Bitcoin is the world ’ s most popular digital currentness and the strongest rival for a decentralized currentness that could rival decree money as a legal tender someday .
When you consider that the canadian dollar ( i.e. decree currency ) we use to conduct everyday buy and sell transactions has no intrinsic value other than that bestowed upon it by the politics, the concept of electronic money begins to take determine .
Fiat money is a currency ( a medium of exchange ) established as money, much by politics regulation, but that does not have intrinsic value ( value mugwump of the nominal value, such as a precious metallic might have ). Fiat money does not have use prize ( built-in utility, such as a cow or beaver fur might have ), and has value only because a politics maintains its value, or because parties engaging in exchange agree on its value.
Bitcoin and altcoins such as Ether, Litecoin, and XRP are slightly similar to fiat currencies. Simply put, their intrinsic value is tied to the measure placed on them by users .
other factors that settle cryptocurrency values include their supply, demand, acceptability, price of mining them, and politics regulation or miss thereof .
Read on to learn about Bitcoin, how to buy Bitcoin in Canada in 2022, and whether it is safe and legal .
Key Takeaways : You can buy bitcoin in Canada using cryptocurrency exchanges like CoinSmart, Wealthsimple Crypto, Bitbuy, NDAX, Coinberry, Binance, and Crypto.com. Bitcoin trade is legal in Canada and you should note that profits are taxable as capital gains, or as income if you are classified as a day trader .
- 1 What is Bitcoin?
- 2 The Top-10 Cryptocurrencies by Market Capitalization
- 3 How and Where To Buy Bitcoin in Canada
- 4 1. Coinsmart
- 5 2. Wealthsimple Crypto
- 6 3. Bitbuy
- 7 4. NDAX
- 8 5. Newton
- 9 6. Coinberry
- 10 7. Binance
- 11 8. Crypto.com
- 12 9. MogoCrypto
- 13 10. Coinbase
- 14 11. Bitcoin ATM
- 15 Other Bitcoin Crypto Exchanges
- 16 Bitcoin ETFs
- 17 How To Store Your Bitcoin
- 18 Is Bitcoin Trading Legal in Canada?
- 19 Pros and Cons of Trading Bitcoin in Canada
- 20 Is Bitcoin Safe?
- 21 Bitcoin Taxation in Canada
- 22 How To Buy Bitcoin in Canada: CoinSmart vs Wealthsimple Crypto vs Bitbuy
- 23 Buy Bitcoin in Canada FAQ
What is Bitcoin?
Bitcoin is what comes to mind when you think about digital currencies. It is a cryptocurrency that was invented in 2008 by a person or group of persons known as Satoshi Nakamoto .
The ‘ crypto ’ in cryptocurrency refers to the function of cryptography to create newfangled units of cryptocurrency american samoa well as verify and batten transactions on the peer-to-peer network .
Since Bitcoin is decentralized, no Central Bank or mediator is involved and the system relies on technology and code. This decentralization has besides made it a target of hackers and it has been used to fund assorted illegal activities including terrorism and money laundering .
New Bitcoin is created by Bitcoin miners who use high-speed computers to solve complex mathematical problems .
In change for adding new records to the public ledger ( besides called Blockchain ) and verifying transactions in the network, a miner is rewarded with Bitcoin tokens .
The maximum sum of Bitcoin that can always be mined is 21 million. You can purchase very small units of Bitcoin, with the smallest sum peer to 0.00000001 BTC ( besides referred to as 1 Satoshi ) .
Bitcoin is traded under the symbol BTC or XBT and its rate changes all through the day alike to stock prices on an commute .
The highest measure of 1 Bitcoin was reached on November 10, 2021, when it sold for an all-time high of $ 68,789.63 USD .
The Top-10 Cryptocurrencies by Market Capitalization
The top-10 cryptocurrencies, stablecoins, and altcoins by market capitalization ( in USD ) as of March 26, 2022, are :
|4. Binance Coin||BNB||$68.35B|
|5. USD Coin||USDC||$51.92B|
How and Where To Buy Bitcoin in Canada
There are several ways to buy Bitcoin in Canada .
Your options include buying it from an on-line cryptocurrency exchange ( e.g. CoinSmart, Bitbuy, and NDAX ), a cryptocurrency agent, or a crypto trading platform ( e.g. Wealthsimple Crypto, Newton, and Coinberry ) ; or at a Bitcoin ATM .
There are besides ways to purchase Bitcoin through peer-to-peer ( P2P ) networks or Over-the-Counter ( OTC ) .
Coinsmart is a cryptocurrency central offering the major cryptocurrency coins to Canadians. It is based in Toronto and is one of only a few crypto platforms that allows you to buy Bitcoin in Canada using a recognition tease .
New clients get verified within minutes and advanced traders get access to graph, specify trades, and more .
- Great for: Beginners and Advanced traders.
- Coins offered: 16 types including BTC, ETH, LTC, EOS, XLM, ADA, USDT, SHIB, UNI, DOT, LINK, SOL, MATIC, AVAX, and BCH.
- Account funding options: Interac e-transfer, bank wire, bank draft, credit, and debit cards.
- Trading fees: 0.20% for CAD to cryptocurrency trades, free fiat deposits, 1% fee on CAD withdrawals.
- App: Available on iOS and web interface on all devices.
- Promotion: Get a $30 bonus when you open and fund a new account with at least $100. New users are also entered into a $1,000 BTC giveaway for a limited time.
- Review: CoinSmart review.
Is Coinsmart Safe?
Coinsmart is ranked as the best invest to buy bitcoin and other cryptocurrencies in Canada on this tilt .
It uses 2FA and SSL encoding to protect your account. 95 % or more of the coins on the platform are kept in cold storage wallets and as per the web site, your decree funds are kept in canadian banks .
Pros of Coinsmart
- Quick verification of new clients within minutes
- Supports credit card funding
- Offers 16 popular coins
- 24/7 support
- Access to an advanced trading platform
- Access to multiple fiat currencies
- Great for beginners and experts
Cons of Coinsmart
- Assets on the platform are not insured by CIPF or CDIC
- Fees on some deposits and withdrawals
CoinSmart Crypto Exchange
Offers 16 popular coins
Great for newbies & advanced traders
0.20 % trade fee
$ 30 bonus when you deposit $ 100
2. Wealthsimple Crypto
Wealthsimple Crypto is the first base regulate cryptocurrency platform in Canada, having received authority to operate by the Canadian Securities Administrators ( CSA ) .
If you are not familiar with Wealthsimple, it is the most popular on-line wealth management platform in Canada .
Wealthsimple Crypto is a dim-witted and procure way to buy and sell Bitcoin, Ethereum, and several other coins mighty from your call. Its UX is particularly optimized for beginners who are newfangled to digital currentness trade .
After signing up for a Wealthsimple Crypto account and funding your account, you are able to trade cryptocurrency via the app in equitable a few clicks .
Wealthsimple Crypto works like a broker. When you put in an holy order to purchase or sell crypto, they connect you to a market maker ( s ) who finds the best price available on the largest exchanges .
Your crypto holdings are then held with a baffle custodian ( Gemini ) which keeps your cryptocurrency impregnable in cold storage .
- Best bitcoin trading platform for beginners
- Coins offered: 42 coins including BTC, ETH, BAT, MANA, COMP, ADA, KNC, MKR, DOT, CRV, YFI, SNX, UNI, and several others.
- Account funding options: Bank transfer
- Trading fees: Spread on buy and sell prices (1.5%-2%); no fees for withdrawals or deposits
- App: Available on iOS and Android
- Promotion: $100 for Wealthsimple Crypto when you deposit and trade at least $300 worth of crypto within 30 days of account opening
- Review: Wealthsimple Crypto review
Is Wealthsimple Crypto Safe?
Cryptocurrency trade is identical hazardous, so there is that .
With regards to the security afforded your account, Wealthsimple Digital Assets ( the company offering Wealthsimple Crypto ) is registered as a restrict dealer in all jurisdictions of Canada except Quebec. In Quebec, the company is registered as a derivatives trader .
Your Crypto assets ( i.e. Bitcoin and Ethereum ) are held in cold storage by Gemini Trust Company LLC. Gemini uses FIPS 140-2 Level 3-rated or higher hardware security modules ( HSMs ) and is capable to regulation by the New York Department of Financial Services .
Gemini has $ 200 million in cold repositing indemnity. Its CEO and President are the Winklevoss twins ( co-founders of Facebook ) .
Pros of Wealthsimple Crypto
This account offers respective benefits including :
- You can sign up and create an account within minutes
- There are no account minimums and you do not pay a fee to deposit or withdraw your funds
- Wealthsimple Crypto is regulated and is owned by a reputable company
- The app offers instant trades and real-time quotes
- Their custodian, Gemini, is a trusted name in the cryptocurrency space
- Wealthsimple Trade and Wealthsimple Crypto are accessible through the same app, making life easier for you if you also plan to purchase stocks and ETFs using a discount brokerage platform.
- The platform is available in all 13 provinces and territories in Canada
Cons of Wealthsimple Crypto
Downsides of Wealthsimple Crypto include :
- Your assets are not eligible for protection by CIPF or CDIC
- Price spread is on the high side
How To Open an Account With Wealthsimple Crypto
To open an explanation, you must be at least 18 years of long time, have a social insurance total, and be a resident of Canada .
If you are not already a Wealthsimple client, you will besides need to verify your identity in line with FINTRAC ( Financial Transactions and Reports Analysis Centre of Canada ) requirements .
Bitbuy is a top-rated Cryptocurrency change in Canada that offers buy and sell trades in Bitcoin, Ethereum, Litecoin, Bitcoin Cash, EOS, XRP, Chainlink, Aave, and Stellar. It was founded in 2016 and operates out of Toronto .
Getting started is a breeze. After creating an report, you can fund it using Interac e-transfer and bank wire to begin trade .
- Great for: Beginners and advanced traders.
- Coins offered: BTC, ETH, LTC, EOS, XLM, BCH, LINK, AAVE, and several others (15 types).
- Account funding options: Interac e-transfer and bank wire.
- Trading fees: Up to 0.20% trading fee; up to 1.00% fee for CAD deposits and withdrawals; fees vary for crypto withdrawals.
- App: Available on iOS and Android.
- Promotion: Get a $40 bonus when you open an account and make an initial deposit of $250 or more.
- Review: Read my detailed Bitbuy review.
Is Bitbuy Safe?
Bitbuy uses 2-factor authentication and SSL encoding to secure your report. It is registered with FINTRAC as a Money Service Business and 95 % of its coins are kept in cold storage .
Pros of Bitbuy
- Quick sign-up and instant verification
- Offers multiple coins
- Offers multiple trading platforms including mobile and advanced trading tools for pros (including OTC trading)
- You can access various order types and real-time quotes
Cons of Bitbuy
- Your assets are not insured by CIPF or CDIC
- Does not support credit card funding
- Has fees for withdrawals and deposits
The National Digital Asset Exchange ( NDAX ) offers an easy-to-use platform to trade 28 cryptocurrencies in Canada. It is besides one of the cheapest places to buy Bitcoin, with low trade fees .
The platform is available on all devices and promote traders can utilize its advanced chart tools and order types .
- Great for: Beginners and Advanced traders.
- Coins offered: 32 types including BTC, ETH, LTC, EOS, XRP, XLM, LINK, USDT, ADA, DOGE, UNI, COMP, AAVE, DOT, SHIB, FTM, LUNA, AVAX, MATIC, AXS, and more.
- Account funding options: Interac e-transfer, bank wire transfer, and bank draft.
- Trading fees: 0.20% for buy and sell trades; free fiat deposits, $25 low flat fee for CAD withdrawals, crypto deposits are free and there are varying fees for crypto withdrawals.
- App: Available on iOS and web interface on all devices.
- Promotion: Get $10 when you open and fund a new account with at least $100.
- Review: NDAX review.
Is NDAX Safe?
95 % to 98 % of the digital assets on NDAX are in cold storage and the platform uses 2FA and SSL to protect your account. multiple signatories are required to transfer funds out of cold repositing .
NDAX is a register Money Service Business and complies with rules set by FINTRAC .
Pros of NDAX
- Offers access to 30+ crypto coins
- Offers instant ID verification
- It has one of the lowest trading fees in Canada
- 24/7 access to customer support
- Access to advanced trading tools
Cons of NDAX
- Your securities are not protected by CIPF or CDIC
- It does not offer credit card funding
- There is a fee for some deposits and withdrawals
Newton is a cryptocurrency brokerage house and one of the best platforms to buy bitcoin in Canada as a novice. It is a Canada-based company and offers a wide excerpt of crypto assets to choose from ( 55+ coins )
Creating an explanation is easy with instantaneous confirmation for most registrants .
- Great for: Beginners
- Coins offered: 60+ coins including many of the popular ones (Bitcoin, Ethereum, Axie infinity, OMG Network, Avalanche, Decentraland, Hedera, UMA, Synthetix, and several others)
- Account funding options: Interac e-Transfer and bank wire
- Trading fees: The spread on buy and sell prices is up to 0.70%; fiat deposits and withdrawals are free
- App: Available on iOS and Android
- Promotion: Get a $25 bonus when you fund your account and trade at least $100 worth of crypto.
- Review: Newton crypto review.
Newton is constantly adding new coins, making it easy to buy less popular coins without needing to join a foreign-based platform .
besides, you can well move your crypto assets on Newton offline to your personal hardware wallet .
Coinberry is a popular cryptocurrency platform founded in 2017 in Canada. It is based in Toronto and is registered as a Money Service Business with FINTRAC .
Users of the platform can buy 29 different virtual currencies including Bitcoin, Ethereum, Litecoin, XRP ( Ripple ), Bitcoin Cash, and Stellar .
- Coins offered: 29 types
- Trading fees: Based on a price spread and can be up to 2.5%. Deposits and withdrawals are free
- Funding options: Interac e-Transfer and wire transfer
- Security: Coinberry keeps most of its coins in cold storage with Gemini Trust Company, a regulated crypto custodian
- Promotion: Get a $30 bonus when you open an account and trade at least $50 worth of crypto
Coinberry is available on all devices and has a partnership with the Town of Innisfil and the City of Richmond Hill to accept the payment of property taxes using bitcoin. Learn more in my detail Coinberry inspection .
Cons : You can only move 4 coins offline to your personal wallet and the price go around is on the high side .
Binance is one of the largest cryptocurrency exchanges in the world with an average book of $ 2 billion in trades per day .
The company was founded by Changpeng Zhao and is based in Malta .
If you want an advanced cryptocurrency chopine to buy bitcoin or one that makes it easy to trade hundreds of crypto pairs, this chopine may work for you. It besides offers a derivatives crypto market with futures contracts and options .
- Coins offered: 350+
- Trading fees: Depends on your membership tier; up to 0.1%
- Funding options: Cryptocurrency, Interac e-Transfer, debit card, credit card, third-party payments, bank deposit with SEPA
- Security: 2FA, Withdrawal Address Management, and cold storage
- Promotion: Get a 20% discount on fees when you sign up using our referral link
Binance besides offers an OTC platform for large trades and has its own mobile wallet, Trust Wallet .
Crypto.com is one of the world ’ randomness largest cryptocurrency exchanges with over 10 million users in 90+ countries .
Based in Hong Kong, Crypto.com was founded in 2016 and supports 150+ coins including all the popular ones and some lesser-known coins .
In addition to trade crypto, this platform has several other products including its own argumentation of metallic Visa credit rating cards, Crypto Earn ( stake coins and gain ), crypto loans, margin trade, DeFi, NFTs, and derivatives trading for promote traders .
- Great for: Experienced traders and those looking for a wide selection of digital assets
- Coins offered: 150+
- Trading fees: Varies depending on your membership tier level up to 0.40% (other fees may apply).
- Funding options: Cryptocurrency deposits, bank transfer, credit/debit card
- Security: 2FA, cold storage, encryption
- Promotion: Get a $25 bonus when you stake enough Crypto.com Coin (CRO) for a Crypto.com Visa credit card. You can also use this referral code (ypa22jvaeg)
- Review: Crypto.com review.
MogoCrypto is a cryptocurrency trade platform in Canada. In addition to crypto trade, Mogo besides offers other products including free credit scores, personal loans, mortgages, and more .
Mogo is a canadian fiscal engineering company with offices in Vancouver, Surrey, and Winnipeg. The rear company, Mogo Inc., is publicly traded on the Toronto Stock Exchange and NASDAQ .
similar to Wealthsimple Crypto, MogoCrypto functions as a agent that makes it easy to purchase cryptocurrency in just a few clicks. MogoCrypto lone offers trade in Bitcoin and Mogo members can place trades using the Mogo app or portal site .
To gain access to the platform, sign up for a Mogo Account. After, you can fund your score using Interac e-Transfer. MogoCrypto uses Coinsquare ( goNumerical Ltd. ) to facilitate purchases and sales of Bitcoin and to hold it.
- Coins offered: Bitcoin
- Account funding options: Interac e-Transfer
- Trading fees: 1% trading fee plus the exchange partner’s price may include fees or mark-ups
- App: Available on iOS and Android
- Review: Mogo Canada review
Is MogoCrypto Safe?
It bears repeating that trading cryptocurrency is a bad gamble. You may win big, or lose a set of money .
Mogo Inc. is a legalize company in Canada with an A+ rat on the Better Business Bureau. Your MogoCrypto assets are held with Coinsquare, an exchange that has been around since 2015 .
Coinsquare uses SSL and 2FA plus 95 % cold storage to protect your report. The company recently ran afoul of the Ontario Securities Commission and both the founder and CEO had to step down .
Pros of MogoCrypto
- You can easily create a free account within minutes
- The platform offers instant trades in Bitcoin
- Funding your account using Interac e-Transfer can be completed within 30 minutes
- The cryptocurrency exchange by Mogo is based in Canada. Coinsquare keeps your coins safe by putting 95% of crypto assets in cold storage
- Mogo is a publicly-traded company with more than 1 million members
Cons of MogoCrypto
- The 1% trading fees do not include mark-ups that may be charged by Coinsquare
- MogoCrypto only offers trades in Bitcoin. Other cryptocurrencies are not available
- You cannot transfer your Bitcoin from MogoCrypto to any other wallet or exchange. Also, you cannot transfer Bitcoin purchased elsewhere to the platform
- There is a hold period when you want to withdraw funds from your account
- Coinsquare recently had to pay significant fines after it was found misleading investors and inflating trading volumes between July 2018 and December 2019
- MogoCrypto is only available to residents of Manitoba, Ontario, British Columbia, Alberta, New Brunswick, Prince Edward Island, Newfoundland and Labrador, and Nova Scotia
Coinbase is a cryptocurrency brokerage platform based in the United States and open to members from 102 countries .
It has over 1,000 employees, 35 million users, and has traded more than $ 200 billion worth of cryptocurrency .
- Coins offered: Several popular coins (50+)
- Trading fees: Varies based on your location and includes a spread (~0.50%), cost of funding option (up to 3.99%), and a Coinbase Fee for transactions below $200 (expensive)
- Funding options: Credit and debit cards, bank account, wire transfer, and cryptocurrency
- Security: 98% cold storage, 2-step verification, hot wallet holdings are insured
Coinbase has a crypto exchange, Coinbase Pro, with lower deal fees, charting tools, and advanced options .
11. Bitcoin ATM
You can purchase Bitcoin at a vending car specifically designed for buying and selling cryptocurrency. generally, you should already have a Bitcoin address where your Bitcoin will be deposited and you pay using cash .
Some Bitcoin ATMs besides allow you to exchange Bitcoin for cash .
The commissions charged by Bitcoin ATMs are typically higher than what you ’ vitamin d pay on an switch over .
As of this update in 2021, there were 1,868 Bitcoin ATMs in Canada. You can locate the ones in your area here .
Other Bitcoin Crypto Exchanges
You can besides buy and sell Bitcoin in Canada using these crypto exchanges and trade platforms .
12. VirgoCX : VirgoCX is a cryptocurrency exchange in Canada that offers 40+ popular coins and a server of early crypto-related services. trade fees are included in the price banquet and are improving to 0.50 %. Crypto withdrawal fees vary .
13. Netcoins : This crypto brokerage supports 10+ coins and is owned by BIGG Digital Assets, a company that is listed on the CSE. The deal tip is 0.50 %. Deposits are spare and crypto withdrawal fees vary .
14. Coinsquare : This cryptocurrency exchange was founded in 2014 and has its headquarters in Toronto. It supports 10+ crypto assets and besides has an Over-The-Counter ( OTC ) desk for large volume cryptocurrency trades. trade fees range between 0.10 % and 0.40 % ; withdrawal fees are improving to 2 % .
15. Coinbase : Coinbase is the second-largest centralize crypto exchange in the world by trade book, behind Binance. It supports 100+ coins and trade fees are improving to 0.50 % .
16. KuCoin : This exchange is available in more than 200 countries and has more than 10 million users. It offers promote features and its own utility mint, KuCoin Shares. trade fees on the platform are up 0.10 % .
17. myBTC.ca : This crypto trade site only supports Bitcoin. You can fund your account using Interac e-Transfer, bank wire, citation card, and Flexepin vouchers. trading fees are up to 9.75 % .
18. Paxful : This is a peer-to-peer chopine for buying, betray, and trading assorted digital currencies, including bitcoin. Service fees are up to 5 % .
19. LocalCryptos : This is another decentralized crypto P2P marketplace where you can buy and sell bitcoin, Ethereum, and other popular crypto coins directly with others. Fees are up to 0.75 % .
You can gain exposure to Bitcoin by buying an ETF that holds the digital currency directly. This removes the indigence to store your bitcoin on a hardware wallet and keeps your assets in a baffle brokerage .
The top bitcoin ETFs in Canada are :
20. Purpose Bitcoin ETF : This bitcoin ETF trades on the Toronto Stock Exchange ( TSX ) under the ticker BTCC. It has both hedged and non-hedged versions. The management fee is 1 % .
21. Evolve Bitcoin ETF : Trades on the TSX under the watch EBIT and has both Canadian and US dollar versions. The management fee is 0.75 % .
22. CI Galaxy Bitcoin ETF : This bitcoin ETF is managed by CI Investments and Galaxy Digital Capital Management. Trades under the heart BTCX and has a 0.40 % management fee .
23. 3iQ CoinShares Bitcoin ETF : Offered by 3iQ and CoinShares, this bitcoin ETF trades under the heart BTCQ and has a management tip of 1 % .
24. NinePoint Bitcoin ETF : It is available in CAD and USD and trades as BITC on the TSX. The management tip for this bitcoin ETF is 0.70 % .
25. Evolve Cryptocurrencies ETF : You can evening gain exposure to both Bitcoin and Ethereum using an ETF that holds both of them. A good option is the Evolve Cryptocurrencies ETF ( ETC ). It has a management fee of 0.75 % .
How To Store Your Bitcoin
Bitcoin is stored on a wallet that can be installed on your computer or phone. You can besides use a hardware wallet or even a composition wallet .
A wallet works like a traditional wallet or savings bank report and contains your private and public keys .
Your public key is the string of alphanumeric symbols you provide to person who is sending you Bitcoin. Your individual key is what gives you access to your coins and you should guard it carefully .
If your private key is compromised, you can lose all your funds .
The four main types of Bitcoin wallets are :
- Desktop wallets
- Mobile wallets
- Web wallets
- Hardware wallets
Hardware wallets are offline ( aka cold repositing ) and are the most impregnable types of wallets available. They can be a act expensive compared to software wallets .
You can besides plainly print off your private and public keys and corresponding QR codes on paper and store them in a safe place .
Bitcoin trade platforms like Coinsmart, Wealthsimple Crypto, and NDAX keep your cryptocurrency in cold storage with their custodians or exchange partners .
Is Bitcoin Trading Legal in Canada?
It is legal to buy, sell, and spend Bitcoin in Canada. however, the Financial Consumer Agency of Canada wants you to know that Bitcoin and other cryptocurrencies are not legal attendant in Canada .
entirely banknotes issued by the Bank of Canada under the Bank of Canada Act and coins issued under the Royal Canadian Mint Act are considered to be legal tender .
This does not stop you from using Bitcoin to pay for goods and services wherever it is accepted as a entail of payment .
besides, it is perfectly legal to buy and sell Bitcoin and make a net income or capital gain when you sell your coin for more than you paid for it .
If you are tech-savvy enough to indulge in Bitcoin mine, this bodily process is besides legal in Canada. I should note that as the competition has increased over meter, Bitcoin mine has become a distribute more expensive .
Pros and Cons of Trading Bitcoin in Canada
There are many advantages and disadvantages of trade Bitcoin in Canada .
Pros of Bitcoin
- Bitcoin has the largest market capitalization among cryptocurrencies and is easy to buy and sell i.e. it is liquid
- Its acceptance as a means of payment for goods and services has increased and it has real-life utility. You can also exchange Bitcoin for fiat currencies e.g. CAD, USD, EUR, GBP, and others
- You can make money trading Bitcoin if you buy low and sell high
- It has a finite supply which infers it should be able to hold intrinsic value over the long term. This also makes it less sensitive to inflation
- It is a decentralized system and is theoretically not subject to the whims and caprices of any Central Bank
- Bitcoin offers in-built privacy protections and transactions are anonymous
Cons of Bitcoin
- The value of Bitcoin fluctuates wildly and often there are no concrete fundamentals to explain the big movements in price
- Hackers can steal Bitcoin from wallets, especially those online. Stolen digital currencies are often not recoverable. You can also lose your keys and access to your coins
- There is limited regulatory oversight of digital currencies by the government. So, if you are a victim of fraud, you may have limited recourse to get your money back
- Your funds are not protected by Canada Deposit Insurance Corporation (CDIC) or the Canadian Investor Protection Fund (CIPF)
- There are lots of competing alternative coins (alt-coins) and many Initial Coin Offerings (ICOs) are introduced each day. As the numbers increase, Bitcoin becomes less dominant
- Bitcoin is not accepted as a means of payment by most businesses and it is banned in a few countries
- Bitcoin mining uses a lot of electricity (energy) which is detrimental to the environment
Is Bitcoin Safe?
Bitcoin is a inquisitive investment and you should not trade it using funds you can not afford to lose .
Having lost thousands of dollars day-trading S & P 500, NASDAQ, and Dow Jones Industrial Average ( DJIA ) e-mini futures in the early 2000s, I ’ molarity no stranger to speculative investments and bad trade .
These days, only a negligible dowry of my net income worth goes towards non-traditional assets ( e.g. Bitcoin and P2P lend ). My portfolio is largely composed of hassle-free one-ticket ETFs .
Bitcoin and other cryptocurrencies can make you a draw of money, but you can besides lose 100 % of your investments .
A good example of how this can happen is Quadriga. When this cryptocurrency change went bankrupt in 2019 following the alleged end of its founder, Gerald Cotten, customers lost $ 215 million .
I lost approximately $ 600 or so in Ether when this happened .
In addition to unscrupulous exchanges, there is besides a challenge with hackers who steal Bitcoin from exchanges through ransomware and early deceitful means .
As per this Forbes article, over $ 4 billion worth of cryptocurrencies was stolen in the beginning half of 2019 alone .
It goes without saying that Bitcoin trade is a very bad guess and you should merely invest in it after doing your due application .
In orderliness to decrease the chances that you could lose your funds, use a regulate cryptocurrency trading platform and avoid leaving your Bitcoin in a hot wallet .
Bitcoin Taxation in Canada
Gains from cryptocurrency trade are taxable in Canada. As per the Canada Revenue Agency ( CRA ), cryptocurrency is treated as a commodity under the Income Tax Act .
How you report the gains or income from digital currencies depends on whether you are :
- Accepting payments in cryptocurrencies
- Trading cryptocurrencies, or
- Mining cryptocurrencies
Let us start with the occupation owner who accepts Bitcoin as a intend of payment. In this case, the value of Bitcoin received is reported as clientele income for tax purposes .
In order to figure out the value of the transaction, you can use the exchange rate available at the fourth dimension of the transaction in canadian dollars .
If your business is registered to collect GST/HST, you must besides collect and remit this tax sum .
Infrequent Bitcoin users may besides have to pay taxes on Bitcoin custom .
For exemplar, if you bought Bitcoin in decree to pay for goods and services and it increases in value, you are required to declare a capital gain when you dispose of it. The same applies to buy and hold investors .
capital gains are taxed differently from income. only 50 % of your gains are added to your taxable income for the year .
If you incur a loss, it is treated as a capital loss and can be offset against capital gains for the class or any of the preceding three years .
If CRA classifies you as a day trader based on the nature of and frequency of your transactions, your profits may be taxable as clientele income .
Cryptocurrency miners who are deemed to be conducting a business will have to report profits as taxable income .
There are many angles to how the CRA considers cryptocurrency profits. For exemplify, taxable income or capital gains may besides be generated when you exchange one cryptocurrency for another e.g. Bitcoin for Ethereum .
You can check this CRA guide for more data .
How To Buy Bitcoin in Canada: CoinSmart vs Wealthsimple Crypto vs Bitbuy
|Cryptocurrency offered||BTC, ETH, UNI, AAVE, LTC, COMP, BCH, DOGE, CRV, KNC, BAL, SNX, MKR, YFI, BAT, BCH, & more (34 types)||BTC, ETH, LTC, EOS, XRP, XLM, NEO, ADA, USDT, BCH, UNI, & more (16 types)||BTC, ETH, LTC, EOS, XRP, XLM, LINK, USDT, ADA, DOGE, UNI, DOT, COMP, AAVE, & more (32 types)||BTC, ETH, LTC, EOS, XRP, XLM, BCH, LINK, AAVE, & more (15 types)|
|Funding methods||Bank transfer, crypto deposits||Interac e-Transfer, bank transfer, credit card, bank draft, crypto||Interac e-Transfer, bank draft, bank wire, crypto||Interac e-transfer; bank wire, crypto|
|Fiat currency accepted||CAD||CAD and USD||CAD||CAD|
|Cold wallet storage||Gemini Trust Company, LLC||Coinsmart||NDAX||Bitbuy|
|Trading fees||1.5%-2% price spread; no deposit or withdrawal fees||0.20% for CAD-crypto; free deposits;||0.20% for trades; $25 flat fee for CAD withdrawals; crypto deposits are free||Up to 0.20% per trade; Up to 1.50% fee for deposits and withdrawals|
|Promotion||Get $100 when you sign up here and trade $300 or more||Get $30 when you sign up and deposit at least $100||Get $10 when you sign up and fund with $100||Get $40 when you sign up and deposit a minimum of $250|
|Other offerings||Robo-advisor and brokerage platform; high-interest savings account; tax software||Advanced charting and order types for advanced traders||Advanced charting and order types for advanced traders||Advanced charting for pro traders|
|Learn more||Learn more||Learn more||Learn more||Learn more|
*Terms and conditions apply .
Buy Bitcoin in Canada FAQ
What is the best place to buy bitcoin in Canada?
The best crypto exchange to buy bitcoin in Canada is CoinSmart.
What is the best crypto brokerage app in Canada
The crown crypto trading app for beginners in Canada is Wealthsimple Crypto. If you want access to advance trading tools and order types, CoinSmart is a bang-up choice. other excellent exchanges include Bitbuy and NDAX.
How do I buy bitcoin in Canada?
Before you can invest in bitcoin, you will need to open an account at an central or brokerage platform that supports it. Fund your account with decree currency and place an order to buy bitcoin. You can leave your bitcoin on the central or move it offline to a hardware wallet.
What options do I have for investing in bitcoin?
You can either buy bitcoin directly or invest in bitcoin using a Bitcoin ETF. Bitcoin ETFs are sold on regular stock trade platforms. Have you bought bitcoin since it took to the airwaves ? Let us know about your experiences in the comments .