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Buy, Sell & Trade Cryptocurrency in Canada

Updated on: July 13th, 2024

Cryptocurrencies have become a popular investment option for many Canadians looking for an alternative to traditional assets like stocks, bonds, and real estate. While the process of buying cryptocurrency in Canada may seem daunting at first, it can be quite straightforward with a bit of research and preparation. In this article, we will guide you through the steps of buying cryptocurrency in Canada and provide tips on how to do it safely and securely.

Best Cryptocurrency Brokers in Canada

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Top Canadian Cryptocurrency List

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Cryptocurrency TradingCryptocurrency Trading Guide

Cryptocurrency can now be traded via CFD. The beauty of it is that everyone is welcome to participate in cryptocurrency trading. The earlier you get involved the better. Trading cryptocurrency in CFDs means that you will not have to own the crypto before you can make money from it. So many advantages are associated with crypto trading in Canada and we are going to enlighten you about some of the advantages below.

Top Canadian crypto exchanges reviewed

As cryptocurrencies gain more popularity, the number of crypto exchanges has also increased significantly. If you’re looking to buy, sell, or trade cryptocurrencies in Canada, here are some of the best crypto exchanges to consider:

Coinsquare

Coinsquare is a popular Canadian crypto exchange that allows users to buy and sell various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. This exchange has a user-friendly platform that is easy to navigate, making it ideal for beginners. The exchange also offers competitive fees, with trading fees ranging from 0.1% to 0.4%.

Kraken

Kraken is a popular global crypto exchange that is available to Canadian users. The exchange supports various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. Kraken is known for its advanced trading features, making it ideal for experienced traders. The exchange also has a robust security system, with two-factor authentication and cold storage for customer funds.

Bitbuy

Bitbuy is a Canadian crypto exchange that supports various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. The exchange is known for its low fees, with trading fees ranging from 0.1% to 0.2%. Bitbuy also offers excellent customer support and a user-friendly platform, making it ideal for beginners.

Binance

Binance is a global crypto exchange that is available to Canadian users. The exchange supports various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Ripple. Binance is known for its advanced trading features, making it ideal for experienced traders. The exchange also has a robust security system, with two-factor authentication and cold storage for customer funds.

Newton

Newton is a Canadian crypto exchange that supports various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. This crypto exchange is known for its low fees, with trading fees ranging from 0.25% to 0.5%. The exchange also has a user-friendly platform and excellent customer support, making it ideal for beginners.

Follow Simple Steps to buy Cryptocurrency in Canada

Cryptocurrencies have become a popular investment option for many Canadians looking for an alternative to traditional assets like stocks, bonds, and real estate. While the process of buying cryptocurrency in Canada may seem daunting at first, it can be quite straightforward with a bit of research and preparation. In this article, we will guide you through the steps of buying cryptocurrency in Canada and provide tips on how to do it safely and securely.

Step 1: Choose a Cryptocurrency Exchange

The first step in buying cryptocurrency in Canada is to choose a cryptocurrency exchange. A cryptocurrency exchange is a platform that allows you to buy, sell, and trade cryptocurrencies. There are several cryptocurrency exchanges in Canada, including:

  • Coinsquare
  • Kraken
  • Bitbuy
  • Binance
  • Newton

Each exchange has its own fees, features, and user interface, so it’s important to do your research before choosing one. Some factors to consider include:

Security: Look for exchanges that have strong security measures in place, such as two-factor authentication and cold storage for customer funds.
Fees: Exchanges charge fees for buying, selling, and trading cryptocurrencies, so make sure you understand the fee structure of each exchange before making a decision.
User Interface: Look for an exchange with a user-friendly interface that is easy to navigate.

Step 2: Sign Up and Verify Your Account

Once you have chosen a cryptocurrency exchange, the next step is to sign up and verify your account. Most exchanges require you to provide some personal information, such as your name, email address, and proof of identity, before you can start trading. The verification process can take anywhere from a few hours to a few days, so be patient.

Step 3: Add Funds to Your Account

After your account has been verified, you can add funds to your account. Most exchanges allow you to fund your account using a bank transfer, credit card, or debit card. Bank transfers are usually the cheapest option, but they can take a few days to process. Credit card and debit card transactions are usually instant, but they come with higher fees.

Step 4: Buy Cryptocurrency

Once you have added funds to your account, you can buy cryptocurrency. The process for buying cryptocurrency varies depending on the exchange, but it usually involves the following steps:

Choose the cryptocurrency you want to buy.
Enter the amount you want to buy.
Confirm the transaction.
Wait for the cryptocurrency to appear in your account.

Step 5: Secure Your Cryptocurrency

After you have bought cryptocurrency, it’s important to store it safely and securely. Cryptocurrencies are stored in digital wallets, which can be either hot wallets or cold wallets. Hot wallets are connected to the internet and are more vulnerable to hacking, while cold wallets are offline and therefore more secure.

The best Cryptocurrencies to buy in Canada

  • Bitcoin (BTC) is the digital currency with the largest market capitalisation and price points since its inception in 2008. It dominates 50% of the whole market capitalisation of cryptocurrencies.
  • Ethereum (ETH) is that the second largest cryptocurrency after Bitcoin and allows developers to make smart contracts on a platform.
  • Litecoin (LTC) is analogous to Bitcoin but differs in terms of scalability. Litecoin may be a nother very fashionable altcoin and LTCUSD is a fork of Bitcoin (BTCUSD), copied from the code of Bitcoin and with some modifications and launched as a replacement project.
  • Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as a replacement version of the blockchain with different rules.
  • Ripple (RPL) is popular among major banks with the Ripple Network a next generation real-time gross settlement system. It enables instant cross-border fund transactions at very low costs.

Benefits of Cryptocurrency Trading

cryptocurrency trading in Canada

High volatility

The transaction process in crypto trading is very easy and straightforward. The fees are usually very low. This makes it even more attractive than many other CFD assets. As a crypto trader, you will have to speculate on if the value of the crypto will rise or fall. You will not have to own the crypto before you trade it. It is a highly volatile market. This is one of the many reasons to venture into cryptocurrency trading in Canada. The high volatility is because of the many short-term speculative interests in the industry. CFD trading in crypto allows the trader to make money by buying and selling the crypto asset.

Bear in mind that there are different types of cryptocurrencies out there today. You can trade any of them in CFD. Some of the commonly traded cryptocurrencies are:

  • Bitcoin
  • Litecoin
  • Ethereum
  • Dogecoin
  • And so on

The most popular among them is bitcoin trading.

Market Open 24/7

The cryptocurrency market is open 24/7. As a result, you can trade at any time of the day or night. This means that the opportunity to make money via cryptocurrency trading is very huge and there is adequate opportunity for everyone. There is no central control over the crypto market. This is one of the many features that make it just perfect for all categories of traders. The trading takes place on a cryptocurrency exchange and it takes place between individual traders. The trading process also takes place all over the world.

High liquidity

The level of liquidity available in cryptocurrency trading in Canada also makes it stand out. The high level of liquidity makes crypto trading highly profitable. The liquidity provides better pricing in the crypto market. It also helps to speed up transaction times. Additionally, high liquidity can increase the accuracy of technical analysis. Transaction in cryptocurrency trading is dispersed across multiple exchanges. This is yet another factor that contributes to its high liquidity. The high liquidity makes crypto trading very profitable. It hastens the rate of executing trades. It also lowers the cost of trade execution.

You can buy or sell

As we mentioned earlier, you do not need to own the cryptocurrency before you trade it. You only need to trade based on the price difference. CFD trading in cryptocurrency enables the trader to buy or sell the crypto. Crypto CFD trading makes it possible for the trader to make money when the value of the cryptocurrency is rising or falling. He can buy if he predicts that the value of the crypto will rise. He can also sell if his strategy says the value will fall. When you buy the cryptocurrency, then we say you are going long. When you sell a cryptocurrency, we say you are going short.

Leveraged exposure

The crypto market gives you access to leverage. Leverage helps to increase the capacity of your trading capital. The extra money is the leverage and it is given by the broker. The amount you can get as leverage depends on what you ask for. If you are using a leverage of 10:1 for example, it means that the broker will multiply the capital you can control by 10 of the amount in your trading account. If you have $1000 in your trading account, a leverage of 10:1 will help you to trade as if you have $10,000 in your account. Leverage can increase how much profit you can make. It can also increase how much loss you can make. So, you should use leverage very carefully.

Account opening is fast

Account opening in cryptocurrency trading in Canada is very fast. You will need to buy crypto from an exchange and also sell via the same exchange. You will need to first create an account with the exchange before you can do this. There is no need to own the cryptocurrency on exchanges. All you need to do is to deposit money in your trading account. You can even deposit the money using fiat currencies like United States dollars. You can carry out the entire trading process son a broker also. The account set up process on brokers’ platforms is always very fast. You can start trading almost immediately after you register.

Top 10 Gainers Crypto Today

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Top 10 Losers Crypto Today

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Final Word

Cryptocurrency trading in CFD is very interesting and open 24/7. It can help you to make a lot of money. The use of leverage further increases your chance to make more money from crypto trading. Be that as it may, you should use the leverage carefully. While it is profitable, make sure you always trade with care. You should also only risk the money you can afford to lose on cryptocurrency trading in Canada. Make sure you have a good trading strategy before you start trading cryptocurrency.

The best crypto exchange in Canada depends on your individual needs and preferences. Some exchanges are ideal for beginners, while others are more suitable for experienced traders. It’s important to research each exchange thoroughly before choosing one to ensure that it meets your needs and offers the security features you require.

Cryptocurrency Canada FAQs

Is it safe to buy cryptocurrency in Canada?

Buying cryptocurrency in Canada is generally safe, as long as you choose a reputable cryptocurrency exchange and take steps to secure your cryptocurrency. Be sure to research the exchange thoroughly and store your cryptocurrency in a secure wallet.

What is the best cryptocurrency exchange in Canada?

The best cryptocurrency exchange in Canada depends on your individual needs and preferences. Some popular options include Coinsquare, Kraken, Bitbuy, Binance, and Newton.

How much does it cost to buy cryptocurrency in Canada?

The cost of buying cryptocurrency in Canada depends on the exchange you choose and the payment method you use. Fees typically range from 0.1% to 5% of the transaction amount.

How do I know which cryptocurrency to buy?

The choice of which cryptocurrency to buy depends on your investment goals and risk tolerance. Some popular cryptocurrencies include Bitcoin, Ethereum, Litecoin, and Ripple.