If you’re new to crypto investing, you’ve likely come across perplexing terms and numbers leaving you unsure if you’d like to continue. It can feel like the more you try to understand, the more confusing it gets.
Have no fear—this guide is for you! It breaks down crypto basics and how to buy crypto in Canada so anyone can understand and get started.
The basics of buying crypto in Canada
As a new investor in this exciting space of crypto assets, you likely have plenty of questions about how to get started buying crypto, where to buy it, what to do with it after, and so on. Let’s get started by answering some of these beginner questions.
What do you need to buy crypto in Canada?
When setting up an account with a crypto exchange or crypto trading platform, you’ll need to verify your identity, and this info is commonly referred to as “KYC info”. KYC stands for “know your customer”, and companies in Canada are required to collect KYC info before they can allow you to buy crypto.
The requirements may vary depending on the exchange you use, but as a rule of thumb, you should have:
A valid form of Canadian ID, either a driver’s license, passport, government-issued identification card, etc.
A Canadian bank account, or another form of payment to fund your crypto trading account
A cell phone for two-factor authentication
A secure internet connection
Once you have the required necessities, you’re ready to start the crypto buying process.
What Canadian banks allow you to buy cryptocurrency?
Many Canadian banks allow you to transfer money to crypto exchanges, but many do not allow their credit cards to purchase crypto — only debit cards, wire transfers, or through Interac e-transfer. Note that each bank has its own set of rules, so it is possible to find different policies regarding crypto purchases at different banks. If you’re unsure of this part, you may want to search for answers online or contact your bank directly before attempting to transfer money to a crypto exchange to avoid hassles like getting your etransfer or wire transfer blocked.
How to buy cryptocurrency in Canada
Buying cryptocurrency in Canada isn’t much different from buying your favorite products online. For most online purchases, you set up a store account, search for your product, pick the one with the best reviews, add it to your cart, then check out.
Crypto buying can be just as simple. Here’s how to buy crypto in Canada in six steps:
On your device, connect to a secure network. It’s best to avoid using public or shared WiFi when making any purchases online or typing in personal information on a website.
Create an account on a crypto trading platform, such as Newton.co. Depending on the trading platform, you might need to pre-fund your account or connect your account to a debit card or bank account.
Decide how much crypto you’d like to purchase. Crypto prices are very much dependent on supply and demand so they can be volatile. Remember that for any crypto, you can always buy a fraction of a coin, so don’t let the price of Bitcoin or Ethereum scare you.
Review your purchase before you checkout. Make sure you’re comfortable with the rates you’re committing to.
If everything looks correct, complete your purchase by clicking the buy button.
Can you buy crypto in Canada without providing KYC info?
If you would prefer to buy crypto but still retain a high amount of privacy by not revealing your identity, there are a few other ways you can purchase crypto in Canada.
Please note that there are risks associated with using some or all of these methods, and Newton is not endorsing any of such methods to acquire crypto without KYC.
Decentralized Exchanges: This is the most common way to buy crypto without KYC. A decentralized exchange is a mobile or web app that will connect directly to your crypto wallet. Although keep in mind that for decentralized exchanges, you often need to exchange stablecoins or another crypto for the crypto that you want to buy, so it may not be the best way to buy crypto if you have fiat cash that you want to convert into crypto since you’d need to use another method to first obtain the stablecoins.
Overseas Online Crypto Platforms: Some crypto exchange platforms are based outside of Canada but allow Canadians to sign up to use. Or, an exchange may use third-party systems that allow users to buy, sell, and trade crypto through a credit card where it does not disclose the nature of the purchase to banks to circumvent the bank’s policy against using credit cards to purchase crypto. Although for such exchanges, users should proceed with extreme caution since these types of platforms may not be fully regulated by the government and can be fraudulent or have subpar security standards.
Crypto ATMs: These machines work similarly to a bank ATM, where you can deposit cash or wire transfer funds and receive crypto. There are over 1,000 crypto ATMs located across Canada in stores, on streets, in restaurants, and more. Although note that not all crypto ATMs will let you buy crypto without KYC.