Learn how to purchase Bitcoin and other cryptocurrencies in Canada through brokers or directly via crypto exchanges.
Is Buying Cryptocurrency Legal in Canada?
Cryptocurrency trading is legal in Canada, though it isn’t recognized as legal tender. The Canada Revenue Agency (CRA) defines virtual currencies and outlines applicable tax rules. Retailers, cafes, and e-commerce sites accepting crypto provide additional avenues for purchases.
👉 Discover the best crypto platforms for Canadians
Methods to Buy Cryptocurrency in Canada
1. Using a Crypto Broker
Brokers like Wealthsimple and Mogo simplify transactions but may impose limits on withdrawals or storage. Fees are typically higher than exchanges.
Steps to Buy via Broker:
- Set Up an Account: Register on a broker platform with verified personal details.
- Fund Your Account: Use debit/credit cards, PayPal, or bank transfers (note varying fees).
- Purchase Crypto: Select from limited coin options and place orders.
2. Through a Cryptocurrency Exchange
Exchanges like Coinbase, Kraken, or Bitbuy offer broader coin selections and greater control.
Steps to Buy via Exchange:
- Choose an Exchange: Compare fees, security, and supported coins (e.g., BTC, ETH, SOL).
- Verify Identity: Submit ID documents and a selfie for KYC.
- Deposit & Buy: Link a bank account, fund your account, and execute trades.
👉 Compare top crypto exchanges in Canada
Storing Cryptocurrency Securely
Options:
- Exchange Wallets: Convenient for trading but vulnerable to hacks. Enable 2FA for added security.
- Hot Wallets (Software): Examples: MetaMask, Trust Wallet. Easy access but online-dependent.
- Cold Wallets (Hardware): Ledger or Trezor devices offer offline storage for maximum safety.
Pro Tip: Diversify storage across wallets to mitigate risks.
Where to Use Cryptocurrency in Canada
Accepted by:
- Retailers like Newegg (electronics) and Overstock (home goods).
- Services such as Travala (travel) and Coincards (gift cards).
- Crypto debit cards for everyday spending.
FAQ
Q: What’s the cheapest way to buy crypto in Canada?
A: Exchanges generally offer lower fees than brokers. Bank transfers are cost-effective vs. credit cards.
Q: Are crypto transactions taxable in Canada?
A: Yes. The CRA treats crypto as a commodity—capital gains tax applies to profits.
Q: Can I withdraw crypto to my bank account?
A: Yes. Most exchanges allow CAD withdrawals to linked bank accounts.
Q: Which wallets support multiple cryptocurrencies?
A: Trust Wallet and Ledger Nano X hold various coins (BTC, ETH, DOGE, etc.).
Q: Is staking crypto legal in Canada?
A: Yes, but earnings are taxable as income.
Final Thoughts
Canada’s clear crypto regulations foster a safe trading environment. Always research platforms, secure assets properly, and stay updated on tax obligations.
Risk Warning: Cryptocurrency investments carry high volatility. Only invest what you can afford to lose.