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How to buy Bitcoin or Crypto in Canada

How to buy Bitcoin or Crypto in Canada

Sara White
Fact Checked
Oct 18, 2022

Summary: The best way to buy Bitcoin and cryptocurrencies in Canada is through a trusted and regulated digital asset trading platform in the country. With this method, you can deposit Canadian Dollars (CAD) via Interac e-Transfer, or debit card & credit card to buy and sell cryptocurrencies.

For investors looking to get started quickly, we recommend the Bitbuy platform. They are Canada's largest and most trusted exchange that offers a wide selection of assets, crypto staking and more.

Best Crypto Exchange in Canada

  • Fast and cheap Canadian Dollar (CAD) deposits from any bank.
  • Trade a wide range of cryptocurrencies with low fees starting at 0.1% per trade.
  • Trusted platform licensed by The Financial Consumer Agency of Canada

How to buy Bitcoin or Crypto 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'
Buying Bitcoin in Canada
Buy Bitcoin and 15 other Cryptos with Bitbuy in Canada.

Is buying Crypto or 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.

Their platform allows you to buy, sell and store Bitcoin, Ethereum, Solana, Sushiswap, Uniswap, AAVE and 40 other cryptocurrenices. Their platform currently services over 400,000 Canadian's, making it the most popular exchange in the country.

Pros

  • Offers over 50 different cryptocurrencies
  • Low fees starting at 0.1%
  • Clean and easy to use iOS/Android App
  • Fast CAD Deposits

Cons

  • User interface looks and feels outdated
  • Limited product offering
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.

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

Is it possible to buy Bitcoin with PayPal?

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.

Central Bank of Canada's Stance on Crypto

The Central Bank of Canada has taken a clear stance on crypto assets, stating that they are not considered legal tender in Canada. The bank has also warned investors about the risks associated with investing in these assets, cautioning that they are subject to high price volatility and are not backed by any government or regulatory body.

Despite this, the Central Bank of Canada has acknowledged the potential of blockchain technology and is currently exploring its use case in the country's financial sector.

Visit Bitbuy 

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Sara White

I fell into crypto during the 2017 mania and have been around ever-since. I know write, research and publish my own reports on the digital asset ecosystem.

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