How to Buy Bitcoin in Canada in 2023
Do you want to buy Bitcoin in Canada? Ensure you are doing it in a safe and fast way. Then, store it in the best crypto wallet for you. Learn more in this guide.
According to the Bank of Canada, 90% of Canadians know of Bitcoin’s existence. Bitcoin ownership has also increased sharply from 5% of Canadians having Bitcoin in 2018 to over 13% in 2021.
In case you are wondering why Canadian Bitcoin owners became interested in Bitcoin in the first place, a 2017 Bank of Canada study dubbed BTCOS (Bitcoin Omnibus Survey) revealed that 58% of Bitcoin owners in the study state they bought Bitcoin for investment purposes. Fast forward to 2021, the Bank of Canada still views Bitcoin ownership largely driven by investment reasons.
Interest in Bitcoin in Canada first peaked from late 2017 to early 2018, coinciding with the end of the bull market experienced in 2018, which explains the surge in interest during that time. Although the price peaked again in 2019 and 2021, it has since fallen to the lows last experienced in November 2020, which presents a great entry point.
Bitcoin price predictions suggest the price will rise and set new highs when all 21 million coins are mined. In the meantime, it may be a good idea to buy and hold. Before jumping straight into buying Bitcoin, let's take a few steps back: is Bitcoin outlawed in Canada?
Is It Legal to Buy Bitcoin in Canada?
Yes. Digital currencies aren't recognised formally as money (legal tender), but it's perfectly legal to buy or sell (trade) Bitcoin in Canada. In fact, Canada’s Revenue Agency treats crypto assets like Bitcoin as a commodity for income tax purposes. Bitcoin transactions are also regulated under counter-terrorism financing and anti-money laundering laws.
In simple terms, capital gains or income from Bitcoin is taxable in Canada, prompting the need to have accurate records of all cryptocurrency transactions. Bitcoin and other cryptocurrencies should also be used for legal purposes only.
How Do You Store Bitcoin?
Before looking at how to buy Bitcoin in Canada, it’s important to think of how you will store it. It’s worth noting that cryptocurrency exchanges aren’t covered under the protections offered by the CDIC (Canada Deposit Insurance Corporation).
You should think hard about how you intend to store your Bitcoin since instances of hacking and theft won’t be compensated by the CDIC. Moreover, you can lose your entire Bitcoin holding if you lose or forget your account information. When it comes to storing Bitcoin, here are your main options:
When you buy digital currency via an exchange, it is usually stored in a cryptocurrency wallet attached to that exchange. If you don't want the exchange to be in control of your Bitcoin, you can move it to a separate wallet.
In such an instance, you can either move and store it in a hot wallet or a cold wallet. Crypto wallets store private keys, which are simply passwords for accessing cryptocurrency. There are two main types of cryptocurrency wallets namely;
Hot wallets: A hot crypto wallet (or software wallet) is a digital wallet that is stored online and managed on computers, Smartphones, tablets, and other internet-connected devices. Generally, these are mobile wallets, online wallets, or desktop wallets. Hot wallets are convenient but pose serious risks like theft because they exist online. Physical damage or permanent separation from the device holding the Bitcoin can also result in a loss of the stored cryptocurrency. Before you buy bitcoin in Canada, consider the security risks of hot wallets.
Cold wallets: A cold crypto wallet (hardware wallet) isn't linked to the internet, making it more secure. It can be a USB drive or a hard drive. It could also be a piece of paper bearing the private key (printed/written down) or a QR code. However, if you lose/break your USB/hard drive or your paper wallet gets physically damaged or lost, you will lose your Bitcoin.
Before buying Bitcoin in Canada, research widely and choose your preferred method of storing your Bitcoin. Here’s more on choosing the best crypto wallet.
How to Buy Bitcoin in Canada
1. Buying Bitcoin in Canada Using a Cryptocurrency Exchange or Broker
You can use a cryptocurrency exchange or broker to buy Bitcoin. This is a generally preferred method due to the safety and convenience they offer, but choosing typical exchanges and brokers means you should expect to pay slightly higher trading and transaction fees than other options.
When buying Bitcoin in Canada, you have the option of using an international or Canadian crypto exchange or broker. International exchanges may not be the best option when buying bitcoin in Canada because most don’t accept Canadian dollars or charge very high exchange rate fees. They may also limit how much Bitcoin you can buy. This is why Canadian cryptocurrency exchanges are generally a better option.
Luckily, there are Canadian crypto exchanges like MyBTC.ca that offers the fastest way to buy Bitcoin in Canada:
- MyBTC.ca is 100% Canadian, and was established in 2014. By 2016, the brokerage was already a leading main source of BTC in Canada.
- The brokerage helps Canadians buy/sell Bitcoin and Ether in seconds via the most convenient payment methods in Canada i.e., bank transfer, Visa card, MasterCard, debit card, Interac e-transfer, and with Flexepin vouchers.
- When choosing a Canadian cryptocurrency brokerage or exchange, you should consider factors like their capability, reviews, and extra security.
- Before establishing the brokerage, the CEO was already established and trusted in the crypto broker space having done 10,000+ crypto trades for over 3,000+ people via peer-to-peer platforms.
- MyBTC.ca is a regulated Canadian money service business (MSB NO. 20844324) that reports to FINTRAC on AML/KYC obligations.
Whichever crypto exchange or brokerage you choose, it’s best to confirm that they are satisfying their regulatory requirements to operate in your jurisdiction — particularly if they hold your crypto i.e. custodial exchanges. You should also make other considerations like crypto buying/selling fees, easy-to-use interface, customer support, and speed of transactions (preferably instant transactions).
2. Buying Bitcoin in Canada Using Peer-to-Peer Platforms
P2P (Peer-to-peer) platforms in Canada connect those who wish to buy/sell Bitcoin using Canadian dollars. They are basically third-party websites and online marketplaces (i.e., Facebook Marketplaces) most of which incorporate escrow to protect user funds. However, P2P platforms are still risky.
If you choose this method, take measures to protect yourself from scammers. The odds of being scammed are high and you may be unable to take legal action to recover your deposited funds.
3. Buying Bitcoin in Canada from Bitcoin ATMs
Although there are many Bitcoin ATMs in Canada located in malls and convenience stores throughout major cities, buying Bitcoin from these Bitcoin ATMs is very expensive. It is also risky, considering that crypto ATM transactions aren't covered by insurance. What's more, you are solely responsible for your Bitcoin's safety after purchase which introduces the risk of theft or loss.
You are also limited to buying a certain amount (usually $10,000), yet Canadian crypto exchanges like MyBTC.ca allow up to $500,000 daily when buying via bank wire transfer. Canadian Bitcoin ATMs are also limited in number and concentrated in major cities for the most part, which means you may need to travel long distances to access one.
Bitcoin is the world’s most valuable cryptocurrency by market capitalisation. Bitcoin has performed reasonably well over the years as a store of value. Given that it currently is the leading digital asset, it may be worth your consideration. However, you must be smart about this decision and do it in the safest way possible.
Keep in mind the aspects we have covered to ensure your finances are well taken care of, and that the method you choose can really meet all your needs. We hope this 2023 guide will help you buy BTC in Canada fast, safely, and conveniently.
FAQs About Buying Bitcoin in Canada
Can I Purchase Bitcoin Instantly in Canada?
Once your account is funded with any of the available payment methods including bank wire transfer, Interac e-Transfer, credit or debit card or Flexepin vouchers, the buying process is virtually instant. After you confirm your order for BTC or ETH, your order will be instantly locked in and sent immediately to the destination wallet address you provide.
How Much Bitcoin Can I Buy in Canada in One Transaction?
Add money to your MyBTC.ca account for up to $500,000 per day with bank wire transfer which is the fastest way to buy larger amounts of Bitcoin or Ether. If you’re looking for quicker speed for smaller amounts, Interac e-Transfer and Flexepin vouchers allow you to add up to $10,000 and $500 per day respectively.
What's the Easiest Way of Buying Bitcoin in Canada?
Canadian Bitcoin exchanges and brokers offer the best way (fastest and safest) to buy Bitcoin. Since MyBTC.ca is an online business, you can buy Bitcoin or Ether easily from the comfort of your computer chair. Other methods like Bitcoin ATMs may also be easy to use, but they come with risks.
How Do I Sell Bitcoin in Canada?
You can sell Bitcoin via the same channels you use to buy i.e., exchanges, brokers, and P2P.
What are the Requirements for Creating an Account with a Canadian Bitcoin Exchange or Broker?
Generally, you'll be required to provide your email and other personal information like name, date of birth, and physical address, and complete other KYC processes including ID verification. After doing this, you should be able to have your account verified and ready to transact.
How Many Fees Will I Pay When Buying Bitcoin in Canada?
Fees vary largely depending on the purchasing and payment method. Generally, Bitcoin ATMs are the most expensive followed by P2P marketplaces, exchanges, and brokers.
In regard to payment methods, credit cards and vouchers attract the highest fees (up to or more than 9.75%). Interac e-transfers and bank wire transfers are cheaper at approximately 7.75% and 4.75%, respectively. Order fees are free when buying $350 or more of Bitcoin or $500 of Ether — so there’s no surprises.
Where Can I Find Canadian Bitcoin Communities to Buy Bitcoin From?
There are large Bitcoin meetup groups in Toronto and other major cities, but online platforms like Reddit are also a great place to start.
Which Bitcoin Crypto Wallet is the Best in Canada in 2023?
Crypto wallets should be chosen based on factors like user reviews, fees, customer support features (live chat is a must), and wallet security. Exodus and Trezor are very popular and trusted hot and cold wallets heading out of 2022 into the new year.
Where Can I Spend Bitcoin in Canada?
Canadian retailers like Travala, Newegg, Overstock, and many others accept Bitcoin and other payments. Bitcoin can also be used to purchase gift cards online, which can later be used to buy things from an online retailer and top brands like Amazon, Best Buy, Air Canada, etc.