How to Buy Cryptocurrency in Canada?
Cryptocurrency has become increasingly popular in recent years, as more people look towards the digital asset class as a potential investment opportunity. As such, many Canadians are now wondering how to buy cryptocurrency in their own country.
In this comprehensive guide, we’ll be looking at the various ways to buy cryptocurrency in Canada, including via exchanges, brokerages, peer-to-peer trading, and other methods. Let’s get started.
What is Cryptocurrency?
Before we get into how to buy cryptocurrency in Canada, we should first take a look at what cryptocurrency is.
Cryptocurrency is a type of digital asset that runs on blockchain technology. Blockchain technology is a decentralized and secure ledger system that allows for digital asset transfers without the need for a middleman, like a traditional bank.
The most popular cryptocurrency is Bitcoin, which was released in early 2009 by the enigmatic Satoshi Nakamoto. Since then, there has been a rapid growth in cryptos, with more than 8,000 different types of altcoins as of today.
What You Need to Know Before Buying Cryptocurrency
Before you get started buying cryptocurrency, you should first familiarize yourself with the necessary terminologies and requirements.
First off, you’ll need to set up a crypto wallet, which is a digital wallet to store and manage your crypto holdings. There are many different types of wallets, ranging from desktop, mobile, and hardware wallets, among others.
Additionally, you should also pay attention to the market prices of the cryptos that you’re interested in investing in. The prices will vary depending on the cryptocurrency exchange, so it’s important to keep an eye on the prices to ensure that you’re getting the best deal.
Finally, you should also be aware of the various crypto tax regulations in Canada. The Canada Revenue Agency (CRA) requires that crypto investments are reported and taxes are paid accordingly.
Exchanges
The most popular way to buy cryptocurrency in Canada is via cryptocurrency exchanges. These are online services that allow you to exchange fiat currency for digital assets like Bitcoin and Ether.
There are many popular Canadian exchanges such as:
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Coinsquare: Coinsquare is one of the leading exchanges in Canada, offering a wide range of coins, low fees, and great customer service.
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NDAX: NDAX is another popular exchange in Canada that supports a wide range of coins and offers some great features such as high liquidity, margin trading, and more.
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Bitbuy: Bitbuy is another top-rated exchange that offers intuitive trading features and great customer service.
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Coinberry: Coinberry is a great exchange that is dedicated to providing the best experience to Canadian crypto traders and investors.
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MyBTC: MyBTC is an easy-to-use exchange that offers a wide range of coins and is geared towards beginners.
It’s important to note that exchanges are not the only way to buy cryptocurrency in Canada. Many Canadian brokerages and peer-to-peer (P2P) trading platforms also offer crypto services.
Brokerages
There are also a number of Canadian brokerages that allow you to buy and sell cryptocurrency directly. These brokerages typically offer more advanced trading tools and services, such as margin and short selling, stop orders, limit orders, and more.
Some of the most popular brokerages include:
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Wealthsimple Crypto: Wealthsimple Crypto is one of the leading brokerages that offers a wide range of crypto trading tools and services.
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Ease Central: Ease Central is another top-rated brokerage that is geared towards beginner traders.
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Bulldog Crypto: Bulldog Crypto is a great brokerage for experienced traders, offering a wide range of tools and services.
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CoinSmart: CoinSmart is an intuitive brokerage that offers a wide range of coins and trading tools.
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MogoCrypto: MogoCrypto is another great brokerage that offers a great overview of cryptocurrencies and trading tools.
Peer-to-Peer Trading
Peer-to-peer (P2P) trading platforms are a great way to buy cryptocurrency in Canada. These platforms essentially act as a middleman, connecting buyers and sellers through an escrow system to trade digital assets securely.
Some of the most popular P2P trading platforms in Canada include:
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Local Bitcoins: Local Bitcoins is one of the leading P2P trading platforms in Canada, allowing you to sell and buy digital assets without a middleman.
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Paxful: Paxful is another top-rated P2P platform, allowing users to buy and sell crypto with a variety of payment methods.
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Bisq: Bisq is an open-source P2P trading platform, allowing users to trade crypto securely and anonymously.
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Hodl Hodl: Hodl Hodl is a great platform for experienced traders, allowing users to trade Bitcoin and Ethereum with no restrictions.
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Mycryptoexchange.com: Mycryptoexchange.com is a leading Canadian P2P trading platform, offering a wide range of coins and secure escrow services.
There are many different ways to buy cryptocurrency in Canada. Exchanges are the most popular method, but there are also brokerages and P2P trading platforms to choose from.
It’s important to make sure you familiarize yourself with the terminology and regulations before getting started. Additionally, remember to always use reputable exchanges, brokerages, and P2P platforms to ensure that your funds are secure.
Good luck, and happy trading!
