How to Buy Cryptocurrency in Canada

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Canada has emerged as one of the most crypto-friendly countries in the world, with growing adoption, widespread infrastructure like Bitcoin ATMs, and clear regulatory guidance. With over 30% of Canadians planning to invest in digital assets, understanding how to buy cryptocurrency in Canada is more relevant than ever.

Whether you're interested in Bitcoin, Ethereum, Dogecoin, or altcoins like Solana and Binance Coin, this guide walks you through the legal framework, purchasing methods, storage options, and even where to spend your crypto—all tailored for Canadian residents.

Is It Legal to Buy Cryptocurrency in Canada?

Yes, buying and trading cryptocurrency is fully legal in Canada. While digital currencies are not considered legal tender, they are recognized as commodities by the Canada Revenue Agency (CRA). This means any gains from crypto transactions are subject to capital gains tax.

The CRA treats cryptocurrency similarly to property. Every time you sell, trade, or use crypto to purchase goods or services, it may trigger a taxable event. Additionally, the Ontario Securities Commission and other provincial regulators have issued guidelines to ensure investor protection and market integrity.

Canada’s proactive regulatory stance has created a secure environment for both retail and institutional investors—making it easier than ever to enter the crypto market with confidence.

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Do Canadian Banks Support Cryptocurrency Transactions?

Most major Canadian banks now support cryptocurrency transactions—though not directly. While banks don’t offer crypto trading on their platforms (with a few exceptions), they allow customers to transfer funds to regulated crypto exchanges via Interac e-Transfer, wire transfer, or debit card.

Banks such as RBC, Scotiabank, CIBC, National Bank of Canada, and Coast Capital permit these transfers without penalties, provided the exchange is compliant with federal regulations. However, using a credit card to buy crypto can result in high fees—many banks classify such purchases as cash advances, which come with elevated interest rates and additional charges.

One of the most visible signs of crypto integration in Canada is the widespread presence of Bitcoin ATMs. With over 2,600 machines nationwide—second only to the United States—Canadians can easily convert cash into Bitcoin and other digital currencies. Toronto leads the country with nearly 900 ATMs.

While convenient, Bitcoin ATMs often charge high service fees (sometimes 10–20%), so they’re best used for small, urgent purchases rather than long-term investing.

How to Buy Cryptocurrency in Canada: Two Main Methods

There are two primary ways to buy crypto in Canada: through a crypto broker or a crypto exchange. Each has its advantages depending on your experience level, investment goals, and need for control.

Option 1: Buy Crypto Through a Broker

Crypto brokers simplify the process for beginners by offering user-friendly platforms that resemble traditional stock trading apps. Popular Canadian brokers include Wealthsimple Crypto and Mogo.

Pros:

Cons:

Steps to Buy Crypto via a Broker:

  1. Create an Account: Sign up on the broker’s website or app using your email and phone number.
  2. Verify Identity: Upload government-issued ID (e.g., driver’s license) and complete a selfie verification.
  3. Deposit Funds: Add money using Interac e-Transfer, bank transfer, or debit/credit card.
  4. Buy Cryptocurrency: Choose your desired asset (e.g., BTC, ETH) and place an order.

Brokers are ideal if you want a hands-off approach and plan to hold crypto long-term.

Option 2: Buy Crypto on an Exchange

Exchanges offer more flexibility, lower fees, and access to a broader range of cryptocurrencies—including altcoins like Solana, Cardano, and Polkadot.

Top exchanges available in Canada include:

Steps to Buy Crypto on an Exchange:

  1. Choose an Exchange: Pick one that supports CAD trading pairs and complies with Canadian regulations.
  2. Sign Up & Verify: Register with your email and complete KYC (Know Your Customer) verification.
  3. Deposit CAD: Link your bank account or use Interac to fund your account.
  4. Place a Buy Order: Select your preferred cryptocurrency and execute a market or limit order.

Exchanges give you full control over your assets and support advanced features like staking, earning interest, and trading derivatives.

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How to Store Cryptocurrency Safely in Canada

Unlike traditional bank accounts insured by CDIC, crypto holdings aren’t protected against theft or loss. Therefore, secure storage is essential.

1. Storing Crypto on an Exchange

Leaving your crypto on an exchange offers convenience—especially if you plan to trade frequently or earn passive income through staking or liquidity farming.

Benefits:

Risks:

To reduce risk, use only regulated exchanges and enable two-factor authentication (2FA).

2. Using Crypto Wallets

A crypto wallet stores your private keys, which grant access to your digital assets on the blockchain.

Types of Wallets:

Never share your seed phrase—this 12- or 24-word recovery code can restore access to your wallet. If lost, your funds are irretrievable.

For optimal security, use a combination: keep small amounts in hot wallets for daily use and store the majority in cold storage.

Where Can You Spend Cryptocurrency in Canada?

While still limited compared to traditional payment methods, more Canadian businesses are accepting crypto every year.

Retailers That Accept Crypto:

Gift Cards & Prepaid Cards

Platforms like CoinGate and Coincards let you buy gift cards for Amazon, BestBuy, PlayStation, Air Canada, and more using BTC or other cryptocurrencies. These prepaid cards are reloadable and offer a practical way to spend digital assets.

A 2022 Capterra survey found that 62% of Canadians would consider being paid in crypto within five years—indicating strong future adoption potential.

Frequently Asked Questions (FAQ)

Is it safe to buy cryptocurrency in Canada?

Yes, as long as you use regulated exchanges or brokers that comply with Canadian securities laws. Always enable 2FA and avoid sharing private keys.

Can I buy Bitcoin with CAD?

Absolutely. All major exchanges support CAD-to-crypto trading pairs, allowing direct purchases using Canadian dollars via bank transfer or Interac.

Are there taxes on cryptocurrency in Canada?

Yes. The CRA treats crypto as a commodity. Capital gains tax applies when you sell, trade, or spend crypto that has increased in value.

What’s the cheapest way to buy crypto in Canada?

Using Interac e-Transfer on low-fee exchanges like Bitbuy or Kraken typically offers the lowest transaction costs compared to credit cards or Bitcoin ATMs.

Can I earn interest on my crypto in Canada?

Yes. Many platforms offer staking or yield programs where you can earn between 3%–8% APY on holdings like ETH, SOL, or stablecoins.

How do I protect my crypto from hackers?

Use strong passwords, enable 2FA, store most funds in cold wallets, and never disclose your seed phrase.

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Final Thoughts

Buying cryptocurrency in Canada is accessible, legal, and increasingly mainstream. With robust infrastructure—from thousands of Bitcoin ATMs to user-friendly exchanges—Canadians have multiple safe pathways into the digital asset ecosystem.

Whether you're a beginner using a broker like Wealthsimple or an experienced trader leveraging exchange platforms, the key is to stay informed, prioritize security, and understand the tax implications.

As adoption grows and more retailers begin accepting digital payments, now is an excellent time to explore what crypto can offer—both as an investment and a tool for financial innovation.