Buy Bitcoin (BTC) in Canada with CAD with Lowest Fees

How Does Bitcoin Work?

Many crypto trading platforms have appeared to let people buy and sell cryptocurrencies online for Euros, Canadian dollars, and more. Your digital assets are stored on a special wallet. There are hardware wallets, desktop wallets, mobile wallets, and web-based (online) wallets to store cryptocurrency. These solutions differ by the level of security, functionality, and price.

The Bitcoin network is secured by individuals called miners. Miners receive a reward in a form of a newly generated Bitcoin for verifying transactions. Each verified transaction is forever recorded on a transparent distributed public ledger – the blockchain.

The Bitcoin blockchain is open-source software where anyone can view its code. The blockchain contains a history of all transactions ever made, allowing users' computers to verify the legitimacy of each transaction. The authenticity of each transaction is protected by electronic signatures corresponding to the addresses used in the transaction, which allows users to have full control over the transfer of Bitcoins from their Bitcoin addresses. Anyone can become a Bitcoin miner and authorize transactions using the computing power of specialized equipment to earn Bitcoins for such a service.

Is It Legal to Buy Bitcoin In Canada?

There is good news for those looking to buy cryptocurrency in Canada. Trading activities with crypto assets are legal in Canada, even though Bitcoin and other electronic currencies are currently not allowed to perform as a legal tender in the country.

According to Canada Revenue Agency (CRA), different types of transactions or exchanges with cryptocurrencies may be taxable, including:

• buying crypto in Canada with fiat money such as Canadian Dollar (official money of a country is known as legal tender);

• transferring crypto coins from one person to another;

• exchanging crypto for other cryptocurrencies or using crypto to pay for goods or services directly.

Apart from this, CRA says that taxes must be paid when virtual currency is bought or sold like a commodity. Any resulting gains or losses could be taxable income or capital for the taxpayer in Canada. Tax rules may also apply if an employee receives digital currency as payment for salary or wages.

Best Ways to Buy Bitcoin in Canada Safely

The best way to buy cryptocurrency in Canada is through a broker or crypto exchange. However, crypto exchanges like Changelly give an account holder more control and flexibility compared to crypto brokers. It is known that broker crypto trading platform solutions such as Wealthsimple Crypto may restrict a user’s holdings, withdrawals, payments, and storage options depending on their brokerage policy.

In Canada, crypto brokers perform similarly to regular finance trading platforms. They may offer a simple process to buy and sell cryptocurrency, but this simplicity comes at a cost, as they tend to establish higher trading fees compared to other crypto exchanges.

On the contrary, Changelly, a reputable crypto trading platform in Canada, allows users to purchase crypto with extremely moderate transaction fees. Thanks to our cooperation with MoonPay, Banxa, Simplex, Indacoin, Switchere – the leading fiat-to-crypto marketplace aggregateres, our users can choose the most favorable rates to buy and sell cryptocurrencies, using customary payment methods: VISA, MasterCard, Apple Pay, and a bank wire.

How to Buy Bitcoin with Credit and Debit Card

Many people hesitate to start their crypto journey because the process of buying Bitcoin looks intimidating to them. Luckily, you do not need to possess any technical skills to purchase digital currencies for the first time because this can be done easily, using your credit or debit card.

Most exchanges support fiat-to-crypto purchases in Canada, including Changelly. Buying Bitcoin with a credit card or a debit card is as easy as buying stuff through an online supermarket like Amazon. However, such operations are commonly possible only if a person agrees to verify their identity through a Know Your Customer (KYC) treatment. KYC is necessary to prevent money laundering, stop fraud, and not allow the financing of terrorist activities. It also helps to ensure the security of user funds and personal information.

Under this procedure, an individual needs to share their personal information with a crypto trading platform (a full name, date of birth, place of residence, and bank account details), upload their actual photo, and provide a government-issued document.

Generally, if there are no problems with the provided details, KYC verification takes a couple of hours to complete. Once verified, a user can easily access services of a crypto trading platform, engage in trading, and start investing in digital assets through the platform of their choice.

Usually, credit cards are suitable to purchase digital currencies. However, such purchases may entail excessive chargers because credit card companies tend to establish higher interest rates and impose additional fees on crypto purchases with credit cards.

How to Buy Bitcoin with Bank Transfer in Canada

As cryptocurrencies are enjoying increasing adoption with manufacturers, retailers, and financial institutions all over the world, almost every major Canadian bank will allow and recognize operations with cryptocurrency, provided they are compliant with state and federal regulations.

Your Canadian bank is likely to allow you to purchase cryptocurrencies via a wire transfer. You will need to link your bank account with a crypto account on the selected trading platform to buy Bitcoin using the Canadian dollar funds held on your bank account.

In Canada, users can buy Bitcoin through Interac e-Transfer because it is a quick, intuitive, and secure way to send CAD to a crypto account.

What Banks Let You Buy Bitcoin Canada?

There is no shortage of banks in Canada to support crypto purchases using wire transfer, eTransfer, and even debit/credit card. Bitcoin-friendly banks that will let you buy cryptocurrency in Canada in a seamless way include:

• The National Bank of Canada

• Royal Bank of Canada (RBC)

• Toronto Dominion (TD Canada Trust)

• Coast Capital

• Canadian Imperial Bank of Commerce (CIBC)

• The Bank of Nova Scotia (Scotiabank)

• Manulife

The list is not complete. As cryptocurrencies are being massively adopted by both businesses and consumers, it is expected that the number of banks to become friendly towards crypto investors and traders will grow over time. Make sure your bank does not set a strict no-cryptocurrency policy, so you can easily deposit CAD to your crypto account.

How to Buy Bitcoin with Apple Pay in Canada

Most exchanges in Canada, including Changelly, will allow you to deposit funds on your crypto account using Apple Pay to buy Bitcoin in a secure and convenient manner from an iOS device.

To buy cryptocurrency in Canada with Apple Pay, you just need to find a cryptocurrency exchange that supports Apple Pay payments. Make sure the service of your selection has adequate transfer fees, a wide array of tradable tokens, and instant order executions – Changelly has it all.

Then you will need to complete an identity verification formality.

Next, you will need to deposit cash to your crypto account using Apple Pay. For this, sign in to your crypto account on a device that supports Apple Pay and then select your chosen payment method for depositing money. Funds will usually land on your exchange account immediately, or within a few minutes, when you use Apple Pay.

Then you just navigate to the “Buy Crypto” section on the crypto exchange website (app) and complete a purchase, following the instructions provided by the system.

How to Buy Bitcoin from ATM in Canada

Cryptocurrency in Canada is so popular that Canadian banks have decided to install lots of Bitcoin ATMs all over the country. There are over 900 crypto ATM installations in Toronto and over 200 machines in Vancouver, but other regions do not suffer from the deficit of Bitcoin ATMs either.

With some possible variations, a general process of purchasing crypto through a Bitcoin ATM in Canada will involve the next instances:

1. Verification stage (optional and may vary drastically depending on machine’s type);

2. The provision of your Bitcoin address to deposit funds (it is optional too, because some machines can generate and print/email a Bitcoin address for you on the fly, but you better to have your own up-and-running Bitcoin wallet address before using a machine);

3. Inserting cash into the ATM. You can use Canadian dollars or other national money supported by the apparatus to buy crypto.

4. Operation confirmation. After reviewing the order, you need to confirm it, and crypto coins will be sent to your address in no time.

This process can vary from ATM to ATM and this is how it generally looks like. It is important to understand that even if the software/hardware of an ATM supports compliance procedures, they are not necessarily activated, as this depends on the choice of the operator of each particular Bitcoin ATM. This is why different verifications and limits can be set for the same type of machine.

Also, Bitcoin ATM units are badly known for having ridiculously high transfer fees. To buy crypto in Canada through an ATM, you may expect to pay 10-15% per transaction – they are commissions charged by operators for converting fiat to cryptocurrency. Still, it is the quickest and simplest way to exchange CAD for Bitcoin.

How to Buy Bitcoin with PayPal

Many crypto investors are interested in the possibility to buy Bitcoin with PayPal in Canada. Unfortunately, PayPal does not currently support buying, selling, and holding Bitcoin and other electronic coins within its platform. This functionality is only available for the USA residents (except Hawaii residents), and such transactions must be performed in US dollars, not in Canadian dollars. However, PayPal is taking steps toward bringing the cryptocurrency trading feature to users outside the US territories soon.

How to Buy Bitcoin with Prepaid Card

Buying crypto in Canada with a prepaid card is as easy as purchasing goods online on Amazon or eBay. The only challenge you may face is finding a reliable cryptocurrency exchange that will support prepaid card purchases. To buy Bitcoin with a prepaid card you need to:

1. Register with an appropriate trading platform;

2. Verify your identify;

3. Deposit funds into your crypto exchange account, providing the details of your prepaid card;

4. Buy Bitcoin using the funds from your balance.

Note that you need to activate your prepaid card before using it on some crypto platform. Some exchanges will only accept Visa and MasterCard issued prepaid cards, so bear this in mind when shopping for a prepaid card. After activating the card, you need to deposit cash, so you can use the funds for crypto trading activities.

Also, some cryptocurrency exchanges may establish higher transaction fees for their crypto trading services with prepaid cards compared to other payment methods. However, with a prepaid card, you will get your crypto coins quickly, unlike with a wire transfer.

How to Buy Bitcoin with Cash in Canada

Individuals interested in using cash to purchase Bitcoin in Canada have several options.

1. Personal meeting. You can meet a Bitcoin seller in person and buy crypto coins from them, using your banknotes as a means of payment. You can find a seller by doing online research or through local Bitcoin forums. It is not the safest way to buy and sell digital assets in Canada, yet it is worth mentioning.

2. Online peer-to-peer exchange. Peer-to-peer (P2P) is a popular route to follow for enthusiasts interested in buying and selling crypto. There are both crypto exchanges and dedicated P2P marketplaces that allow you to trade crypto assets directly with other people. P2P is very convenient. It is possible to compare offers from around the world and select from hundreds of payment methods in various local currencies, including the Canadian dollar. Moreover, such platforms have a user P2P rating system to help traders pick reliable counterparties.

3. Cash transfer at banks. You can visit your local bank office and pay with paper money over the counter, and the bank will send a transfer to the account of a crypto coin provider. Certain considerations must be taken before using this scheme, the credibility of a chosen Bitcoin seller, crypto-friendliness of your bank, and the necessity to pay transaction fees (often very high).

4. Bitcoin ATMs. If there is a Bitcoin ATM installation near you, this might be the simplest way of getting cryptocurrency in Canada. However, it might come at a high cost. After depositing cash into a machine, you will instantly see Bitcoin show up in your wallet.

Can Foreigners Buy Bitcoin In Canada?

Basically, anybody can buy and sell Bitcoin, irrespective of their current location, because buying and selling crypto is not considered a form of employment. In many jurisdictions, including Canada, a person may be subject to tax implications when generating profits and losses from buying or selling crypto. Each crypto trading platform in Canada will establish its own policy concerning treating non-CA residents, and you may want to check this out with a particular exchange when making a signup decision.

Who Accepts Bitcoin In Canada?

Although crypto in Canada is not as widely accepted as CAD, there are, still, enough places to spend your Bitcoin wealth. Hospitality venues, flight booking websites, online marketplaces, automotive dealers, and even eyewear companies – lots of merchants and service providers will eagerly help you when you want to purchase something with cryptocurrency.

How to Cash Out Bitcoin in Canada?

Selling Bitcoin for cash is a very straightforward process. It only takes finding a suitable crypto trading platform that enables crypto-to-fiat withdrawals to trade crypto for real money. With a few clicks, you can sell crypto on an online exchange of your choice and receive a wire to your bank account within the established timeframes. Alternatively, you can use a Bitcoin ATM to convert your cryptocurrency holdings into fiat.