How to buy and sell cryptocurrencies in Canada?

Guest  |  Aug 9, 2021

The reasons why people buy, sell, or use cryptocurrency are diverse. Many choose to purchase them in order to cheaply and securely send money around the world. Due to the economy being virtual, crypto transactions are accompanied by low fees in comparison to wire or bank transfers. Some often use cryptocurrency as a way to anonymously buy narcotics online, while others invest in Bitcoin on the volatile market, hoping to make a huge profit.

Living in Canada is perfect for those who want to buy or sell cryptocurrency - especially Bitcoin - since there are various ways to do it. Moreover, there are no regulatory hurdles. Considering that the Canadian dollar used to conduct everyday transactions possesses no intrinsic value beyond what is bestowed upon it by the government, the idea of electronic money starts to come together.

Canadians are quite knowledgeable about cryptocurrency, particularly Bitcoin, with many residents being aware of it. The only problem is how does one get started?

Exchanges

One option is to use a crypto trading platform, which allows for an easy and cheap way of buying and selling cryptocurrency. These providers frequently bring multiple exchanges together in order to get the best prices for their clientele.

Up to 99% of cryptocurrency trades occur on exchanges. Users can trade hundreds of cryptocurrencies. Among these digital currencies are stablecoins, which are coins that are pegged to fiat currencies. A large portion of these platforms accepts bank wires and e-transfers for withdrawal and funding, among other options. Additionally, a lot of Canadian Bitcoin services support Interac e-Transfer, thus making it painless to fund an exchange account for those with a Canadian bank account.

Two popular examples of these exchanges are CoinSmart and BitBuy.

CoinSmart

CoinSmart is among the numerous cryptocurrency exchanges in Canada that offer easy access to digital currencies and crypto trading utilizing CAD. It is Toronto-based and is one of a small number of crypto platforms that permits the buying and selling of bitcoin with a credit card. Along with conventional cryptocurrency trading, CoinSmart provides services in over-the-counter (OTC) trading for both institutional investors and large-volume traders.

The platform offers instant verification for new clients and provides a versatile system for beginners and pros alike. Additionally, it offers competitive trading fees, a referral program, and support that is available 24/7. Another benefit to using CoinSmart is the fact that deposits are credited on the same day it is received.

BitBuy

BitBuy is one of the leading cryptocurrency exchanges in Canada designed for Canadian residents and citizens. It was founded in 2013 with a goal to offer a quick, safe, and easy method of buying and selling cryptocurrencies. Nowadays, BitBuy has become a fully regulated exchange with supervision from Canadian federal authorities.

Top features of this platform include being able to directly trade six cryptocurrencies (BTC, ETH, LTC, XLM, BCH, and XRP) in CAD and BTC-based pairs, first-rate customer support service, and a cutting-edge trading platform, as well as OTC desk.

For the time being, its services are limited to the Canadian market. However, it aims to extend its business to foreign markets sometime in the future.

Peer-to-peer trading

If someone isn’t interested in using crypto exchanges, they can always seek out individuals and/or organizations that directly buy or sell digital currencies. They can purchase their crypto directly from other people on marketplaces and trade them for anything they want.

The process goes like this:

  • Complete the platform’s registration process.
  • Search for a person or organization interested in directly buying or selling crypto using the preferred exchange method (ex. bank transfer, PayPal, face-to-face meeting).
  • Check their status on the platform. Do not ever deal with untrustworthy accounts that either have negative reviews or no reviews.
  • If the account appears trustworthy enough, message each other and decide on the exchange method.
  • Properly follow the agreement and settle the deal.
  • Over-the-counter

    Over-the-counter trading takes place outside of exchanges, not unlike peer-to-peer trading. However, OTC trading primarily refers to brokers assisting high-net-worth clients in trading millions of dollars worth of crypto. Put simply, their trades are likely not registered on the public ledger, thus rendering them discreet. Notable OTC companies are Bitstocks, Circle Trade, and ItBit.

    In-person purchases

    With all of these options, some find that you can never go wrong with a good old-fashioned face-to-face meeting. Buying and/or selling cryptocurrency in person is a process that is similar to what peer-to-peer platforms do. The key difference is that, rather than making a wire transfer or paying in some other fashion, a meeting is arranged in which participating parties can trade cryptocurrencies for cash. Alternatively, any other payment option that they mutually agreed on.

    On the surface, face-to-face meetings sound a little strange. However, they are popular among those who prioritize their privacy and safety over everything else.

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