Buy Bitcoin BEP2 in Canada

A free beginner guide on how to buy Bitcoin BEP2 in Canada.

What is Bitcoin BEP2?

BTCB is a BEP2 token that is 100% backed by Bitcoin (BTC). The reserve addresses are published for anyone to audit.

A trading pair will be created on Binance.com between the pegged token and the native coin, e.g., BTCB/BTC. Large buy orders will be maintained on the trading pair on Binance.com, with a price spread of around 0.1%. This provides a way for anyone to convert from the pegged token back into the native coin on Binance.com. If this buy order is filled, a new order will be placed while an equal amount of funds will be deposited from the reserve address into Binance.com. The sum of the buy order and the funds on the published reserve address will be bigger than the total supply of the pegged token, which would theoretically ensure 100% backing.

1. Create accounts

In order to buy Bitcoin BEP2 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 Bitcoin BEP2.

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 Bitcoin BEP2 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 Bitcoin BEP2. 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 Bitcoin BEP2.

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 Bitcoin BEP2.

Login to your local exchange and buy your desired amount of Bitcoin BEP2 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 Bitcoin BEP2. In your Binance (or similar) account place an order to trade the crypto currency for Bitcoin BEP2.

The fastest way is to place a market order which buys Bitcoin BEP2 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 Bitcoin BEP2

If you just bought some Bitcoin BEP2 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 Bitcoin BEP2 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 Bitcoin BEP2 from your exchange account. It is common for a small network fee to be associted with the withdrawal.

The safest way to store Bitcoin BEP2, 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 Bitcoin BEP2. 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 Bitcoin BEP2, 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 Bitcoin BEP2
  5. Store your Bitcoin BEP2, consider getting a software or hardware wallet.