How To Buy Bitcoin in Canada: Investor's Guide

Cryptocurrencies have been on the radar of many investors in the last few years, with Bitcoin emerging as the most well-known and successful digital currency to date. 

As a Canadian looking to invest in crypto, you want to be sure you’re getting the best deals on BTC and other digital currencies. Investing in Bitcoin can be complex and stressful, but it doesn’t have to be. 

This guide will show you how to buy bitcoin in Canada, and some tips for ensuring your transactions go smoothly.

Where To Buy Bitcoin in Canada

Several well-renowned Canadian and international cryptocurrency exchanges serve the Canadian market. We’ve analyzed them in depth, and here’s what they offer to their users.

Bitbuy

Besides Bitcoin, you can trade with more than 25 other digital currencies on Bitbuy, which only supports Canadian dollars as a fiat currency.

There are no deposit fees, and cryptocurrencies have different minimum withdrawals that affect the withdrawal fees. A minimum withdrawal for Bitcoin is 0.001 BTC, while the withdrawal fee is 0.00035 BTC. Maker and taker fees range from 0% to 1.5%. 

Bitbuy is an official money service business registered with FINTRAC, meaning it’s a safe and regulated spot to buy Bitcoin in Canada. It stores almost all digital assets from its users securely in cold storage with BitGo, which also provides insurance for funds held. 

The cryptocurrency exchange platform also has an excellent mobile app for iOS and Android and excellent customer support.

Crypto.com

Here you can directly buy Bitcoin with CAD, and it’s one of the safest platforms for cryptocurrency trading in Canada. 

Crypto.com has its native CRO currency, which is used to lower the trading fees and provide other perks and opportunities to earn more. The platform also offers margin, derivatives trading, and a Visa card with numerous bonuses and rewards.

The fees can be free or go up to 0.04% per transaction. They vary depending on your eligibility and your monthly trading volume. If you want to purchase some Bitcoins in Canada, Crypto.com is one of the best options.

Uphold

Uphold is available in 150 countries, including Canada. Investing in Bitcoin isn’t difficult with Uphold. Users can buy Bitcoin with CAD or USD and hold it in the platform’s wallet. There are also numerous other options for storing your BTC, including third-party wallets and Uphold’s cryptocurrency debit card. You can earn 1% cashback and 2% cryptocurrency-based rewards with the card.

Uphold has a 0.8% to 1.2% spread on BTC purchases and doesn’t charge any deposit or withdrawal fees. You only need to pay network fees when you move your BTC out of the Uphold platform.

Bitget

Bitget exchange has many features, including peer-to-peer trading, futures, grid trading, and other options experienced investors will appreciate. 

One thing to note is that Bitget has advanced security features that are independently audited, and it’s compliant with various rules and regulations worldwide. This also includes Canada, where the company is registered with FINTRAC as an MSB (money services business). 

The platform charges a flat 0.1% trading fee for both maker and taker on the spot market trades. You can buy your Bitcoin in Canada for an even lower rate at 0.08% if you use the Bitget Token. It has competitive and reasonable withdrawal fees. The minimal withdrawal amount for BTC is 0.001, and the fee is 0.0006.

Coinbase

Coinbase has been operational since 2012 and has served more than 98 million verified users. 

It offers a massive selection of cryptocurrencies, including several stablecoin pairs, and has numerous helpful resources for new traders. Additionally, its trading fees are affected by trade volume and are typically between 0.4% and 0.6% for regular users, while those trading millions of dollars can take advantage of 0% fees. 

Coinbase offers a user-friendly platform where you can buy Bitcoin with CAD or USD and store it in a wallet developed by the platform. The exchange also provides numerous other options for keeping your BTC, including third-party wallets and Coinbase’s cryptocurrency debit card.

Reasons To Buy Bitcoin

Bitcoin is more than just an investment opportunity. While it’s one asset that had exponential growth in value and made many people wealthy, it also has other multiple use cases that make it a technology worth investing in. 

Here are some reasons why learning how to buy Bitcoin may be great for your financial future.

Diversify Investment Portfolio

While you can make many different investments, putting some of your money into Bitcoin can offer you a way to diversify. This is because Bitcoin is not correlated with other asset classes, meaning its price movements are not directly affected by the stock market or other traditional investments. 

Remember that it’s still a volatile market, and you should only invest what you can afford to lose and expect long-term profits.

Hedge Against Inflation

Inflation happens when the prices of goods and services in an economy increase over time. This is usually caused by the government printing more money, which leads to a decrease in the purchasing power of each unit of currency. 

While there are many ways to protect your finances from inflation, such as investing in real estate or precious metals, knowing where to buy Bitcoin can also provide you with a great alternative. 

This is because Bitcoin is a deflationary asset, and there will only ever be 21 million BTC in existence. The supply will decrease over time as more BTC is lost through forgotten or lost wallets.

Make Cross-Border Payments

Bitcoin can be used to send money to anyone in the world quickly and easily. BTC transactions are not subject to traditional banking fees or restrictions, making them much cheaper and faster than conventional methods.

Store of Value

Bitcoin is often compared to gold because it is not subject to the same volatility as other cryptocurrencies. This makes it a great asset to store your wealth.

Best Way To Buy Bitcoin in Canada 

You need to adopt a few simple principles to make the best of your Bitcoin investments. Some of these principles won’t only help you to buy Bitcoin in Canada but anywhere else in the world.

How To Choose a Cryptocurrency Exchange

Make sure that you are using a reputable cryptocurrency exchange. This is important because some have been hacked and lost customers’ funds. The best way to ensure safety is to check if a government body regulates the company and whether it operates legitimately in Canada. It needs to be registered as an MSB with FINTRAC. 

You should also check if the exchange has favourable fees and if it takes security precautions to protect users’ funds, such as cold storage and insurance. 

Decide What Payment Method To Use 

So, how to buy Bitcoin in Canada? Most crypto exchanges accept credit and debit cards, bank transfers, and Interac e-transfer. Each of these has its own rates and fees that depend on the exchange. 

Assess How Much Bitcoin Do You Want to Buy

Before starting the process, you need to know how much Bitcoin you want to buy. Investing more than you can afford might not be the best idea, as Bitcoin is a volatile asset, and its price can rapidly change. You don’t want to overspend on your investment or buy at the moment when the price peaks.

Decide on a Bitcoin Wallet 

A Bitcoin wallet is a digital storage space where you can hold your BTC. It’s generally better to use it for storing crypto than on cryptocurrency exchanges. 

There are many types, such as software, hardware, and paper wallets. We have several recommendations for storing and using Bitcoin if you don’t already have a preferred storage solution.

How To Purchase Bitcoins in Canada

Here are basic steps you need to follow to buy Bitcoin on an exchange:

1. Create an account on a cryptocurrency exchange that operates in Canada. 
2. Complete the registration process and submit the required documents for the KYC (know your customer) procedure. You’ll usually need to upload a photo ID and proof of address.
3. When your account is verified, go to the deposit section and select your payment method. 
4. Enter the number of Canadian dollars you want to spend and click on “Buy BTC.” 
5. The exchange will convert your CAD into BTC at the current market rate. 
6. Your Bitcoin will then be deposited into your account on the exchange. You can leave it on the exchange or withdraw it to your wallet, which we recommend.

Congratulations, you are now a Bitcoin owner!

The Bottom Line

Now that you are familiar with buying Bitcoin, you also know how to buy and sell cryptocurrency in Canada, and you’re ready to start your investing journey. Just remember to take things slowly at first, do your research, and always invest only what you can afford to lose. 

Remember that BTC is a more long-term investment, so don’t get discouraged if the price doesn’t immediately go up.