How To Buy Bitcoin in Canada: A Quick Guide

August 28, 2021
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The Bitcoin craze has been sweeping the globe, and Canada is not exempt.

In this post, I will tell you everything you need to know about buying Bitcoins in Canada, going through the basics of investing in Bitcoins, how to buy Bitcoin/crypto in Canada, and many more topics of interest.

What Is Bitcoin?

Bitcoin is a cryptocurrency that allows you to send and receive money quickly without the need for any central authority or banks.

Bitcoin transactions are done with no middle man, so they're quick and inexpensive.

You should also know that Bitcoin is a fixed supply: there will never be more than 21 million Bitcoins in circulation. This makes it like a finite resource, just like gold.

Bitcoin is a modern-day alternative to currency, and it's not controlled by any one person or organization; no single entity has the power to regulate Bitcoin because there isn't anyone behind Bitcoin except its users.

However, this also makes Bitcoin prone to hacking, and it has been used to fund various illegal activities including terrorism and money laundering.

New Bitcoins are created by Bitcoin miners who solve complex problems with their extremely powerful and fast computers.

Bitcoin miners are rewarded with new Bitcoin tokens every time they successfully add a new record to the public ledger and verify transactions in the network.

Bitcoin has a limited supply of 21 million total coins. The smallest unit you can mine is 0.00000001 BTC (also known as 1 Satoshi).

Bitcoin is traded under the symbol BTC (or XBT), and it tends to have a changing value throughout the day that is similar to stock prices on an exchange.

The highest price a Bitcoin has ever reached to have was reached on April 14th, 2021, having a value of $64,863.10 USD.

How To Buy Bitcoin In Canada

Bitcoin can be purchased in Canada through a variety of different means.

You could buy it from an online cryptocurrency exchange or trading platform (like Netcoins, Coinsquare or Bitbuy), through a crypto broker (like Wealthsimple Crypto and MogoCrypto), or you could even buy Bitcoin through one of the many Bitcoin ATMs across Canada.

Some people also choose to purchase Bitcoin via P2P networks (like LocalBitcoins), while others go over the counter (or OTC).

Top 10 Crypto Exchanges And Crypto Brokers In Canada

Here are some of the best crypto exchanges and crypto brokers in Canada to buy Bitcoin from, with a brief overview of each.

#10 Netcoins

Netcoins is an online cryptocurrency exchange that supports over 100 different cryptocurrencies and has offices worldwide.

It offers trades between fiat currencies (CAD) and crypto-based coins like Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH), and Litecoin (LTC).

Netcoins' trading fees are 0.50%, and accounts are free to make for its users.

If you're interested in learning more about Netcoins, you can check out my review on it here.

#9 Coinsquare

Coinsquare was one of the first crypto trading platforms in Canada, and it covers over 100 different cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dash (DASH), and Bitcoin Cash (BCH).

The exchange offers trades between fiat currencies and crypto-based coins, with competitive trading fees of 0.25% to 0.35%. Accounts are free for users to make on the platform.

Coinsquare is a regulated member of the Canadian Securities Exchange (CSE) and is a Money Service Business regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

If you're interested in learning more about Coinsquare, you can check out my review on it here.

#8 Bitbuy

Bitbuy is another popular Canadian crypto trading platform that supports over 100 different cryptocurrencies (including NEO) and has a mobile app that allows you to trade on the go.

Bitbuy offers trading between CAD and a wide variety of digital assets in three different trading models: basic (no fees, but not as many features); standard (fees start at 0.25%); and priority (you'll pay $100/mo for unlimited transactions).

If you're interested in learning more about Bitbuy, you can check out my review on the platform here.

#7 CoinSmart

CoinSmart is a Canadian crypto trading platform that offers trades between CAD and any of the 18 cryptocurrencies it currently supports, which includes Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Ripple.

Fees for CoinSmart start at 0.25% to trade with basic features, then increase based on how many transactions you make. The exchange also has a mobile app.

CoinSmart is a Toronto-based company with offices in Vancouver and Montreal, as well as London, England. It was founded by former bankers who wanted to simplify cryptocurrency investing for the masses.

If you're interested in learning more about Bitbuy, you can check out my review on the platform here.

#6 Coinberry

Coinberry is a Canadian FINTRAC registered Bitcoin trading platform that allows users to buy and sell Bitcoins. There are no deposit or withdrawal fees on Coinberry, and users can fund their accounts through credit card purchases, bank wire transfers, and through Interac e-Transfer.

Withdrawals will be locked for 72 hours after the first purchase is made as an anti-fraud measure; however, deposits can be made up to $500 via credit cards.

#5 MogoCrypto

MogoCrypto is a cryptocurrency trading platform in Canada that belongs to Mogo, a Canadian financial technology company.

The parent company (Mogo Inc.) is publicly traded on the Toronto Stock Exchange and NASDAQ.

In addition to crypto trading, they offer other products including free credit scores, personal loans, mortgages, and more.

MogoCrypto makes it easy to purchase cryptocurrency. Mogo members can place trades using the app or portal, but the platform only offers trading in Bitcoin.

#4 Coinbase

Coinbase is a cryptocurrency brokerage platform based in the United States and open to members from 102 countries.

It has over 35 million users (with 30% of those being outside of the US), $200 billion worth traded on their exchange (Coinbase Pro), lower trading fees and advanced charting tools for traders.

Coinbase was launched back in 2013 by Brian Armstrong as an online bitcoin wallet service that also accepted payments via credit card and bank account transfers.

However, it now accepts more than 40 cryptocurrencies including Litecoin, Monero, Bitcoin Cash, and many more.

#3 MyBTC.ca

MyBTC.ca is a Canadian cryptocurrency brokerage that offers fast trades in Bitcoin. It also allows you to store your assets offline in a cold wallet.

You can withdraw your cryptocurrencies to Canadian bank accounts through Interac e-Transfer or bank wire transfers.

MyBTC.ca also has a mobile app and offers trading in Bitcoin, Litecoin, Ethereum Classic, Dash, Ripple and Monero.

#2 NDAX

The National Digital Asset Exchange (NDAX) is a digital asset exchange platform in Canada that offers support in over 14 cryptocurrencies as well as low fees.

The advanced charting tools on the website allow for more seasoned traders to utilize their experience in order types while still providing support for beginners as well.

The platform is available on all devices and provides easy-to-use tools to allow you to trade in the digital currency market with confidence.

#1 Kraken

Kraken is a cryptocurrency exchange based in the US, originally launched in 2011 and relaunched again in 2013 with new features.

The platform offers 50+ cryptocurrencies for you to buy and sell on their platform. 

They offer three account types: starter accounts (which allows deposits, exchanges, and withdrawals), intermediate accounts, and pro accounts.

Bitcoin ATMs

When purchasing Bitcoin, you can also purchase it from ATM machines specifically designed for buying and selling cryptocurrency.

Generally speaking, this is a process where you should already have a specific bank account address to have your Bitcoins deposited in cash form at the time of withdrawal.

When using an ATM machine that allows exchanging Bitcoins for fiat currencies (like Canadian dollars), commissions are typically higher than those charged by exchanges.

How To Store Your Crypto

Once you have purchased your cryptocurrency, it is important to store it somewhere safe. You do not want to leave your coins “out in the wild” where other people can steal them from you, after all.

There are a few ways you can store your cryptocurrencies, and the best way to do it is through the use of a crypto wallet.

A cryptocurrency (or Bitcoin) wallet is software/hardware that stores your crypto assets. It's best to think of it as a digital bank account that you use to store, send and receive your cryptocurrencies.

There are 3 main types of Bitcoin wallets, and these are:

#1 Paper Wallets

A paper wallet is the most basic type of crypto wallet. You can store your Bitcoin private keys on a piece of paper and securely keep them offline. There's an obvious downside to paper wallets, though — there's a chance that you can misplace or lose this piece of paper, and that means kissing your digital assets goodbye.

#2 Software Wallets

A software wallet can be installed on any PC, laptop and smartphone as long as you have Internet access. This type of wallet is incredibly convenient, but it can also be hacked (even with 2-factor authentication), which is a problem not present in paper and hardware wallets. Software wallets are also known as hot wallets.

#3 Hardware Wallets

Also known as cold storage, hardware wallets are the most efficient way to store large amounts of digital currency. You get a physical device that is offline and more difficult to hack compared to software wallets, thus making it the safest option of the three.

Now, if you'd like to learn more about crypto wallets, you can check our post on them here.

In Summary

Thankfully, there are plenty of options for you to buy Bitcoin in Canada, whether you use cryptocurrency exchanges, brokers, or you use Bitcoin ATMs to go about it.

Once you are ready to store your Bitcoins, make sure you consider the different storage options available to you: paper wallets, software wallets and hardware wallets.

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