So, you want to know how to buy Bitcoin in Canada? Want to jump straight to the answer and learn how to buy and use Bitcoin as Canadians residents?
You can Buy Bitcoin in Canada in 5 easy steps:
In the following sections, we will explain the process to buy Bitcoin in Canada in greater detail.
Please note that Cryptocurrency investments are high-risk investments. Any investment decision is under the responsibility of the individual. We are not financial experts, and the resource links below are provided for information purposes only. They are based on our own research and experience with Bitcoin (BTC) in Canada. They are not intended to be legal and/or financial advice.
|Price Today||56,568.19 Canadian Dollars (CAD)|
|24 hour % change||1.86|
|7 days % change||12.80|
|30 days % change||18.56|
|60 days % change||51.62|
|90 days % change||62.02|
Bitcoin was the first-ever cryptocurrency to be launched globally since it was first introduced back in 2008. What is intriguing is that so many years after its creation, nobody is still certain about who actually was Bitcoin’s original creator, since that person is still only known under the pseudonym Satoshi Nakamoto.
The next step is to decide how and where you will buy Bitcoin. For most first-timers, the easiest and most convenient option to buy Bitcoin in Canada is to use a Bitcoin broker.
There are several brokers offering Bitcoin in Canada, and you can easily select one based on your requirements and preferences using our guide. Different exchanges have different transaction fees, withdrawal limits, payment modes, and verification processes that need to be kept in mind before users select one.
The final step is to submit an order through your chosen platform. No matter which platform you choose, you’ll usually need to sign up for an account first. Depending on the platform you use and the regulatory requirements it is subject to, you may be able to sign up simply by providing your email address or you may need to provide your full name, contact information and proof of ID before being allowed to trade.
Once your account has been verified, you’ll need to enter the amount of BTC you want to buy, choose your payment method, review the fees and the total cost of the transaction and then finalise your purchase.
The exact steps you’ll need to follow vary depending on the payment method and type of platform you choose, so keep reading for more details on the different ways you can buy Bitcoin (BTC) in Canada.
With hundreds of platforms to choose from, finding the best Bitcoin exchange for your needs is a challenging task. Consider these key factors when comparing exchanges:
While the regulatory environment surrounding Canada digital currency exchanges is becoming clearer all the time, the same can’t be said for some overseas-based exchanges. Do some research to find out where an exchange is based, the regulatory requirements that apply in that country, and whether the exchange complies with those requirements.
There are many different ways you can purchase Bitcoin, each of which has its own pros and cons.
The biggest advantage of buying Bitcoin with PayPal is that it’s quick and easy to do as you’ll no doubt be aware if you’ve ever used PayPal to purchase anything else online.
You may need to hunt around for the right platform, and if the platform you choose doesn’t accept CAD, then you’ll need to be fully aware of the fees that apply.
Another way to buy Bitcoin with Canadian Dollars (CAD) is to choose a platform that accepts bank transfer deposits. Choose a platform that accepts Interac. Transfers using this system are typically processed more or less instantly, but they may attract higher fees
Many Bitcoin brokers and exchanges allow you to buy Bitcoin using your credit card in Canada. These include platforms like eToro and Coinmama, and using your credit card allows you to make quick and convenient purchases.
Whichever payment method you select, make sure you consider the following:
Regardless of whether you choose a Canada or overseas-based crypto exchange, make sure you compare a range of options before deciding which platform to use.
Our research highlighted several CAD platforms, but few are based in Canada and offer transparency. For this reason, we suggest considering the following locally-owned (and trusted) platforms.
Though many platforms can cater to the BTC purchasing needs of Canadian residents, some crypto enthusiasts, especially less seasoned, newcomers tend to prefer to start their Bitcoin transactions on a locally based platform as this inspires them more trust and confidence, while they feel the added security of being able to access a locally based support team and the added convenience of using their Canadian bank account and bank cards to fund their crypto trading accounts.Examples of such locally based platforms, which are extremely popular with Canadian Bitcoin users are Montreal based Shakepay and Toronto based Coinsmart, both of which cater to the need for easy and fast buying and selling of Bitcoin in Canada.
One of the easiest ways to get started buying Bitcoin in Canada is to use Shakepay, a Montreal company.
CoinSmart is a Canadian cryptocurrency exchange based in Toronto.
These platforms are popular with our users, have esteemed reputations and are trusted by tens of thousands of people living in Canada. Both options are free to join, funded from any Canada bank account/card, and have a local support team.
Remember to also enable 2-factor authentication on your account for extra security.
From your Shakepay account dashboard, select the currency you want to buy – in this case, Bitcoin (BTC).
Specify how much money in Canadian Dollars (CAD) you want to spend, up to an order limit of CA$10,000.
Click “Buy Now”. Pay through the Shakepay website via Interac or deposit the required funds via bank transfer. Once Shakepay has received your payment, your order will be automatically processed and will typically arrive in your inbox within a few minutes.
Remember to take a moment to review the full details of the transaction before you finalise your transaction.
The BTC to CAD crypto-to-fiat currency pair represents the matching between the world’s largest and most popular cryptocurrency, Bitcoin, and Canada’s national currency, which is amongst the top most widely fiat currencies in the world.
Despite the emergence of thousands more cryptos in recent times, Bitcoin remains the largest and most valuable cryptocurrency, but its persistent high volatility means traders are given room for speculation and good potential for profit.
In fact, since an increasing volume of fiat currencies are used to acquire BTC, mainly in the North American markets, this gives added impetus to the BTC/CAD pair and adds even more volatility to the equation. Moreover, the growing acceptance of digital currencies as viable alternatives to fiat currencies for payment purposes across the globe, and particularly in Canada, means that the trading interest in the BTC/CAD is expected to grow significantly in the foreseeable future and the resulting boost in transactions is also expected to open up further opportunities for profit.
The Bitcoin to Canadian Dollars (CAD) pair features BTC as the base along with CAD, the official currency of Canada, as the counter currency. The value of the pair can be interpreted as how many Canadian Dollars (CAD) can be purchased with one BTC or how many Canadian Dollars (CAD) it takes to purchase one BTC.
BTC to CAD is a very popular crypto-to-fiat pair. The pair’s counter currency – Canadian Dollars (CAD) – is the official national currency of Canada. The crypto market, including Bitcoin, is extremely volatile, which provides huge potential for speculation. Observing the popularity of BTC to CAD exchange transactions, there are immense opportunities for traders to profit from the pair’s trade.
The historical performance of BTC reflects its success since, while in 2010, you could get 1 Bitcoin (BTC) for less than a dollar in December 2017, the price of one BTC reached a record high of $17,900. In fact, BTC grew by almost 2000% in 2017 alone. Though like other cryptos BTC did see a huge dip in early 2018 and though fluctuations are commonplace, spurred by the pandemic it has recently hit new highs.
Though the use of digital currencies, including cryptocurrencies is allowed in Canada, cryptocurrencies are not considered as legal tenders in the eyes of Canadian laws. Moreover, since the Canada Revenue Agency considers cryptocurrencies as commodities, cryptocurrency transactions are covered by the provisions of the Income Tax Act as well as all the other national tax laws and rules. Moreover, according to Canadian authorities all instances where a cryptocurrency is used to pay for goods or services, must be treated as barter transactions.
As early as 2014, through amendments made to Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act, which were approved by the country’s Governor General, anti-money laundering provisions were extended to include virtual and digital currencies, as these would be treated as “money service businesses”.
Gains from cryptocurrency trading are taxable in Canada. According to the Canada Revenue Agency (CRA), under the country’s Income Tax Act cryptocurrencies are to be treated like commodities, and thus the gains accrued from cryptocurrency trading are taxable.
However, different rules apply on how such digital currency gains are calculated and reported, depending on whether an individual trades or mines cryptocurrencies. Interestingly, businesses accepting payments in cryptocurrencies, such as Bitcoin, must also report the value of the Bitcoin received as business income. The transaction values must be calculated and declared according to the current exchange rate of the crypto asset to Canadian dollars.
Casual Bitcoin users, such as individuals who bought Bitcoin in order to pay for goods and services, should also declare a capital gain if the Bitcoin value happens to go up when they dispose of it. Buy and hold investors of Bitcoin must also report any difference in the Bitcoin value at the time of disposal.
The nature and frequency of one’s crypto transactions will determine if the CRA classifies a person as a day trader, thus taxing their profits as business income. The same applies for crypto miners deemed to be engaging in mining as a business.
Although Canada currently does not have specific legislation related to cryptocurrencies, any form of regulation is enforced by the Investment Industry Regulatory Organization of Canada (IIROC). Cryptocurrency is treated as property for purposes of income tax legislation.
You can check this Canada cryptocurrency guide for more information.