Invest In Cryptocurrency Canada – Investing in Cryptocurrency Beginner’s Guide 2022

Fact Checked by Gary McFarlane

Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.

Cryptocurrencies are a trendy topic these days, with assets such as Bitcoin and Ethereum seeing significant gains in recent years. As a result, there are already over 6,000 cryptocurrencies in circulation as of 2022 according to statista.com, all of which can be purchased, sold, and traded online.

This beginner’s guide on how to invest in cryptocurrency Canada is a must-read if you’re new to the world of cryptocurrencies. Not only will we go over the basics of how to invest, but we’ll also go over which cryptocurrency brokers make it safe and affordable to do so.

Invest in Cryptocurrency Canada – #1 Crypto Exchange Bitbuy

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • No hidden fees or expenses
  • Offers a live order book

How to Invest in Cryptocurrency in Canada

When it comes to learning how to invest in cryptocurrency in Canada your best option is to opt for a regulated cryptocurrency exchange. Your chosen exchange should provide a low-cost, safe, and secure way to invest in digital assets. The best crypto exchanges that allow you to invest in cryptocurrency Canada are as follows. 

  • Bitbuy – Overall Best Place to Invest in Cryptocurrency Canada
  • Capital.com – Great Way to Invest in Cryptocurrency Canada for Beginners

We’ll go over the above crypto exchanges in more detail later in this tutorial.

Invest in Cryptocurrency Canada – Quick Guide

When you grasp how to invest in cryptocurrencies in Canada, you’ll find that the fundamentals are surprisingly easy. Simply register an account with a regulated crypto exchange such as Bitbuy, which has some of the lowest trading fees across the board.

Check out the steps listed below for a seamless overview of how to invest in cryptocurrency in Canada. 

  • Step 1: Register with Bitbuy – Registering with Bitbuy is as simple as clicking the ‘Join Now’ button on the provider’s website and entering your personal information. You’ll also need to provide your contact information as well as your social security number.
  • Step 2: Upload Your ID — You must also upload a copy of your government-issued ID or passport as proof of identity. This way your account will be verified.
  • Step 3: Make a Deposit — The final step is to deposit funds into your newly set-up account. At Bibtuy, you can deposit funds using Interac e-Transfer or a bank wire transfer.
  • Step 4: Invest in Cryptocurrency Canada – Select ‘Express Trade’ then find the crypto you want to trade from the drop-down menu. Click the ‘Trade’ button once you’ve found the digital asset you want to invest in. Finally, enter the amount of money you want to invest and confirm your purchase by clicking the “Confirm Purchase” button.

Where to Invest in Cryptocurrency Canada – Full Crypto Exchange Reviews

When it comes to selecting a cryptocurrency exchange, you’ll need to do your homework. This is because many platforms in this finance sector are headquartered abroad and hence do not have the legal authority to service clients in Canada. Aside from security, you should think about what cryptocurrencies the exchange covers and how much it will cost you to trade those digital assets.

We’ve reviewed several premium cryptocurrency exchanges that allow you to safely invest in cryptocurrency Canada, saving you endless hours of research.

1. Bitbuy – By Far the Best Crypto Exchange to Invest in Cryptocurrency 

Buy Bitcoin Canada with Bitbuy

 

Bitbuy Bitbuy is a trusted Canadian Bitcoin exchange that solely accepts Canadian traders. Canadian federal authorities, notably FINTRAC, have fully regulated this cryptocurrency exchange since its inception. It was launched in 2016 to make buying and selling Bitcoin and other popular cryptocurrencies quick, secure, and accessible.

Bitbuy’s finest features include the ability to trade nine cryptocurrencies (BTC, ETH, LTC, BCH, XLM, XRP, EOS, AAVE, and LINK) directly in Canadian dollar and BTC based pairs, an user-friendly trading platform, an OTC desk, and excellent customer service.

Bitbuy charges fees for fiat and cryptocurrency exchanges, fiat currency deposits, and fiat and cryptocurrency withdrawals. Nevertheless, the provider facilitates free crypto deposits.

Buy Cryptocurrency Canada

 

Depending on the payment option you choose, a deposit in Canadian Dollars (CAD) will cost you between 0.5 and 1.5 percent. A simple wire transfer, for example, will cost 0.5 percent of the deposit amount, whereas a faster Interac e-Transfer will cost 1.5 percent.

The nine cryptocurrencies you can buy and sell on Bitbuy include Bitcoin (BTC), Bitcoin Cash – BCH, Ethereum – ETH, Litecoin – LTC, XRP – Ripple, Chainlink – LINK, AAVE, Stellar Lumens – XLM, Eos – EOS. 

Fee Type Fee Amount
Commission Variable Fixed Fees
Deposit Fee Bank Wire – 0.50%. Interac e-Transfer – 1.50%.
Withdrawal Fee Bank wire – 1.00%. Interac e-Transfer – 1.50%. 
Minimum deposit $50
Trading fees Express trade – flat 0.20% fee on all buys and sells
Pro Trade / API Client Maker – 0.10% Taker 0.20%

Pros

  • No hidden fees or commissions
  • Fully regulated by FINTRAC 
  • Low minimum deposit when using Interac e-Transfer
  • Seamless onboarding process
  • Access to nine of the hottest cryptocurrencies including XRP and BCH

Cons

  • Minimum deposit when using bank wire transfers is high

76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider.

2. Capital.com – Best CFD Broker to Invest in Cryptocurrency Canada with 0% Commission

Capital.com Capital.com is another reputable CFD crypto broker worth investigating as it allows you to buy Bitcoin CFDs with 0% commission. This internationally recognised CFD broker is particularly popular with Canadian traders due to its commission-free CFD trading structure and vast selection of tradable assets. Capital.com is MiFID-registered and regulated by the FCA, ASIC, and CySEC, among other financial organisations.

When it comes to trading bitcoin CFDs, Capital.com has a lot to offer. There are over 206 different crypto and currency crosses to pick from. The average spread on DOGE/USD CFD, for example, is 0.01002. 

The key selling feature of Capital.com is that all tradable CFD assets can be purchased and sold commission-free. New traders will like the low-cost exposure to different financial markets, including stock CFDs and cryptocurrency CFDs. Day traders will also gain from this because they will be able to choose between long and short bets.

There are no deposit or withdrawal fees when it comes to non-trading fees. Because there are no account or inactivity fees, Capital.com is also one of the cheapest discount trading platforms.

Deposits and withdrawals are also both free, and you can use a variety of payment methods to do so, including debit cards, credit cards, e-wallets, and bank transfers.

Fee Type Fee Amount
Commission Fee 0%
Spread Fee Competitive Spreads
Deposit Fee $0
Withdrawal Fee $0
Inactivity Fee $0
Account fee None
Cost of trading DOGE/USD CFD Typical Spread: 0.00995

Pros

  • CFD trading with no commission
  • Process of onboarding is quick and easy.
  • Customer service is available 24 hours a day, 7 days
  • Paper trading account that is quite useful
  • Mobile trading app for iOS and Android devices that is simple to use.
  • It’s ideal for both new and experienced traders.
  • Buy crypto CFDs with the click of a button

Cons

  • There are no smaller account currencies available.

76.72% of retail investor accounts lose money when trading spread bets and/or CFDs with this provider. 

How to Invest in Cryptocurrency – Everything Explained in Full

We gave you a fast breakdown of how to invest in cryptocurrencies in under five minutes near the beginning of this guide. If you’re going to invest in this market for the first time, you’ll probably need a more detailed walkthrough.

As such, we’ll show you how to invest in cryptocurrency Canada with Bitbuy, a FINTRAC licenced and low-cost crypto exchange designed with beginners in mind.

Step 1 – Create account

To open a new crypto trading account, go to bitbuy.ca and click ‘Get Started.’ You’ll need to enter some personal details as well as create a username and password.

Open Bitbuy account to buy Bitcoin Canada

Accept the terms and conditions and click ‘Create account’ once you’ve completed the form.

Step 2 – Verification

Because Bitbuy is a Money Services Business (MSB) and is regulated by FINTRAC, you must adhere to all applicable regulations and KYC procedures. Therefore you’ll need to verify your identity, email address, and phone number. 

Step 3 – Deposit funds

You can deposit funds via a bank transfer or a cryptocurrency Interac e-Transfer once your Bitbuy account has been successfully verified. When using Interac e-Transfer, the minimum deposit is only $50.

Deposit Funds into your Bitbuy account

Log in to your Bitbuy account and select ‘Add Funds,’ then choose either ‘Use e-Transfer’ or ‘Use Wire Transfer.’ Then send your e-Transfer through your financial institution’s online banking interface. Also worth noting, you can also use the Bitbuy mobile trading app to complete all these steps.

Step 4 – Invest in Cryptocurrency Canada 

Buy Bitcoin Canada with Bitbuy in 2021

Bitbuy makes investing in cryptocurrency Canada an easy process. Look for your preferred cryptocurrency to buy in the Bitbuy ‘Express Trade’ section, input the amount you wish to invest in Canadian dollars, and then tap ‘Buy’ to purchase your digital assets. 

How to Sell Crypto in Canada 

One of the most significant hurdles to entry for novice cryptocurrency investors is the uncertainty about how they will be able to realise their gains. However, it’s worth noting that converting bitcoin to US cash is an easy process.

Here’s how you can sell BItcoin and other popular altcoins via Bitbuy

Step 1 – Head over to the ‘Express Trade’ part of your crypto account

By default when you sign in to your Bitbuy account, you’ll be taken to the ‘Accounts’ area of your account. If you’re already logged in, go to the top of the page and choose ‘Express Trade.’ Ensure that you tap on the red ‘Sell’ button. 

Step 2 – Find the cryptocurrency you’re interested in selling 

Select the coin you want to sell from the drop-down menu.

Step 3 – Start selling cryptos

Specify the amount you want to sell, and the total value of your sale should appear underneath in the ‘Transaction summary’ section. When you’re finished, hit the ‘Sell’ icon to finish the transaction.

Ways to Invest in Cryptocurrency

Using a safe online broker that accepts your preferred deposit method is the simplest way to invest in cryptocurrency in Canada. This isn’t, however, the only way to participate in this new market. As a result, you must weigh all of your options before investing in digital assets.

Cryptocurrency ATM

Cryptocurrency ATMs, as the term suggests, enable you to invest in crypto assets via a real ATM as you would with traditional fiat currencies. Most of the thousands of ATMs dispersed across Canada will only accept Bitcoin. Some may accept other popular and trending cryptocurrencies such as Ethereum or Litecoin, although this may differ from provider to provider.

Buy XRP Canada using Bitcoin ATMs in Canada that support XRP

Keep in mind that, while investing in cryptos via an ATM is a simple process, you will need a private crypto wallet. Additionally, and probably most importantly, Bitcoin ATMs typically charge a commission of 10% per transaction.

Cryptocurrency CFD Brokers

Cryptocurrency brokers are regulated providers with a legal authority to assist clients in Canada. This category encompasses all of the brokers we looked at on this page. This way you can invest in cryptocurrencies safely in Canada with a reputable broker such as Capital.com. The finest crypto CFD brokers in this field will accept a variety of payment methods and charge market-leading fees.

At Capital.com, for example, you can pay for your cryptocurrency CFD investment with a debit or credit card, which will be processed immediately. You’ll also benefit from a super-low and transparent fee model. 

Cryptocurrency Exchanges

Cryptocurrency exchanges are everywhere, with scores of them currently listed on the internet. These marketplaces connect buyers and sellers, so you’ll be trading with other market traders. This is where maker – taker fees come in. 

Cryptocurrency exchanges’ main selling point is that regulation is either minimal or non-existent. This enables traders to open accounts anonymously and make deposits without going through Know Your Customer (KYC) regulations. 

You should be aware, nevertheless, when using an unregulated cryptocurrency exchange based offshore puts your digital funds in danger. Not only in terms of a hackers from the outside, but also in terms of internal misconduct. If something goes wrong with your cryptocurrency exchange, you’ll be stuck with no options. 

Overall, using a certified online broker such as Capital.com or a regulated crypto exchange like Bitbuy are the safest and most convenient ways to invest in cryptocurrency Canada.

Should I Invest in Cryptocurrency?

If you’ve made it this far in our guide, you’re probably ready to make your first cryptocurrency investment. It’s important to keep in mind, too, that while digital currencies have achieved some very high financial gains in recent months and years, this investment vehicle is still extremely volatile. This would suggest market speculation and FOMO drive much of the market’s price movements. 

FOMO (fear of missing out) and speculation

Best cryptocurrency to buy Canada - BTC

The first point to know is that – possibly – the overwhelming majority of people who are new to cryptocurrency investing are market speculators motivated by FOMO. This means they invest because they believe that if they don’t, they will miss out on large earnings. However, people are entering the cryptocurrency market for all the wrong reasons because of this speculative mentality.

If you were to invest in NIO stock, for comparison purposes, you would have a compelling motive to do so. This is because the company’s revolutionary electric cars and renewable technology answer real-world issues. Investing in a cryptocurrency like Dogecoin, which was developed as a meme coin, on the other hand, is almost certainly speculative.

Invest in Cryptocurrency Canada – Conclusion

This handy guide has equipped you with all of the knowledge you require to invest in cryptocurrency in Canada. We’ve covered the basics of why picking a broker is so crucial – and how to do it by focusing on metrics like fees, payments, security, risks, and more.

If you’re looking to invest in cryptocurrency Canada right now, Bitbuy is a great option. You’ll be using a FINTRAC-approved crypto exchange that can help you invest in nine digital assets for industry-low costs. Simply create an account, deposit funds via bank transfer or Interac e-Transfer, and select the cryptocurrency you wish to invest in. That’s all there is to it!

Bitbuy – #1 Crypto Exchange to Invest in Cryptocurrency Canada

1
$50Exclusive promotion
Our score10
  • Invest in a wide range of cryptocurrencies
  • No hidden fees or expenses
  • Offers a live order book

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About Dassos Troullides PRO INVESTOR

Dassos Troullides is an experienced finance writer who specializes in CFD, stock, forex, and crypto trading. He uses his experience and time spent in the forex industry to simplify complex financial topics for easy, informative reading. Dassos also writes for TradingPlatforms.com, BuyShares.co.uk, LearnBonds.com, InsideBitcoins.com and ForexCrunch.com