How to buy Bitcoin in Canada
There are a number of ways to buy Bitcoin in Canada. Bitcoin atm’s, peer to peer transactions, and cryptocurrency exchanges are just a few ways to buy cryptocurrency in Canada.
Even though there are several ways to buy or sell Bitcoin in Canada, the process is far from perfect. For instance most financial institutes will not allow an individual to use their funds to purchase cryptocurrency. Online forums are rampant with complaints of closed accounts due to cryptocurrency transactions. One would think that a person should be able to use their own funds as they please, however that’s not the case when it comes to Bitcoin transactions and banks.
Here’s a list of ways to purchase Bitcoin in Canada. This list is in random order.
1. Bitcoin Atm’s or BATM’s
In Canada these machines can be found in the most random of places from coffee shops to laundromats. Often hidden in a corner but certainly noticeable due to the look of the machine, which might look like a cross between a regular atm, a vending machine and an old school arcade game. Each machine is different from the way they are built to the way they are setup. Fees can be a lot different. Coin ATM Radar is a good site to use to look for BATM’s and their fees. A complete guide on Bitcoin ATM’s can be found here.
2. Cryptocurrency Exchanges
There are a few cryptocurrency exchanges in Canada. The most recognizeable being Coinsquare. Coinsquare allows users to fund an account via wire transfer, e-transfer and a few other methods. Typical funding times differ depending on which method is used.
There are several things that need to be considered before using an online exchange.
- Fees maybe hidden in depositing, withdrawals, and the spread.(Meaning the price of Bitcoin maybe significantly higher on one exchange or the other.) Exchanges often tout about having the lowest fees so be sure to get a break down of the fee structure
- Fraudulent or scam exchanges. Research needs to be done before using an exchange. Make sure to read reviews and possibly do some tests with funding and withdrawing smaller amounts. Fraud does not necessarily mean the exchange will take a users funds and disappear. There have been exchanges with withdrawal times that take weeks even though this isn’t written into their policy. Weeks in the cryptocurrency industry could mean a 90% loss of value.
- Also the amount of time it takes to set your account up needs to be noted. KYC/AML policies may take sometime and have funding and depositing rules associated with them. They may need to verifiy your identity which may take a week. Also an exchange may give limitations on the amount of funds that can be deposited or withdrawn for a specific period of time or limit account usage if some procedures aren’t met. This can also take several weeks.
3. Peer to Peer transaction sites like LocalBitcoins.
There are several sites that offer peer to peer transactions. The sites usually list buyers and sellers in an area and the associated contact details. Sometimes they list an online method of payment such as credit card or paypal. Local Bitcoins is probably the most known site for peer to peer transactions. Remember to make sure to check the account details of the buyer or seller. Using online payment methods could lead to fraud and meeting someone in person with cash could also be dangerous.
4. Buy Bitcoin with Credit Card
There are several sites that allow people to buy Bitcoin with credit card, paypal, or several different methods. Paxful is a company that offers such services to Canadians. A couple of other known companies are Changelly, and Coinmama. For the most part these sites are very user friendly and have good instructions. Cryptocurrency is received relatively quickly. These types of sites are good for purchasing smaller amounts of cryptocurrencies most of them claiming to be instant transactions. The caveat to purchasing Bitcoin using these online sites is that the fee is often quite high. The average being 10% or higher which is close to Bitcoin atm fees. However if fees aren’t an issue and getting the crypto right this second is these choices are great.
5. Bitcoin Retail Storefront Branches
There are only a handful of Bitcoin retail branches in the world. Our company Vancouver Bitcoin being one of them. This will be as unbiased as possible. We have personally tried every single method of buying and selling Bitcoin. Each one comes with its ups and downs. However some have more pros than cons. With Vancouver Bitcoin there are definitely more advantages.
The industry lacks trust. Whether if its purchasing, selling or even getting the right information can be daunting. Banks began going online not too long ago after building centuries of trust. Wealth management companies may have a website but the majority of wealth management and financial brokerages have a strong physical presence.
When making any larger transactions in life whether its purchasing a used vehicle, buying property, expensive jewelry or anything that someone deems to be a large transaction. The individual usually wants to either seek advice or see what they are getting into before purchasing something of high value. When purchasing Bitcoin the same mentality should be applied, especially when news headlines on a weekly basis have messages purporting to another Bitcoin exchange exit scam.
Vancouver Bitcoin has filled this gap. If your finances are important speak to a professional before purchasing Bitcoin. This is only one of the advantages of using Vancouver Bitcoin. Another advantage is even though we aren’t an onlilne platform our fees are better than most sites for purchasing with credit cards and are comparable to online exchanges. Our transactions are also quick. Someone can walk in the door and be out the door within a few minutes. If there is a lack of trust we welcome anyone to wait in our lobby until their cryptocurrency arrives. It eleviates cyber attacks on our end as our clients funds are controlled and held by the client and not on an online exchange.
Vancouver Bitcoin also does large OTC transactions for various indiviudals and businesses. We have a full services OTC desk available 24 hours. Our transactions are not limited to our branches. Many of our OTC clients are across the country in different cities.