Canada has a fairly high adoption and awareness rate for cryptocurrencies, especially Bitcoin. It also has an active crypto community and authorities who support the development of blockchain technology. So if you want to know how to buy Bitcoin in Canada, there are plenty of options – from top-rated cryptocurrency exchanges to Bitcoin ATMs.
Around 85% of Canadians are aware of Bitcoin, and more than half of the population owns digital currencies. In addition to these eye-opening statistics, the Canadian government is open to cryptocurrency exchanges and blockchain-based start-ups.
Canada has pretty clear laws and regulations for cryptocurrency owners and traders. Not only does the government make it easy for citizens to report earnings and pay taxes, but it also educates the population about the risks of investing in digital assets.
You’ll have no trouble purchasing Bitcoin or using it to pay for goods and services. So, check out how to buy Bitcoin in Canada here.
How to buy Bitcoin in Canada
Cryptocurrency exchanges are the most popular places to buy Bitcoin in Canada, as they’re generally considered safe and easy to use. According to the Canadian Bitcoin Index, the most popular platforms for buying and trading in Canada are Coinsquare, Kraken, and Bitvo.
Most cryptocurrency exchanges accept multiple payment methods. So, you should be able to buy Bitcoin using wire transfers, credit cards, PayPal, or any payment method you’re comfortable with.
Coinsquare is a Canadian cryptocurrency investment platform where you can buy Bitcoin, Litecoin, and Ethereum using both fiat and cryptocurrencies. It’s popular among Canadians because it has a simple interface and user-friendly features.
You can buy Bitcoin from your computer, tablet, or smartphone in seconds. All transactions are secure. Coinsquare claims never to have lost any of its clients’ funds during operations, unlike some other Canadian exchanges that come to mind.
Registering on the platform is easy, but it can take some time. The exchange requires its users to upload a series of documents to prove their identity.
Coinsquare also enables users to trade gold and silver as well as cryptocurrencies.
Kraken is less beginner-friendly than Coinsquare, but it is still a reliable option when looking at how to buy Bitcoin in Canada. The platform has users from over 190 countries worldwide.
You can trade cryptocurrency pairs easily – Kraken lists more than 15 different cryptocurrencies besides Bitcoin. If you want to buy cryptocurrencies with fiat, trading will take you longer.
Users who register with Kraken must verify their identity before trading. Depending on the type of account you have, you may need to take several steps and upload a series of documents to prove your identity and residence.
If you want to buy Bitcoin with fiat, you need to deposit the funds via bank transfers that take a couple of extra days.
Bitvo is another Canadian cryptocurrency exchange that provides a same-day guarantee service as well as a Visa debit card for cryptocurrencies.
The platform promises to register every account immediately upon sign-up. This is as long as all goes well with your KYC (know your customer) process.
Bitvo also claims it can move your funds between accounts on the same day you make a request. Users get immediate access to their funds thanks to the Bitvo Cash Card, which works just like any other credit card.
Buying Bitcoin from ATMs or OTC
Canada has 696 Bitcoin ATMs – most of them are available in Vancouver, Toronto, and Montreal. Bitcoin ATMs are expensive, but they allow you to buy Bitcoin using cash and without revealing your identity.
Buying Bitcoin from ATMs is far more expensive than using cryptocurrency exchanges. Fees can run between 10-17%, around 8% more than other ways.
Another option is to find a broker and buy Bitcoin over the counter (OTC). Canada has a large number of licensed brokers and trading desks you can use to invest in cryptocurrencies.
Tax policy for Bitcoin in Canada
The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity for tax purposes. So, any income from trading cryptocurrency is considered capital gain or business income (or capital/business loss).
You need to keep accurate records of your transactions. The value of your cryptocurrencies is usually determined using the highest price in Canadian dollars (the fair market value). However, you can decide to use the amounts listed by an exchange as long as you’re consistent.
If you hold multiple cryptocurrencies, each one is considered a separate digital asset.
Now you know how to buy Bitcoin in Canada, you’ll see there’s no shortage of ways for beginners and experts alike. From purchasing digital coins with your credit card to exchanging Bitcoin for cash, you can test them all and decide which suits you best.
Do keep in mind, however, that despite being well regulated, the Canadian cryptocurrency market can’t protect you against scams and fraud. So, make sure you invest in a secure Bitcoin wallet and keep your funds protected.