Canada has a fairly high adoption and awareness rate for cryptocurrencies, especially Bitcoin. It also has an active crypto community and authorities who support the development of blockchain technology. So if you want to know how to buy Bitcoin in Canada, there are plenty of options – from top-rated cryptocurrency exchanges to Bitcoin ATMs.
Around 85% of Canadians are aware of Bitcoin, and more than half of the population owns digital currencies. In addition to these eye-opening statistics, the Canadian government is open to cryptocurrency exchanges and blockchain-based start-ups.
Canada has pretty clear laws and regulations for cryptocurrency owners and traders. Not only does the government make it easy for citizens to report earnings and pay taxes, but it also educates the population about the risks of investing in digital assets.
You’ll have no trouble purchasing Bitcoin or using it to pay for goods and services. So, check out how to buy Bitcoin in Canada here.
How to buy Bitcoin in Canada
Cryptocurrency exchanges are the most popular places to buy Bitcoin in Canada, as they’re generally considered safe and easy to use. Most cryptocurrency exchanges accept multiple payment methods including credit and debit cards. You could also use different payment methods, such as a nominated eWallet partner.
These wallets can often be connected directly to the exchange so you can buy Bitcoin with just a small deposit. You can sometimes do this without any fees and without waiting for long transaction times. Simply create an account on the exchange and create a wallet for yourself. Use your preferred payment method to make a deposit into the wallet and access this easily through the exchange.
When looking for an exchange, there are a number of things to look out for. The best exchanges will offer instant liquidity, high levels of customer support, and competitive spreads.
Buying Bitcoin from ATMs or OTC
Canada has a large number of Bitcoin ATMs — most of them are available in Vancouver, Toronto, and Montreal. Bitcoin ATMs are expensive, but they allow you to buy Bitcoin using cash and without revealing your identity.
Buying Bitcoin from ATMs is far more expensive than using cryptocurrency exchanges. Fees can run between 10-17%, around 8% more than other ways.
Another option is to find a broker and buy Bitcoin over the counter (OTC). Canada has a large number of licensed brokers and trading desks you can use to invest in cryptocurrencies.
Tax policy for Bitcoin in Canada
The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity for tax purposes. So, any income from trading cryptocurrency is considered capital gain or business income (or capital/business loss).
You need to keep accurate records of your transactions. The value of your cryptocurrencies is usually determined using the highest price in Canadian dollars (the fair market value). However, you can decide to use the amounts listed by an exchange as long as you’re consistent.
If you hold multiple cryptocurrencies, each one is considered a separate digital asset.
Now you know how to buy Bitcoin in Canada, you’ll see there’s no shortage of ways for beginners and experts alike. From purchasing digital coins with your credit card to exchanging Bitcoin for cash, you can test them all and decide which suits you best.
If you’re looking for a fast and secure way to buy Bitcoin in Canada, sign up to the Coin Rivet exchange.