How to Buy Bitcoin in Canada

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Adam Woodhead
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Adam Woodhead

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Adam is a Co-Founder and content creator for The Investors Centre. His key areas of interest and expertise are cryptocurrency and blockchain technology.

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Seasoned finance professional with 10+ years' experience. Chartered status holder. Proficient in CFDs, ISAs, and crypto investing. Passionate about helping others achieve financial goals.

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Updated 06/01/2025

Explore our carefully curated list of reputable Bitcoin exchanges, each rigorously tested with real funds. All exchanges are accessible to traders in Canada.

To Buy Bitcoin in Canada, You'll Need to:

To buy Bitcoin in Canada, start by choosing a trusted cryptocurrency exchange like Kraken or Coinbase. Register and verify your identity, deposit funds using popular methods like Interac e-Transfer or bank wires, and then purchase Bitcoin securely from your device.

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When I first started investing in Bitcoin, I was both intrigued and cautious. The concept of a digital currency that operates independently of banks and governments was captivating, but the market’s unpredictability was daunting.

To ease into it, I made a small initial investment to understand the process and get a feel for the market. Along the way, I learned valuable lessons about securing digital assets, keeping track of transactions, and the importance of staying updated on market developments.

Through this guide, I hope to share the insights I’ve gathered from my own experience, helping you embark on your Bitcoin investment journey with confidence and clarity.

This guide is tailored to provide a straightforward and practical approach to investing in Bitcoin in Canada.

How to Buy Bitcoin in Canada for Beginners – Quick Steps

  1. Select an Exchange
    Opt for reliable platforms like Kraken or Bitbuy, known for their strong security measures and competitive fees. 
  2. Register & Verify
    Create an account and complete KYC verification using an ID and proof of address, such as a utility bill or bank statement. 
  3. Deposit Funds
    Utilize Canadian-friendly payment methods like Interac e-Transfer or bank wires.
  4. Select and Buy Bitcoin (BTC)
    Execute a market or limit order to purchase Bitcoin. Review and confirm the transaction details. 
  5. Secure Your Bitcoin
    Transfer your Bitcoin to a secure wallet, such as a hardware wallet, to enhance protection against potential threats.
  6. Monitor Your Investment
    Track your holdings and stay informed about the market.

Step-by-Step Guide to Investing in Bitcoin in Canada

Step 1: Select a Reputable Exchange

creenshot of Kraken exchange interface showcasing trading platform features for cryptocurrency transactions.

How to Choose the Right Exchange

Selecting the right exchange is critical for safe and efficient Bitcoin investing. Here are the key factors to consider:

  • Security Measures:
    Look for exchanges that offer two-factor authentication (2FA), cold storage of funds, and robust encryption protocols to protect your assets.

  • Fees:
    Different exchanges have varying fees for transactions, deposits, and withdrawals. Research these fees carefully, as they can impact your profits.

  • User Experience:
    If you’re a beginner, choose platforms with simple interfaces, clear tutorials, and responsive customer support.

  • Regulatory Compliance:
    Ensure the exchange complies with Canadian regulations. Look for platforms registered with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) as they meet local standards for security and anti-money laundering (AML) procedures.

FeatureKrakenCoinbaseBitbuy
Ease of UseAdvanced interface, best for experienced traders.User-friendly, great for beginners.Simple and straightforward, tailored for Canadians.
FeesLow fees, 0.16% maker, 0.26% taker.1.49% transaction fee plus spread; additional fees for debit card.0.1% to 0.2% trading fees, deposit and withdrawal fees apply.
Funding OptionsBank transfer, crypto deposits, wire transfer.Bank transfer, debit/credit card, PayPal.Interac e-Transfer, bank wire, credit card.
Crypto Selection60+ cryptocurrencies.250+ cryptocurrencies.15+ major cryptocurrencies, focuses on major assets.
Security2FA, cold storage, SSL encryption.2FA, biometric logins, AES-256 encryption.2FA, SSL encryption, compliance with Canadian regulations.
Regulatory ComplianceComplies with FINTRAC regulations.Registered as a Money Services Business with FINTRAC.FINTRAC regulated, fully compliant with Canadian laws.

Why Kraken and Coinbase are a Great Option for Canadians

Kraken and Coinbase stand out due to their high market share and positive user reviews in Canada. They offer: 

  • Kraken offers comprehensive security measures and a wide range of cryptocurrencies. 
  • Coinbase is known for its intuitive interface, making it ideal for beginners. Plus, it’s one of the few exchanges that offer direct CAD deposits. 

Step 2: Register and Verify Your Account

How to Register and Verify on Kraken in Canada

After choosing your preferred exchange, you will need to register your account. For this guide we will be using Kraken as an example.

The registration process can be a bit daunting, but it’s a necessary step to ensure your investment is protected. 

  • Registration: Visit Kraken’s website and click on “Create Account.” Provide your email address, create a secure password, and agree to the platform’s terms of service.
  • KYC Verification: Complete the Know Your Customer (KYC) process by entering your full name, date of birth, and residential address. Upload a government-issued ID (such as a passport or driver’s license) and a proof of address (utility bill or bank statement).

The verification process typically takes a few hours, but it can vary based on demand. Verification ensures compliance with EU regulations and protects your account from fraud. Once verified, you’ll gain full access to Kraken’s features, including the ability to trade Bitcoin.

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Step 3: Deposit Funds into Your Exchange Account

How to Fund Your Kraken Account

With your Kraken account verified, you’re ready to deposit funds and start trading Bitcoin. Kraken supports several payment methods tailored to Canadian users:

  1. Interac e-Transfer:
    • Fees: Low to no fees.
    • Processing Time: 1–3 business days.
    • For smaller to medium deposits, offering speed and convenience with minimal costs.
  2. Bank Wire Transfer:
    • Fees: Varies by bank, generally higher than Interac.
    • Processing Time: 1–3 business days.
    • Larger deposits, as it is secure and cost-effective for significant amounts.
  3. Credit/Debit Cards:
    • Fees: Higher fees, approximately 1.5%.
    • Processing Time: Instant.
    • Quick deposits when immediate trading is desired, though it comes with higher costs.

Before initiating a deposit, double-check all payment details to prevent any delays or errors. Kraken’s user-friendly interface will guide you through each step of the funding process, from selecting your payment method to confirming your deposit. This ensures a smooth and efficient way to begin your investment journey on one of the leading platforms in the cryptocurrency market.

Screenshot of the Kraken signup process, showcasing the registration form for new users in Canada.

Step 4: Purchase Bitcoin

How to Buy Bitcoin on Kraken

Once your funds are successfully deposited into your Kraken account, you’re set to purchase Bitcoin. Here’s a step-by-step guide:

  1. Navigate to Bitcoin:

    On Kraken’s platform, go to the “Markets” section and select “Crypto.” Find Bitcoin (BTC) from the cryptocurrency list.

  2. Enter Purchase Details:

    Choose the amount you wish to invest in CAD, or specify the quantity of Bitcoin you want to buy.

  3. Order Type:

    • Buy Now (Market Order): This option allows you to purchase Bitcoin instantly at the current market price. It’s ideal for users who want to execute a trade quickly without waiting for a specific price.
    • Recurring Buy: If you’re planning to invest regularly or dollar-cost average your Bitcoin purchases, select the recurring buy option. You can set this up to automatically buy a fixed CAD amount of Bitcoin at regular intervals (e.g., weekly, bi-weekly, monthly).
  4. Confirm Purchase:

    Review all the transaction details carefully, including the total cost and any fees associated. Confirm the purchase by clicking “Buy BTC” or a similar button.

Screenshot of the Kraken platform showing how to add funds section, focused on Bitcoin transactions in Canada.

Step 5: Secure Your Bitcoin

How to Safeguard Your Bitcoin Investment

While Kraken provides secure cryptocurrency storage, moving your Bitcoin to a private wallet is advisable for enhanced long-term security. Consider these two types of wallets:

Hardware Wallets:

  • Examples: Ledger Nano X, Trezor Model T.
  • Security: Stores Bitcoin offline, safeguarding it from online threats and hacks.
  • Usage: Ideal for larger holdings or long-term investments due to their enhanced security features.

Software Wallets:

  • Examples: Exodus, Electrum.
  • Security: These wallets are stored on a computer or mobile device and are more convenient for active trading and smaller investments, though they are generally less secure than hardware wallets.

Steps to Transfer Bitcoin:

  1. Set Up Your Wallet:

    • Choose a wallet type and follow the setup instructions provided by the wallet. Ensure your private keys, which are your ownership credentials, are securely backed up in multiple locations.
  2. Initiate the Transfer from Kraken:

    • Log into your Kraken account and navigate to your Bitcoin balance.
    • Select “Withdraw” and then choose Bitcoin from the options available.
  3. Enter Your Wallet’s Public Address:

    • Carefully enter the public address of your private wallet into the designated field on Kraken. This address is what Kraken will use to send your Bitcoin to your private wallet.
    • Confirm the amount of Bitcoin you wish to transfer. Always double-check the address for accuracy to avoid irreversible errors.
  4. Authorize and Confirm the Transaction:

    • Complete any additional security verifications required by Kraken to authorize the transaction.
    • Confirm the transaction to initiate the transfer. The Bitcoin will then be sent from Kraken to your private wallet.

By moving your Bitcoin to a private wallet, you gain control over your digital assets and significantly reduce the risk of losing them to online attacks or exchange breaches.

Screenshot of the Kraken platform showing how to add funds section, focused on Bitcoin transactions in Canada.

Step 6: Monitor and Manage Your Investment

How to Track Your Bitcoin Portfolio

Monitoring your Bitcoin investment is essential for making informed trading decisions. Kraken provides a suite of tools to help you effectively manage and track your portfolio:

  1. Portfolio Dashboard:
    Track your Bitcoin holdings and the performance of your overall portfolio in real time on Kraken’s dashboard. This feature allows you to view your asset distribution and historical performance data.
  2. Price Alerts:
    Configure notifications for significant price movements within the Kraken platform. This tool is invaluable in the volatile cryptocurrency market, helping you react promptly to market changes.
  3. Market News and Analysis:
    Kraken offers updates on Bitcoin trends and regulatory changes in Canada, as well as global cryptocurrency news. Keeping abreast of these updates can guide your investment decisions.
  4. Additional Tools:
    For a broader market perspective, consider using comprehensive cryptocurrency tracking apps like CoinMarketCap or CoinGecko. These platforms offer in-depth market data, including price charts, market cap, trading volumes, and coin information, providing a more granular view of market trends.

Understanding Bitcoin

What is Bitcoin?

Bitcoin is a revolutionary digital currency that operates independently of any central authority, like a government or bank. It’s completely decentralized, allowing transactions to occur directly between users via a peer-to-peer network. This provides Canadian investors with the chance to engage in a global financial ecosystem without traditional intermediaries.

Bitcoin exists solely in digital form, unlike traditional currencies like Canadian dollars. Every transaction is transparently recorded on the blockchain, a secure and tamper-proof public ledger. This foundation ensures that Bitcoin remains secure and trustworthy, with each transaction being fully verifiable.

The use of cryptographic principles is central to Bitcoin, which is why it’s termed a cryptocurrency. It employs complex mathematics and computer science to secure transactions and control the creation of new Bitcoins, offering a robust and innovative financial instrument for investors.

How Does Blockchain Technology Work in Simple Terms?

Blockchain is the underlying technology of Bitcoin. It works like a digital ledger that records all transactions across a network of computers. Rather than having a single point of control, this ledger is distributed, ensuring that each transaction is verified by consensus among multiple nodes. This makes tampering or fraud extremely difficult. 

Here’s how it works:

  1. Transactions Are Grouped Into Blocks: When you send or receive Bitcoin, the details of the transaction are bundled with others into a “block.”
  2. Blocks Are Linked in a Chain: These blocks are added to a chronological chain of past transactions, creating a permanent and unchangeable record.
  3. Decentralization Ensures Trust: Instead of relying on a single entity, Bitcoin’s blockchain is maintained by thousands of participants worldwide. Each has a copy of the blockchain, ensuring accuracy and transparency.

For Canadian investors, blockchain’s decentralized nature offers reassurance against fraud and censorship, as no single authority can manipulate or shut down the network.

Why Is Bitcoin Changing the Financial Landscape?

Bitcoin is reshaping the financial landscape by offering an alternative to traditional banking and fiat currencies. In Canada, where financial inclusivity and innovation are highly valued, Bitcoin opens up possibilities for those without access to standard banking services and those looking for alternatives to the Canadian dollar. 

  • Limited Supply: Only 21 million Bitcoins will ever exist, making it a scarce asset akin to digital gold. This scarcity could increase its value over time.
  • Decentralization: Bitcoin’s independence from governments and banks provides a hedge against inflation and economic instability, particularly appealing in uncertain financial climates.
  • Privacy Features: While not entirely anonymous, Bitcoin allows users to transact without disclosing personal information, offering a level of privacy not available in traditional finance.

 

For Canadian users, Bitcoin represents a way to diversify investments and participate in a new era of global finance.

Is Bitcoin a Good Investment?

What Makes Bitcoin an Attractive Investment?

Bitcoin has been described as “digital gold,” and for good reason. Its finite supply and decentralized nature make it a unique asset with strong potential for long-term growth. Many Canadian investors see Bitcoin as a hedge against inflation and a way to diversify portfolios beyond traditional assets like stocks and bonds.

The entry of institutional investors, such as major corporations and hedge funds, into the Bitcoin market has lent credibility to its value proposition. This growing adoption could lead to greater stability and long-term appreciation.

Is Bitcoin a Smart Investment for Canadians?

Bitcoin offers a unique investment opportunity, particularly in an economically stable country like Canada. Here are some detailed insights into why it could be a smart choice: 

  1. Diversification: Bitcoin offers a non-correlated asset class that can help manage risk and serve as a hedge against inflation, due to its limited supply.
  2. High Liquidity: As one of the most liquid investment assets, Bitcoin is easily tradable at any time through numerous platforms and exchanges in Canada.
  3. Supportive Regulatory Environment: Canada’s clear regulations and progressive policies foster a safe and legal environment for cryptocurrency investments.
  4. Technological Adoption: Canadians’ readiness to adopt new technologies, combined with a supportive community and innovations in blockchain, make Bitcoin a viable investment.
  5. Potential for Appreciation: Bitcoin has historically shown significant growth, with ongoing adoption suggesting further potential for value increase.

What Are the Risks of Investing in Bitcoin?

While Bitcoin offers enticing opportunities, it comes with its fair share of risks:

  • Volatility: Bitcoin’s price can swing dramatically within short periods. For instance, you might see a 10% gain one day and a 15% drop the next.
  • Regulatory Uncertainty: Governments worldwide are still formulating cryptocurrency regulations, and future policies could impact Bitcoin’s accessibility or value.
  • Security Concerns: If not stored properly, Bitcoin can be susceptible to hacks or theft. Using secure wallets is essential for protecting your investment.

Canadian investors should approach Bitcoin cautiously, balancing its high potential rewards with its inherent risks.

What’s the Long-Term Outlook for Bitcoin?

The long-term prospects of Bitcoin depend on its continued adoption and ability to overcome challenges like regulatory scrutiny and technological competition. Many experts believe that Bitcoin could solidify its status as a reliable store of value, much like gold, while also serving as a global digital currency.

For those in Canada considering Bitcoin, it’s wise to view it as part of a diversified portfolio. By starting with a modest investment and maintaining a long-term perspective, you can navigate its volatility while maximizing its potential.

Bitcoin vs Altcoins

Investigating the world of cryptocurrencies, Bitcoin was my initial focus, but soon I delved into altcoins like Ethereum, Ripple, and Litecoin. Here’s how they compare: 

  • Ethereum: Beyond just a currency, Ethereum supports smart contracts and decentralized applications, offering broader utility. 
  • Ripple: Primarily used by banks for rapid international money transfers, which could influence its adoption rates significantly. 
  • Litecoin: Created as the “silver” to Bitcoin’s “gold,” it provides faster transaction times and is often used for smaller transactions. 

This exploration into altcoins has helped me appreciate Bitcoin’s position as the original cryptocurrency, setting a benchmark in security and market value, despite the advantages others might offer. 

Final Thoughts on Investing in Bitcoin in Canada

Investing in Bitcoin in Canada has been both challenging and rewarding. Through the highs and lows, I’ve gained a deep understanding of not just the financial aspects but also the regulatory environment in Canada which continues to evolve. Here’s my concluding advice for fellow Canadians: 

  • Stay Informed: The cryptocurrency landscape changes rapidly. Keeping up-to-date with regulations and market dynamics is essential. 
  • Diversify: While Bitcoin might be a significant part of your portfolio, consider diversifying with other cryptocurrencies and traditional investments. 
  • Be Patient: Cryptocurrency markets are volatile. A long-term perspective is crucial for weathering the storms and achieving potential gains. 

FAQs

Yes, Bitcoin is legal in Canada. However, it is regulated as a commodity by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

You can buy Bitcoin through several trusted exchanges like Kraken, Coinbase, and local Canadian platforms such as Bitbuy and Coinberry.

Bitcoin is subject to capital gains tax in Canada. If you sell Bitcoin for a profit, you need to declare it on your income tax return.

Yes, several retailers in Canada accept Bitcoin. However, it’s more commonly used as an investment asset rather than a regular currency.

Using hardware wallets for large amounts and enabling two-factor authentication on your digital wallets are the best practices.

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