How To Buy Ethereum 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 Ethereum in Canada has become pretty easy since Bitbuy came onto the crypto scene. Just sign up, verify your account, and buy ETH 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.
Admittedly, there have been so many mind-blowing technological advancements even in just the past few years, that it is difficult for anyone, even the most tech savvy, to keep up with them all.
But one of the newer advancements that you absolutely need to pay heed to is Ethereum.
Most have not heard of it, and many who have don’t understand it. It’s not the easiest thing to grasp, partially because it is so new and unlike anything before it, but it is certainly worth your time to learn.
In some ways it goes hand-in-hand with the upswing of cryptocurrencies, but in other ways it is completely its own thing and much more than a currency.
What Is Ethereum?
Ethereum is a platform that allows the creation of decentralized applications, or DApps. Like cryptocurrencies, it relies on blockchain to enable the platform to be open sourced and free from a managing person or entity.
A blockchain is basically a group of independent users, often referred to as “nodes,” who work together to maintain all of the applications and data that are stored on the blockchain, which is public.
Most platforms, like LinkedIn, Facebook, or Amazon, rely on a corporation or person who owns the platform and servers, which contain all your personal information. The party is responsible for keeping the platform running and your information safe.
The concept of Ethereum removes this party from the equation. Essentially, the client-server model, which nearly all websites and web applications run off of, is done away with. This revolutionizes the internet as we have known it, and some even say it democratizes it.
This makes sense, since, through blockchain, users across the globe (“nodes”) become responsible for maintaining the platform themselves.
In addition to enabling the creation of decentralized applications, Ethereum’s blockchain also allows for executing and maintaining smart contracts based on prewritten code.
So, overall, while cryptocurrency such as Bitcoin enables you to participate in a decentralized, global financial network, Ethereum allows you to interact in a decentralized, global computational network – it is a “world computer.” Along with it comes the ability to participate in the financial network through smart contracts and Ether, the digital currency that operates the contracts.
What Are Smart Contracts?
Smart contracts are scripts of code used to execute a wide variety of applications. These pieces of code require a trigger to initiate them, and once triggered, the application is carried out without the ability of third parties to interfere, change or reverse it.
Pretty much any type of contract that is normally controlled and/or executed via computer code can be done through smart contracts: real estate transactions, exchange of financial tools such as equities, voting, global supply chain transactions, even medical records and numerous other applications.
Smart contracts are still incredibly new, and the full extent of their potential application is not fully known.
The operation of these smart contracts is the primary purpose of Ethereum, more so than its use as currency. While Ethereum (Ether) can be bought and traded similarly to Bitcoin, its tokens are what enable the triggering of the smart contracts.
So again, Ethereum and smart contracts are so much bigger than just a decentralized, digital currency.
History of Ethereum
Unlike Bitcoin, whose creator(s) remain(s) unknown, we do know the mastermind behind Ethereum.
Its creator, Vitalik Buterin, was just a teenager when Bitcoin first came on the scene. But even then, he was intrigued, and by a mere 19 years of age, he was already explaining his ideas about a decentralized computational network that would become Ethereum.
By 2014, Vitalik earned the Peter Thiel Fellowship – a $100,000 fellowship that enabled him to pursue his vision for Ethereum to the full, and thus the decentralized, blockchain-based network was born.
In a relatively brief period of time, it has gained public attention. Many are speculating that Ethereum not only has the potential to catch on globally, but that it will actually utterly disrupt and revolutionize how the internet and world operate.
Predictions include some pretty extravagant claims that the current internet super-powers (whose power has expanded well beyond the internet as a result), will be thrown down, and the masses will gain the advantage and power that only the few, internet elites have had so far. Certainly, revolutionary rhetoric if ever there was any.
But whether or not it will grow to such fantastic proportions, we cannot really know. What we do know is that Ethereum’s cryptocurrency, Ether, is already sitting at a little over $300 a unit. It certainly seems to be rising up the ladder.
Pros & Cons of Ethereum
As with any new technologies, cryptocurrencies and trends, before making any investments and taking any chances, you need to fully understand the pros and cons so that you can make the best choices possible.
So, here is a quick breakdown of the pros and cons:
- The ability to run applications and form contracts without a third party
- Changes are nearly impossible to make, which ensures your smart contracts are very secure and difficult to tamper with
- Ether, its cryptocurrency, will always be necessary to run code on Ethereum, giving it a more stable long-term value than other cryptocurrencies
- It is gaining popularity and value quickly at the moment
- While decentralized and harder to tamper with, the application and smart contract coding is still written by error-prone humans
- If you end up with a code with an error, it is near impossible to fix because of the decentralized nature
- Ether is tied to the success, or failure, of Ethereum, so investing in it is still extremely risky
- The future and popularity of Ethereum is by no means secure; the project as a whole could be replaced by improved upon blockchain projects
- There will never be a cap on Ether supply (which some may see as a benefit), unlike Bitcoin, which will be capped at 21 million tokens
- Ethereum’s value spikes and plummets extremely in the market from day to day – it is a volatile market investment
Why Invest in Ethereum?
Ethereum is certainly a revolutionary concept and has the potential, if successful, to seriously impact global operations as we know them. It is also currently seeing a serious rise in popularity.
With these two facts together, investing in Ethereum is an exciting possibility full of potential. But, as noted above, its future and the future of its cryptocurrency are still very uncertain (and there are a lot of coins you can invest in, like Bitcoin, Litecoin, NEO, Ripple, etc). While a lot of money could be made with smart, patient investment choices, a lot of money could be lost through rash investment or through the ultimate failure of the project.
Keep your eye on Ethereum and how it does on the market, be patient and be wise, and once you’re feeling confident, make your investment. Just remember not to put all of your eggs in one basket!