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How to buy Bitcoin in Canada

Buying Bitcoin in Canada is much easier than many people think. All you need to do is select a regulated exchange in Canada like Bitbuy, create an account, deposit Canadian Dollars (CAD) and you are ready to buy.

You can follow our simple guide to start investing in Bitcoin with below.

  1. Sign up to the Bitbuy exchange
  2. Deposit Canadian Dollars from any bank account via Bank Transfer (Interac e-Transfer).
  3. Find Bitcoin 'BTC' on their exchange
  4. Input the amount of Canadian dollars and select 'Buy Bitcoin'

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Is buying Bitcoin legal in Canada?

Yes buying Bitcoin is legal in Canada and the Canada Revenue Agency has recently provided clarity and classified Bitcoin as a commodity - stating that the use of Bitcoin to pay for goods and services is to be considered a barter transaction.

Canada’s tax laws and rules, such as the Income Tax Act, also apply to Bitcoin/crypto transactions.

Buy Bitcoin with Bitbuy

Established in 2017, Bitbuy is one of the oldest and most trusted Bitcoin exchanges in Canada. Their platform is secure and regulated by FINTRAC and Canada, making them a licensed digital asset brokerage platform.

They let you buy, sell and store Bitcoin, Ethereum, Solana and 30 other cryptocurrenices.

Pros

  • Over 30 Cryptocurrencies
  • Low fees starting at 0.2%
  • Clean and easy to use iOS/Android App
  • Fast CAD¬†Deposits

Cons

  • Does not offer crypto staking
Usability
5 Star Buy Bitcoin Rating for Ease of Use
Privacy
4 Star Buy Bitcoin Rating for Privacy
Fees
5 Star Buy Bitcoin Rating for Ease of Use
Visit Bitbuy

Buying Bitcoin OTC in Canada

If you are a high-net-worth individual or institution looking to buy Bitcoin shares (over $100,000 CAD) - we recommend you check out a Bitcoin over-the-counter (OTC) desk in Canada. Bitcoin OTC desks offer a personalized and secure service that allows you to buy over $100,000 CAD worth of Bitcoin without worrying about getting a bad price.

Buy Bitcoin Bank recommends Coinsquare as the go to OTC desk for Bitcoin in Canada.

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Tax Implications for Bitcoin Investing

The Canadian Revenue Agency (CRA) has recently declared that Bitcoin and other cryptocurrencies are taxable as commodities as opposed to traditional currencies. This means that Bitcoin transactions are viewed as barter transactions.

With respect to profits from trading or selling Bitcoin in Canada, this is considered capital gains. This is largely due to the fact that only a part of that profit will be taxable at the applicable rate.

Meaning you will only be taxed the amount that you profited from the transaction, for example:

  1. John buys 1 Bitcoin in Canada at $30,000 CAD
  2. John then sells that same Bitcoin for $50,000 CAD
  3. The taxable amount is the $20,000 profit on 1 Bitcoin

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Buy Bitcoin with PayPal in Canada

Unfortunately no major cryptocurrency exchange in Canada let users deposit Canadian Dollars with PayPal to buy digital assets. The only way you can reliably fund an account is through a trusted bank account like TD Bank or RBC Bank.

Visit Bitbuy 

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