Bitcoin is a popular investment and a digital currency in Canada. However, for those new to the cryptocurrency space, selecting a reliable platform to buy Bitcoin can be confusing.
There are numerous exchanges available, each offering different features, fees, and security measures - how do you know which one is right for your needs?
This guide will explore the best places to buy Bitcoin in Canada, and what to do with your Bitcoin once you’ve bought it.
The 5 Best Places to Buy Bitcoin in Canada
Here are the top six platforms for buying Bitcoin in Canada, each offering unique features to cater to different needs.
1. ShakePay
ShakePay offers a straightforward platform with no deposit or withdrawal fees. It supports instant Interac e-Transfers, making it convenient for quick transactions. However, the platform only supports Bitcoin and Ethereum, limiting your cryptocurrency options.
Best For: Beginners looking for a simple, fee-free way to buy Bitcoin.
Pros:
- No fees for deposits or withdrawals
- Instant e-Transfers available
- User-friendly mobile app
Cons:
- Limited to Bitcoin and Ethereum
2. Coinbase
Coinbase is one of the most popular exchanges globally, known for its user-friendly interface and strong security measures. It offers a wide variety of cryptocurrencies and provides insurance on digital assets stored online. However, its fees are higher than many other platforms.
Best For: Users who want access to a broad range of cryptocurrencies and are willing to pay higher fees for enhanced security.
Pros:
- Supports a wide range of cryptocurrencies
- High security with insurance on deposits
- Easy-to-use interface
Cons:
- Higher fees compared to other platforms
3. Bitbuy
Bitbuy is a Canadian exchange that offers both basic and advanced trading options. It provides high liquidity, making it easier to buy and sell large amounts of Bitcoin quickly. The platform’s fees are competitive, especially for high-volume trades.
Best For: Canadians looking for a local exchange with competitive fees and high liquidity.
Pros:
- Competitive fees
- High liquidity
- Advanced trading tools available
Cons:
- Limited cryptocurrency options
4. CoinSmart
CoinSmart is a beginner-friendly platform that offers fast verification and multiple payment methods, including credit cards and bank transfers. It has low minimum deposits, making it accessible to new crypto holders.
Best For: First-time Bitcoin buyers who want a quick and easy onboarding process.
Pros:
- Low minimum deposits
- Fast verification process
- Multiple payment options
Cons:
- Smaller selection of cryptocurrencies
CoinSmart is a beginner-friendly platform that offers fast verification and multiple payment methods, including credit cards and bank transfers. It has low minimum deposits, making it accessible to new crypto holders.
Best For: First-time Bitcoin buyers who want a quick and easy onboarding process.
5. Coinsquare
Coinsquare is one of Canada’s largest exchanges, offering a wide range of cryptocurrencies and advanced trading options. The platform is known for its high security and regulatory compliance but tends to charge higher fees for small transactions.
Best For: Experienced traders who need advanced tools and are dealing with larger transactions.
Pros:
- Supports a variety of cryptocurrencies
- Advanced trading features available
- High security standards
Cons:
- Higher fees for smaller transactions
Is Bitcoin Legal in Canada?
Yes, Bitcoin is legal in Canada. The Canadian government recognizes Bitcoin and other cryptocurrencies as legal assets, though they are not considered legal tender. You can buy, sell, and use Bitcoin within Canada, subject to regulations.
The Canada Revenue Agency (CRA) treats Bitcoin as a commodity for tax purposes, meaning transactions involving Bitcoin are subject to capital gains tax.
Read more: Is it too late to buy Bitcoin? Ledn Experts review
How to Choose the Best Bitcoin Exchange in Canada
When selecting a Bitcoin exchange in Canada, consider the following criteria:
Security Features
Security is key when dealing with cryptocurrencies. Look for exchanges that offer two-factor authentication (2FA), cold storage for the majority of user funds, and insurance against theft or hacking. Verify that the platform complies with Canadian regulations and implements rigorous security protocols.
Fees on Bitcoin Exchanges
Examine the fee structure of each exchange. Fees can include trading fees, deposit and withdrawal fees, and spreads between buy and sell prices. Some exchanges offer lower fees for high-volume traders, while others might charge more for additional services like quick withdrawals.
User Experience and Interface
A user-friendly interface is helpful, especially for beginners. The exchange should offer an intuitive design, easy navigation, and a seamless buying process. A mobile app can also be useful for managing your investments on the go.
Available Payment Methods
Consider the payment methods offered by the exchange. Common options include bank transfers, credit/debit cards, and Interac e-Transfers. Some exchanges also accept PayPal or other e-wallets. The availability of multiple payment methods provides flexibility and convenience.
Customer Support
Reliable customer support is crucial in case you encounter any issues with your transactions. Look for exchanges with responsive customer service, available through multiple channels such as email, chat, or phone. Reviews and user feedback can provide insight into the quality of support.
Read more: Bitcoin Price Predictions for 2025
How to Safely Store Your Bitcoin in Canada
Once you buy your Bitcoin, you'll need to store it securely. There are a few options for storing Bitcoin, including:
1. Take out a Bitcoin Loan
A Bitcoin loan allows you to use your Bitcoin as collateral to secure a cash loan without selling your cryptocurrency. This enables you to access cash while still benefiting from potential future price increases of Bitcoin.
Read more: Pros and Cons of Bitcoin Loans
The process involves locking up your Bitcoin with a lending platform, which issues the loan in cash or another cryptocurrency. Loan terms, including interest rates and repayment schedules, are agreed upon beforehand. If you default on the loan, the lender can sell the collateral to recover the funds.
This option is ideal if you want to keep your Bitcoin while accessing liquid capital.
Read more: The Ultimate Guide to Crypto Lending - Everything You Need To Know
Why Ledn?
Ledn's Bitcoin loans come with competitive interest rates, strong security, and fast disbursement. With interest rates currently starting at 12.4% annually (14.4% APR), Ledn provides a trustworthy and efficient way for Bitcoin holders to leverage their assets without selling.
The platform’s blend of security, affordability, and transparency makes it a top choice for Bitcoin-backed loans. Ledn processed $690 million in loans in Q1 2024.
Ledn uses robust security measures, including two-factor authentication, AES-256 encryption, and secure storage by BitGo. As a registered Virtual Asset Service Provider in the Cayman Islands, it adds an extra layer of trust.
The platform offers a user-friendly interface with no minimum balance or hidden fees, making it accessible for all crypto holders. Its mobile app allows for easy account management on the go.
Please note, Ledn is currently unable to offer loans in Quebec, New Brunswick, Nova Scotia, and Saskatchewan. This will change when there are clearer regulations around digital asset lending.
Read more: Best Crypto Loans in Canada
2. Multi-Signature Wallets
Multi-signature (or multisig) wallets require multiple private keys to authorize a Bitcoin transaction. This setup adds an extra layer of security by distributing the control of your Bitcoin across multiple parties.
Even if one key is compromised, a hacker cannot move your Bitcoin without access to the other keys. This is particularly useful for joint accounts or businesses.
3. Custodial Services
Custodial services store your Bitcoin on your behalf, offering professional management and security. These services are often provided by exchanges or specialized custodians.
Examples: Coinbase Custody, Gemini Custody.
4. Cold Storage Solutions
Cold storage involves keeping your Bitcoin completely offline, which could be done using hardware wallets, paper wallets, or even more advanced methods like air-gapped computers.
This offers the highest level of security as your private keys are never exposed to the internet, making it almost impossible for hackers to access your funds.
5. Decentralized Finance (DeFi) Platforms
DeFi platforms allow you to lend your Bitcoin and earn interest within decentralized protocols. These platforms operate on blockchain technology, enabling peer-to-peer lending without the need for traditional financial intermediaries.
Popular platforms include Aave and Compound, where you can deposit Bitcoin into liquidity pools and earn interest paid by borrowers.
DeFi platforms offer the advantage of maintaining full control over your assets, as funds are managed through smart contracts rather than centralized institutions. Additionally, you can earn passive income on your Bitcoin holdings while benefiting from the transparency and security provided by blockchain technology.
Tips for First-Time Bitcoin Buyers in Canada
When buying Bitcoin for the first time, keep these tips in mind:
Use Reputable Exchanges
Stick to well-known, regulated exchanges to ensure the safety of your transactions and funds.
Enable Two-Factor Authentication (2FA)
Always enable 2FA on your exchange account to add an extra layer of security.
Understand the Fees Involved
Be aware of all fees associated with buying, selling, and withdrawing Bitcoin to avoid unexpected costs.
Beware of Scams and Phishing Attacks
Never share your private keys or recovery phrases. Be cautious of emails or websites asking for personal information.
Conclusion
Choosing the right platform to buy Bitcoin in Canada depends on your attitude towards security, fees, and available features. Whether you are a beginner or an experienced trader, the exchanges listed in this guide offer a range of options to suit you.
If you’ve bought your Bitcoin and want access to cash while still benefiting from potential future price increases, open an account with Ledn.
Disclaimer
This article is sponsored by 21 Technologies Inc. and/or its subsidiaries (“Ledn”) and is for general information, discussion, or educational purposes only and is not to be construed or relied upon as constituting legal, financial, investment, accounting, tax, estate-planning, or other professional advice or recommendation. The use of brand names and/or any mention or listing of specific commercial products or services herein does not imply endorsement by Ledn. Please read Ledn’s full Risk Disclosure Statement and Disclaimers.
