How to Buy Cryptocurrency in Canada
Buying cryptocurrency in Canada
Canada grants the use of cryptocurrencies, but there's a catch. Cryptocurrencies aren't considered as legal tender, meaning that Canada's tax laws and rules, with the Income Tax Act, can also be applied to cryptocurrency transactions. Furthermore, the Canada Revenue Agency defined cryptocurrency as more of a commodity and claimed that its use to purchase goods or service needs to be regarded as a barter transaction. Additionally, Canadian taxpayers are also responsible to pay a certain amount of tax on crypto. It can be taxed as capital gains or as income tax, which is dependent on whether or not the activity involving cryptocurrency is regarded as a business or not. Only 3.89 percent of Canadians had used Bitcoin in 2019, and the percentage of those who used Ethereum or Ether during the same year is even lower. This could be a result of these tax regulations regarding cryptocurrencies
As of 20/03/2021
Exchanges Info
These exchanges all accept customers from Canada. While they broadly offer the same services and you can buy cryptocurrency at all of them, there can be differences in transaction fees, security, verification requirements, deposit methods and features, as shown below
Bybit
Based in Singapore and registered in the British Virgin Islands, Bybit is a P2P cryptocurrency exchange offering perpetual futures products with 100:1 leverage. Bybit can process 100k transaction per second which is a great feature for leveraged trading.
- Advanced and secure technology
- Anonymous accounts
- Attractive trading bonuses
- Very low fees
- Limited asset coverage
- No option instruments
Kraken
Kraken has a good reputation for security and protection of your funds and operates across the USA (except NY), Canada, the EU and Japan
- It can be used to trade against fiat options
- Robust security measures
- Free SEPA deposits in Europe
- Not a very beginner-friendly interface.
- No card deposit options