Introduction
Buying cryptocurrency in Canada has never been easier. This guide walks you through everything you need to know from choosing a secure exchange to storing your coins safely in a wallet. Whether you're brand new to cryptocurrency or looking for the lowest-fee trading platforms, we've curated the most up-to-date Canadian resources for 2025.
General Process to Buy Cryptocurrencies
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.
1. Learn the Basics
Before buying cryptocurrency, take time to understand how digital assets and blockchain technology work. Learn the difference between coins and tokens, what makes cryptocurrency prices move, and the potential risks involved such as volatility, scams, and security threats.
- 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
2. Set Goals & Define Risk
Every investor should start by identifying their goals. Are you buying cryptocurrency for long-term growth, short-term trading, or simple diversification? Decide how much you can comfortably invest and determine your personal risk tolerance.
- 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
3. Pick an Investment Method
Beginners have several different ways to invest in cryptocurrency. Choosing the method that aligns with your goals helps you stay consistent and reduces the stress of market volatility.
- Long-Term Holding (HODLing): Buy and hold for months or years. Ideal for Bitcoin, Ethereum, and major projects.
- Dollar-Cost Averaging (DCA): Invest a fixed amount on a schedule. Great for beginners who don't want to time the market.
- Active Trading: Short-term buying and selling. Higher risk and not recommended for new investors.
- Staking or Earning Yield: Some cryptocurrency assets let you earn rewards by holding. Understand risks and lock-up periods first.
4. Pick Your Exchange
A cryptocurrency exchange is the platform where you buy, sell, and trade digital assets. Choosing the right exchange is one of the most important decisions for beginners, especially when it comes to safety, fees, and ease of use.
- Security: Look for platforms with 2FA, cold-storage, and a strong security reputation.
- Regulation: In Canada, choose exchanges registered with FINTRAC.
- Ease of Use: Beginner-friendly apps and dashboards make the process smoother.
- Fees: Understand trading fees, spreads, and deposit/withdrawal costs.
- Supported Coins: Make sure the exchange offers the cryptocurrencies you want.
Helpful resources:
See our top Canadian exchange picks below
Read our comprehensive exchange comparison guide
5. Fund Your Account & Buy Cryptocurrency
Once you've chosen a trusted exchange, you're ready to make your first purchase. The process is straightforward and takes just a few minutes once your account is verified.
Step 1 - Fund Your Account
Beginners typically deposit funds using:
- Interac e-Transfer (common in Canada)
- Bank transfer (EFT)
- Wire transfer
- Credit or debit card (higher fees)
Step 2 - Buy Your First Cryptocurrency
Choose the cryptocurrency you want to buy, enter the amount, and confirm the transaction. Most exchanges offer beginner-friendly "Buy & Sell" screens to simplify the process.
Step 3 - Store It Securely
After purchasing, choose how you want to store your cryptocurrency:
- Exchange Wallet: Easiest for beginners but less control.
- Mobile or Desktop Wallet: Non-custodial option where you control your keys.
- Hardware Wallet: Best for security and long-term storage.
Security Tip: Always enable two-factor authentication (2FA) and store recovery phrases offline in a safe location.
Best Cryptocurrency Exchanges in Canada (2025)
Choosing the right cryptocurrency exchange is crucial for Canadian investors who want low fees, fast funding methods, strong security, and dependable customer support. In 2025, several regulated Canadian platforms make it simple to buy Bitcoin and other cryptocurrencies using Interac e-Transfer, bank transfer, or credit card.
If you are looking for a top-tier, reliable starting point, consider one of these three leading options:
| Exchange | Best For | Key Features |
|---|---|---|
| Bitbuy | Ease of Use & Security | Strong Canadian reputation with long-standing security track record. Dual platform (Express for beginners, Pro for advanced users). Free CAD withdrawals via Interac e-Transfer. |
| NDAX | Lowest Fees | Ideal for frequent traders with industry-low 0.20% flat trading fee. Simple interface. Note: $25 fee for fiat withdrawals. |
| Kraken | Advanced Trading & Altcoins | Over 400 cryptocurrencies available. Lowest volume-based fees (starting near 0.16%). Institutional-grade security. More complex interface suited for experienced investors. |
Learn more about exchanges in Canada →
Cryptocurrency Taxes in Canada
The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity, which means cryptocurrency transactions are subject to tax. Understanding your tax obligations is crucial whether you're trading, staking, or holding cryptocurrency long-term.
Key points:
- Capital Gains Tax: 50% of profits from selling or trading cryptocurrency are taxable
- Income Tax: Staking rewards, mining, and airdrops are taxed as income
- Record Keeping: Track every transaction including cost basis, dates, and values
- Tax Software: Use tools like Koinly or Coin Ledger to automate reporting