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How you can buy Bitcoin in Canada

You may have heard about crypto from a friend or in the press. The names Bitcoin, Ethereum, and XRP are common. There are many other cryptocurrencies and tokens, but Bitcoin is the biggest by market cap. It’s also the oldest.

Cryptocurrency represents the next generation of finance. Bitcoin is the granddaddy of the space, and it’s where all the other 6,000 plus crypto projects got their inspiration from.

So if you’re looking to get involved in cryptocurrency, what do you need to know?

By the time you’re done reading, you’ll know the why, what, where, and how to buy Bitcoin in Canada.

Here’s what we will be covering:

Why Bitcoin

What can you do with Bitcoin? 

Where to buy bitcoin in Canada 

Canadian cryptocurrency exchanges have rules.

How to choose the right crypto exchange to buy Bitcoin

How do I sign up?

What ID is required?

How can I deposit money?

How does Bitvo store cryptocurrencies?

What is a wallet, and how do I choose one?  

What are some crypto security best practices? 

How do I buy Bitcoin?

What is a satoshi? 

How do I convert BTC to CAD?

How do I access my cash after I sell BTC? 

How do I trade Bitcoin? 

What the next step?

A physical Bitcoin standing vertically in front of a Canadian flag with the maple leaf angled up and to the right

Why Bitcoin

Your view on Bitcoin depends on what you have heard and believe. It has been called money, a payment system, a hedge against inflation. It’s protection against failing monetary systems. It has also been called speculative and an investment.

Bitcoin is all of those things, but it is also a vote about the future of finance that is open to anyone.

Like most of crypto, Bitcoin connects with the financial system but exists outside and independent of it. This provides buyers and owners with financial democracy.

You can move money or value in and out of the traditional system into the Bitcoin network easily and at low cost.

Bitcoin is not issued or controlled by any government. Founded in 2009, it also has a fixed number of units at 21 million, with 18 million issued so far.

What can you do with Bitcoin? 

You can do several things with Bitcoin.

You can buy some as a vote for this new form of money and financial system.

You can buy and hold (or hodl) some as a form of financial asset.

You can trade Bitcoin actively as a day trader, market maker, swing trader, or portfolio manager through a cryptocurrency exchange.

You can buy BTC with CAD and move your BTC to an altcoin exchange to participate in various other speculative altcoin and token projects.

You can use them to buy consumer goods.

You can lend BTC to other traders for a fee.

You can move money from one person to another cheaply, quickly, and easily.

You can sell Bitcoin and convert it to various fiat currencies like CAD or a stablecoin like QCAD.

Where to buy bitcoin in Canada 

If you want to buy cryptocurrency, depending on the project, there are some different ways to acquire it.

For Bitcoin, you can receive it from another party on the peer to peer network in exchange for a good or service.

You can buy BTC at a Bitcoin ATM which are located worldwide, but also typically have high fees.

Or you can buy Bitcoin on an exchange, which is where most people gain access to it.

Canadian cryptocurrency exchanges have rules

The exchange business in Canada and around the world has been transformed in recent years.

New regulations require crypto exchanges in Canada to register as Money Services Businesses with FINTRAC. As a part of that regulation, Canadian crypto exchanges also require their clients to complete valid KYC/AML (know-your-client / anti-money laundering) documentation.

These steps help protect the market and the exchange from bad actors and stem the movement of stolen crypto coins.

How to choose the right crypto exchange to buy Bitcoin

When choosing a Canadian crypto exchange to buy Bitcoin or another cryptocurrency in Canada, there are a few things you should look for.

Take a look at the founders and executives. Are they transparent with their backgrounds and experience? And do they have a demonstrated track record of working with other people’s money in a regulated environment?

Security is a key element of crypto, and you should look for the following:

  • * Air-gapped cold storage
  • * Annual security audits by 3rd party security specialists
  • * Multiple signatories

Access to your fiat and digital assets should be flexible and easy. Look for the following:

  • * Full reserve basis so that your funds are always your funds
  • * A time-specific guarantee for access to your funds
  • * The backing of and or access to a Tier 1 regulated financial institution
  • * A cash card to give you more flexibility

If you are trading or thinking about trading Bitcoin or other digital assets on a Canadian crypto exchange, look for the following:

  • * Proprietary technical analysis tools to assist in your trading strategy
  • * Educational material designed to help you trade better and learn faster
  • * Live 24/7 support team

Bitvo was founded by fintech, financial, and payment experts and designed to provide Canadians with all of these important elements and security features.

How do I sign up?

To sign up to Bitvo, you simply go to the Register button, and follow the instructions. It’s typically fast and easy to get set up.

You can download the IOS, and Android versions on the App Store or Google Play to use the mobile app.

What ID is required?

During the signup process, you will be asked for basic information like your address and other specific details. These are used to verify your identity, which is required by regulation in Canada.

Every registered Canadian cryptocurrency exchange is required to follow these procedures.

Typically, initial verification is instantaneous. In rare cases, you may be asked additional questions to verify your identity. If additional information is required to verify your identity, you can do this at a physical Canada Post location.

We can have Canada Post physically verify your ID based on our relationship with a tier 1 Canadian financial institution.

Registrations for non-Canadians may take more time, given the requirements and various guidelines that dictate how we can validate your identity. And registration may not be available in your country of residence.

As soon as you are verified, you can deposit, trade, and withdraw from your Bitvo account.

How can I deposit money?

You can fund your Bitvo account via cash, Interac, Interac eTransfer, wire transfer, or by depositing cryptocurrency.

If you make an e-Transfer deposit to your Bitvo account, there is a five-day hold from the time of the deposit of CAD and cryptocurrency withdrawals. This hold may be waived under certain circumstances.

Each funding method has a different limit, and aside from Canada Post Load, all deposits are free. You can find out more about each method’s limits on our fees page.

How does Bitvo store cryptocurrencies?

Bitvo uses state-of-the-art hot and cold wallet storage. Cryptocurrencies held in hot wallet storage is always minimized to reduce the risk of losses.

Hot wallet storage is contracted from BitGo, one of the world’s first and largest cryptocurrency wallet providers.

95% and up to 100% of the cryptocurrencies traded on the Bitvo Exchange are secured in cold storage.

Bitvo follows best-in-class cold storage policies and procedures. These include utilizing offsite, third party, air-gapped cold storage that is only accessible with multiple signatures.

What is a wallet, and how do I choose one?  

Buying Bitcoin and other cryptocurrencies and digital assets requires storage. Your storage options off-exchange are referred to as wallets.

There are a variety of wallet options for your Bitcoin and crypto assets.

These are:

  • * Hardware wallets
  • * Paper wallets
  • * Desktop wallets
  • * Mobile wallets
  • * Online wallets

Each method has its pros and cons. Farshad Abasi of Forward Security recommended using a combination of wallet options for extra security. For example, a hardware wallet and a paper wallet backup.

For a more in-depth explanation of various wallets, you can see our comprehensive article on wallets here.

With digital currencies, wallets are important, but so is security.

What are some crypto security best practices? 

Cyber thieves are working overtime to get access to your phone and computer. They want access to your bank accounts and crypto keys.

There are a few important steps you can take to protect yourself.

  • * Avoid sharing important personal details online
  • * Use a dedicated, “clean,” secure computer for financial activities
  • * Avoid downloading apps and extensions from unknown third parties
  • * Pause before clicking on any link
  • * Don’t click on unusual texts or email links
  • * Don’t modify your phone
  • * Don’t jailbreak your phone
  • * Use two-factor authentication

Farshad Abasi and Dominic Vogel shared their security tips and expertise on how crypto buyers, holders, and traders can protect themselves.

How do I buy Bitcoin?

Once your account is set up, you simply go your trading screen. The screen gives you direct market access to buy and sell Bitcoin and other digital assets like ETH, XRP, DASH, and QCAD.

At Bitvo, you can do this from the Buy & Sell menu or in the Advanced Trading view.

In Advanced Trading view, pick your asset, a custom price, and select an order type.

Using the Buy & Sell menu allows you to select the amount of cryptocurrency you wish to buy at the market rate. You can buy a full Bitcoin or whatever amount of satoshi’s you want.

There are no trading or maker-taker fees on Bitvo when you trade Bitcoin, ETH, XRP, or any other cryptocurrencies listed.

What is a satoshi? 

You don’t have to buy a full Bitcoin. Each Bitcoin is divisible into smaller units allowing you to buy any fractional amount you wish.

One Bitcoin can be divided up to 8 decimal places.

So one Bitcoin is equal to 100,000,000 units, called satoshis or SAT.

How do I convert BTC to CAD?

If you sell your BTC on a Canadian cryptocurrency exchange, the process is straightforward.

To sell your Bitcoin or convert it back to CAD or to the Canadian stablecoin QCAD, you simply deposit it in your Bitvo account and go to the Buy & Sell menu, or use your Advanced Trading view.

If you are trying to sell your BTC for CAD on an international crypto-exchange, check to see if they offer a BTC/CAD pair.

How do I access my cash after I sell BTC? 

Bitvo provides all of its clients with exclusive access to the Bitvo Cash Card. The Bitvo Cash Card allows you to access your cash instantly at any ATM. Or if you prefer, you can use it to make purchases wherever Visa® or Plus are accepted.

Refer to our fees page for charges and fees associated with withdrawals or the Bitvo Cash Card page for more details.

How do I trade Bitcoin? 

If you’ve decided you want to do more than buy and hold, you can trade Bitcoin instead.

Trading has various styles and approaches, like day trading, swing trading, position trading, etc. It’s important to figure out which trading style suits your personality.

Trading involves a variety of skills, including risk management, developing a trading plan, and analysis. Most people who trade Bitcoin use technical analysis, and there are many different ways to use technical analysis to trade. However, the most important thing to remember about trading Bitcoin with technical analysis is to keep it simple. More indicators aren’t necessarily better.

Bitvo has developed a proprietary technical analysis tool to provide you with added technical insights. It combines numerous technical indicators and uses advanced machine learning to provide technical scores and insights. This tool can compliment other manual technical analysis services you may use like tradingview.com.

Bitvo has also  invested in an extensive trading education content library to help you get better, faster. You can read about technical analysis and many other elements of trading in our extensive education section.

What is the next step?

Bitcoin is an important new technological breakthrough in money, asset transfer, and fintech. Whether you buy, sell, or hold Bitcoin or assets like ETH, XRP, DASH, QCAD, and others, you can do it in your own way.

Trading on a Canadian cryptocurrency exchange has advantages over international crypto exchanges. These include registration as a Money Services Business and the ability to quickly and easily convert to CAD from BTC or ETH.

The Bitvo Exchange has a state of the art cryptocurrency exchange platform that is fast, easy, and secure. It is founded by financial professionals with backgrounds in fintech, payments, and banking for Canadians.

Trades on the Bitvo Exchange are free, with no maker, taker fees. Deposits like wire transfers and eTransfers are also free. And clients get exclusive access to the Bitvo Cash Card and the Bitvo Same Day Guarantee.

If you’re ready to get started, you can sign up below to start trading today.

 

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