How to Use Bitcoin in Canada

Twenty-first century’s digital gold, a safe haven — these are just some of the terms used to refer to Bitcoin, the world’s first cryptocurrency.

Some people are interested in Bitcoin as a store of value, others as an alternative decentralized asset that drives forward this digital era. And no wonder — bitcoin transactions are faster, cheaper, almost anonymous, and run by a peer-to-peer network.

In this guide, we’ll instruct you how to buy and sell this digital asset using our platform and services, where to find other reliable options, what the best Bitcoin wallets to store your coins are, and which platforms and merchants allow you to use BTC to purchase goods and services these days..

Let’s get started!

How to Buy Bitcoin in Canada

The growing acceptance of Bitcoin as a currency and payment method has put new Bitcoin traders at a real advantage.

In the past, Bitcoin was considered primarily a currency for the underground economy and a small closed circle of crypto enthusiasts. However, thanks to Bitcoin proponents, developers, and entrepreneurs, as well as representation in the media, Bitcoin has received wider adoption in recent years.

As a result, Bitcoin investors today can choose from a variety of reliable platforms and other Bitcoin marketplaces.

MyBTC.ca and Other Centralized Crypto Exchanges

For a lot of traders, the easiest way to buy Bitcoin is to create a trading account on a cryptocurrency exchange.

The majority of these platforms are centralized, which means the company either links buyers and sellers and helps facilitate the trades between them or operates as a brokerage by competing with other platforms to offer the best market deal. In this case, the company provides the coins itself.

MyBTC.ca is an example of a centralized broker exchange that complies with AML and CTF policies set by local financial regulators. We require our users to perform a quick KYC check to verify their identity before they’re allowed to buy Bitcoin.

Once we verify your account, you’ll be able to buy BTC in exchange for CAD. Simply click on the “Buy Bitcoin” from the homepage menu and choose your preferred payment method. You can choose to pay using not only regular payment methods like Interac e-transfer, credit card, debit card, or bank wire, but also make a cash deposit at Canada post or use Flexepin vouchers.

Next, specify the amount of Bitcoin you want to buy or the amount of CAD you want to spend. We’ll calculate the sums, add any transaction fee, and ask to confirm the rate you have locked-in before you proceed.

Since MyBTC.ca is a non-custodial exchange, we’ll ask you to provide your own Bitcoin wallet address. This can be a software or hardware wallet (we’ll discuss wallet types later in the text). And that’s it! Pretty easy, right? On top of that, you enjoy extra affordable fees and 24/7 customer support.

Decentralized Cryptocurrency Exchanges

Another option for buying Bitcoin is to use a decentralized crypto exchange. Here, there’s no central authority in charge of users’ transactions. Instead, the platform lists thousands of buying and selling options for customers to choose from, leaving buyers and sellers to agree on the trading terms themselves.

An example of a decentralized exchange is Bisq, an alternative for those looking for a wider variety of payment options such as PayPal, Moneygram, or even cash.

Decentralized exchanges are usually non-custodial like MyBTC.ca, so you have to find a wallet on your own. Users don’t have to provide personal information for smaller Bitcoin purchases but they typically have to perform a KYC for larger amounts.

On the one hand, these platforms give you a little more privacy, but on the other, they have lower liquidity and trading volume compared to centralized ones, tend to accept cryptos only, offer no insurance, and are less-regulated.

Bitcoin ATMs

Bitcoin ATMs function in a similar manner to regular ATMs. Most of them accept cards but you can find some BTMs that will take cash as well. They are connected to the Internet and instead of linking users to their bank (like regular ATMs), they link them to a crypto exchange.

They’re usually stored in restaurants, retail stores, airports, or malls. You can use sites like Coin ATM Radar to find the closest Bitcoin ATM on its interactive map. However, they come with one great disadvantage - they charge notoriously high service fees (over 8%).

How to Store Bitcoin

Cyber threats are common for the crypto industry, which is why you need to find a secure wallet to store your BTC in. In reality, these wallets only keep your private key, which is simply a string of letters and digits forming an encrypted address that gives you access to your Bitcoin balance.

Software or online wallets are the number one choice of Bitcoin traders around the globe. Some of them are created by custodial crypto exchanges (MyBTC.ca.ca is non-custodial!), others by third-party wallet providers.

You can either access them online and trust in the security measures of these platforms to protect your private key from hacking attacks or download the software to your computer and take full responsibility to keep your device safe from malware.

Online wallets are a great option if you’re looking for temporary storage before you spend your BTC. Otherwise, we recommend saving for a hardware wallet if you think you’d hold onto your coins for longer.

Hardware wallets are portable and look like USB sticks. They’re not connected to the Internet which automatically makes them less liable to hacking attacks. You should be careful not to lose the wallet, but even if you did, you can recover your coins with the generated “seed” phrase when activating the wallet.

Some popular hardware wallet choices include Ledger Wallet Nano S, Ledger Wallet Blue, and Trezor.

How to Spend Bitcoin

A growing number of merchants have added Bitcoin to their list of supported payment methods. Some of the world-leading companies like Microsoft, Overstock, TigerDirect, Wikipedia, Newegg, food-chains like Burger King, KFC, and Subway, among others, have voiced their support.

Moreover, some e-commerce platforms like OpenBazaar that function as peer-to-peer marketplaces allow you to buy all sorts of goods and services both locally and internationally with BTC.

Coincards can be used to buy gift cards, recharge your phone, and purchase game vouchers with BTC and other cryptocurrencies. Talking about gift cards, the crypto community has also been using Gyft, a mobile app that also makes it super easy to turn your BTC into a gift card and use it on any services you like.

Published: 2020-10-01

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