Buy Bitcoin & Cryptocurrency in Canada

Buying cryptocurrency for the first time can feel overwhelming, but the process becomes simple once you understand the basic steps. This beginner-friendly guide walks you through everything you need to know from learning the fundamentals to choosing an investment method and making your first purchase.

Don't skip this step. Take time to understand what blockchain is and how cryptocurrency actually works. You'll want to know the difference between Bitcoin and other digital assets (often called "altcoins"), and be aware that prices can be highly volatile and scams are common.

• Understand what blockchain is
• Learn how cryptocurrency transactions work
• Research the differences between Bitcoin, Ethereum, and altcoins
• Be aware of common risks and scams

Helpful resources:
Bank of Canada - What is Bitcoin?
Canadian Securities Administrators - Cryptocurrency Trading Risks

Start by clarifying your investment goals. Are you in this for the long term, interested in active trading, or simply exploring? More importantly, determine how much you can afford to invest, and potentially lose. A good rule of thumb: only invest what you can afford to lose completely.

• Decide your purpose: long-term, short-term, or curiosity
• Determine how much you can afford to invest
• Choose which cryptocurrencies fit your strategy
• Set boundaries to protect yourself from emotional trading

There are a few ways to approach this, depending on what kind of investor you are:

• Long-Term Holding (HODLing): Buy and hold for months or years. Works best with established cryptocurrencies like Bitcoin and Ethereum.
• Dollar-Cost Averaging: Invest a fixed amount on a regular schedule, regardless of price. This removes the pressure of trying to time the market.
• Active Trading: Short-term buying and selling to capture price movements. This is high-stress and most traders lose money, so it's not recommended unless you have real experience.
• Staking: Earn rewards by holding certain cryptocurrencies. Be aware of lock-up periods that prevent you from accessing your funds.

This is where you'll actually buy your cryptocurrency. Choosing the right exchange is crucia, poorly managed platforms have been hacked, frozen customer accounts, or charged excessive fees. Here's what to look for:

• Security: Two-factor authentication is essential. Cold storage is ideal. Research the platform's security track record.
• Canadian Regulation: Choose FINTRAC-registered exchanges. While not a guarantee, regulation adds a layer of accountability.
• User Interface: A confusing interface leads to costly mistakes. Look for platforms that are intuitive and easy to navigate.
• Fees: These add up quickly. Compare trading fees, spreads, and withdrawal costs across platforms.
• Coin Selection: Make sure the exchange offers the cryptocurrencies you want. Some platforms only list major coins.

Helpful resources:
See our top Canadian exchange picks below
Read our comprehensive exchange comparison guide

Once you've chosen an exchange, you're ready to make your first purchase. Here's how the process works:

Step 1 - Fund Your Account

Most Canadian investors use:

• Interac e-Transfer (common in Canada)
• Bank transfer (EFT)
• Wire transfer
• Credit or debit card (higher fees)

Step 2 - Make Your Purchase

Select the cryptocurrency you want to buy, enter the amount, review the transaction details, and confirm. Most exchanges offer a straightforward "Buy" interface that guides you through each step.

Step 3 - Store It Securely

After purchasing, you'll need to decide where to store your cryptocurrency:

• Exchange Wallet: The simplest option, but if the exchange is compromised or fails, your funds are at risk.
• Software Wallet: You control your own private keys. This offers better security, but you're fully responsible for safeguarding your assets.
• Hardware Wallet: A physical device that stores your cryptocurrency offline. The most secure option for long-term holdings.

Security reminder: Enable two-factor authentication on all platforms. Write down your recovery phrase and store it securely offline, never save it on your computer.

Canadian investors have several reputable options with competitive fees and strong security. These three platforms are among the most trusted:

Learn more about exchanges in Canada →

Cryptocurrency is taxable in Canada. The CRA treats it as a commodity, which means selling, trading, or even swapping one coin for another creates a taxable event. Understanding your obligations is essential.

Key points:

• Capital Gains: 50% of profits from selling or trading cryptocurrency are taxable
• Income Tax: Staking rewards, mining income, and airdrops are all taxed as regular income at your marginal rate
• Record Keeping: Track every transaction including purchase price, dates, and amounts. Thorough records are essential.
• Tax Software: Manual tracking is tedious and error-prone. Tools like Koinly or Coin Ledger automate the process.

Learn more about cryptocurrency taxes in Canada →