How To Buy Cryptocurrency In Canada (May 2022)

February 11, 2022
Blog

The easiest way to buy crypto in Canada is through trading platforms known as cryptocurrency exchanges. These exchanges allow you to buy various cryptocurrencies using fiat currencies (like Canadian dollars), and it also allows you to sell and exchange these digital assets for other cryptocurrencies and/or fiat currencies.

CoinSmart is our #1-rated crypto trading platform due to its high level of security, ease of use, and low trading fees. If you’re serious about buying and selling crypto in Canada, I can’t recommend CoinSmart highly enough.

CLAIM MY $50 BONUS
Offer ends May 19.

How To Invest In Cryptocurrency In Canada

Buying and trading crypto assets in Canada is a rather simple thing to do, and it’s similar to how you would invest in and trade stocks and bonds.

Here are the steps you need to follow in order to start buying, selling and trading cryptocurrencies in Canada:

Step #1: Choose A Crypto Exchange

A cryptocurrency exchange is a website that allows you to get cryptocurrencies by using fiat currencies (such as Canadian dollars or US dollars) to buy them.

These platforms also allow you to sell cryptocurrency and even trade some coins for others (for example, you can buy Bitcoin (BTC) and then trade it for Bitcoin Cash (BCH)).

There are plenty of options available today when it comes to cryptocurrency exchanges, and with the rising popularity of cryptocurrencies, this number will only increase as time goes on. Here are some of the best Canadian exchanges currently available right now:

1. CoinSmart

Best Overall

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

$50 offer ends May 19.

★★★★★

Rated 4.9/5

CoinSmart is, without a doubt, the best crypto platform in Canada in 2022.

For starters, CoinSmart’s trading fees are an incredibly low 0.2%. They offer excellent customer support available 24/7 via phone, live chat and email, and user accounts are verified instantly.

CoinSmart has been designated a Registered Marketplace by the Ontario Securities Commission (OSC), and as a publicly-traded company, their financials are audited by a third-party firm at least once per year. They also maintain a 95% cold storage policy, which ensures your crypto is kept extra safe and secure across all circumstances.

As a new CoinSmart user, you’ll receive a $50 bonus upon funding your account, which you can use to buy Bitcoin, Ethereum, or any of the 16 assets CoinSmart supports. If you’re looking for a highly secure, reputable crypto platform, CoinSmart is an excellent choice.

Features

  • Extremely low trading fees (0.2%)
  • 24/7 customer support available via phone, live chat or email
  • Instant account verification
  • Supports 16 cryptocurrencies
  • Registered Marketplace by the OSC
  • Immediate deposits and withdrawals
  • User-friendly for both beginners and advanced traders
  • 95% cold storage policy keeps your crypto extra secure

Cost

  • Account Opening: Free
  • Trading Fees: 0.2%
  • INTERAC Deposit: 0%
  • Bank Wire Deposit: 0%
  • Bank Wire Withdrawal: 1%
  • EFT Withdrawal: 1%

Signup Bonus

$50 bonus when you sign up using this link and our promo code YOREOYSTER.

Best For

Investors looking for low fees and the best overall trading experience.

CLAIM MY $50 BONUS
Offer ends May 19.

2. Bitbuy

Lowest Fees

Trading fees: 0.1% – 0.2%
Security: 99% cold storage
Signup bonus: $50

Serving over 400,000 Canadians

★★★★★

Rated 4.8/5

Bitbuy is a great second option for Canadians seeking a reliable, trustworthy crypto exchange.

Like CoinSmart, Bitbuy’s trading fees are just 0.2%, and go as low as 0.1% for transactions made using their advanced trading platform. It supports 17 cryptocurrencies, verifies accounts instantly, prides itself on its helpful customer service reps, and has a beautiful, well-rated app.

Bitbuy has processed more than $4 billion in trades across its 350,000+ Canadian users. It’s a Registered Marketplace and Investment Dealer as recognized by the Ontario Securities Commission (OSC), which means it’s a highly safe and secure exchange that offers deep liquidity for all order sizes.

For a limited time, Bitbuy is offering a $50 bonus to Yore Oyster readers who fund their account with $250 or more. If you’re looking for a highly-respected Canadian crypto exchange that offers altcoin trading, excellent customer service, and a slick mobile app, open a Bitbuy account today.

Features

  • Extremely low trading fees (0.1% – 0.2%)
  • Easy to use for both beginners and more advanced traders
  • Supports 17 cryptocurrencies
  • Excellent customer support
  • Powerful mobile app (rated 4.6/5 on the App Store)
  • 99% cold storage policy keeps your crypto extra secure

Cost

  • Account Opening: Free
  • Trading Fees: 0.1% to 0.2%
  • INTERAC Deposits/Withdrawals: 1.5%
  • Bank Wire Deposit: 0.5%
  • Bank Wire Withdrawal: 1%

Signup Bonus

$50 when you deposit $250 using this link.

Best For

Investors looking to trade with extremely low trading fees.

CLAIM MY $50 BONUS
Free account, instant verification

3. Crypto.com

Best For Altcoins

Trading fees: 0.4%
Security: 95% cold storage
Signup bonus: $10

Trade with 10x leverage.

★★★★

Rated 4.2/5

Crypto.com is a major global player that brings a mature, proven exchange to Canadian crypto investors. It supports 100+ cryptocurrencies, making it an ideal fit for anyone looking to invest in undiscovered altcoins before the masses.

Crypto.com offers some unique features that no other Canadian cryptocurrency exchanges can match. Users can trade options and futures contracts, earn interest by staking their coins, and make trades with up to 10x leverage when they feel particularly confident in a coin.

Crypto.com also has invested an enormous amount of money into its platform security, which makes trading with them extremely safe. The exchange is lightning quick (prices update dozens of times per second), which gives day traders an upper hand over the rest of the market.

Overall, Crypto.com is a solid crypto exchange for investors looking to cash in on brand new altcoins. If you’re just looking to buy more mainstream coins like Bitcoin and Ethereum, though, I suggest either Bitbuy or CoinSmart instead.

Features

  • Average trading fees (0.4%)
  • Supports 100+ cryptocurrencies
  • Allows up to 10x leverage
  • Trade crypto derivatives (futures and options contracts)
  • Earn daily interest by staking your coins
  • Purchase newly-listed coins at up to 50% off
  • Free deposits from all cryptocurrencies

Cost

  • Account Opening: Free
  • Trading Fees: 0.4%

Best For

Investors looking to buy altcoins and other new crypto assets before they go mainstream.

OPEN FREE ACCOUNT
Extremely secure, 10x leverage

Step #2: Choose A Crypto Wallet To Store Your Digital Assets

A crypto wallet is a digital storage space where you can store your cryptocurrencies. These wallets come in both software (hot) and hardware (cold) form, with the former being the most common and convenient but also unsafe as it can be hacked and/or stolen.

Hardware wallets, on the other hand, are more secure since they are not connected to the Internet and store your private keys offline. You will have to manually transfer funds from online exchanges into these wallets before trading them for fiat currencies or other cryptos, though.

As someone who’s tried out more than a dozen different wallets over the years, here are my top 3 picks for the best crypto wallet for Canadians:

#1 Best Overall

Supports: 70+ crypto assets
Type: Software wallet
Cost: Free

The most secure wallet, period.

★★★★★

Rated 4.9/5

Top Hardware Wallet

Supports: 1,800+ crypto assets
Type: Hardware wallet
Cost: $199 CAD

Rated 4.6/5 on Amazon.

★★★★

Rated 4.3/5

Best For Altcoins

Supports: 1,000+ crypto assets
Type: Hardware wallet
Cost: $75 CAD

Trusted by 1 million+ investors.

★★★★

Rated 4.1/5

  1. ZenGo: ZenGo is a free software wallet that leverages the blockchain to make it significantly more secure than traditional wallets while also being extremely easy to use. Sending and receiving crypto to/from ZenGo is also free, and it takes less than 30 seconds to open your free ZenGo wallet.
  2. Ledger Nano S: The Ledger Nano S is a hardware wallet that uses a certified secure chip to protect your private keys. It supports 1,500+ cryptocurrencies and allows users to hold up to 20 digital assets on the device at any given time.
  3. Trezor Model One: The Trezor Model One is a hardware wallet and password manager that supports 1,000+ cryptocurrencies. Its Trusted Display ensures extremely secure transactions, and its compact design makes it easy to keep your crypto safe.

Step #3: Create An Account On Your Platform Of Choice

The next step you’ll need to take is to open an account with the cryptocurrency exchange you chose in Step #1.

In order to fully complete the account creation process with a cryptocurrency exchange online, you’ll need to verify your identity by submitting legal ID papers and official information about yourself. Different exchanges will have different verification standards, but in general, it’s a good idea to have these in hand to make account verification smooth:

  • A Canadian passport or driver’s license
  • A private Internet connection
  • A cell phone so that you can enable two-factor authentication
  • A bank account to deposit or withdraw fiat funds to and from your exchange account

Once you have completed the account creation process, you’ll be able to legally trade and hold various digital currencies.

In Summary

There are now more opportunities than ever to invest in cryptocurrencies. If you use a crypto exchange, all you need in order to begin buying and selling crypto is a legal ID (such as your passport or driver’s license), internet access, a cell phone number for two-factor authentication and at least one bank account.

CoinSmart is our #1-rated crypto trading platform due to its high level of security, ease of use, and low trading fees. If you’re serious about buying and selling crypto in Canada, I can’t recommend CoinSmart highly enough.

CLAIM MY $50 BONUS
Offer ends May 19.

How To Buy Crypto In Canada FAQs

What Is Cryptocurrency?

A cryptocurrency is a form of digital currency that is created and stored electronically. This currency is decentralized, meaning that it doesn’t have a central bank or administrator.

The transactions made with cryptocurrencies are recorded in public distributed ledgers known as blockchains. These digital currencies also use cryptography to secure their networks and control how new coins are created.

Is Bitcoin Mining Easier Than Using A Crypto Exchange?

No, mainly because mining Bitcoin requires a computer with the right hardware to mine Bitcoins effectively. This kind of computer setup can cost a fortune, especially considering the electricity costs that come with mining.

On the other hand, buying Bitcoin and other cryptocurrencies can be more easily accessible, as setting up an account on a cryptocurrency exchange and depositing funds is all you need to do to get started. From there, you can start trading cryptos for other digital currencies or fiat currencies.

What Are Bitcoin ATMs?

A Bitcoin ATM is a machine that accepts cash and converts it into Bitcoin, Ethereum or other cryptocurrencies.

Bitcoin ATMs have been installed in different parts of Canada since they were introduced in 2013. These machines can be used by everyone, but require verification from users before completing transactions.

Do I Need To Report To The CRA When Trading Cryptocurrencies?

Yes, you are legally obligated to report any and all cryptocurrency transactions to the Canada Revenue Agency (CRA).

The CRA considers cryptocurrencies to be taxable assets, so it is important that you keep track of your capital gains and losses whenever you trade or use these digital currencies. To do this, we recommend that you use a crypto tax platform like Koinly, which will make the process much easier.

Is Bitcoin Legal In Canada?

Yes, Bitcoin is legal in Canada. However, there are several laws and regulations that apply to how Canadian citizens can use cryptocurrencies like Bitcoin.

How To Buy Bitcoin In Canada

In order to buy and sell Bitcoin in Canada, you’ll need to use a cryptocurrency exchange. There are a number of these platforms available for Canadians, and this number is only increasing with time.

In particular, we recommend that you use platforms like CoinSmart, Bitbuy, and Crypto.com. These are our top-rated platforms in Canada, and they should allow you to purchase Bitcoin with low trading fees.

How To Trade Cryptocurrency In Canada

Once you have cryptocurrency in your possession, you can start trading them on various crypto exchanges for different digital currencies or fiat currencies.

There are many exchanges that allow trading Bitcoin (BTC), Ethereum (ETH), Cardano (ADA) and many other cryptocurrencies. For this purpose, we recommend that you use platforms like CoinSmart, Bitbuy, and Crypto.com.

Where To Buy Crypto In Canada

There are a few different places where you can buy cryptocurrencies in Canada.

In general, you can purchase Bitcoin and other cryptos from various exchanges like CoinSmart, Bitbuy, and Crypto.com. You can also find Bitcoin ATMs that allow for the purchase of Bitcoin, Ethereum and other digital currencies. Finally, some retailers accept Bitcoin as payment for both online and offline transactions.

The Best Crypto Exchanges In Canada

Best Overall

Supports: 16 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.2%

$50 bonus ends May 19.

★★★★★

Rated 4.9/5

Lowest Fees

Supports: 17 cryptocurrencies
Security: 95% cold storage
Trading fees: 0.1% - 0.2%

Free account, instant verification

★★★★★

Rated 4.8/5

Best For Altcoins

Spreads: ~0.5%
Security: 95% cold storage
Signup bonus: $30

Low spreads, great platform.

★★★★

Rated 4.5/5