How To Buy Bitcoin in Canada
Alright, so you want to buy some Bitcoin. First things first, a quick crash course on buying crypto in general.
Cryptocurrencies are bought through exchanges. Exchanges are platforms you need to sign up for (like forums/apps or any other website with user accounts). Once you’ve signed up, you can log in, deposit credits/money (preferably CAD) into your account. And then you can use that money to buy cryptocurrencies on the platform/exchange.
Buying Bitcoin in Canada has become pretty easy since Bitbuy came onto the crypto scene. Just sign up, verify your account, and buy BTC with your CAD.
We’ve laid out the steps on how to get started below!
How To Get Started
Setup Your Account
Bitbuy is our go-to for trading the main cryptocurrencies in Canada (BTC, ETH, XRP, LTC, BCH). It’s the most trustworthy exchange available , and is easy for beginners looking to buy, sell and trade digital currencies. Bitbuy also has a Pro trading platform for more advanced traders.
Verify Your Account
Once you have signed up and set up your mobile 2FA, log back into your account and start the verification process. Bitbuy requires you to verify your identity in order to adhere to Canadian cryptocurrency laws. There is an automated verification system that will check your information against a database. If they are unable to find you, you will need to submit additional documents manually.
Fund Your Account
Once you are verified, go back to your dashboard and click “Add Canadian Dollars” then choose your preferred funding method.
You need to get verified to fund your account with CAD or USD.
Once you’ve funded your account with CAD, you’re set to buy some crypto.
Bitbuy has Bitcoin, Ethereum, Bitcoin Cash, Litecoin and XRP (Ripple) available. Buy crypto from the main homescreen by clicking on “buy” beside the coin you would like to buy, or open the Bitbuy Pro trading platform to trade crypto to crypto or buy and sell using limit orders and advanced charting.
Where To Buy Bitcoin
We reviewed all of the exchanges available to Canadians and we highly suggest using Bitbuy. It far surpasses the other exchanges as the best option due to it's customized platform and ease of use.
Bitbuy is by far our most recommended exchange for Canadians. Their platform is incredibly easy to use and allows you to buy Cryptocurrencies with CAD. They have consistently been working on creating a great user experience and well known to be the must trusted exchange by Canadians.
Even for the non-techy, Bitcoin is becoming a bit of a hot topic.
Truly in just the last four to six months, it has exploded from a fairly quiet, niche concept to being in the spotlight in both mainstream and social media. Speculations that Bitcoin is the currency of the future are floating around everywhere.
While most have now heard about Bitcoin in a general sense, there is still a lot of confusion about what it actually is.
So, what is Bitcoin and should you buy into it? Before you do, it is important to understand more about it as well as the pros and cons to investing so that you can make a more informed decision.
What Is Bitcoin?
Very simply put, Bitcoin is a digital currency or cryptocurrency. While it is not the first, it is the first truly successful type of its kind. But more on that in a moment.
Some quick facts about Bitcoin:
- there are a finite number of units
- it is not centrally controlled
- it is created and tracked through cryptography, making it more secure, anonymous, and beyond the control of a third party to increase or decrease its rate of production.
Because Bitcoin is a digital token generated from mathematical proofs and absolutes, it cannot be double-spent, and it remains outside of the control of a third party, whether it be bank or government. This means that its value cannot be tampered with, since there will be a definite amount created, at which point no more bitcoins will flow into the market.
This is, in small part, why many speculate that this will be the currency of the future and ultimately a more stable form of currency, if embraced globally.
History of Bitcoin
As briefly mentioned above, attempts at cryptocurrency have been made as early as the late 80s. However, these previous currencies depended on third party regulation and consequently failed.
One of the major issues that these currencies had was double-spending, because tracking and verifying the transactions could not occur quickly enough to confirm that the same funds were not spent twice.
It was not until 2009 when someone, or numerous someones, under the alias of Satoshi Nakamoto introduced the concept of using blockchain technology to create Bitcoin.
Blockchain is essentially a peer-to-peer platform that allows everyone to see and verify every transaction made with Bitcoins. Because Bitcoins cannot be duplicated, and because the transactions don’t have to pass through a third party first, they cannot be double-spent. It makes Bitcoin a secure, verifiable, and immutable way of exchanging currency as well as a fairly anonymous way to make transactions.
While Bitcoin was introduced in 2009 and has been steadily growing in stamina, it has been in recent months, particularly the last few months of 2017, that saw it suddenly take off and gain mainstream attention. More and more vendors, both local and international, online and brick and mortar, are accepting Bitcoin as payment, and trading it on the market has become increasingly popular.
As a result, a single unit of Bitcoin went from costing around $800 early last year to being worth over $6000 a unit by November.
How Do You Buy and Store Bitcoin?
There are now numerous international exchanges where you can purchase and trade Bitcoin in Canada (as well as others like Ethereum, Litecoin, NEO, Ripple, etc), as well as other altcoins. Some major exchanges are Coinbase, BitStamp and BitFinex. Through these exchanges, you can purchase and trade Bitcoin and other digital currencies for a fairly low fee.
Many of these exchanges also offer electronic wallets in which you store your Bitcoin. However, these exchanges are not hack-proof, and in fact, BitFinex was a target of a major hack in 2016 that in some cases, wiped out individual’s entire savings.
So, a better solution is to get your own digital wallet, which can be stored offline on your computer’s hard drive. This will make your Bitcoin far less of a target and much more secure.
Pros & Cons
Though Bitcoin is definitely growing in popularity, value, and usability, one should still approach investing and using Bitcoin with knowledge and caution. There are many benefits to investing in it, especially right now, but there are many cons as well to be aware of.
- You can use it to purchase goods even internationally for very little fees
- It is almost completely anonymous, with only the electronic wallet being noted, not your personal information
- It’ s very secure
- Its value is currently increasing at enormous rates on the trade market
- It is decentralized, making it outside the control of any government or bank
- The same spike in growth makes the currency incredibly volatile – it spikes and plummets in a matter of 24 hours sometimes in the range of thousands of dollars
- It is not regulated, which also means if anything happens to your Bitcoin, you are on your own
- The future of Bitcoin is unknown – it may not last, or even if it does, its value could drop and even out
- Some governments have begun regulating and even banning or penalizing it
Clearly, Bitcoin is on the rise, at least for now. The more that people buy into it, the higher its chances of survival. At the moment, its prospects do indeed look good.
If you are someone who wants to make purchases on an international level, to keep assets in a more secure way, out of the hands of banks and governments, and to ensure anonymity in your transactions, or simply to invest with the aim of increasing wealth, then Bitcoin is a good option.
Just be sure to thoroughly do your research and make wise investment choices. Some quick tips for investing in Bitcoin:
- Don’t invest more than you can afford to lose – remember that it is incredibly unstable, and loss, big loss, is possible
- Don’t store your cryptocurrency with the exchanges
- Don’t put all of your eggs in one basket – investing is good, investing everything you have in one form of investment, especially one that is so volatile, is bad