Buy Algorand in Canada

A free beginner guide on how to buy Algorand in Canada.

What is Algorand?

Algorand is a self-sustaining, decentralized, blockchain-based network that supports a wide range of applications. These systems are secure, scalable and efficient, all critical properties for effective applications in the real world. Algorand will support computations that require reliable performance guarantees to create new forms of trust.

The Algorand mainnet became live in June 2019, and was able to handle almost 1 million transactions per day as of December 2020.

1. Create accounts

In order to buy Algorand in Canada you will need both a Canadian (local) exchange account and a global exchange account. You will need to buy one of the main cryptocurrencies on the Canadian exchange and then transfer that to the global exchange you registered with which trades Algorand.

The first step in this process is to gain the ability a mainstream cryptocurrency with Canadian dollars. For this you will need a local exchange account, currently we recommend Newton or Shakepay.

If you want to buy Algorand right now, without going through the full verification process, and if you want to buy only a small amount ($375 CAD or less) consider using Coinbase.

For a more comprehensive guide and comparison of the various exchanges, see the Exchanges Guide.

Next, you will need to create an account on a global exchange. This will allow you to trade the cryptocurrency you bought in the previous step for Algorand. Unfortunately, it's not possible yet to do it all on the same exchange. Which is why you need to use multiple exchanges.

We recommend using Binance

For a more comprehensive guide and comparison of the various exchanges, see the Exchanges Guide.

In order to fund your local exchange accounts you will need to verify your identity. This often involves sending in copies of your drivers license, a utility bill, and in many cases a selfie of you holding your ID. This is normal ask for verification on exchanges.

As for verification on global exchanges, the verification is usually faster and less intense, as long as you are strictly using cryptocurrencies and not doing fiat transactions. For example on Binance you do not need to verify if you are withdrawing 2 BTC or less.

2. Buy your cryptocurrencies

Now that you have both a local exchange account and a global exchange account it's time to make your purchases. You need to buy XRP or ETH, transfer it to a Global exchange, and then place an order to trade it for Algorand.

The first step is buy one of the main cryptocurrencies that you can trade for alt coins. If you are on Newton I'd buy XRP, if you are on Shakepay buy BTC.

If you are not using Binance, it is a important to verify that your global exchange will trade the cryptocurrency you are buying in this step for Algorand.

Login to your local exchange and buy your desired amount of Algorand in XRP or ETH. We currently recommend buying with XRP as it provides a faster network transfer time and cheaper network fees than Bitcoin/Ethereum. BTC is ok if you are using Shakepay as they will cover the network fees to transfer to Binance or another exchange.

The next step is to transfer your XRP or BTC from your local exchange account to a global exchange. For example, from your Newton or Shakepay account to your Binance account.

This involves getting the funding wallet address from Binance account and withdrawing to it from your Newton or Shakepay account.

You will need to wait for the transaction to complete. Once you see the funds appear in your global exchange account you are ready to proceed to the next step.

The next step is to actually buy Algorand. In your Binance (or similar) account place an order to trade the crypto currency for Algorand.

Binance has a trading pair for both USDT and BTC.
- If you bought BTC originally you can now trade it for Algorand at the ALGO/BTC trading pair.
- If you bought XRP originally, first you need to trade it for USDT and then you can trade it for Algorand at the ALGO/USDT trading pair.

The fastest way is to place a market order which buys Algorand for the current market price on the exchange. However, consider using a limit order to get a better price, but remember if the market price does not hit your limit price your order will not be filled.

3. Storing your Algorand

If you just bought some Algorand you are currently storing it on the exchange you bought it on. This is OK if the value is small. However, if you own a significant amount it is best practice to transfer your cryptocurrencies to a wallet that is not an exchange.

If you are just getting started you will probably want to use a software wallet. They are typically free and are considered more secure than leaving Algorand on a exchange.

Feel free to do a google search to research what wallets are available and know what the options are.

Once you have decided on a wallet, follow the instructions to get it setup then withdraw your Algorand from your exchange account. It is common for a small network fee to be associted with the withdrawal.

The safest way to store Algorand, or any cryptocurrency, is with a hardware wallet that is not connected to the internet. This is to prevent it being stolen or hacked from a exchange or a wallet connected to the internet.

Consider looking at the Ledger line of hardware wallets. They have been in the industry a number of years and offer one of the widest selections of devices.

This is generally not recommended. However, you might want to do this if you are actively trading Algorand. Be aware you are taking an extra risk. Exchanges have been known to get hacked or disappear, search QuadrigaCX scandal.

The main advantage of doing this is instant access to your Algorand, and saving the fees associated with transactions and withdrawing.

Always consider the reputation and size of the exchange if you are storing a cryptocurrency asset on it.

Generally speaking, I do not keep a balance on any of the local exchanges. If I am going to hold a balance of a cryptocurrency coin/asset on an exchange it will be Binance as they have the most robust platform. However, use this information at your own risk. The safest place for your crypto assets is a hardware wallet like Ledger.

Regardless of the exchange, if you are holding assets on the exchange, make sure you enable two factor authentication and use a separete secure password on the account.

Summary

  1. Create an account on a local exchange.
  2. Create an account on a global exchange.
  3. First, buy XRP or BTC on the local exchange and transfer it to Binance.
  4. Next, trade XRP or BTC for Algorand
  5. Store your Algorand, consider getting a software or hardware wallet.