Your guide to buying crypto and Bitcoin in Canada
Have you seen how much cryptocurrencies have grown in the last few years? Digital currencies like Bitcoin have become very popular very quickly, doing better than many traditional investments, and attracting a lot of new investors who want to be part of the digital revolution. Bitcoin, in particular, has seen its value go up by ten times in just the last five years, and more and more people are getting interested in it.
What makes Bitcoin so special? It’s all about how it’s decentralised and how there are only a limited number of them, which is very different to traditional currencies. Only 21 million Bitcoins will ever exist, and with over 94.59% already in circulation, increased demand means that scarcity is likely to drive its value even higher. This is a global phenomenon, meaning it’s now perfectly legal to trade Bitcoin in most countries, including Canada. If you’re wondering how to get started trading crypto in Canada, the process is quite similar to anywhere else.
Here’s how you can dive into the world of Bitcoin and other cryptocurrencies in Canada:
Option 1: go through a brokerage account
Many Canadians find that the easiest way to buy crypto is through a brokerage account. There are lots of websites where you can buy and sell stocks and cryptocurrencies. Please note that this is not an anonymous route. You will need to provide personal details like your ID and Social Insurance Number (SIN) as part of the Know Your Customer (KYC) process.
The best thing about using a brokerage is how easy it is. You won’t have to worry about managing your own crypto wallet keys or navigating complex new technologies. Some brokerages also offer a single dashboard where you can see all your investments, including stocks, mutual funds, ETFs and crypto holdings.
Before you commit, it’s always a good idea to check what a particular brokerage offers. Some might only offer Bitcoin and Ethereum, while others might offer many more. Make sure that their choice matches your investment goals.
Option 2: embrace digital wallets for more privacy
If you want to hold your crypto in a way that keeps your identity secret (but remember that buying crypto is usually a public blockchain transaction), a digital wallet might be a better option. IronWallet lets you create wallets without having to give out personal details, and you can access thousands of cryptocurrencies. This is different from the usual financial KYC procedures, so using a wallet from this provider can give you more privacy for your transactions.
Take IronWallet, for example. You can get it in Canada from the App Store or Google Play, and it usually gets good reviews. It has an average rating of 4.4 and 4.3 stars on both platforms, from over 30,000 reviews together.
There are lots of different online and offline wallets to choose from in Canada. When choosing a wallet, think about things like what it can do, how much it costs, and which cryptocurrencies it supports. For example, IronWallet lets you manage thousands of cryptocurrencies across more than 50 different blockchains.
Just so you know, these wallets can help keep your crypto transactions private, but the transparency of blockchain means that these transactions are public (though some might offer features to keep your identity private).
How to buy Bitcoin in Canada using a digital wallet (e.g., IronWallet)
IronWallet is a popular choice for newcomers, but these steps are pretty standard across most crypto wallets. Once you’ve downloaded the app and set up your wallet, here’s how you can buy Bitcoin and other crypto assets:
Step 1: Head to the “Buy” Section Most crypto wallet apps, including IronWallet, have a dedicated “Buy” section. Here, you can create an order, specifying which cryptocurrency you want to purchase and how much you’re looking to invest. While Bitcoin is the most well-known, don’t be afraid to explore “altcoins” – some of these digital assets can gain momentum quickly and even outperform Bitcoin in short bursts. However, Bitcoin remains the least risky option and has a proven track record of delivering excellent long-term returns.
Step 2: Decide How Much You Want to Invest After picking your cryptocurrency, the app will ask you for your investment amount. Just enter the figure into the order ticket, and IronWallet will automatically calculate how much crypto you’ll receive. This is super helpful, as most digital wallets and brokerages do this calculation for you. This way, you know exactly how much crypto you’ll get for, say, a $500 investment, especially since you might only be buying a fraction of a coin or token.
Step 3: Choose Your Payment Method When you’re ready to make the purchase, your digital wallet or brokerage will prompt you for a payment method. IronWallet, for example, offers various options, including credit and debit cards. You’ll enter your payment details the first time, and they’ll usually be saved securely for future transactions.
Step 4: Review and Confirm Your Order Before hitting that final “confirm” button, always take a moment to double-check your order ticket. It’s easy to accidentally type in a wrong number or an extra zero, especially when you’re making your first crypto trade. It might feel a bit complex at the start, but trust us, as you get more familiar with your chosen crypto platform, it will become second nature!
To sum up, investors from Canada have good choices when they want to buy crypto. You can choose a traditional brokerage account or go for a digital wallet like IronWallet, which offers more privacy. Remember that cold wallets are for storing money safely, not for buying things directly. If you buy crypto in Canada and then transfer it to a cold wallet, be careful because the first purchase might still be linked to you. Also, some Canadian exchanges have withdrawal limits for new users, so bear that in mind as you start using crypto!
