Bitcoin in Canada: Live CAD Price, Best Exchanges, Taxes and History
Canada sits at the high table in matters of Bitcoin and cryptocurrency adoption. The Bank of Canada puts the number of Canadian BTC holders in 2021 at 13% in their latest digital asset ownership report. This report came out against the backdrop of a nearly three-month sideways range on the Bitcoin price CAD chart.
The markets have performed well recently, with the number one crypto asset ranging between $27,349 and $27,564 CAD. The recent pump brings positive energy to the bear market. If the crypto community flips bullish, you may see a further upward trend toward the end of Q4. Cryptonews points to a possible BTC bounce to $28,000 CAD by the close of 2022. Let’s dig further into Bitcoin in Canada.
Canada's Stance on Bitcoin
Bitcoin is not considered legal tender in Canada. Trading cryptocurrencies within the jurisdiction is, however, legal. You can buy and sell BTC as you please as long as you’re reporting as required when filing your taxes. Always best to ask your tax person or accountant regarding your crypto transactions. Canadian financial authorities are ahead of their counterparts, including the USA, in terms of crypto regulations.
Canada is the first in North America to pass a Bitcoin ETF. There are clear guidelines on how to trade cryptocurrencies within the country, and Canadian crypto market regulations further outline taxation on profits from digital assets.
How to Buy and Sell Bitcoin in Canada
The first and easiest way to buy and sell Bitcoin in Canada is through a crypto exchange. To start with, you must sign up and verify your account. Once your account is set-up, proceed to the funding page and fund your account with Canadian Dollars, as you will primarily buy Bitcoin in CAD. Most exchanges accept deposits through debit or credit card, Interac e-transfer and bank wire transfer.
Once your deposit reflects on your exchange, you can proceed to the spot market section. Search for the Bitcoin price CAD chart and place your order by entering a suitable price. Spot markets tend to display the most recent cryptocurrency price. It might take a while before your buy order gets filled due to Bitcoin price fluctuations. The trade will be executed once the spot market hits your marked price.
The sell button allows you to sell Bitcoin in CAD whenever you see a perfect opportunity. If you are looking forward to holding BTC for the mid or long term, you can withdraw your asset to an external wallet like Trust Wallet. Remember to record your private keys in a safe place, as you need them to access your wallet.
Alternatively, you can opt for peer-to-peer exchange to get the price of Bitcoin in CAD. These platforms allow buyers and sellers to exchange BTC with ease. They use escrow to ensure trust among traders, and funds are only released once both parties approve a successful transaction. Keep an eye on the charts to ensure you have your eyes on the prize and get the best from your trades so you can stack more sats!
Canada's Tax Laws on Trading Bitcoin
Bitcoin and other digital assets like Ethereum are considered commodities by the Canada Revenue Agency, placing income from crypto transactions at the mercy of the tax collector. You will need to keep track of any profit you make in crypto trading, as you will need this data when reporting crypto taxes.
Canadian laws acknowledge crypto exchanges and regard Bitcoin mining firms as business entities. They are therefore mandated to pay taxes on their transactions. Trading cryptocurrency is also considered a business activity. Regulations, however, treat earnings from staking and mining differently. You may be obliged to pay income taxes instead of capital gains if it looks like business activities.
Crypto income taxes can be calculated using special tax software. They help you to know your capital gains which are essential when reporting your taxes. You must report and pay your crypto income to avoid penalties with the tax agency.
Disclaimer: Content written by third party writer/researcher and not to be taken as guidance or investment advice.
History of Bitcoin in Canada
Cash payments have dramatically dropped globally. This has been triggered by factors like the COVID-19 pandemic in 2020 and the increasing adoption of decentralized payment systems like Bitcoin and Litecoin.
Significant data on crypto market transactions traces back to 2015 after the massive shutdown of BTC exchanges caught the attention of Canadian authorities. The 2015 bear market might have triggered these shutdowns. Canadian Payments Report-2016 points out significant Bitcoin adoption in 2015, where it reports that BTC transitions doubled that year.
Bitcoin trading remains profitable despite the current bear market. The number one digital asset future continues to shine as adoption news continues to fill crypto headlines. Keep on watching the charts to get the most from the markets. We hope this post has provided you with some helpful insights and wish you all the best in your crypto trading journey.