Step by Step Guide to Buying Bitcoin in Canada
No matter which type of exchange you choose, you’ll usually need to sign up for an account first. Depending on the exchange you use and the regulatory requirements it’s subject to, you may be able to sign up simply by providing your email address or you may need to provide your full name, contact information and proof of ID before being allowed to trade. Once your account has been verified, you’ll need to enter the amount of BTC you want to buy, choose your payment method, review the fees and the total cost of the transaction and then finalize your purchase. The exact steps you’ll need to follow vary depending on the payment method and type of platform you choose.
Step 1 - Choose a Bitcoin wallet
Step 2 - Choose a Bitcoin exchange
The growing number of people who have started investing in Bitcoin is gaining popularity. According to research, the future of Bitcoin and other digital currencies is promising and they are probably here to stay. In Canada, there are many places where people can buy Bitcoins. BTMs offer people everywhere the opportunity to exchange bitcoins in Canadian dollars. Canada is known to be supportive of Bitcoin. With the increasing value of Bitcoin in Canada, several institutions have chosen Bitcoin as a means of payment for their products and services on online platforms. Montreal, Toronto and Vancouver are considered the homeland of Bitcoin in Canada. Here are our 3 favorite places to buy or sell your bitcoins.
#1 - Bull Bitcoin
It has never been easier to buy Bitcoin in Canada, but with the recent QuadrigaCX’s losses, Bitcoin owners in Canada are looking for a safe place to buy Bitcoin online. Fortunately, such a solution now exists in Canada, built from trusted professionals. Bull Bitcoin’s services are designed to help you keep total control of your bitcoins during the process. You buy, sell or spend Bitcoin on this platform directly with your own Bitcoin wallet. Bull Bitcoin is never a depository of your bitcoins. You can now trade your bitcoins in Canada with peace of mind.
#2 - BitBuy
Bitbuy makes it simple to buy, sell, and manage your cryptocurrency portfolio. Get started today with our easy-to-follow guide to opening an account. Buying Bitcoin, Ethereum, Litecoin, Bitcoin Cash, XRP or Stellar XLM has never been more seamless.
#3 - CoinSwitch
Fast and secure way to purchase or exchange 140+ cryptocurrencies with VISA. Changelly lets you buy bitcoin with Litecoin, Dogecoin, altcoins and many other digital tokens. Particularly useful to smaller mining operations that are running on GPU. This will allow a quick conversion of your altcoins into Bitcoin. It’s the Easiest and fastest way to stack bitcoins with your altcoin gains.
Decentralized Bitcoin Exchange
Bisq is an open-source, peer-to-peer application that allows you to buy and sell cryptocurrencies in exchange for national currencies. No registration required. Exchanges play a critical role in the Bitcoin ecosystem. Without them, it would be nearly impossible to buy or sell bitcoin for euros, dollars, yen or yuan. The bitcoin market would have no liquidity, and bitcoin would be worthless.
Step 3 - Buy Bitcoin
The final step is to submit an order through your chosen platform. For most first-timers, the easiest and most convenient option is to use a Bitcoin broker. Regardless of whether you choose a Canadian or overseas-based crypto exchange, make sure you compare a range of options before deciding which platform to use. You wouldn’t invest in shares without doing your research first, so make sure you understand Bitcoin before you buy.
To help monitor the adoption and use of Bitcoin, the Bank of Canada conducted a survey in late 2016 and then again in late 2017. The second survey took place during an interesting time, since Bitcoin prices were increasing and reached an all-time high on December 17, 2017. The level of awareness of Bitcoin rose from 64 per cent in the 2016 Bitcoin Omnibus Survey (BTCOS) to 85 per cent in the 2017 BTCOS, while ownership rose from 2.9 to 5.0 per cent. The main reason survey participants cited for owning Bitcoin changed from transactional purposes in 2016 to investment purposes in 2017. In addition, only about half of Bitcoin owners were regularly using Bitcoin to buy goods or services or to send money to other people. This provides empirical support for the notion that most of the fluctuations in the Bitcoin price are due to speculation. However, self-reported holdings of Bitcoin among users did not change remarkably during the period between surveys.
Bitcoin is the oldest and largest digital currency in the world by market capitalization. Created in 2009 by an unknown person using the pseudonym Satoshi Nakamoto, Bitcoin is a form of decentralized electronic money designed to provide a viable alternative to traditional fiduciary money. Rather than having to deal with a centralized authority such as a bank to process transactions, Bitcoin holders can transfer their coins directly to each other on a peer-to-peer network. All Bitcoin transactions are tracked on a large public book called blockchain, and people who work as miners check block order and update the blockchain to eliminate fraud. The maximum bitcoin in coins is limited to 21 million, but it is possible to buy a small fraction of a coin – each individual coin can be divided into 0.00000001 BTC.
With hundreds of platforms to choose from, finding the best Bitcoin exchange for your needs is a daunting task. To make your choice easier, consider these key factors when comparing exchanges. Where the stock market is based and how it is regulated. Although the regulatory framework for Canadian digital exchange markets is evolving and becoming increasingly clear, this is not the case for some foreign-based exchanges. Do research to find out where a stock exchange is based, what regulatory requirements apply in that country, and whether the stock exchange complies with these requirements. This will help you determine if you are using a reputable platform. Examine the security features offered by the platform, such as 2-factor authentication and PGP-encrypted email. Has it ever been hacked or linked to a suspicious activity? Check the details to find out the exact cost of your transaction. Depending on the platform you choose, this may include transaction fees and transaction fees, as well as a deposit and withdrawal fee. Search the Bitcoin forums and online journals for the type of experience other users have experienced with the platform.
Yes. Each individual bitcoin is divisible by 0.00000001 BTC, so it is possible to buy a small fraction of a coin.
Although you can store your Bitcoin on an exchange, this is not usually recommended. Cryptographic exchanges are not only a popular target for hackers, but storing your pieces on an exchange means you do not have control over your private keys. Therefore, the safest option is to transfer your coins into a secure and private wallet.
The fastest way to buy Bitcoin is probably to use a Bitcoin ATM. If a Bitcoin ATM machine is near you, the process of depositing cash and converting to BTC is quite fast. If there are no ATMs near you, the quickest way will probably be to use a service that does not require any identity verification.
The price of Bitcoin is determined by supply and demand. The offer of BTC in circulation is limited and new parts are generated at a predictable rate, but several factors can affect the demand.