If you’re looking to buy Bitcoin in Canada for the very first time – you’ve got plenty of crypto exchanges to choose from.
The best Bitcoin platforms serving Canadian investors not only support CAD deposits via debit/credit cards – but low trading fees and commissions.
In this beginner’s guide, we walk you through the simple process of how to buy Bitcoin in Canada – alongside a review of the best exchanges to consider for the job.
Buying cryptocurrency online in Canada can be a simple process once you know what you are doing.
For a more detailed beginner’s guide on how to buy Bitcoin in Canada – you will find this further down the page.
Where to Buy Bitcoin in Canada
As mentioned above, in order to buy Bitcoin in Canada you first need to choose a suitable exchange.
Canadians have access to dozens of platforms that support Bitcoin investments, so you’ll need to choose a provider that is suitable for your level of experience. Additionally, check metrics surrounding customer service, fees, and security.
If you’re still looking for the best place to buy Bitcoin in Canada right now – consider the best Canadian crypto exchanges reviewed below.
1. Crypto.com – Overall Best Platform to Buy Bitcoin in Canada
Crypto.com is a fantastic exchange that offers a wide range of cryptocurrency services – which includes the ability to buy Bitcoin in Canada with a debit/credit card. Before you can access the Bitcoin markets at this exchange, you will first need to open an account and upload a copy of your government-issued ID.
After all, you can use Visa or MasterCard to buy Bitcoin instantly at a fee of 2.99%. Depending on when you sign up, Crypto.com regularly offers discounted deposit fees for new customers. Nevertheless, once you have bought Bitcoin at this platform, you can then deposit your tokens into a crypto savings account.
Put simply, this operates like a traditional savings account, whereby you will be paid a rate of interest for depositing your BTC tokens. In turn, your BTC tokens will be lent to third parties via a secured loan. In terms of yields, this will depend on a variety of factors – such as the lock-up term and whether or not you own any CRO tokens.
For instance, the highest APY offered by Crypto.com on Bitcoin savings accounts is 8.5%. This does, however, required you to hold 40,000 CRO tokens and lock your Bitcoin up for three months. If you would prefer a flexible account that permits 24/7 withdrawals with no CRO token requirement, the APY is paid at just 1.5%.
Alternatively, if savings accounts are not of interest, you can elect to buy Bitcoin at Crypto.com and withdraw the tokens to one of the best crypto wallets. The other option is to keep your BTC tokens in your Crypto.com web wallet, which will make it easier for you when you eventually decide to cash out your investment.
Another reason why Crypto.com is one of the best places to buy Bitcoin in Canada is that the exchange lists over 250 other digital currencies. This includes large-cap projects like Ethereum and Litecoin, stablecoins such as Tether and USD Coin, and a wide range of ERC-20 tokens and DeFi coins.
Cryptoassets are a highly volatile unregulated investment product.
2. BitBuy – Popular Canadian Exchange for Buying Bitcoin
In terms of safety, fees, supported payment methods, and user-friendliness – we found that the BitBuy exchange is one of the best places to buy Bitcoin in Canada. First and foremost, not only is this popular exchange based in Canada, but it is also registered with FINTRAC as a money service business.
Moreover, BitBuy has also been approved by the Ontario Securities Commission to offer cryptocurrency trading services in Canada. In addition to offering a safe way to buy BItcoin in Canada, BitBuy also makes the investment process simple for first-timers. This is because you can easily deposit funds via Interac e-Transfer.
The minimum deposit amount when funding your account vis Interac e-Transfer is just $50. Although bank wires are also supported, this requires a minimum deposit of $20,000. Once you have opened an account and made a deposit, BitBuy then allows you to buy Bitcoin instantly via its Express Trader feature.
Not only does this facilitate a speedy way to invest in Bitcoin, but BitBuy will charge you a standard commission of just 0.20%. And as such, for every $100 worth of Bitcoin that you buy, your commission will amount to $0.20. Take note, you will also need to pay a transaction fee of 1.5% when buying Bitcoin via Interac e-Transfer.
If you are also looking to buy cryptocurrency in Canada in addition to just Bitcoin, BitBuy has you covered. This is because the exchange also supports a variety of other digital currencies. This includes everything from Ethereum, Bitcoin Cash, Stellar to Dogecoin, Uniswap, and EOS. You can also download the BitBuy crypto app for iOS and Android.
Although BitBuy is a great crypto exchange for beginners, seasoned traders will also appreciate the advanced tools on offer. For instance, the BitBuy Pro Trade platform comes with various order types, real-time pricing charts via TradingView, and technical indicators. All in all, BitBuy ticks all of the right boxes as the best place to buy Bitcoin in Canada. For added convenience you can also buy Bitcoin via the best crypto apps in Canada which include Bitbuy.
Cryptoassets are a highly volatile unregulated investment product.
3. Binance – Buy Bitcoin Alongside Over 1,000 Cryptocurrency Markets
If you’re the type of investor that likes to diversify across a wide range of markets, Binance might be the best place to buy Bitcoin for your requirements. This is because, in addition to Bitcoin, Binance is home to over 1,000 cryptocurrency markets. As you can imagine, this means you can gain exposure to a range of digital assets including Dogecoin and Shiba Inu.
Moreover, when using the main Binance exchange, no minimum trade requirements are in place. When it comes to fees, this will depend on several factors. For example, if you wish to buy Bitcoin with Canadian dollars, debit/credit card payments will average 2%. However, the exact fee will be built into your final cost price – so it can vary depending on market conditions.
If you are able to deposit funds via bank wire or even crypto tokens, much lower fees are offered. In terms of commissions, the most you will pay at Binance is 0.10% per slide – which to our knowledge, is the cheapest in this marketplace. And, even lower commissions are offered by Binance when you own BNB and/or trade larger amounts.
Binance is perhaps best suited for those that prefer an advanced trading suite that comes packed with tools and features. This is because you will have access to everything from technical indicators and custom charting screens to advanced order types and real-time data. Moreover, Binance is also home to derivative products.
This includes options, futures, and leveraged spot markets, all of which allow you to trade on margin. This will, however, only be suitable for your skillset if you have prior experience in leveraged markets. Nevertheless, Binance also offers a popular mobile wallet – Trust. Compatible with both iOS and Android, this allows you to take full control of your BTC tokens.
Alternatively, if you prefer the convenience of keeping your Bitcoin in the Binance web wallet, a variety of security tools are in place to keep your funds safe. This includes two-factor authentication, which is required when you log in or request a withdrawal. Additional security checks are also made when you sign in to your Binance account from a new device or IP location.
Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.
Should I Buy Cryptocurrency?
Still not sure if you should buy Bitcoin? If so, this means that you will need to perform in-depth research into this speculative asset class before risking any capital.
The main points to consider when learning how to buy Bitcoin in Canada are as follows:
Benefits of Buying Bitcoin
Before we explain the main risks of buying Bitcoin, let’s explore the many benefits that this digital currency can provide for your investment portfolio.
Bitcoin has Generated Unprecedented Returns
Make no mistake about it – since Bitcoin was launched in 2009, the digital currency is one of, if not the best-performing asset class globally, allowing investors to outperform the typical returns made from trading forex or the stock market.
For example, it took more than two years for Bitcoin to hit a market value of $1. And, it wasn’t until 2013 that the digital asset surpassed a value of $100.
Fast forward to 2021, and Bitcoin hit an all-time high of over $68,000. This means that had you invested just $1,000 in Bitcoin in 2011 at a token price of $1, your capital would have been worth over $67 million.
One of the most attractive aspects of Bitcoin is that the digital currency is decentralized. This makes it different from virtually all traditional currencies in circulation.
Be it Canadian dollars, euros, or British pounds – these fiat currencies are backed by central banks. And as such, the respective central bank controls the money supply.
But, in the case of Bitcoin, no single person or authority has control over the network – which is why it is a decentralized asset class. And as such, Bitcoin is not backed by any government, nation-state, or central bank.
Crucially, this means that once you have Bitcoin in a non-custodial, private wallet – nobody can gain access to your tokens. This is because the wallet will be secured with a private key and backup passphrase that only you have access to.
Bitcoin is Finite Like Gold
One of the many reasons why the value of gold has held its own for thousands of years is that it is a finite asset. In other words, there is only so much gold that can be mined on planet earth before its total supply is in circulation.
And, when this happens, this means that in theory, while supply remains fixed, demand continues to rise- which ensures that its value appreciates over the course of time. The characteristics mentioned above are very similar to that of Bitcoin.
This is because:
- The supply of Bitcoin increases by 6.25 BTC every 10 minutes, down from the previous block reward of 12.5, 25, and 50 BTC.
- This block reward will continue to half at various intervals.
- However, the key point here is that in approximately 118 years’ time, the final Bitcoin block will be mined.
- And, when this does happen, the total supply of 21 million tokens will have been reached.
This means that just like gold, Bitcoin is a finite asset class.
Bitcoin can be Divided Into Small Units
Leading on from the above comparison between Bitcoin and gold, the former is a lot suitable as an investment product – not least because it can be divided into small units at the click of a button.
In fact, each Bitcoin token can be divided into 100 million units. And therefore, you can buy Bitcoin in Canada irrespective of your budget.
Market Capitalization has Plenty of Room to Grow
Bitcoin has since surpassed a market capitalization of over $1 trillion. This means that in the traditional stocks and shares space, only a handful of S&P 500 companies are worth more than Bitcoin.
However, it is important to note that gold has an estimated market capitalization of between $12-13 trillion. And as such, even with its large-cap status, the upside potential with Bitcoin from an investment perspective is still huge.
Looking to buy Bitcoin in 2023? Read our article on the best Bitcoin casinos in Canada for everything you need to know about Canadian crypto casinos.
Risks of Buying Bitcoin
The biggest risks of buying Bitcoin today are discussed in the sections below. It is important that you consider the following drawbacks to ensure that you are able to make an informed investment decision.
The first risk to consider before you buy Bitcoin in Canada is that the digital asset is prone to rapid volatility swings.
As a prime example:
- In the wake of COVID-19, Bitcoin lost in the region of 50% the space of a week.
- However, after hitting lows of $5,000, Bitcoin then went on a 10-month bull run – whereby it surpassed $60,000.
- After that, Bitcoin then went on a bearish cycle, hitting lows of $30,000.
- Only to then once again go on a bull run, which is where it last hit an all-time high of over $68,000.
As such, if you do decide to buy BTC, just be prepared to see the value of your portfolio go up and down in a parabolic manner.
Another risk to consider before you buy Bitcoin in Canada is that there are dozens of online exchanges which should be avoided.
This is because many platforms are unregulated and thus – do not have the legal remit of offering Bitcoin exchange services in Canada. We explain how to buy Bitcoin in Canada safely in the later sections of this guide.
Ways of Buying Bitcoin
There are several ways to buy Bitcoin in Canada, which we discuss below.
Many Canadians will prefer to use Interac e-Transfer when depositing funds into a Bitcoin broker, as this is a convenient, safe, and low-cost way to transfer CAD.
For instance, when you choose this payment method at BitBuy, you will only pay 1.5% in fees.
Buy Bitcoin With Credit Card or Debit Card
Another option is to buy Bitcoin with a credit/debit card. A good platform to consider in this respect is Crypto.com, which supports both Visa and MasterCard.
The main benefit of this payment method is that your Bitcoin purchase will be processed instantly. But, take note, a fee of 2.99% will apply.
Buy Bitcoin With Paypal
You might also come across exchanges that support Paypal deposits. This is a secure and fast way to buy Bitcoin in Canada. But, do be wary of fees, as Paypal deposits often come at a premium.
What is the Best Way to Buy Bitcoin?
In terms of the best way to buy Bitcoin in Canada, it goes without saying that you should stick with exchanges that are approved by reputable licensing bodies. For instance, in choosing BitBuy, you will be using a Bitcoin exchange that is approved by the Ontario Securities Commission.
You should also be aware of the difference between centralized and decentralized exchanges. The former, which includes the likes of BitBuy, Crypto.com, and Binance – refers to platforms that sit between you and other market participants. This means that centralized exchanges take care of everything from deposits/withdrawals, order books, pricing, and more.
On the other hand, decentralized exchanges have no centralized operator – which means that you will be trading without the appearance of a third-party intermediary. However, such platforms carry insufficient amounts of liquidity. Moreover, customer support is virtually non-existent, as you will be trading directly with other investors.
Throughout this guide, we have discussed the Bitcoin price in US dollars – which is the industry standard. This is no different from trading mainstream commodities like gold, oil, or natural gas.
- Crucially, although you can easily buy Bitcoin in Canada with CAD, when it comes to pricing analysis, it’s best to stick with USD.
- The reason for this is that certain pricing points – in terms of support and residence, are analyzed in USD, and thus – this will give you the best chance possible of predicting the market.
In terms of how the Bitcoin price is determined, once again, the best way to understand the process is to compare the markets to traditional commodities.
That is to say, the price of Bitcoin is dictated by the market forces of demand and supply.
This means that when Bitcoin goes on a bullish run, this is because the general sentiment on this digital currency is positive, so there are more buyers in the market than sellers.
When the opposite happens, selling pressure will outweigh the number of buyers in the market, and thus – the Bitcoin price will decline.
Bitcoin Price Prediction
Dozens of analysis articles are published on Bitcoin price predictions each and every day. Each prediction will vary in nature – not least because the future direction of Bitcoin is largely speculative and subjective.
- For example, those that are biased in favor of Bitcoin will often make bold predictions that argue for huge price increases in the very near future.
- On the other hand, you will also come across Bitcoin price predictions that argue for the exact opposite.
And as such, consider doing your own Bitcoin price analysis via both fundamental and technical research, rather than relying on the subjective findings of someone else.
How to Buy Bitcoin Safely
We briefly alluded to the specifics of how to buy Bitcoin safely in Canada earlier. But, for clarity, we will elaborate in more detail in the sections below.
As mentioned earlier, the safest way to buy Bitcoin in Canada is to ensure that you do so through a trusted exchange.
Once again, this is why BitBuy is the best place to buy Bitcoin online, as the platform has been approved by the Ontario Securities Commission.
Moreover, BitBuy is registered as a money service business with FINTRAC. Crucially, this tells us that the exchange takes regulation and investor protection seriously – which cannot be said for the vast bulk of platforms in this space.
In addition to using a trusted exchange, you also need to ensure that you have a firm understanding of how to store your Bitcoin safely.
As you may well know, Bitcoin is stored in a digital or hardware wallet. The former covers mobile apps and desktop software, while the latter comes in the form of a physical device.
When choosing a wallet to store your Bitcoin investment, you will need to consider security and convenience. For instance, hardware wallets are super-safe, but somewhat cumbersome when it comes to sending and receiving funds.
This is why you might consider the BitBuy mobile wallet, which offers the perfect blend between safety and user-friendliness. The wallet comes via an app that you can download for free via Google Play or the App Store.
Keep Stakes Modest
Another way to ensure that you buy Bitcoin safely is to keep your investments modest. By this, we mean that you should never risk more than you are prepared to lose.
And, to avoid buying Bitcoin at the top of its current cycle, consider investing small but regular amounts, as opposed to a lump sum.
How to Buy Bitcoin in Canada – Tutorial
Ready to learn how to buy Bitcoin in Canada right now with a trusted exchange? If so, follow the guidelines below to invest in Bitcoin for the first time via BitBuy.
Step 1: Open an Account
First, visit the BitBuy website and click on the ‘Get Started’ button. Next, select the ‘Personal Account’ button and enter your email address and Canadian mobile number. You also need to create a username and password.
Step 2: Verification
The verification process at BitBuy is required for all new account holders. This is to ensure that the exchange remains compliant with Canadian regulations.
First, you will need to enter your personal information – such as your name, date of birth, and residential address.
Next, you will be asked to upload some verification documents.
This includes a government-issued ID – such as a driver’s license or passport. You also need to upload a selfie of you holding the respective ID next to your face. Moreover, you also need to provide a statement from your bank and a recently issued utility bill.
Although this might seem like a lot of paperwork, the KYC process is crucial in ensuring that all BitBuy customers can trade in a safe environment.
Step 3: Deposit Funds
BitBuy allows you to deposit Canadian dollars via two supported payment methods. First, you have a traditional bank wire. However, this requires a minimum deposit of $20,000.
As such, you are better off funding your account via an Interac e-Transfer. This will require a minimum deposit of just $50.
Step 4: Buy Bitcoin
Finally, now that you have funds in your BitBuy account, you can proceed to buy Bitcoin. First, hover your mouse over the ‘Products’ button and click on ‘Express Trade’.
Then, select Bitcoin from the list of supported markets. Next, enter the amount of Canadian dollars you wish to invest in Bitcoin. And to complete your purchase, click on the ‘Buy Bitcoin’ button.
How to Sell Bitcoin
If you bought Bitcoin at BitBuy, you will be pleased to know that this top-rated exchange also supports withdrawals. As such, when you get around to selling your Bitcoin back to cash, BitBuy allows you to do this with ease.
First, you will need to log back into your BitBuy account and sell your Bitcoin. In doing so, BitBuy will add the funds to your account balance. Then, you can request a withdrawal via Interac e-Transfer.
In terms of fees, you will pay just 0.20% in commission to swap Bitcoin back to CAD. Then, to withdraw your funds via Interac e-Transfer, a fee of 1.5% is charged.
This beginner’s guide has walked you through the process of choosing a suitable crypto exchange and ultimately – buying Bitcoin in Canada in a safe and low-cost way.
To buy Bitcoin in under 10 minutes with an exchange that is approved by the Ontario Securities Commission to offer cryptocurrency trading services, consider Crypto.com.
Cryptoassets are a highly volatile unregulated investment product.