In this guide, you will learn how to buy bitcoin in Canada
Canadians have always loved Bitcoin, and have been one of the most eager populations to invest, trade and get their hands on Bitcoin. Canadians are lucky to have many options and payment methods to buy Bitcoin.
In this article, we’re going to show you how to buy Bitcoin in Canada, as we break down 5 of the most popular buying methods. We also focus on speed, for the user who has no time to waste. In fact… With some of the options below, you will be able to go from never having bought Bitcoin to owning Bitcoin in less than an HOUR!
5 Easy Ways to Buy Bitcoin in Canada 2020
- Online Exchanges
- Bitcoin ATMs
- Peer-to-peer network
- Over-the-counter (OTC)
- In-person retail location
1. ONLINE EXCHANGES
Online exchanges are the most popular place to buy Bitcoin for Canadians because of their ease of use, and simplicity. Not only for Canadians, but exchanges are the most popular place globally to buy Bitcoin. You might be surprised to know that exchanges traded over $2 Trillion in Bitcoin in 2018 despite the year-long bear market. Popular exchanges in Canada include VirgoCX, MyBTC.ca, Bitbuy, NDAX, and Bitvo. Online exchanges have many options for funding your account, we break down the top funding methods below.
Many online trading platforms in Canada accept Interac e-Transfer as a funding method for your account. It’s probably the most universally accepted method for online Canadian exchanges. Of course, if you aren’t familiar with Interac e-Transfer, it’s a Canadian-only, digital interbank transfer method. Over 250 financial institutions across Canada allow their customers to use Interac e-Transfer. You can find a full list here. We think funding an exchange with e-transfer as the number one way to buy bitcoin in Canada because it’s extremely fast, and generally has some of the lowest fees.
If you want to buy Bitcoin Interac e-Transfer we have outlined the steps below:
- Create an account on an exchange and request to fund your account with Canadian dollars via Transfer
- Log into your online banking provider and send the e-Transfer to the e-mail address provided by the exchange
- The exchange will accept the e-transfer and credit your account
- Buy Bitcoin and withdraw it to a secure wallet.We recommend MyBTC.ca and Bitbuy as two of the fastest places to buy Bitcoin using Interac e-Transfer and were able to complete steps 1-4 in less than an hour during regular hours.
. A bank wire requires the customer to visit their bank branch, which can be inconvenient for many Canadians (especially in the winter!) Most online exchanges accept Bank Wires as funding methods including Coinsquare, MyBTC.ca, Kraken, and Bitbuy accept wires, but minimums will vary. Coinsquare requires a $10,000 minimum for a bank wire, while MyBTC.ca and Bitbuy are lower at $7,500 and $5,000 respectively. Most platforms charge relatively low fees to fund via Bank wire at 50 basis points which makes these attractive funding options for those who are willing to buy larger amounts of Bitcoin. It is important to note that because of the traditional banking system, funding times can be much longer when using Bank Wires (1-3 days).
If you want to buy Bitcoin using a Bank Wire we have outlined the steps below:
- You will need to find out which Bitcoin trading platform platforms accept Bank Wires as a funding method and then sign-up and create an account. We recommend MyBTC.ca or Bitbuy.
- After you create an account on Bitbuy/MyBTC.ca and get verified, request to fund your account via Bank Wire.
- Go to your bank and send the bank wire to the exchange.
- Buy the Bitcoin and withdraw it to a secure wallet.
Flexepin is another option for Canadians who want to buy Bitcoin fast. Flexepin sells vouchers with unique pin codes that can be entered on many online services, to fund accounts or make purchases. Since these vouchers can be bought at retail stores, they are great for users looking to use cash or not get hit with huge credit card cash advance fees. Flexepin vouchers can be bought across Canada at thousands of locations. In order to find the nearest store location to you, please check this online store finder here. Once you have a voucher, Bitbuy is a trusted exchange that will accept your voucher. Flexepin will fund your account instantly, and you will be able to buy bitcoin in less than one hour in many instances when using this method.
We’re all used to buying things online with credit card, . However, you may be interested to know that many credit card companies consider buying Bitcoin a ‘cash advance’ because you are exchanging one currency for another. This means you will be paying high fees from your credit card company, not to mention the high fees charged by exchanges. Exchange fees are typically 7% to 10%, and credit card payment is available on Canadian exchanges such as Coinberry and Coinsquare.
To buy Bitcoin in Canada with a credit card, complete the following:
- Sign up for a exchange or platform that offers credit card
- Fund your account with credit card following the instructions on the site
- Buy Bitcoin and withdraw to your secure wallet2. BITCOIN ATMs (IN PERSON/CASH)One of the older more outdated ways to buy Bitcoin in Canada is by using a Bitcoin ATM. For users that want to buy their Bitcoin using cash and stay anonymous, this is one of the best options, but it comes at a price. Bitcoin ATMs will typically cost users much more in fees that range from 6-8% above market price. There are hundreds of Bitcoin ATMs that are located all across the country and you have likely already seen one at a mall or convenience store. In order to find the nearest Bitcoin ATM to you, you can check Coin ATM Radar. We listed this as the number four-way to buy bitcoin in Canada because Bitcoin ATMs are everywhere in Canada. In fact, we have the most Bitcoin ATMs per capita, out of any Country in the world! (I guess we like our Bitcoin here in the great white north).
3. PEER-TO-PEER NETWORK (E-TRANSFER, CASH)
Another older and more outdated, way to buy Bitcoin in Canada is by using a Peer-to-Peer (P2P) network.
What is a P2P network?
Much like Bitcoin Craigslist or even Kijiji, a P2P network is an online marketplace that allows two users to make a transaction with no middle man helping to facilitate the transaction. The most popular P2P network to purchase Bitcoin is Localbitcoins.com. For each transaction that is conducted, Localbitcoin.com offers an escrow service to protect the buyer of the Bitcoin. It is important to note that in some instances people have been taken advantage by certain people on P2P networks so it is always important to do the proper research on each seller/ buyer and never conduct a transaction outside of previous thresholds. If you want to buy Bitcoin on Localbitcoins.com we have outlined the steps you will need to take below:
- Register an account on their site which will give you a secure online bitcoin wallet
- Search for local advertisements
- Choose to engage an advertisement from a trader with a good reputation and track record.
- Pay the seller via one of the payment options listed.
- Mark the payment complete.4. OVER-THE-COUNTER (OTC)An OTC trade is private trade between two parties, without the supervision of an exchange. For a more in-depth look at what OTC entails, refer to this article. If you are buying large amounts of Bitcoin ($25,000+) at one time, OTC is the way to go, as it will protect you from a market phenomenon known as slippage. Slippage for Bitcoin transactions occurs when the amount of Bitcoin you are buying exceeds the amount available at the live quoted price. Part of your order ‘slips’ to the next available (higher) sale price, and you end up paying more than your quoted market price. So in essence, buying large amounts of Bitcoin through an OTC provider helps the buyer save money by protecting them from slippage. The regulated Canadian exchange, VirgoCX also mentions that since these OTC trades are done without having the order visible on the orderbook, psychological market impact of a large buy/sell influencing the market price will be mitigated. This effectively helps individuals and corporations in securing desirable prices for their orders.Buyers can typically expect to pay 2-5% greater than the market price when doing an OTC transaction which can fluctuate based on fees and market conditions. Both VirgoCX & Bitbuy offer an OTC desk with competitive rates so head on over and create an account in order to get started.If you want to buy Bitcoin using am OTC provider we have outlined the steps below:
- You will need to find out which Bitcoin trading platform platforms offer OTC services then sign-up and create an account.
- We recommend Bitbuy as the fastest and most trustworthy place to conduct an OTC purchase
- After you create an account on Bitbuy and get verified, request to be contacted by one of their OTC traders
- Get a live price quote from that OTC trader
- Lock in a price
- Send a bank wire (please refer to the information above)
- Receive the Bitcoin and withdraw it to a secure wallet.
5. IN-PERSON RETAIL LOCATION
Are you the type of person that prefers to go to a retail location for all your shopping and talk to a real person? You may want to check out a Bitcoin brokerage, or a foreign exchange center that also offers cryptocurrency. Canadian based MyBTC.ca offers the ability for you to pay with cash or Interac Debit card at 6,000+ Canada Post outlets Canada wide and Netcoins offers retailers the opportunity to sell Bitcoin and other cryptocurrencies at thousands of locations. If you are on the West Coast, you may want to check out Bitcoiniacs, who operate in-person Bitcoin stores. Perfect for those who want to speak to a real person when making their purchase.
In Summary: Buy bitcoin in Canada in just under 1 hour!
We as Canadians are lucky to have so many options and payment methods to buy Bitcoin, whether it’s in-person or online. Hopefully, you found this article helpful and it provided you with some great options for buying Bitcoin in Canada! Once again, the fastest way to buy Bitcoin in Canada is through Interac e-transfer through a trusted online exchange. With this option, you will be able to go from never having bought Bitcoin to owning Bitcoin in less than 1 HOUR!
Let us know in the comments your favorite ways to buy Bitcoin.