An introduction to Bitcoin
Before you find out how to buy bitcoin in Canada, perhaps to use in a crypto-gambling casino Canada, or learn about the complex world of bitcoin trading Canada, it’s a smart idea to know what you’re buying or trading!
At its simplest, Bitcoin is a system of digital only payments which was designed as a secure currency independent from any world government or financial institution. Instead, Bitcoin is a worldwide system of virtual currency where all transactions are recorded on the blockchain ledger, made secure by both its transparency and the complex algorithm behind it. The public ledger is maintained and updated Bitcoin mining, where miners secure the network and process all transactions, chaining blocks of transactions in the permanent, unalterable, public ledger. To find out more about mining, see our guide on crypto-mining Canada.
Basically, you can be safe in the knowledge that Bitcoin (the network) and bitcoins (the currency itself) are safe and secure – so long as you stick to the high levels of security you should already use for any financial transactions!
Bitcoin trading explained
Bitcoin trading Canada is about more than just knowing how to buy bitcoin in Canada. Buying and selling bitcoin is as simple as exchanging any other currency, but bitcoin trading is the equivalent of currency or share trading. There’s huge potential for profit in bitcoin and other cryptocurrency, but it’s essential you know what you’re doing!
You can trade in bitcoins from bitcoin exchanges or trading platforms. Technically, an exchange is just that, a simple currency exchange to convert your CAD to BTC and back, whilst a bitcoin trading platform Canada will let you exchange and carry out trades. In reality, most exchanges are actually trading platforms, carrying out all the functions of buying, selling, and trading bitcoin.
When you’re looking into bitcoin trading Canada, you’ll be trading with other buyers and sellers, setting prices for trades, and looking to set the right position to make your profit, wither buying low or selling high as the value of bitcoin rises and falls – this is the most common form of trading, known as CFD trading – contract for difference. There’s another level of trading, leveraged trading, but that’s way more complicated and only those experienced with bitcoin trading Canada should be considering that!
Bitcoin trading in Canada
Canada has been recognized as a leading cryptocurrency nation for quite some time, with over half the population reported as owning digital currencies. You will find more than 20 crypto-exchanges as well as more than 700 Crypto-ATMs in various cities.
However, cryptocurrencies aren’t considered legal tender in Canada. Instead, they’re classed as securities and regulated as such, with the Bank of Canada considering them as ‘cryptassets’. The Canadian Revenue has taxed them since 2013 and crypto-trading Canada is covered under money-laundering legislation from the Financial Transactions and Reports Analysis Center of Canada (FINTRAC).
Getting a secure & fair experience with bitcoin trading
As we’ve just discussed, bitcoin trading Canada is being increasingly regulated by the Canadian authorities. For most of us looking for the most secure and best way to buy bitcoin in Canada, this is not an issue and we welcome increasing regulation as it makes every bitcoin trading platform Canada more secure and security conscious. You should look for exchanges and trading platforms operating as a regulated Money Service Business (MSB) governed by Financial Transactions and Report Analysis Centre of Canada (FINTRAC).
When considering any bitcoin trading platform Canada, make sure they offer at least standard security of SSL webpages, complete DDoS protection, full account and identity verification processes and 2-factor authentication for your account. Without these, there’s no way we’d consider any platform as a candidate for best bitcoin trading app Canada to recommend to you.
Additionally, for your bitcoin trading Canada, you need to ensure your own security is as strong as possible – including using strong passwords and up-to-date security on your computers and devices.
You also need to have high security with your bitcoin wallets, where the digital access codes (private keys) to your bitcoins are stored. There are many different available crypto-wallets Canada available, with hardware wallets the most secure, storing keys on an offline device that needs plugging into a computer or device to access your keys. You can also get software wallets, online wallets, and wallets from exchanges, but none of these are as secure as a hardware wallet.
Editor’s recommendation – the best trading platform for Bitcoin in Canada
Bitbuy is a great site, one of the longest established in Canada. Bitbuy offers you a fast way to buy, handles high buy and sell limits. For newcomers, their Express Trade section is super easy to use, making it our best way to buy bitcoin in Canada due to the simplicity and intuitive layout and the exhaustive how to guides, with everything you need to take you through how to buy bitcoin in Canada. It’s FINTRAC registered with great support and a simple and transparent fee structure. However, the fees at Bitbuy are average at best, so for those of you who already know how to buy bitcoin in Canada and are looking to get into bitcoin trading Canada, we’d recommend looking to either the Canadian platform NDAX or the worldwide leader Binance, where fees are some of the world’s lowest at 0.1%.
This is how our experts test trading platforms
When looking for the best bitcoin trading platform Canada for you, we go through each exchange and trading platform in depth, analysing them across a wide range of criteria. Obviously, our first priority is looking at the security aspect, as we’ve discussed above. We would never recommend any bitcoin trading platform Canada that doesn’t meet our strict security requirements.
But after that, we have many more criteria to look at. We look at their reputation and whether they’ve suffered any hack or loss over the years, we look at how they handled these and what new protocols they have put in place. And then we’ll look at a variety of criteria such as their customer service, number of cryptocurrencies offered, and their payment methods.
But the main three test criteria concern speed, fees and charges, and ease of use. Trading is complicated and when you’re a first timer looking at how to buy bitcoin in Canada you really want a great exchange or trading platform that will make things as easy and simple as possible, with plentiful guides offered and a great online help section. With speed, we’re considering the time it takes for verification processes and transaction times. And as for fees and charges, we want to see a site that not only offers low trading fees but also one that lays out their fee structure in a simple fashion, with no hidden fees or charges coming later on.
5 Smart tips for bitcoin buying, selling, and trading in Canada
Everyone starts somewhere, so whether you’re looking at how to buy bitcoin in Canada for the first time or you’re already getting into bitcoin and crypto trading, we want to give you some tips to make your dealing with bitcoin easier and more rewarding.
Smart tip #1: A simple how-to guide to buying bitcoin at Bitbuy
Our choice for the best way to buy bitcoin in Canada, Bitbuy makes it easy and quick to join the site and buy your first bitcoins. Here’s a 3-point guide to the process:
- Sign up & get verified through KYC (Know Your Customer) by confirming your email address, phone number, and identity with a government-issued ID.
- Fund your crypto account – On Bitbuy you can fund your account using Interac eTransfer, Interac Online, or Bank Wire.
- Interac eTransfer: 24 hour processing, 1.75% fee, minimum deposit CAD 100, maximum CAD 3,000.
- Express eTransfer: Express 2-hour guaranteed eTransfer available Mon-Fri 08:00-20:00. 3.5% deposit fee.
- Interac Online: Instant processing, 2.00% fee, CAD 2,000 maximum.
- Wire Transfer: Best way to make large deposits. 0.50% fee, processing time 1-2 days, CAD 5,000 minimum deposit, CAD 500,000 maximum.
- Once your account is funded, use the Bitbuy interface to buy bitcoin on desktop or mobile devices. Select buy, choose currency, specify BTC value to buy or CAD value to spend.
Smart tip #2: Be wary of using credit cards to buy bitcoin!
More and more credit card companies are treating bitcoin purchases as a cash advance. This means that you will be charged a high transaction fee for a cash advance and will also see your account charged a higher interest fee for the cash advance. Don’t get hit twice by your credit card company – use an alternative method where possible!
Smart tip #3: Always store your private keys securely!
To access your bitcoins, you need to use the unique private keys associated with each bitcoin purchased. So obviously, these private keys have to be looked after and stored securely in a crypto wallet. But there are several different wallets, described as cold wallets (hardware wallets) and hot wallets (exchange, cloud, and software wallets) with varying degrees of security.
- Exchange wallet: a lot of exchanges offer you wallets but these have proved to be the least secure method with cyber-criminals targeting exchanges.
- Online wallet: a crypto wallet that stores your keys in the cloud.
- Software wallet: a crypto wallet that stores your keys on dedicated software either on computer or mobile devices.
- Hardware wallet: the most secure type of wallet, these are encrypted devices that need connecting to computers to access your private keys.
Smart tip #4 Before you start trading make sure you’re prepared!
Trading is far more complicated than simply buying bitcoin to invest through buy and hold (waiting for long or short-term price increases and then cashing out with the profits.)
Just as with other currency trading and share trading, there’s a big risk involved and you shouldn’t ever begin trading unless you’ve done your research. Use every possible online guide, including the excellent guides here at bitreviews to get an understanding of trading and put yourself into the very best position to trade well.
Smart tip #5 Trading in bitcoin is all about risk management!
Bitcoin is a hugely volatile trading currency that’s prone to big gains and big losses. Because of this, you have to be aware that your investments can go down as well as up and you need to go into trading with a clear idea of the level of risk you want to expose yourself to. You should develop a trading strategy to work out your position, set yourself entry and exit strategies and clear profit and loss targets. And most of all, stick to your strategy. Holding onto a bad position past your loss target in the hope of it turning around is as bad as a gambler chasing their losses. Just minimise your losses and trade afresh another day.
Now you’ve read our guide on how to buy bitcoin in Canada and bitcoin trading Canada, you’ve seen the investment opportunities of bitcoin. But before you jump into bitcoin, remember that it’s a volatile market that requires you to understand what to do and the risks involved. So whether you’re looking at bitcoin trading Canada or merely looking at how to buy bitcoin in Canada for the very first time, keep these three key points in mind:
Security is key – pick a regulated, fully secured site, protect passwords, choose a secure bitcoin hardware wallet for your all-important private keys.
If you’re new to how to buy bitcoin in Canada, don’t try to run before you can walk. Choose a simple trading exchange that will guide you through the process and make sure to check out the comprehensive guides here at bitreviews.
And finally, remember that bitcoin and crypto trading is an investment and, like all investments, make sure you understand the risk involved.