How to Buy Crypto in Canada?
Learn how to buy crypto in Canada with Coinsquare. Our step-by-step guide has the rundown on how to buy, sell, & trade cryptocurrencies in Canada.
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How to Buy Crypto in Canada.

Are you thinking about jumping into the world of cryptocurrencies in Canada? Whether you’re totally new to the scene or looking to brush up on your crypto knowledge, buying cryptocurrency can seem like a big step. Don’t worry, though—we’ve got you covered. This easy-to-follow guide will walk you through everything you need to know about how to buy crypto in Canada.

How to Buy Crypto in Canada in 4 Easy Steps.

Buying cryptocurrency in Canada is easier than you think! Here’s a quick rundown to get you started on your crypto journey: (link these 4 steps to the corresponding section below)

  1. Set Up and Verify Your Account
  1. Decide How Much Money You Want to Spend on Crypto and Your Payment Method
  1. Deposit Cash and Buy Crypto
  1. Select a Storage Method

That’s it! These steps provide a basic framework for how to buy crypto in Canada.

Set Up and Verify Your Coinsquare Account.

Before you can buy, sell, or trade crypto, you need to create an account with a cryptocurrency exchange. Begin by selecting a reputable exchange like Coinsquare that operates within Canada and navigate to their sign-up page. Typically, you’ll need to provide an email address and create a password.

Once your account is created, you’ll often be prompted to set up two-factor authentication (2FA), enhancing your account’s security beyond just the password. Next, you’ll need to verify your identity to comply with Canadian regulatory standards. You will also be required to upload government-issued identification, such as a passport or driver’s license.  

After submitting your documents, there will be a processing period where the exchange verifies your identity against public records. This verification can take anywhere from a few minutes to several days, depending on the exchange and the clarity of the documents provided. Once verified, you’ll receive a confirmation email indicating that you are ready to fund your account and begin trading.

Decide How Much Crypto You Want to Buy and Your Payment Method.

Making well-informed choices early on can lead to a more efficient and enjoyable crypto trading journey. Given the inherent volatility of the cryptocurrency market, it’s prudent to invest only an amount you can afford to lose without jeopardizing your financial health. Establishing a clear budget from the beginning helps mitigate risk and guides your investment decisions.

Once you have your investment amount in mind, selecting a payment method is your next step. Coinsquare offers several funding options tailored to the needs of Canadian users, including Interac e-Transfer and bank wire transfers. Interac e-Transfer is particularly popular among Canadian crypto investors due to its convenience and relatively quick processing times. It allows users to fund their accounts rapidly and start trading almost immediately.

However, it’s important to be aware of the different fees and limits associated with each payment method. For example, while Interac e-Transfers are quick and convenient, they may come with lower limits than bank wires, which might be a consideration if you plan to make a substantial investment. Additionally, consider the processing times associated with each method, as these can vary significantly and impact how quickly you can begin trading.

Deposit Cash and Buy Crypto.

Once you’ve decided how much to invest and selected your payment method, the next steps are to deposit cash into your account and purchase cryptocurrency. Here’s how you can proceed with Coinsquare:

  1. Log in to your Coinsquare account. Here, you will find various deposit options, including Interac e-Transfer, bank wire transfer, and credit card payments.  
  1. Choose the method that best suits your needs based on the amount you plan to deposit and how quickly you want the funds available.  
  1. Select the cryptocurrency you’re interested in, such as Bitcoin or Ethereum. Enter either the amount of cryptocurrency you wish to buy or the amount of CAD you want to spend. Review the transaction details, including the current exchange rate and any applicable fees.
  1. Once you’re satisfied with the transaction details, confirm the purchase. The cryptocurrency you bought will then be added to your Coinsquare wallet.  

It’s important to monitor the transaction status, as processing times can vary depending on network activity and the specific cryptocurrency.

Select a Crypto Storage Method.

The type of storage you select can greatly influence the security and accessibility of your crypto. Here’s a guide to help you decide the best storage method for your needs.

Crypto Wallets.

These are wallets that are accessible via the internet and are hosted on a platform like Coinsquare. Online wallets are convenient for frequent traders due to their ease of access and integration with the trading platform. However, they are considered less secure than other options because they are susceptible to hacking and other online threats.

Hot Wallets.

Hot wallets are digital wallets that remain connected to the internet, facilitating quick and easy access to cryptocurrency assets. These wallets can be accessed through various platforms, including web browsers, desktop applications, and mobile apps. The constant internet connectivity makes hot wallets ideal for conducting regular transactions and trading. The main vulnerability of hot wallets stems from their internet connectivity, exposing them to potential cyber-attacks, phishing scams, and malware.

Cold Wallets.

Cold wallets refer to cryptocurrency storage solutions that operate offline and are completely disconnected from the internet. This category includes hardware wallets and paper wallets, which store a user’s private keys in a physical format or on a device that does not connect to the internet unless required for a transaction. The offline nature of cold wallets significantly reduces the risk of online hacking attacks and unauthorized access.

Combining different types of wallets - for instance, keeping a small amount in an online wallet for trading and the bulk of your assets in a hardware wallet - can be an effective strategy to balance convenience and security. Regardless of the storage method you choose, be sure to use good security practices such as using strong passwords, enabling two-factor authentication, and keeping backup copies of your keys in secure locations.  

Buy Crypto in Canada with Coinsquare.

Coinsquare offers a straightforward way to purchase a variety of cryptocurrencies, including Bitcoin, Ethereum, and others. As a fully regulated entity adhering to Canadian financial regulations, it provides peace of mind for both new and experienced traders. When you decide to invest in cryptocurrencies through Coinsquare, you’re supported by a platform that values security and transparency.  

If you’re looking to buy cryptocurrency in Canada, Coinsquare combines ease of use with stringent security features, ensuring a safe and efficient trading experience. Sign up today and start trading with confidence on one of Canada’s leading cryptocurrency exchanges.

Should I Buy Crypto in Canada?

Buying crypto can be an exciting investment idea, but let’s take a moment to pause and consider a few important things. Cryptocurrency isn’t just another stock - it’s a whole different game with its own set of rules, and it’s important to know what you’re getting yourself into before you start. Investing in crypto has the potential to earn big returns, but it is not without its risks. Here are a few things to consider:

  1. Volatility - Cryptocurrencies are known for their extreme price fluctuations. While this can lead to high returns, it also comes with the risk of substantial losses. Make sure you’re prepared for the ups and downs and understand how they could impact your investment.
  2. Regulatory Environment - Canada has a relatively friendly stance towards cryptocurrencies, with clear regulations that provide a measure of security to investors. However, the landscape can change, and it’s important to stay informed about regulatory developments that could affect your holdings.
  3. Purpose of Investment - Are you looking to make a quick profit, or are you more interested in the long-term potential of blockchain technology? Your investment strategy should reflect your goals and the level of engagement you want to have with your investments.
  4. Diversification - Like any other investment, it’s wise not to put all your eggs in one basket. Consider how cryptocurrency fits into your broader investment portfolio. Diversification can help manage risk and reduce the impact of volatility.
  5. Security Considerations - The security of your investment depends heavily on how you manage and store your cryptocurrencies. Using secure methods to protect your assets is crucial.
  6. Tax Implications - Be aware of the tax obligations associated with buying, selling, and trading cryptocurrencies in Canada. Crypto transactions can trigger capital gains taxes, and you’ll need to keep detailed records for tax purposes.

Ultimately, you are the one who decides if buying crypto in Canada is right for you. If your finances are stable enough to handle the risks, then you are ready to take the plunge!