How to Buy Cryptocurrency in Canada

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robertstevens

Robert has reported for a variety of international publications including the Associated Press, The Guardian, Vice, and Decrypt. Current areas of interest include the political economy of technology, cryptocurrencies, and privacy. Robert has a Bachelor of Science from UCL, and a Master's degree from the University of Oxford's Internet Institute.

Are you searching for a simple way to buy and sell cryptocurrency in Canada? This helpful guide will provide you with everything you need to start trading cryptocurrency now. We’ll start with the basics:

How to trade crypto in Canada—the quick version

  1. Create an account on a crypto trading platform.

  2. Decide how much money you want to spend on your crypto purchase.

  3. Choose a payment method.

  4. Deposit funds in your crypto account.

  5. Buy the digital currency you’re interested in.

What’s that you say? The quick version was a little too quick? Don’t worry. Just keep reading for in-depth explanations of every step in the process.

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Step 1: Decide how much crypto to buy

With the increasing popularity of cryptocurrencies, more and more people are looking for ways to buy and sell crypto coins. Keep in mind that crypto is a highly volatile market so make sure that you have a plan before starting your crypto journey.

Before investing, ask yourself how much money you’re comfortable losing, and only then make a final decision.

Step 2: Decide where to trade cryptocurrency

After figuring out how much you’re ready to invest in crypto, you should decide from which crypto trading platform you want to buy your first digital currency. Below are some of the best ways to trade crypto in Canada:

Crypto trading platforms

One affordable option is a crypto trading platform. There you can buy crypto with a credit card, which you use to deposit your desired trading amount into your account. Unlike a crypto exchange, a trading platform does not allow you to trade hundreds of cryptocurrencies. But you will be able to buy and sell most of the top digital currencies available. If you live in Canada and want to buy crypto with a prepaid card, Wealthsimple Crypto may be a good option for you. It allows you to invest your money and get started on your crypto journey in just a few easy steps. It’s great for beginners and has a simple user-friendly interface.

Crypto exchanges

Another way to trade crypto coins in Canada is to use a crypto exchange. There are thousands of cryptocurrencies out there, and the benefit of these online exchanges is that they allow you to diversify your portfolio and trade new cryptocurrencies that are not yet available on crypto trading platforms. Keep in mind that new cryptocurrencies come with even greater risk than established ones, so make sure to do your research before investing your money. It’s also important to research the exchange you use, in order to determine if you think it is reputable. Online exchanges hold your cryptocurrency until you withdraw it, and there’s a risk among the more nefarious exchanges of your funds being misappropriated.

Most crypto exchanges don’t have any limit on how many cryptocurrencies you can buy at one time. For anyone who wants to hold, rather than trade, their crypto, some platforms allow you to withdraw your funds in a secure hardware wallet. Advanced crypto traders can also do “Future Trading” and “Margin Trading” on some of the better-known cryptocurrency exchanges.

P2P exchange services

Some investors choose peer-to-peer crypto purchases and sales because they don’t want to pay transaction fees, but many experts warn that these involve significant risk. People on P2P exchange services buy crypto without KYC (or Know Your Client/Customer, a set of standards used within the investment and financial services industry for verifying customers) so if you get scammed while buying crypto on these platforms, there may not be legal actions that you can take to recover your funds. P2P exchange services like LocalBitcoins and Paxful have very few cryptocurrency stocks to buy, and allow you to buy and sell your digital currency for anything you want. You can also trade directly with other people on Facebook Marketplace, but experts believe that the chances of getting scammed on these platforms is high.

Bitcoin ATM

Bitcoin ATMs allow you to buy and withdraw crypto but may be accompanied by high fees. Unfortunately, there are not many Bitcoin ATMs in Canada.

Step 3: Set up an account on a crypto platform or a crypto exchange

Reputable crypto trading platforms and exchanges are among the most trusted ways to buy crypto in Canada. Anyone who is just starting out may want to stick with crypto platforms, which typically have easy-to-use interfaces and allow you to start your crypto journey in just a few easy steps. More experienced investors may move on to crypto exchanges where there may be new cryptocurrencies available. Nobody can tell you what the best crypto to buy is, so make sure to do your research before investing.

Whether you’re looking to get into crypto trading or just want to hold your digital currency as an asset, platforms like Wealthsimple Crypto are perfect for starting your cryptocurrency trading journey. It is one of the few crypto trading platforms in Canada that is regulated by the government. Many people prefer to use the Wealthsimple Crypto app and wallet because of the simplicity and protection. You can trade and hold your digital currency in the app at the same time.

Within a few minutes, you can set up your account and buy your first digital currency. You can use Wealthsimple Crypto on the web or download the smartphone application that is available for both iOS and Android, it allows you to track your investment on the go. There are a few easy steps that you can follow to open a Wealthsimple Crypto account:

  • Go to the Wealthsimple website (you’re already here!) or download the application on your smartphone.

  • First, set up a Wealthsimple Trade profile. Select “Create an account.”

  • Enter your valid email address and password, and fill in your personal information to set up your Wealthsimple Trade account.

  • After you’ve successfully created a Wealthsimple Trade account, go to your “Profile” and select “Accounts.”

  • Select a Crypto account and follow the instructions to successfully open your first Wealthsimple Crypto account.

A few benefits of using Wealthsimple Crypto are as follows:

  • User-friendly interface

  • 30+ cryptocurrencies available to trade

  • Trade on Canada’s first regulated crypto trading platform

  • Trade crypto, stocks and ETFs in one simple-to-use app

  • Sign up in less than 5 minutes

  • Start with as little as $1

When it comes to crypto exchanges, you can find a lot of options but most people go with the famous ones like Binance, which has reasonable trading fees compared to other crypto exchanges, and is considered easy to use. If you don’t own a hardware wallet, you can store your crypto in the wallet that Binance provides. But keep in mind: Most crypto exchange wallets run on cloud, which means that they are always connected to the internet and can be hacked.

If you’re an experienced crypto trader, you can also benefit from the VIP program that Binance offers and take advantage of lower trading fees. Binance also has an NFT platform where you can buy and sell NFTs, but make sure to learn how to trade NFTs. Binance has many advanced crypto features—you can do so much more than just buy and sell cryptos.

Buy and Sell Bitcoin, Ethereum, and over a dozen other cryptocurrencies with Wealthsimple. Sign up and Trade here.

Step 4: Decide how to fund your crypto account

After setting up your account on either a crypto trading platform or an online exchange, figure out how you want to buy your crypto. There are many payment methods to choose from: credit card, debit card, PayPal, or even gift cards, depending on the platform you use. Most crypto buying platforms give you various options so you can choose whichever you like. Before funding your crypto account, make sure to check the transfer fees because they can vary on your desired payment method. For example if you fund your crypto exchange account with your credit card, the funds will be deposited in your account within 5-10 minutes, but the transfer fees can be high. Whereas, if you use wire transfer, it’ll take a few days but you the transfer fee could be lower.

Step 5: Buy your cryptocurrency

When the funds are deposited in your crypto account, and you are ready to make a move, the final step is to buy your first digital currency. Before you buy crypto coins, do some research and decide which cryptocurrency you want to buy. Also, as the crypto market is highly volatile and impossible to predict, make sure to prepare yourself for a rollercoaster of ups and downs.

As purchasing cryptocurrency is legal in Canada, you’ve a wide range of options to choose from. But, before you make the final decision, make a side-by-side assessment of each platform’s features and usability before deciding which crypto trading platform suits you best.

Frequently Asked Questions

No, you can’t. Due to legal cryptocurrency regulations and security regulations, most crypto buying platforms need proof of verification if you want to buy crypto with a credit card.

The prices of all the digital currencies are the same on every crypto buying platform but you can save on the trading fees if you go with platforms like Wealthsimple Crypto as they offer low deposit and trading fees. To bypass fees, you can also buy cryptocurrency using P2P exchange services like Paxful but this method is considered highly risky by crypto experts.

Yes, you can trade crypto without ID through P2P exchange services like LocalBitcoins or Paxful, but many crypto experts believe the chances of getting scammed on these sites is high. You can also buy digital currencies directly from a crypto trader or a Bitcoin ATM. These services allow you to buy crypto without an ID.

Yes, you can legally purchase and sell any cryptocurrency available in Canada. You can open your account on any crypto buying platform and purchase digital currencies. Remember, you have to pay tax on the profit that you make from buying and selling crypto as it’s considered taxable like any other investment.

Last Updated June 16, 2022

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