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BEGINNERS GUIDE

HOW TO BUY BITCOIN & CRYPTO IN CANADA

A basic step-by-step guide for Canadians to learn how to buy and hold Bitcoin. 

Do your own research. This simple 3 step ‘How to Buy Bitcoin 101 Beginners Guide‘ is just a starting point to begin learning about crypto.

Author
Craig Leontowicz
Updated: July 28, 2021

STEP 1


Exchange Canadian Dollars $ for Bitcoin ฿

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.

How to Buy Bitcoin Canada

Cryptocurrency Exchanges to Buy or Sell 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

Shakepay

Visit Site ➞

Spread~1 – 2%
Withdraw FeeFree
FundingInterac, Wire
CoinsBTC, ETH

👍 Recommended for Beginners

Newton

Newton vs Shakepay


Visit Site ➞

Spread~0.50%
Withdraw FeeCost (minus $5)
FundingInterac, Wire
CoinsBTC, ETH, +11

👍 Recommended for Beginners

NDAX

ndax


Visit Site ➞

Spread~0.2%
Withdraw Fee$25
FundingInterac, Wire
CoinsBTC, ETH, +10

View & Compare More Canadian Exchanges

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

Yes. Bitcoins are easily divisible (up to eight decimal points). If you only want to buy $100 CAD worth, you will receive a fraction of Bitcoin - 0.0014 BTC for example.
Look for a Bitcoin ATM in your area. Connect with someone to buy on Localbitcoins.com.
Once you have exchanged your $ CAD to Bitcoin you can move your crypto funds to an exchange to trade for the coin you want.
Its fine, but your need to know you are opening yourself up to third party risks. Google / Youtube search: 'Quadriga Exchange'. A early Canadian Bitcoin exchange where users "lost" $250 million dollars.

STEP 2


Setup & Backup Your Bitcoin Wallet

cryptocurrency wallet is software that allows you to securely store, send and receive digital assets.

Setup & Backup Your Wallet

Wallets

Beginners, start with a Software Wallet to hold the keys to your Bitcoin. Some popular and trusted wallets are ExodusBlueWallet 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

seed phrase is 12 (or 24) 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

Bitcoin Wallet

Your software wallet holds your private key so only you can access your Bitcoin that is stored on the Blockchain.

Blockchain

Blockchain

The Blockchain is a public P2P decentralized network ledger. Many people are paid in Bitcoin to maintain and secure the network.

Seed Phrase

Seed Phrase

Write down your 12 (or 24) 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

You can lose bitcoin and other cryptocurrency tokens as a result of theft, computer failure, loss of access to your keys and more. Cold storage (or offline hardware wallets) is one of the safest methods for holding bitcoin. These wallets are not accessible to the internet.
You will NOT be able to access your cryptocurrency. NO one can help. It will be gone forever.
Use your seed phrase to recover access to your funds.

STEP 3


Move Bitcoin from Exchange to Your Wallet

SEND your Bitcoin from the exchange to your wallet RECEIVE address.

crypto exchange to wallet

🎉 Congratulations! You now own Bitcoin.

Scroll down to find more helpful digital currency tools and resources for Canadians or read some more on our blog.

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, Twitter or any social media promising to send you more back. That is a scam.

❌ DON’T ever share your private seed phrase with any website or “customer service” messages. That is a scam.

Frequently Asked Questions about Sending & Receiving Bitcoin

All Bitcoin transactions are irreversible, there is no way to reverse a transaction. Your Bitcoin will be gone.
Sometimes it can be very expensive to send and receive digital currency. This is due to the network size and the number of transactions being processed.
Send your Bitcoin from your wallet one of the exchanges in step 1. (Newton, Shakepay, NDAX, etc). Convert Bitcoin to CAD and deposit into your bank account with INTERAC e-Transfer or wire transfer.

More Helpful Information


Learning

Bitcoin Whitepaper (PDF) – by Satoshi Nakamoto

Blockchain Explained – A Reuters Visual Guide

aantonop – A YouTube channel to find free, unbiased educational videos on all things Bitcoin and open blockchain.

Blockchain Demo – by Anders Brownworth

Recent Posts

Shakepay Review

Shakepay vs Newton

Buy Bitcoin with INTERAC e-Transfer in Canada

How to Buy Dogecoin in Canada

Communities 

Reddit communities for cryptocurrency in Canada are a great place to keep up to date on the latest changes in crypto and Bitcoin.

Taxes

Canada Revenue Agency – Guide for cryptocurrency users and tax professionals.

Bitcoin and Cryptocurrency Tax Software

Portfolio Tracking

Apps & Websites to Track Your Crypto Portfolio