Learn the steps of buying cryptocurrencies in Canada directly through a CEX or brokers
Buying digital assets like BTC in Canada is on the increase as crypto holders hike. What is more, in the report of the Ontario Securities Commission, over 30 percent of Canadians plan to purchase digital assets in 2023.
Is buying cryptocurrency in Canada legal?
Crypto trading in Canada is legal even if it is yet regarded as a lawful tender. CRA, or Canada Revenue Agency, specifies digital assets and gives details on all appropriate taxes. You can decide to buy BTC in this country if retailers, e-commerce, or coffee shop sites accept it.
The authority treats digital assets like a commodity which can lead to capital losses or gains. Taxable deals take into account sending, trading, and receiving digital coins.
Do Canadian banking institutions allow digital assets?
With the rising fame of digital assets, banks in Canada do permit and recognize crypto trading subject to state and federal laws. For example, Canadian banks have set up over 2600 BTC ATMs, with Toronto leading the number with 897 ATMs. These machines enable people to change their money into crypto and purchase and sell digital currency in exchange for cash. Canada is in second in BTC ATMs, next to the US.
Many big Canadian banks that support crypto trading include the Canadian Imperial Bank of Commerce, National Bank of Canada, Coast Capital, Scotiabank, ATB, and Royal Bank of Canada, among many others, also joining in because the popularity of crypto in the country keeps on rising.
Banks permit trading cryptocurrency using a debit card, bank wire transfer, or Interac-e-transfer. Clients need to connect their bank accounts with a CEX to purchase digital assets using the country’s money. They can also use credit cards to buy crypto. But, this is costly since banks might charge high-interest rates and extra fees on crypto credit card procurements.
How to Purchase Cryptocurrency in Canada
Two popular ways to buy crypto in this country are via brokers or a crypto exchange. But, CEXs provide the account holder control over their asset, while brokers may put a limitation on withdrawals, holdings, transfers as well as storage; it all depends on the policy of the brokerage.
Brokers in this country are the same as a conventional finance trading platform. The main objective is to make the process easier and lessen complexities in the platforms and the expertise in digital assets.
Buying Crypto Via Broker
Choose a trading platform; visit its official website and register. Make an account with your contact information and active email address, and fill in the required personal information to verify your crypto account.
Many brokers have many choices for payment methods to load trading money with a credit card, debit card, wire transfer, gift card, or PayPal. Transfer charges can differ for each mode and usually are higher for a credit card because they are faster, just about five to ten minutes, and low for wire transfers that can take a couple of days to load money.
Choose the cryptocurrency you like to buy, put in your order, and the broker will look for a match for your order. On the other hand, brokers have a restricted basket of coins to choose from and don’t trade in each crypto, unlike crypto exchanges that provide lots of options. Also, there is a limit on sell volume and orders; therefore, it’s an excellent way to check these before investing your money.
Buying Crypto Via Crypto Exchange
CEX, or a crypto exchange, is an online marketplace where sellers and buyers can mate and trade various kinds of digital coins. A lot of crypto exchanges will let trading the dollar for coin or exchanging one form of token for another. Popular exchanges that support crypto trading in this country are Binance, Coinbase, Crypto.com, Coinberry, Bitbuy, KuKon, and Kraken.
After choosing a crypto exchange, register with contact information and email to create an account. Verification documents like passport and driver’s license will require to be uploaded. Many exchanges will request selfies for face match checking with the papers submitted.
After activating your account, link your bank account and deposit money in the newly opened crypto account. With the funds ready, place an order and buy any crypto you want.
You can also sell coins on CEXs and change to fiat, and withdraw in the connected bank account. BTC ATMs allow you to convert BTC into cash.
Fintech-Insight is dedicated to delivering unbiased and dependable insights into cryptocurrency, finance, trading, and stocks. However, we must clarify that we don't offer financial advice, and we strongly recommend users to perform their own research and due diligence.