How To Buy NFTs In Canada (Sep 2022)

July 14, 2022
Blog
Crypto Tax Canada

NFTs are new, exciting ways to invest in blockchain technology and the broader market surrounding cryptocurrencies. They're a bit hard to wrap your head around at first, but once you come to understand them, they have the potential to be excellent investment vehicles.

If you're looking to invest in NFTs in Canada, I recommend doing so by first buying Ethereum with CoinSmart and then using your Ethereum to buy the specific NFTs you want. With the lowest trading fees in Canada, extremely secure crypto storage, and excellent customer support, CoinSmart is an excellent way for Canadians to buy and sell crypto.

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Offer ends September 31, 2022.

What Is An NFT?

A non-fungible token, or NFT, is a unique and uninterchangeable piece of data kept on a digital ledger or blockchain. NFTs can be linked to verifiable digital assets such as photographs, videos, and audio recordings.

NFTs are digital assets that utilize digital ledgers to issue public proof of authenticity or ownership, but they do not restrict file-sharing or copying of digital files. The inability to exchange this asset (fungibility) distinguishes NFTs from blockchain cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

How To Buy NFTs In Canada

To invest in NFTs in Canada, you just need to follow these simple steps:

#1 Get A Crypto Wallet

The first step to investing in NFTs is to get a cryptocurrency wallet. A crypto wallet is a digital storage location for your crypto coins, and you'll also need to link it to an NFT market in order to invest later.

There are two main types of crypto wallets you should be aware of: hardware (also known as cold) wallets and software (or hot) wallets. Hardware wallets resemble USB flash drives, while software wallets are software that may be downloaded to a computer or mobile device.

Cold wallets are generally considered to be safer since they are more difficult to hack and/or steal.

Most Popular

Supports: 5,500+ crypto assets
Type: Hardware wallet
Cost: $$

Canada's most popular wallet.

★★★★

Rated 4.3/5

Budget Pick

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

The cheapest hardware wallet.

★★★★

Rated 4.1/5

Best For Altcoins

Supports: 5,500+ crypto assets
Type: Hardware wallet
Cost: $$$

An upgraded Nano S.

★★★★

Rated 3.8/5

#2 Buy Ethereum Tokens Using A Crypto Exchange

You need cryptocurrencies to invest in NFTs just as much as you need money to invest in stocks or real estate. And because most of the NFTs reside in the Ethereum blockchain, I also recommend using Ether or ERC-20 tokens (like Chainlink (LINK), Tether (USDT), and Shiba Inu (SHIB)) to get started.

There are plenty of crypto exchanges in Canada that make buying Ethereum easy. Here are some of our top Canadian crypto exchange picks:

1. CoinSmart

CoinSmart: best crypto exchange Canada

CoinSmart is a great option for Canadians seeking a reliable, trustworthy crypto exchange. CoinSmart's trading fees are just 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), is registered as a Money Services Business with FINTRAC, and is a member of the anti-money laundering group TRUST, all of which means they're a highly secure exchange. They also maintain a 95% cold storage policy, which keeps your crypto extra safe 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 exchange, CoinSmart is an excellent choice.

Features

  • Extremely low trading fees (0.20%)
  • 24/7 customer support available via phone, live chat or email
  • Instant account verification
  • Supports 16 cryptocurrencies
  • Registered Marketplace by the OSC
  • Trade all altcoins directly
  • 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: 0.20%
  • INTERAC Deposit: 0%
  • Bank Wire Deposit: 0%
  • Bank Wire Withdrawal: 1.00%
  • EFT Withdrawal: 1.00%

Signup Bonus

$50 bonus when you sign up using this link

Best For

Investors looking for top-level security and instant account verification.

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Offer ends September 31, 2022.

2. Bitbuy

Bitbuy's trading fees are an impressive 0.20%, and just 0.1% for Pro users. It supports 17 cryptocurrencies, verifies accounts instantly, prides itself on its helpful customer service reps, and has a beautiful, well-rated app.

For a limited time, Bitbuy is offering a $50 bonus to new users who fund their account with $250 or more.

You can fund your Bitbuy account directly from your bank account via INTERAC e-transfer or bank wire, with all account deposits and withdrawals executed quickly. It's processed more than $4 billion in trades across its 350,000+ Canadian users.

Bitbuy is a Registered Marketplace and Investment Dealer, as recognized by the Ontario Securities Commission (OSC). This means that the OSC has recognized Bitbuy as a highly safe and secure exchange, and that it offers deep liquidity for all order sizes.

If you’re looking for a highly-respected exchange that offers altcoin trading, excellent customer service, and a slick mobile app, Bitbuy is for you.

Features

  • Extremely low trading fees (0.10% – 0.20%)
  • Easy to use for both beginners and 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
  • Express Trading Fees: 0.20%
  • Pro Trading Fees: 0.10% to 0.20%
  • INTERAC Deposits/Withdrawals: 0%
  • Bank Wire Deposit: 0%
  • Bank Wire Withdrawal: 1.00%

Signup Bonus

$50 bonus when you deposit $250 using this link.

Best For

Investors looking to trade with extremely low trading fees.

CLAIM MY $50 BONUS
Offer ends soon.

3. VirgoCX – $30 Signup Bonus

Best For Fringe Coins

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

Low spreads, great platform.

★★★★

Rated 4.5/5

Based in Toronto, VirgoCX is another one of the best Canadian crypto exchanges. Its users appreciate that it offers 50+ cryptocurrencies, one of the widest selections of any exchange on this list. 

VirgoCX’s trading platform and mobile app are intuitive and easy to use, even for beginners. It offers 24/7 customer support via live chat and email, plus an extensive FAQ section on its site.

VirgoCX charges no deposit or withdrawal fees on fiat and covers the first $6 in mining fees on ERC20 withdrawals. It requires 2-factor authentication on all accounts, and maintains a 95% cold storage policy to keep your assets safe at all times.

Features

  • Supports 50+ cryptocurrencies
  • Free fiat deposits and withdrawals
  • Free deposits and withdrawals on most cryptocurrencies
  • 24/7 support available via live chat and email
  • User-friendly for both beginners and more advanced traders
  • 95% cold storage policy keeps your crypto extra secure

Cost

  • Account Opening: Free
  • Cash Deposits: Free
  • Cash Withdrawals: Free
  • Crypto Deposits: Free
  • Crypto Withdrawals: Free for all major coins
  • Spreads on trades: Around 1%

Signup Bonus

$30 when you fund your account with $100 or more using this link.

Best For

Investors looking to buy altcoins before everyone else.

CLAIM MY $30 BONUS
Free account, instant verification

3. Choose An NFT Marketplace To Use Your Ether In

Now that you have digital assets that you can use to invest in NFTs, you'll need to choose a marketplace that offers the type of NFT you're interested in. For example, if you want to buy real estate NFTs, you'll need to use a different marketplace than if you're buying music NFTs.

Here are some of the top NFT marketplaces around right now:

1. OpenSea

OpenSea is the most well-known and oldest NFT marketplace, having been founded in 2017. It's presently one of the best platforms for beginner NFT investors to get started on since it's extremely simple to use and offers a variety of tutorials.

The site is full of different digital asset types, and you don't need to pay anything in order to register and look through the wide range of offerings. It also supports artists and creators and offers a simple method for creating your own NFTs (known as “minting”).

2. Rarible

Another huge marketplace for NFTs is Rarible, which is similar to OpenSea. On the platform, you can buy, sell, and make any kind of artwork, film, collectible, and music you want.

However, unlike OpenSea, Rarible uses its own token, Rarible (CRYPTO:RARI), for transactions. Rarible is based on the Ethereum blockchain.

3. Axie Marketplace

The video game Axie Infinity has an online store called the Axie Marketplace. Axies are mythical creatures that can be purchased and trained before being pitted against other players' Axies to earn rewards. On the Axie Marketplace, players may buy new Axies, as well as other items and even lands to use them as NFTs in the game.

The Axie Infinity token is known as an Axie Shard. They are based on the Ethereum blockchain and may be purchased and sold on a variety of NFT marketplaces, as well as a few cryptocurrency exchanges.

In Summary

NFTs are new, exciting ways to invest in blockchain technology and the broader market surrounding cryptocurrencies. They're a bit hard to wrap your head around at first, but once you come to understand them, they have the potential to be excellent investment vehicles.

If you're looking to invest in NFTs in Canada, I recommend doing so by first buying Ethereum with CoinSmart—my #1 pick for Canada's top crypto exchange—and then using your Ethereum to buy the specific NFTs you want. With the lowest trading fees in Canada, extremely secure crypto storage, and excellent customer support, I believe CoinSmart is the best way to buy and sell crypto for most Canadians.

CLAIM MY $50 BONUS
Offer ends September 31, 2022.
Want to earn $50 in the next 6 minutes?

CoinSmart is a highly-rated, fully regulated Canadian crypto platform that’s giving new users $50 for depositing $200 or more. Trade with low fees and withdraw your money at any time.

Click below to claim your $50 bonus today. Offer ends October 1, 2022.
CLAIM MY $50 BONUS
Offer ends October 1, 2022.