How to Buy Cryptocurrency in Canada 2025

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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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Thomas Drury

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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 10/01/2025

Discover our handpicked selection of trusted cryptocurrency exchanges, each thoroughly tested with real transactions. All platforms are optimised for Canadian users and support CAD deposits.

To Buy Cryptocurrency in Canada, Here’s What You Need to Do:

Buying cryptocurrency in Canada involves a few critical steps: choosing a platform, registering, verifying your identity, depositing funds, and securing your assets. In this guide, I’ll walk you through each step, sharing my personal experiences and insights to help you avoid common pitfalls.

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When I first ventured into cryptocurrency, I was equally fascinated and cautious. The idea of a decentralised currency operating outside the control of banks or governments was revolutionary, but the market’s volatility was undeniably intimidating.

To start, I invested a modest amount in Bitcoin to familiarise myself with the process and learn how the market behaved. Through trial and error, I gained crucial insights into securing my digital assets, tracking transactions meticulously, and staying informed about market trends and developments.

With this guide, my aim is to share the practical lessons I’ve learned, enabling you to begin your cryptocurrency investment journey with confidence and a solid foundation. Whether you’re curious about Bitcoin or the broader world of cryptocurrencies, this guide is designed to provide clear and actionable advice tailored to the Canadian market.

A Step-by-Step Overview on Investing in Crypto in Canada

  1. Choose a secure exchange: Select a platform that supports Canadian users and CAD deposits.
  2. Register your account: Sign up using your email and personal details.
  3. Verify your identity: Complete the KYC process by uploading your ID and proof of address.
  4. Deposit funds: Add CAD to your account using methods like Interac e-Transfer or bank transfer.
  5. Place your first order: Choose a cryptocurrency, specify the amount, and confirm your purchase.
  6. Secure your assets: Transfer your crypto to a private wallet for enhanced security.

Step 1: Choose a Cryptocurrency Exchange

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

How to Choose the Right Exchange

Selecting the right platform is essential for secure and smooth cryptocurrency investing. Keep these factors in mind:

Security Features:
Choose exchanges that offer two-factor authentication (2FA), offline cold storage, and strong encryption to protect your funds from cyber threats.

Transaction Costs:
Look closely at trading, deposit, and withdrawal fees, as these can affect your investment returns over time.

Ease of Use:
If you’re new to crypto, opt for exchanges with intuitive interfaces, helpful guides, and reliable customer support to get started with confidence.

Legal Compliance:
Verify that the exchange complies with Canadian regulations and is registered with FINTRAC, ensuring it meets standards for security and anti-money laundering (AML).

Below, I’ll discuss three standout platforms for Canadians, but you can find a more comprehensive comparison of these exchages here: Best Crypto Exchanges for Canadian.

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.

Choosing the Best Exchange for You

  • Kraken: Best for advanced users who want low fees and a variety of cryptocurrencies.
  • Coinbase: Ideal for beginners seeking simplicity, but higher fees.
  • Bitbuy: Perfect for Canadians prioritising local support and easy CAD transactions.

 

Step 2: Register and Verify Your Identity

How to Register and Verify on Kraken in Canada

Once you’ve chosen your preferred exchange, the next step is registering your account. Using Kraken as an example, here’s a simple guide to help you navigate the process.

The registration and verification steps might feel overwhelming at first, but they’re essential for safeguarding your investments and complying with Canadian regulations.

Registration Process

  1. Visit Kraken’s website and click on “Sign Up”.
  2. Enter your email address, create a strong password, and agree to Kraken’s terms and conditions.
  3. Confirm your email to activate your account.

KYC Verification

To complete the Know Your Customer (KYC) process:

  • Provide your full name, date of birth, and residential address.
  • Upload a government-issued ID (e.g., passport or driver’s licence) and a proof of address (utility bill or bank statement).

Verification usually takes a few hours, although this may vary depending on demand. Once verified, you’ll have full access to Kraken’s features, including trading a wide range of cryptocurrencies.

This process not only protects your account from unauthorised access but also ensures compliance with FINTRAC and other Canadian regulatory requirements.

 

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Why Is KYC Verification Necessary in Canada?

KYC, or Know Your Customer, is mandatory in Canada to comply with federal regulations like FINTRAC (Financial Transactions and Reports Analysis Centre). It ensures exchanges verify user identities to prevent fraud, money laundering, and terrorism financing. While it might feel like a hassle, KYC ultimately safeguards both users and the crypto market. Personally, I’ve found it reassuring that Canadian exchanges prioritise compliance and security.

Step 3: Deposit Funds into Your Account

How to Fund Your Kraken Account

Once verified, the next step is funding your account with Canadian dollars (CAD). Look for deposit methods that are fast, affordable, and reliable. From my experience, Interac e-Transfers are the easiest option for Canadians, but fees and times vary by platform.

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.

What Are the Best Ways to Deposit CAD?

Most Canadian exchanges support these deposit methods:

  • Interac e-Transfer: Quick and widely accepted; ideal for smaller amounts.
  • Bank Wire Transfer: Best for large deposits but slower (1–3 days).
  • Credit/Debit Cards: Convenient but may have higher fees.
  • Cryptocurrency Transfers: If you already own crypto, deposit directly to your wallet.

I usually opt for Interac e-Transfer due to its speed and simplicity.

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

Step 4: Placing Your First Order

Buying your first cryptocurrency can feel daunting, but it’s simpler than it seems. Platforms like Coinbase guide you through it, while Kraken offers more advanced tools. Start small to build confidence and avoid costly mistakes.

How Do You Place a Buy Order on Canadian Platforms?

  1. Select your coin: Choose the cryptocurrency you want to buy (e.g., Bitcoin).
  2. Enter the amount: Specify how much you want to invest (in CAD or crypto).
  3. Pick an order type: Market orders execute instantly; limit orders wait for your price.
  4. Confirm the purchase: Review and complete your transaction.

 

On Kraken, my first purchase took under 5 minutes, thanks to its intuitive interface.

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

 

What’s the Difference Between Market and Limit Orders?

  • Market Order: Buys crypto instantly at the current price. Ideal for beginners but may have higher costs due to price slippage.
  • Limit Order: Sets a specific price for your purchase. Useful for advanced traders seeking better control.

I started with market orders to keep things simple, but now I prefer limit orders for better pricing during volatile markets.

Step 5: Securing Your Investment in a Crypto Wallet

Should You Store Your Crypto on an Exchange or in a Wallet?

Storing crypto on an exchange is convenient but risky due to potential hacks and platform failures. A private wallet ensures your assets are under your control, safeguarding them against external threats.

I keep a small amount on exchanges for quick trades but store the bulk of my crypto in a hardware wallet for added security.

What Are the Pros and Cons of Keeping Crypto on an Exchange?

Keeping Crypto on an Exchange

Pros:

    • Convenient for frequent trading.
    • Beginner-friendly; no need to manage private keys.

Cons:

    • Vulnerable to hacks and outages.
    • No full control over your funds since the platform holds your private keys.

Using a Private Wallet

Pros:

    • Provides full control and ownership of your assets.
    • Enhanced security, reducing risks of hacks or exchange failures.

Cons:

    • Requires setup and understanding of wallet usage.
    • Less convenient for regular trading due to additional steps for deposits and withdrawals.

 

The choice depends on your needs. If you’re actively trading, an exchange might be more practical. For long-term storage and higher security, a private wallet is the better option.

How Do You Transfer Crypto to a Private Wallet?

  1. Set Up Your Wallet:

    • Choose the type of wallet that fits your needs: hardware (for long-term storage) or software (for active trading).
    • Follow the wallet’s setup instructions to create your account.
    • Securely back up your private keys in multiple safe locations to protect your access.
  2. Initiate the Transfer from Kraken:

    • Log into your Kraken account and navigate to your cryptocurrency balance.
    • Click on “Withdraw” and select Cryptocurrency from the available withdrawal options.
  3. Enter Your Wallet’s Public Address:

    • Copy your wallet’s public address and paste it into the designated field on Kraken.
    • Double-check the address to avoid errors, as mistakes can result in permanent loss of funds.
    • Specify the amount of Cryptocurrency 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.
    • Confirm the transaction, and Kraken will initiate the transfer.
    • Your Cryptocurrency will arrive in your private wallet once the blockchain processes the transaction.

By moving your Cryptocurrency 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.

Step 6: Monitor and Manage Your Investment

How to Track Your Cryptocurrency Portfolio

Keeping a close eye on your cryptocurrency portfolio is crucial for making informed decisions in this dynamic market. Here are some tools and strategies to help you monitor your investments effectively:

Portfolio Dashboard

Kraken offers a comprehensive portfolio dashboard that allows you to track your Bitcoin holdings and the performance of your overall portfolio in real time. This feature lets you view your asset distribution and analyse historical performance data. It’s especially useful for understanding your portfolio’s growth over time and identifying areas for improvement.

Price Alerts

Kraken’s price alert system allows you to set up custom notifications for significant price movements. This helps you react quickly to market changes in the volatile cryptocurrency space. Price alerts are invaluable for catching opportunities and avoiding losses during sudden market swings.

Market News and Analysis

Staying informed about market developments is essential. Kraken provides updates on Bitcoin trends and regulatory changes in Canada, as well as insights into global cryptocurrency news. These updates help you stay ahead of market movements and adjust your investments based on the latest insights.

Additional Tools for Tracking

For a broader market perspective, apps like CoinMarketCap and CoinGecko provide detailed price charts, market cap data, trading volumes, and token rankings. These platforms complement Kraken’s tools by offering a granular view of the market, making it easier to track trends and discover new opportunities.

By combining Kraken’s portfolio management tools with external tracking platforms, you can confidently monitor your cryptocurrency investments and stay on top of market changes. Let me know if you’d like to dive deeper into any of these tools!

Choosing Which Cryptocurrency to Buy in Canada?

Choosing the right cryptocurrency depends on your goals and risk tolerance.

  • Bitcoin (BTC): A secure store of value, great for long-term investments.
  • Ethereum (ETH): Known for its smart contracts and growing ecosystem.
  • Altcoins: Coins like Solana or Cardano offer high growth potential but come with higher risks.

I started with Bitcoin for its stability, then diversified into Ethereum and smaller altcoins after learning more about the market.

What Are the Most Popular Cryptocurrencies Among Canadians?

Canadians often favour these cryptocurrencies:

  • Bitcoin (BTC): The most popular choice due to its reliability and wide acceptance.
  • Ethereum (ETH): A close second, thanks to its innovative blockchain capabilities.
  • Stablecoins: Such as USDC, popular for reducing volatility when trading.
  • Altcoins: Coins like Solana and Polkadot attract investors seeking higher returns.

Personally, I’ve found Bitcoin and Ethereum to be the best mix of stability and growth, while altcoins add excitement to my portfolio.

What Is Cryptocurrency and How Does It Work?

Cryptocurrency is digital money secured by cryptography, allowing peer-to-peer transactions without intermediaries like banks. It operates on blockchain technology, a decentralised ledger recording transactions.

When I first learned about Bitcoin, I was intrigued by how it combined financial independence with security. Now, cryptocurrencies are a global phenomenon, used for investments, payments, and even contracts.

What Are the Key Features of Cryptocurrency?

  1. Decentralisation: No single authority controls it.
  2. Transparency: Blockchain technology records all transactions publicly.
  3. Security: Cryptography ensures safe and immutable transactions.
  4. Global Accessibility: Send and receive crypto worldwide, 24/7.

These features make cryptocurrencies revolutionary and a valuable part of modern finance.

What Should You Consider Before Investing in Cryptocurrency in Canada?

Before investing, consider these key points:

  • Research: Understand the coin, its purpose, and potential risks.
  • Budget: Only invest what you can afford to lose, as crypto is highly volatile.
  • Security: Use reputable exchanges and secure your assets in a wallet.
  • Taxes: Canadian residents must report crypto gains to the CRA.

I made the mistake of diving into altcoins without proper research early on. Now, I always prioritise understanding a coin’s fundamentals before investing.

Final Thoughts on Investing in Crypto in Canada

Investing in cryptocurrency 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 currencies such as 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, buying cryptocurrency is legal in Canada. Exchanges must comply with federal regulations like FINTRAC, ensuring safe and lawful transactions. Canadians can use authorised platforms to buy, sell, and trade cryptocurrencies without legal concerns.

The best platforms for Canadians are Kraken for low fees, Coinbase for beginners, and Bitbuy for CAD-friendly deposits. These exchanges offer excellent security, ease of use, and compliance with Canadian laws, making them top choices.

Yes, cryptocurrency transactions are taxable in Canada. Gains from selling, trading, or spending crypto must be reported as capital gains or business income to the CRA. Keep detailed records of all transactions for accurate tax reporting.

The safest way to store crypto is in a cold wallet, such as a hardware device. Cold wallets keep assets offline, protecting them from hacks. Hot wallets are convenient but less secure for long-term storage.

You can start with as little as $10–$20. Many exchanges have low minimums, allowing you to buy fractional amounts of cryptocurrencies like Bitcoin. Start small, learn the process, and gradually increase your investment as you gain confidence.

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