How To Buy Crypto In Canada?

With an upsurge in the ownership of cryptocurrencies like Bitcoin, Ethereum, and Dogecoin in Canada, investors are looking at how to buy crypto in Canada. Moreover, a report by the Ontario Securities Commission suggests that 30% of Canadians plan to buy cryptocurrency by the end of 2023.

The world is now in the crypto metaverse as investments surge with each passing. Furthermore, many countries have already legalized crypto trade while users are exploring the best cryptocurrencies to become part of the market.

Canada is one of the countries which has observed an uproar of investment in cryptocurrencies. Thus learning how to buy Bitcoin in Canada is key to exploring new financial horizons offered by cryptos.

Despite not being considered legal tender, cryptocurrency trading is legal in Canada. CRA (Canada Revenue Agency) regulates the crypto market and published underlying rules and regulations.

So, if you are wondering how to buy cryptocurrency in Canada, read on to familiarize yourself with the details.

Step-by-Step Guide To Buy Crypto in Canada

There are two ways to buy cryptocurrencies in Canada, firstly, through a broker or, secondly, through an exchange. However, crypto exchanges are the preferred mode for many investors as they provide crypto wallet, control, security and investment decision advice. 

While crypto brokers in Canada work on the same line as traditional forex brokers, they aim to avoid complexities and support their clients. However, brokers are usually expensive compared to crypto brokers.

So, we will introduce you to crypto trading in Canada through a crypto exchange and broker. Here are steps to follow to get your dream cryptocurrency.

Buying Crypto In Canada through an Exchange

You can follow the below-mentioned steps to buy cryptocurrency from exchanges in Canada.

Step 1: Select a Crypto Exchange

Firstly, choose a crypto exchange that perfectly suits your trading requirements. Since numerous exchanges offer services in Canada, thus having the right one will save you time, effort and money.

Many exchanges allow transactions in the Canadian dollar and crypto-to-crypto trade. Canada’s most famous crypto exchanges are Coinbase, Crypto.com, Kraken, Coinberry, KuKoin, and Bitbuy.

 Step 2: Open Account

Secondly, open an account with your shortlisted exchange. Generally, exchanges want to know their customer and gather personal information through a process known as KYC.

It will take around a couple of days to set up your account.

 Step 3: Add funds

 After opening your account, you must deposit cash in your newly opened crypto exchange. You can easily transfer Canadian dollars to your crypto account.

Crypto exchanges accept payments through routine channels, including wire transfers, direct deposit, debit and credit cards. However, one tip is to check with the exchange before adding funds.

 Step 4: Buy Cryptocurrency

Lastly, you are all set to buy cryptos. All you need to do is to log in to your crypto exchange account, select your desired crypto like Bitcoin or Ethereum, enter quantity, and make a purchase.

 Step 5: Storing Cryptocurrency

After you have purchased cryptocurrency, the next step is to store it. There are two main storage types: leave it with your exchange or transfer it to your wallet.

Hardware wallets are more secure as compared to hot wallets. Since security is the biggest concern surrounding cryptocurrency; thus we recommend going for a cold wallet. However, cold wallets are expensive compared to hot wallets.

Buying Crypto In Canada through a Broker

The second most popular way to buy cryptocurrency in Canada is through a crypto broker. The following steps outline a guide to buying cryptos through brokers.

Step 1: Open an account with the crypto platform

You can visit the website of your preferred crypto trading platform and open an account by signing up. Create an account through a valid phone number and email and fill in any other requirements the broker requires.

Step 2: Add funds

Make payment through debit card, credit card, PayPal or wire transfer, depending on acceptable options. However, please check the fees for each type of payment transfer. Generally, credit card payments cost you more than other forms of payment.

 Step 3: Buy Cryptocurrency

 You are now all set to place an order for your desired cryptocurrency. However, crypto brokers offer a limited basket of cryptocurrencies, unlike exchanges. So, make a selection and buy crypto coins. However, there are restrictions on purchasing a certain volume, so it is a viable practice to check with your broker before placing an order. 

Frequently Asked Questions

Is it legal to buy cryptocurrency in Canada?

Fortunately for crypto lovers, it is legal to trade cryptocurrencies in Canada. The government has accepted digital currencies with open arms; however, crypto profits are taxable.

Which banks trade crypto in Canada?

Here are a few top banks that deal in cryptocurrencies.

Which crypto exchange is the best in Canada?

The following crypto exchanges in Canada are performing exceptionally well. However, many other exchanges are operating in the market.

Can I withdraw crypto in Canada?

Yes! You can cash out crypto in Canada through several options. Selling cryptos to a broker is the simplest and most convenient option. Furthermore, you can cash out crypto at an AT, machine or a peer-to-peer marketplace.

Is there a tax on crypto income in Canada?

Canada Revenue Agency (CRA) has taxed cryptocurrency as a property, business income or capital gains. So, yes, gains from cryptocurrency are taxable in Canada.

Parting Thoughts

“How to buy crypto in Canada” is a popular search in the region. However, it is a straightforward affair, even if you are a newbie in the crypto market. You can get your desired crypto either through a broker or an exchange.

Since cryptocurrency is the future of finance, therefore Canadian government has offered a soft heart to its trade. Thus, you can easily trade cryptocurrencies in Canada as legal administrations fully back it. 

However, staying alert to price fluctuations is key to making good fortune with cryptocurrency because the crypto market is highly volatile.   

We hope you are now fully versed in acquiring digital currency in Canada. Please leave your feedback in the comments section, and let us know your preferred way to buy cryptocurrencies in Canada.