Buying Cryptocurrency in Canada: A Step-by-Step Guide
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The Gains of Cryptocurrency
The gains that some cryptocurrencies have experienced over the past several years have left many other asset classes in the dust. That’s particularly true of established cryptos like bitcoin, which has appreciated by 10x over the past five years and continues to attract new investors.
What Makes Bitcoin Valuable
Bitcoin is valuable due to its decentralized nature and its finite supply, which makes it the digital antithesis of fiat currency. Only 21 million bitcoins can ever be mined. With 94.59% already in existence, as more people buy this popular asset, scarcity will result in it becoming more expensive.
Global Appeal and Legalization
Crypto’s appeal is global. As such, it’s now perfectly legal to trade bitcoin in most countries, including Canada. The process of buying crypto in Canada isn’t too different from buying it in any other part of the world that has legalized it.
Buying Bitcoin in Canada
If you find yourself in the Great White North, you can follow these steps to buy bitcoin in Canada.
Creating a Brokerage Account
Canadians can choose from many brokerages that let them trade stocks and crypto. You will have to provide personal details like your ID and Social Insurance Number (SIN), so this route isn’t anonymous by any means.
But some investors gravitate toward brokerage accounts because of the convenience they offer. You don’t have to store your crypto wallet keys or figure out new technology. And with some brokerages, you can see your traditional equity holdings (e.g., stocks, mutual funds and ETFs) in the same dashboard as your crypto holdings.
Before you create an account with a brokerage, make sure that the firm lets you buy crypto. Some of these accounts are limited and only let you invest in bitcoin and ethereum. However, some brokerage accounts let you choose from dozens of cryptocurrencies.
Buying Anonymously
If you create a digital wallet, you store your crypto anonymously (note that purchasing crypto is a public transaction). Some companies, such as Best Wallet, Ellipal and SafePal, allow you to create wallets without providing any of your personal details and giving you access to thousands of cryptocurrencies.
Because they do not follow traditional financial institutions’ know your customer (KYC) procedures, using wallets offered by these companies means no one can track your crypto transactions.
How to Buy Bitcoin in Canada Using Best Wallet
Best Wallet is one of the top digital wallets for people who are considering crypto, but the steps here are nearly identical to any other crypto wallet. After you have downloaded the Best Wallet app and created your account, you can follow these steps to buy bitcoin and other crypto assets in Canada.
Step 1: Navigate to the App’s “Buy” Section
Best Wallet and other crypto wallet apps have a “Buy” section that allows you to purchase cryptocurrencies. You can create an order ticket that lets you specify which crypto you want to buy and how much you want to invest.
Although bitcoin is the most popular option, it’s worth exploring altcoins as well. Some of these digital assets gain momentum in a hurry and end up outperforming bitcoin in short bursts. However, bitcoin is the least risky cryptocurrency and has a proven record of delivering exceptional long-term returns.
Step 2: Enter the Amount You Want to Invest
After selecting a cryptocurrency, Best Wallet will ask how much you want to invest. You can put this amount in the order ticket, and Best Wallet will let you know how much crypto you can purchase.
Most digital wallets and crypto brokerages automatically perform this calculation for you. That way, you know how much you will receive with a $500 investment (or any amount), which is helpful when the amount invested is less than the cost of a single coin or token. If you do not have enough money to buy an entire bitcoin, for example, you will receive a fractional share.
Step 3: Enter a Payment Method
When you are about to make the investment, a brokerage account or digital wallet will request a payment method. Best Wallet offers several payment options, such as credit cards and debit cards. You will have to enter your payment details the first time, but they’re saved for future transactions.
Step 4: Review and Confirm the Order
When you enter the information, it’s good to check your order ticket one final time to ensure there aren’t any mistakes. Some people accidentally put in the wrong number or enter an extra zero. It can feel a bit complex to place your first crypto trade. However, when you get familiar with the crypto brokerages or crypto wallet of your choice, it will get easier over time.
