How to Buy Bitcoin in Canada
Verdasi will help you to learn what Bitcoin is, what it is used for, and how you can begin make your first purchase as a resident of Canada using a regulated exchange. When making your first purchase of an asset like Bitcoin, it's important to understand the many steps of protecting yourself and securing your assets and investment. We cover everything from where to buy bitcoin, methods of payment, and storing it safely.
Buying Bitcoin for The First Time in Canada
Cryptocurrency has come a long way, from gaining acceptance by multimillion companies like Tesla to receiving positive support from some governments. Canadian crypto traders are among a happy lot because the country's government has created a conducive environment for blockchain-related technologies.
You can take advantage of the low prices of electricity and high internet speeds in the country, together with the government's stance to mine cryptocurrencies like bitcoin. Notable figures like Vitalik Buterin, Ethereum co-founder, have contributed significantly to the domestic cryptocurrency community's growth.
Generally, the environment is quite favorable to buy bitcoin in Canada. Canadian exchanges such as Coinberry and Bitbuy provide crypto investors with easier methods of buying cryptocurrencies in Canada. You can also use other international and US-based crypto exchanges like Coinbase and Binance to buy bitcoin in Canada. But how do you go about the process?
What Do I Need to Buy Bitcoin in Canada?
The process of buying bitcoin in Canada is pretty straightforward, like trading the typical stocks and securities. You only need to start an exchange account with a cryptocurrency broker. However, these brokerage firms will require you to verify your identity before proceeding with the actual crypto trading.
The rules aren't standard across the board, though. But as a general rule, you'll be required to have your Canadian passport, driver's license, or any authorized identification document. You'll also need a phone to complete the two-step verification process that's common with almost all platforms dealing with confidential data.
You'll also require an active bank account through which you'll be doing CAD deposits and withdrawals. Lastly, your internet connection has to be private and secured. Public WiFis and unsecured connections are a potential risk hence not allowed.
Where can I Buy Bitcoin In Canada?
When done with the preliminaries, the next step is the actual process of buying bitcoins. Most exchange platforms offer other cryptocurrencies apart from Bitcoin, such as Ether, Litecoin, Dogecoin, Tether, and many more.
This process is pretty standard and can be used to buy other cryptocurrencies. Let's get started, shall we?
How Much Bitcoin Are You Willing To Buy?
Before thinking about the crypto exchange platform to use, the most crucial step is determining how much Bitcoin you need to buy. When trading cryptocurrencies, there's a possibility of winning or losing. So, determine how much you can afford to lose.
Back in 2017, Bitcoin cost a smaller fraction of a penny. Through the years, as Bitcoin became more popular, It rose to around $20,000. But at the beginning of 2021, the price rose steeply to about $50,000. As you can see, the volatility rate is enormous, and the price can change in a blink of an eye.
Therefore, before your first purchase, ensure you've got enough cash to keep your crypto trading venture running.
Where Will You Buy Bitcoin in Canada?
Next, we check where to make your Bitcoin purchase. The options are limitless as there are so many avenues to buy Bitcoin from in Canada.
An online exchange is a marketplace where you can buy and sell crypto using other cryptocurrencies. The majority of crypto trades happen here and supports trading many cryptocurrencies, including those attached to the fiat currencies.
Cryptocurrency trading platforms
These trading platforms offer an easier and cheaper option for buying cryptocurrencies. Typically, providers have a platform that brings many different traders together to give clients better bitcoin prices. Transferring Bitcoins to others is usually restricted, and you can only sell them to earn back the invested money with a profit.
Peer to Peer Crypto Trading
These are marketplaces where you can purchase Bitcoin from other persons and trade them for anything. Be cautious, though; you're likely to deal with a scammer without knowing.
Bitcoin ATMs allow users to buy Bitcoin via credit or debit cards, although they're not that common. The fees charged can be extremely high and unfavorable exchange rates.
Go for crypto trading platforms or Bitcoin exchanges instead, as they offer the simplest and safest purchase processes. With so many platforms and exchanges to choose from, look at their advantages and disadvantages before spending a dollar.
Remember that there is more than just the cost of Bitcoin; look at other aspects, such as fees charged for depositing and withdrawing cryptocurrencies.
Where Will My Bitcoin Be Stored?
After buying Bitcoin, you'll need a secure way of storing them. Bitcoins and other cryptocurrencies are usually held in wallets. Exchanges and platforms have hot wallets to allow traders to store their purchased cryptocurrencies. However, these are prone to vulnerabilities like cyber theft.
Another storage option is a cold wallet, which stores digital assets outside the internet, providing more security. Their main disadvantage is that they can be complicated to use during quick transactions. Examples of cold wallets are hardware wallets and paper wallets.
Paper wallets are paper-printed QR codes and cryptographic keys, while hardware wallets are keys kept on small electronic devices and stored safely off the internet.
Paying for your Bitcoin is a lot easier since there are endless payment options available. If you want, you can pay via PayPal or other electronic payment platforms. But the most preferred payment options include bank transfer, debit or credit card, and other cryptocurrencies.
Bank transfers require more time and can take up to three business days. That means you'll get your Bitcoins once your payment reflects on the seller's account. Using other cryptos and payment cards is much faster, almost instant.
Bear in mind that making bank transfer payments from your personal account doesn't have similar insurance protection as credit card payments. Also, there's no protection guarantee for using marketplaces where you can exchange commodities for Bitcoin. Always exercise caution and use your judgment before making the switch.
Execute the Transaction
Before executing the Bitcoin purchase transaction, always remember to be cautious. Only invest the Bitcoin amount you're willing to lose. Success doesn't come overnight, and you'll probably lose some and win some before grasping the tricks of crypto trading.Want to learn more about trading cryptocurrency?
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