they come with their own pros and cons. For example, crypto brokers are easier to understand than exchanges. On the other hand, exchanges give users more control over their Bitcoin than brokers.
Buying Bitcoin From a Crypto Broker
If you prefer buying Bitcoin from a broker to an exchange, here are the steps to follow:
1. Create an Account on Your Preferred Broker
Several reliable brokers, such as Wealthsimple and Mogo, allow Canadians to trade Bitcoin on their platforms. When selecting a broker, check aspects like trading fees and withdrawal restrictions. Once you find your ideal platform, create an account using your phone number or email and verify your identity.
2. Fund Your Verified Account
Top brokers support multiple payment methods for users to deposit funds into their accounts. For instance, Wealthsimple users can fund their accounts using PayPal, credit/debit cards, and wire transfers.
3. Buy Bitcoin
After successfully funding your broker account, look for the Bitcoin offering on the trading platform and place a buy order. It is worth mentioning that some brokers limit buy volumes, so it’s good to check how much your broker allows users to spend on Bitcoin before you place an order.
Buying Bitcoin From an Exchange
If you find crypto exchanges more convenient than brokers, then here is the process of buying Bitcoin from these platforms.
1. Select Your Ideal Exchange
As a crypto-friendly nation, Canada has allowed several international exchanges to set up shop. They include Bitbuy, Kraken, Crypto.com, Coinbase, Coinberry, and Kucoin. Each of these exchanges adopts varying trading rules and fees. Therefore, we recommend doing due diligence to choose one that matches your needs.
2. Register
Once you pick a crypto exchange, the next step is to create an account. Like brokers, exchanges require new users to use their valid phone numbers or email addresses to sign up. As for identity verification, users must upload clear photos of their government-issued documents like IDs, passports, or driver’s licenses.
3. Fund Your Account
You need a funded account to start trading Bitcoin. Most exchanges accept fiat deposits, while some are crypto-only platforms, meaning you can only fund your account with digital currencies like stablecoins. After funding your trading account, convert the funds to Bitcoin in the spot market.
And that’s how simple it is to purchase Bitcoin in Canada. But before buying this digital asset, understand the risks involved.
