How can I purchase cryptocurrencies in Canada?

Find out how to purchase Bitcoin and other cryptocurrencies in Canada through brokers or a cryptocurrency exchange.

As cryptocurrency ownership increases, more people are buying cryptocurrencies like Bitcoin, Dogecoin, and Ethereum. Furthermore, the Ontario Securities Commission noted in its research that more than 30% of Canadians intend to purchase digital assets this year.

So, read on and become familiar with the information if you’re wondering how to purchase Bitcoin or other cryptocurrencies in Canada.

Is purchasing cryptocurrencies permitted in Canada?

Even though cryptocurrencies are not yet regarded as legal tender, trading them is permitted in Canada. The Canada Revenue Agency (CRA) defines virtual currencies and offers details on all taxes that may be relevant. If merchants, coffee shops, or e-commerce websites accept bitcoin, one can choose to make purchases in it in Canada.

The CRA views cryptocurrency as a commodity that has the potential to generate capital profits or losses. Cryptocurrency sending, receiving, and trading are all taxable transactions. On the website of the Canada Securities Administrators, you may learn more about how Canadian law governs crypto assets.

Do banks in Canada accept cryptocurrencies?

Due to state and federal laws and the rising popularity of cryptocurrencies, Canadian institutions permit and recognize cryptocurrency transactions. For instance, over 2600 Bitcoin ATMs have been installed by Canadian banks, with 897 of those in Toronto. These ATMs enable users to exchange their hard currency for digital currency, as well as buy and sell cryptocurrency for cash. After the US, Canada is the second country in the world with the most Bitcoin ATMs.

The National Bank of Canada, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Scotiabank, ATB, and Coast Capital are some well-known Canadian banks that support crypto trade in one form or another. Many other banks are coming in as the popularity of cryptocurrencies in Canada keeps growing.

Banks permit the purchase of cryptocurrency via debit card, Interac e-transfer, or bank wire transfer. Customers must link their bank accounts to a cryptocurrency exchange in order to purchase cryptocurrencies using the Canadian dollar or other popular fiat currencies.

Credit cards can also be used to purchase cryptocurrency. However, this option can be costly because banks may charge higher interest rates and additional cash advance fees on crypto credit card purchases.

How to Purchase Cryptocurrency in Canada

In Canada, the two most common methods of purchasing cryptocurrency are through a broker or directly through an exchange. However, cryptocurrency exchanges give account holders more control over their cryptocurrency, whereas brokers such as Wealthsimple and Mogo may impose restrictions on holdings, withdrawals, transfers, and storage based on their brokerage policy.

Crypto brokers in Canada operate in a manner similar to traditional financial trading platforms. Through their platforms and expertise in the cryptocurrency field, they hope to simplify and reduce complexities. This convenience, however, comes at a cost, as they charge higher fees for their services than crypto exchanges.

How to Purchase Cryptocurrency in Canada Using a Crypto Broker?

If you don’t want to trade on a cryptocurrency exchange, the steps below will show you how to buy cryptocurrencies through brokers.

Step 1: Create an account on a cryptocurrency trading platform.
Choose a cryptocurrency trading platform, go to its website or download the app, and sign up. To verify your account, create an account with a valid email and phone number and fill in the required personal information details.

Step 2: Deposit funds into your account.
Most cryptocurrency broker platforms offer a variety of payment methods for loading trading funds, including debit cards, credit cards, PayPal, wire transfers, and gift cards. Transfer fees vary by method and are typically higher for credit card payments because they are faster (5–10 minutes on average) and lower for wire transfers because they can take several days to load funds.

Step 3: Purchase the cryptocurrency of your choice.
Decide the cryptocurrency you want to buy, place your order, and the trading platform will find a match for your buy order. However, unlike crypto exchanges, crypto brokers have a limited basket of currencies to choose from and do not trade in every cryptocurrency. There are also limits on sell orders and volume, so it is a good idea to double-check these before investing any money.

Steps to Purchase Cryptocurrency in Canada by a Crypto Exchange.

These easy steps will give you an outline for purchasing cryptocurrency by exchange.

Step1: Choose your exchange:

A crypto exchange is a digital marketplace where buyers and sellers meet to trade different types of coins, tokens, or NFTs. Many exchanges do allow trading the Canadian dollar for digital assets or exchanging a type of crypto with another. The exchanges that allow cryptocurrency transactions are coinbase, Binance, Crypto.com, Kraken, kukoin, and Coinberry.

Step2: Create an account:

After deciding on an exchange, sign up and verify your email address and phone number to log in to the account. KYC verification documents include a driver’s license, passport, or national identification. Most exchanges have a third-party verification of face math to match your face with the identity you provide.

Step3: Deposit cash and start trading

Once the account is activated, link your Canadian bank account and deposit funds into the newly logged-in exchange. With successive funds ready, start a buy order and purchase any coins, tokens, or NFTs’ that are readily available on the exchange. Most people trade in BTC as the project has enough worth and is the most major whale in the market. But the market contains altcoins like Binance coin (BNB), NEAR Protocol (NEAR), or Solana (SOL).

Moreover, you may also sell crypto on these exchanges and convert it to fiat and withdraw it to the linked bank account. As the boom continues, Bitcoin ATMs are being introduced, which is another way to convert cryptocurrency to cash in Canada. Since this is a. new venture, not all ATMs provide this facility, and many charge high gas fees.

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