Four Key Questions to Answer Before Buying Cryptocurrency in Canada

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Friday, March 19, 2021 / 02:05PM / Sponsored post by Globeex Marketing / Header Image Credit: Smart Asset



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It is fair to say that few economic forces have become a greater socio-economic phenomenon in recent years than cryptocurrency. Proponents see crypto as a once-in-a-lifetime economic revolution that will totally change the way we do business, purchase things, and view economics as a whole. As with so many new technology or social trends, however, newcomers are faced with a litany of questions. On the one hand, the "Crypto FOMO" is real, but on the other hand, you don't want to get scammed, either. Thankfully, the answers to these four questions can reveal how to buy Bitcoin in a way that's safe and gives you the best chance for successful returns on your investment.

 

1. What Is Bitcoin?

For those not in the know, cryptocurrency is digitally decentralized money and data exchange. It seeks to bypass banks and traditional means of financial exchange by processing transfers digitally. Bitcoin is, by far, the most popular form of cryptocurrency used today. There were roughly 46.1 million Bitcoin wallets in existence in February 2020, with 10.6 million active users.

Among the advantages Bitcoin espouses of its services are:

  • Increased freedom of payment
  • Secure transfers
  • ID protection
  • Information transparency

 

2. How Can I Legally Purchase Crypto in Canada?

In terms of actually figuring out how to buy Bitcoin in Canada, five methods in particular stand out:

  1. Online Exchanges: The easiest way to buy Bitcoin in Canada is probably through an online exchange. These sites typically allow users to purchase Bitcoin directly. You'll first need to choose a means of transferring the money. Bank wires, Flexepin, and credit card transfers are all valid options. To do this successfully, you will typically need to:
    1. Create an account
    2. Put in a request to fund your account with Canadian dollars
    3. Log into your bank and submit an electronic transfer request to the email provided by the service
    4. Confirm the transfer
  2. Bitcoin ATMs: This is an older way of buying Bitcoin, but it can still work just fine. It is also one of the best ways of keeping your Bitcoin purchase anonymous. That said, an ATM transfer will typically cost 6% to 8% more than other means. All that you need to do for this is locate one of the many Bitcoin ATMs in Canada and conduct your transaction.
  1. Peer-to-Peer Transfers: This is another older method and is basically just what it sounds like - finding someone who sells Bitcoins and buying from them directly.
  1. Over the Counter: This is essentially like Peer-to-Peer trading, but on a much larger scale. If you are looking to buy tens of thousands of dollars' worth of Bitcoin, this is probably the best option, since it often protects you from "slippage," the term for when Bitcoin transfers exceed the live quoted price, costing you more than initially planned.
  2. In Person: Yes, for as much as it bills itself as an online revolution, you can buy Bitcoin in person as well. As with any other means listed here, you'll need to find a qualified trader and go through essentially the same processes listed above.

 

3. How Should I Approach Buying Bitcoin?

When buying crypto in Canada or anywhere else, you need to make sure the dealer is completely trustworthy. While there are many exciting crypto possibilities and honest dealers out there, as in any field, there are also those who would take advantage of these opportunities for shameless exploitation or illegal activity. As such, you should always make sure that whatever dealer you choose is completely transparent. This is especially important when using Peer-to-Peer methods, as you need to be sure that the "peer" in question really is on the up and up.

 

You may also want to hunt around on Canadian cryptocurrency websites for suggestions on legitimate websites and dealers. The crypto community in Canada is quite enthusiastic. They genuinely believe in all that crypto and Bitcoin symbolize and want them to succeed. Both Bitcoin itself and its energetic community thus have a vested interest in helping new users find legitimate peers for Peer-to-Peer trading, avoid scams, and ensure that their introduction to the world of crypto is a positive one.

 

4. What Canadian Bitcoin Regulations Should I be Aware of?

As of June 1, 2020, Bitcoin is now officially regulated in Canada. Bitcoin sellers are now officially recognized as Money Services Businesses (MSBs), which means they need to be in compliance with Canadian financial regulations and register with FINTRAC, Canada's financial intelligence regulatory organization.

 

This also means that Bitcoin is subject to taxation, and recent years have seen the Canadian Parliament pass anti-money laundering measures targeted at cutting down on digital monetary fraud.

By following these steps, you can buy Bitcoin in Canada with confidence and ease.



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Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

Proshare Nigeria Pvt. Ltd.

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