Buy DigiByte in Canada

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

What is DigiByte?

DigiByte (DGB) is an open source blockchain and asset creation platform. Development began in October 2013 and the genesis block of its DGB token was mined in January 2014 as a fork of Bitcoin (BTC).

A longstanding public blockchain and cryptocurrency, DigiByte uses five different algorithms to improve security, and originally aimed to improve on the Bitcoin blockchain’s security, capacity and transaction speed.

DigiByte consists of three layers: a smart contract “App Store,” a public ledger and the core protocol featuring nodes communicating to relay transactions.

DigiByte is a non-profit blockchain project that utilizes blockchain technology and digital identity to digitize assets, to automate the management of digital assets using smart contracts, and to realize a "smart economy" with a distributed network. On the DigiByte blockchain, users are able to register, trade, and circulate multiple types of assets. Proving the connection between digital and physical assets is possible through digital identity. Assets registered through a validated digital identity are protected by law.

1. Create accounts

In order to buy DigiByte in Canada we will first need to create an account on a local exchange to buy Ethereum or Bitcoin. Then you will need to create an account on a global exchange to trade the Ethereum or Bitcoin for DigiByte.

  • Create Local Exchange Account

    The first step in this process is to gain the ability to buy Bitcoin or Ethereum with CAD dollars. For this you will need a local exchange account, currently we recommend Shakepay .

    If you want to buy DigiByte right now, and if you want to buy only a small amount ($375 CAD or less) use Coinbase.

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

  • Create Global Exchange Account

    Next, you will need to create an account on a global exchange. This will allow you to trade the Bitcoin or Ethereum for DigiByte. 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.

  • Verify and Fund

    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. 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 BTC or ETH, transfer it to the Global exchange, and then place an order to trade it for DigiByte.

  • Buy Bitcoin or Ethereum

    The first step is buy one of the main cryptocurrencies that you can trade for alt coins. Right now the two main cryptocurrencies you can use to trade are Bitcoin and Ethereum.

    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 DigiByte.

    Login to your local exchange and buy your desired amount of DigiByte in Bitcoin or Ethereum. We currently recommend buying with Ethereum as it provides a faster and cheaper transaction than Bitcoin, as long as your exchange supports it.

  • Transfer BTC or ETH to a Global Exchange

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

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

  • Trade for DigiByte

    The next step is to actually buy DigiByte. On your global exchange place an order to trade Ethereum or Bitcoin for DigiByte.

    The fastest way is to place a market order which buys DigiByte 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 DigiByte

If you just bought some DigiByte 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.

  • Software Wallets

    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 DigiByte 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 DigiByte from your exchange account. It is common for a small fee to be associted with the withdrawal.

  • Hardware Wallets

    The safest way to store DigiByte, 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.

  • Leaving it on an Exchange

    This is generally not recommended. However, you might want to do this if you are actively trading DigiByte. 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 DigiByte, 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 ETH or BTC on the local exchange.
  4. Next trade that ETH or BTC for DigiByte on the global exchange.
  5. Store your DigiByte, consider getting a software or hardware wallet.