HOW TO BUY BITCOIN & CRYPTO IN CANADA
A step-by-step guide for Canadians.
3 Steps to Buy Bitcoin:
STEP 2: Set up a cryptocurrency wallet
Do your research. Investing in cryptocurrency is risky. This simple 3 step ‘How to Buy Bitcoin 101 Beginners Guide‘ is just a starting point to begin learning about crypto.
Updated: March 21, 2022
Exchange Canadian Dollars $ for Bitcoin ฿
You will need to transfer funds from your bank account to a crypto exchange.
A cryptocurrency exchange is where you buy or sell Bitcoin with your Canadian dollars. Use INTERAC e-Transfer, wire transfer or bank draft. There is a fee (spread) for this exchange, rates will vary.
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 verify your identity. It will take a day or two (or longer at busy times) for your account to be approved.
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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 crypto Exchanges
Can I buy a fraction of Bitcoin?
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.
Do I need to submit my ID to these exchanges online?
It is required by Canadian law to KYC. Connect with someone to buy on Localbitcoins.com.
Is buying Bitcoin and crypto legal in Canada?
Yes. It is legal to buy and sell cryptocurrency in Canada.
Setup & Backup Your Bitcoin Wallet
A cryptocurrency wallet is software that allows you to securely store, send and receive digital assets.
IMPORTANT! Backup Your Wallet with a Seed Phrase
A 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 back up 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 another cryptocurrency.
Your software wallet holds your private key so only you can access your Bitcoin that is stored on the Blockchain.
The Blockchain is a public P2P decentralized network ledger. Many people are paid in Bitcoin to maintain and secure the network.
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.
DO write down your seed phrase on a piece of paper and put it somewhere very safe to back up 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
Is buying Bitcoin safe / what are the risks?
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.
What happens if I lose my seed phrase?
You will NOT be able to access your cryptocurrency. NO one can help. It will be gone forever.
What happens if I lose my wallet (phone)?
Use your seed phrase to recover access to your funds.
Move Bitcoin from Exchange to Your Wallet
SEND your Bitcoin from the exchange to your wallet RECEIVE address.
Read the step-by-step guide to see How to Buy Bitcoin on Shakepay and Send it to Your Wallet to view screenshots of each step.
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.
DO confirm the first 4 and last 4 digits of a wallet address 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
What happens if I send my Bitcoin to the wrong address?
All Bitcoin transactions are irreversible, there is no way to reverse a transaction. Your Bitcoin will be gone.
What are the fees for sending and receiving Bitcoin?
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.
How do I sell my Bitcoin and cryptocurrency?
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.