BEGINNERS GUIDE: HOW TO BUY BITCOIN & CRYPTOCURRENCY IN CANADA
A very basic guide for Canadians to get started with digital currency and learn how to buy a Bitcoin.
Do your own research. This ‘3 Step How to Buy Bitcoin Guide’ is just a starting point to begin learning about cryptocurrencies. Affiliate Disclaimer – I earn from qualifying purchases.
Updated: February 12, 2021
Step 1:
Exchange Canadian Dollars $ for Bitcoin ฿
A cryptocurrency exchange is a bridge that allows you to buy or sell Bitcoin with your Canadian dollars and bank account via INTERAC e-Transfer, wire transfer or sometimes credit card. There is a fee for this exchange, rates will vary.
Cryptocurrency Exchanges to Buy Bitcoin in Canada
NOTE – Exchanges and banks in Canada comply with KYC (Know Your Customer) Laws. This means you will need to upload a photo ID and other documentation to prove your identity. It will take a day or two (or longer at busy times) for your account to be approved.
Shakepay
~1% – 2% spread
View More Exchanges & Compare Fees in Canada
Recommended
✅ DO use ‘Google Authenticator app’ for 2FA to secure your accounts when possible.
✅ DO move your cryptocurrency to your own wallet (see step 2).
❌ DON’T leave your money on the exchange.
Frequently Asked Questions about Bitcoin Exchanges
Step 2:
Setup & Backup Your Bitcoin Wallet
A cryptocurrency wallet is software that allows you to securely store, send and receive digital assets.
Wallets
Beginners, start with a Software Wallet to hold the keys to your Bitcoin. Some popular and trusted wallets are Exodus, Argent or find a wallet here ➞
Hardware Wallets offer offline storage for more security. Trezor or Ledger are current market leaders. Security Tip: Buy your hardware wallet direct from the manufacturer.
IMPORTANT! Backup Your Wallet with a Seed Phrase
A seed phrase is 12 simple words the computer randomly generates for you. This is used to backup your crypto funds and allows you to regain access to your funds if something happens to your wallet.
Write your seed phrase on a piece of paper to backup your wallet. Put it somewhere very safe.
How a Wallet Works
A cryptocurrency wallet is a software program that stores a private and public key. These long hexadecimal key codes are known only to you and your wallet.
Your wallet interacts with the blockchain to enable you to send, save and receive digital currency like Bitcoin. A digital wallet is required if you want to buy Bitcoin or other cryptocurrency.
Wallet
Your software wallet holds your private key so only you can access your Bitcoin that is stored on the Blockchain.
Blockchain
The Blockchain is a public decentralized network ledger. Many people are paid in Bitcoin to maintain and secure the network.
Seed Phrase
Write down your 12 word seed phrase for offline backup. You will need this to access your private keys that control your Bitcoin.
Recommended
✅ DO write down your seed phrase on piece of paper and put it somewhere very safe to BACKUP your wallet.
✅ DO use a hardware wallet to save larger amounts of funds.
❌ DON’T lose or misplace your seed phrase.
❌ DON’T write or save your seed phrase online or digitally.
Frequently Asked Questions about Cryptocurrency Wallets
Step 3:
Move Bitcoin from Exchange to Your Wallet
Send your Bitcoin from the exchange to your wallet Receiving address.
🎉 Congratulations! You now own Bitcoin.
Scroll down to find more helpful digital currency tools and resources for Canadians.
Recommended
✅ DO confirm the first 4 and last 4 digits of a wallet addresses when sending and receiving Bitcoins.
❌ DON’T send your Bitcoin to people on Facebook or Twitter promising to send you more back. That is a scam.
Frequently Asked Questions about Sending & Receiving Bitcoin
More Helpful Information
Learning
Blockchain Explained – A Reuters Visual Guide
aantonop – A YouTube channel to find free, unbiased educational videos on all things Bitcoin and open blockchain.
Communities
/r/BitcoinCA is a Reddit community for cryptocurrency in Canada. It’s a great place to keep up to date on the latest changes in Crypto, Canadian laws and tax updates. Check the community sentiment on which exchanges are most trustworthy and have the best customer service and lowest fees.
Taxes
Canada Revenue Agency – Guide for cryptocurrency users and tax professionals.
Koinly – Crypto tax reports in under 20 minutes. Koinly calculates your cryptocurrency taxes and helps you reduce them for next year. Simple & Reliable.
BearTax – Bitcoin and cryptocurrency tax software.
Portfolio Tracking
Coingecko – Get the latest cryptocurrency market overview & analysis including price, market cap, trading volume, and more.
Blockfolio – Free Bitcoin & cryptocurrency portfolio tracker app.
Delta – One app to track all your investments. Fully free.
Compare Cryptocurrency Exchanges in Canada
Best exchanges and websites in Canada to buy Bitcoin, Ethereum, trade altcoins and compare fees.
Cryptolens – Find the best exchange rates in Canada. In real-time. After all fees.
Stocks & ETF’s
Bitcoin Treasuries – a list of ETFs and publicly traded companies that hold or are involved in Bitcoin and crypto.