Are you searching for a simple way to buy and sell cryptocurrency in Canada? This helpful guide will provide you with everything you need to start trading cryptocurrency now. We’ll start with the basics:
How to trade crypto in Canada—the quick version
Create an account on a crypto trading platform.
Decide how much money you want to spend on your crypto purchase.
Choose a payment method.
Deposit funds in your crypto account.
Buy the digital currency you’re interested in.
What’s that you say? The quick version was a little too quick? Don’t worry. Just keep reading for in-depth explanations of every step in the process.
Step 1: Decide how much crypto to buy
With the increasing popularity of cryptocurrencies, more and more people are looking for ways to buy and sell crypto coins. Keep in mind that crypto is a highly volatile market so make sure that you have a plan before starting your crypto journey.
Before investing, ask yourself how much money you’re comfortable losing, and only then make a final decision.
Step 2: Decide where to trade cryptocurrency
After figuring out how much you’re ready to invest in crypto, you should decide from which crypto trading platform you want to buy your first digital currency. Below are some of the ways to trade crypto in Canada:
Crypto trading platforms
One affordable option is a crypto trading platform. There you can buy crypto with a credit card, which you use to deposit your desired trading amount into your account. Unlike a crypto exchange, a trading platform does not allow you to trade hundreds of cryptocurrencies. But you will be able to buy and sell most of the top digital currencies available.
Crypto exchanges
Another way to trade crypto coins in Canada is to use a crypto exchange. There are thousands of cryptocurrencies out there, and the benefit of these online exchanges is that they allow you to diversify your portfolio and trade new cryptocurrencies that are not yet available on crypto trading platforms. Keep in mind that new cryptocurrencies come with even greater risk than established ones, so make sure to do your research before investing your money. It’s also important to research the exchange you use, in order to determine if you think it is reputable. Online exchanges hold your cryptocurrency until you withdraw it, and there’s a risk among the more nefarious exchanges of your funds being misappropriated.
Most crypto exchanges don’t have any limit on how many cryptocurrencies you can buy at one time. For anyone who wants to hold, rather than trade, their crypto, some platforms allow you to withdraw your funds in a secure hardware wallet. Advanced crypto traders can also do “Future Trading” and “Margin Trading” on some of the better-known cryptocurrency exchanges.
P2P exchange services
Some investors choose peer-to-peer crypto purchases and sales because they don’t want to pay transaction fees, but many experts warn that these involve significant risk. People on P2P exchange services buy crypto without KYC (or Know Your Client/Customer, a set of standards used within the investment and financial services industry for verifying customers) so if you get scammed while buying crypto on these platforms, there may not be legal actions that you can take to recover your funds. P2P exchange services often have very few cryptocurrency stocks to buy, and allow you to buy and sell your digital currency for anything you want. You can also trade directly with other people on Facebook Marketplace, but experts believe that the chances of getting scammed on these platforms is high.
Bitcoin ATM
Bitcoin ATMs allow you to buy and withdraw crypto but may be accompanied by high fees.
Step 3: Set up an account on a crypto platform or a crypto exchange
Reputable crypto trading platforms and exchanges are among the most trusted ways to buy crypto in Canada. Anyone who is just starting out may want to stick with crypto platforms, which typically have easy-to-use interfaces and allow you to start your crypto journey in just a few easy steps. More experienced investors may move on to crypto exchanges where there may be new cryptocurrencies available. Nobody can tell you what the best crypto to buy is, so make sure to do your research before investing.
After setting up your account on either a crypto trading platform or an online exchange, figure out how you want to buy your crypto. There are many payment methods to choose from: credit card, debit card, PayPal, or even gift cards, depending on the platform you use. Most crypto buying platforms give you various options so you can choose whichever you like. Before funding your crypto account, make sure to check the transfer fees because they can vary on your desired payment method.
Step 4: Decide how to fund your crypto account
After setting up your account on either a crypto trading platform or an online exchange, figure out how you want to buy your crypto. There are many payment methods to choose from: credit card, debit card, PayPal, or even gift cards, depending on the platform you use. Most crypto buying platforms give you various options so you can choose whichever you like. Before funding your crypto account, make sure to check the transfer fees because they can vary on your desired payment method.
Step 5: Buy your cryptocurrency
When the funds are deposited in your crypto account, and you are ready to make a move, the final step is to buy your first digital currency. Before you buy crypto coins, do some research and decide which cryptocurrency you want to buy. Also, as the crypto market is highly volatile and impossible to predict, make sure to prepare yourself for a rollercoaster of ups and downs.
As purchasing cryptocurrency is legal in Canada, you’ve a wide range of options to choose from. But, before you make the final decision, make a side-by-side assessment of each platform’s features and usability before deciding which crypto trading platform suits you best.
