29 November 2023
More than ten years ago, when Bitcoin initially emerged, it was extremely hard to acquire. In Canada, there are a plethora of possibilities for purchasing Cryptocurrency, making it difficult to choose the best one. Fees, the reliability of the site you're purchasing from, as well as the ease with which you can complete the transaction are all factors to think about.
Also Read: French Laws Regarding Cryptocurrencies
In the same way that shares, foreign currencies, as well as ETFs have become commonplace, Cryptocurrency investments have entered the mainstream. A recent survey found that as much as one-third of all Canadians currently hold some kind of Cryptocurrency. Bitcoin, a Crypto founded in 2009 for less than a penny, now costs $54,000 Canadian at the time of writing.
A list of the 7 Common Ways in 2022 to Purchase Bitcoin and other Cryptocurrencies is provided below:
1. Buy Bitcoin on Centralized Cryptocurrency Exchanges
As of November 2022, this is the most common method for Canadians to acquire Bitcoin. Ninety-five percent of all Crypto trades take place on platforms. Users in Canada who want to open an account with a Cryptocurrency exchange will be required to go via the usual Know Your Customer (KYC) as well as AML procedures. After that, you may fund your account with Canadian dollars (CAD) using Interac e-Transfer as well as begin purchasing Bitcoin as well as other Cryptos. Coinsmart, Coinberry, and Newton are the most widely used Cryptocurrency exchanges in Canada.
2. Buy Cryptocurrency Via Trading Platforms
Canadian consumers looking for the easiest possible way to buy Bitcoin or Ethereum from one of the most trustworthy platforms in Canada can check out Wealthsimple Crypto or Uphold, both of which are discussed in our top Canadian Cryptocurrency exchanges post. Payments powerhouse PayPal, following in the footsteps of Wealthsimple's Crypto trading platform, began enabling its US clients to acquire Cryptocurrencies in 2020 and expected to extend this globally in 2021. In spite of the convenience, trading platforms provide very few alternatives when it comes to actually purchasing Bitcoin or any other Cryptocurrency.
3. Buy Bitcoin on Decentralized Crypto Exchanges (DEXs)
In Canada, the most cutting-edge method of acquiring Bitcoin is via a decentralized exchange (DEX). If you're just starting off, you shouldn't try it. You may buy and sell Cryptocurrencies just like on a typical centralized exchange (CEX) like Coinbase or Binance, but it is decentralized, meaning it is not controlled by any one company or firm. The secret keys as well as associated Cryptocurrency are "held" by the CEX. Rather, Bitcoin trading might take place between individuals on a decentralized exchange (DEX). It implies you can make global, instant, and local Bitcoin or other Cryptocurrency purchases directly with another individual. LocalBitcoins is the most widely used P2P marketplace in Canada to purchase Bitcoin from other users.
4. Buy Cryptocurrency ETFs
The first Bitcoin Exchange Traded Fund (ETF) in North America, the Purpose Bitcoin ETF, was released in April 2021 by the Canadian Securities Exchange (BTCC). One potential avenue for Canadians to acquire Crypto is via exchange-traded funds (ETFs). That's why we compiled this comprehensive guide to investing in Bitcoin ETFs in Canada. To put it simply, an ETF is a fund that invests in the shares of multiple firms, often organized into groups according to their respective industries. Bitcoin exchange-traded funds (ETFs) are managed funds that enable investors to get exposure to the Bitcoin market without the complexities of setting up and maintaining their own Bitcoin exchange accounts and Bitcoin wallets. Investing in a fund that someone else manages couldn't be simpler. However, you aren't actually purchasing Bitcoin.
5. Buy Cryptocurrency Via Crypto ATMs
Using a Bitcoin vending machine is as easy as using cash. Vancouver, Canada, was the site of the first Bitcoin ATM when it debuted in 2013. Canada alone has more than 1,500 Cryptocurrency ATMs, contributing to a global total of over 19,000. In Canada, you may use any ATM to buy Bitcoin: Acquire a Cryptocurrency wallet, Discover a Bitcoin ATM in your area i.e., a global map of ATM locations is available here. Click on the coin you'd want to buy. To get the coins delivered to your wallet, scan the QR code corresponding to its location. Put money in the slot, mail it, and you'll have Bitcoins. Remember that there are numerous distinct varieties of Cryptocurrency ATMs, each with its own unique operating principle.
6. Buy Crypto Over-The-Counter (OTC)
Bitcoins may also be traded offline, in what is known as an Over-The-Counter (OTC) transaction. Consumers with a lot of disposable income in Canada who want to buy Bitcoin, Ethereum, as well as other Cryptos in bulk choose this method of acquisition. The term "whales" is often used to refer to this group of individuals. Using the exchange's price, they make a transaction outside of the exchange at a time and place that is convenient for them. You might think of it as a Crypto version of a personal shopper.
7. Buy Cryptocurrency Via Crypto Wallets
The last option for purchasing Cryptocurrencies in Canada is to use a digital money wallet. To safely store your Cryptocurrency, you may get a Ledger, which is produced by a European business. Ledger's offline wallets keep your Bitcoin safe from thieves and other threats. If you leave your Cryptocurrency on an exchange, it might be lost or stolen. Your Cryptocurrency will be safe in a hardware wallet since you own the private keys and may keep them in a secure location or offline.
Ultimately, it is up to you to choose which method of purchasing Bitcoin in Canada is most convenient for you. In Canada, the optimal method for purchasing Cryptocurrency would be the option with which you are most at ease. According to our poll, almost all Canadian Bitcoin traders use regulated market places. For newcomers, we give it our highest recommendation.
Disclaimer: The author’s thoughts and comments are solely for educational reasons and informative purposes only. They do not represent financial, investment, or other advice.