TLDR
This article provides a step-by-step guide on how to buy Bitcoin in Canada using Binance.
- Step 1: Setting up an account on Binance
- Step 2: Funding the account with Canadian dollars
- Step 3: Buying Bitcoin on the platform
- Step 4: Storing and securing the Bitcoin.
Binance is a great choice for Canadians as it offers lower fees and trading pairs.
How to Buy Bitcoin in Canada
To buy or trade Bitcoin in Canada, you must set up an account on a Canadian crypto exchange such as Binance.
Binance is one of the great Bitcoin exchanges, which allows Canadians to buy, sell, and trade digital currencies such as Bitcoin, Ethereum, and more.
More details
Binance is a great combination of low fees, deep liquidity and multiple cryptocurrencies and trading pairs. We have tested every aspect of it and it STILL holds its reign as the top exchange in the world. In our view, it is the perfect crypto exchange for both newbies and advanced traders alike.
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Biggest exchange in the world.
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Industry's lowest trading fees.
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Advance trading options like leverage trading.
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600+ crypto options, 150+ for the US.
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Lucrative on-site staking options.
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Hiccups in account verification.
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Less regulated than some competitors.
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The corporate structure is not transparently.
Step 1: Visit the Binance website
Go to the Binance website and click the [Buy Now] button.
Step 2: Enter details and create an account
Enter your e-mail address and create a secure password. Once done, click the [Create Account] button.
Use a password that includes a mix of letters, numbers, and special characters.
Step 3: E-mail verification
Verify your e-mail address by clicking on the link sent to your inbox. Type in the verification code and click [Submit].
Step 4: Complete the KYC Process
Complete the verification by providing your name, date of birth, and phone number. You will also be asked to upload a government-issued ID, such as a passport or driver’s license.
You are ready to buy once the verification process is done (it should take a couple of minutes).
Buying Bitcoin on Binance
Once you have funded your Binance account with Canadian dollars, you can buy Bitcoin.
Step 1: Log into your account
Log in to your Binance account and navigate to the trading platform.
Step 2: Find the Bitcoin trading pair
To find the Bitcoin trading pair, search for “BTC” in the search bar.
Step 3: Place a buy order
To buy Bitcoin Canada, you will need to place a buy order. You can buy at the current market price or set a limit order at a specific price.
Choose your specific payment method and click [Continue].
Step 4: Confirm your order.
Once you have placed your buy order, you must confirm it. Make sure to double-check the details of your order before confirming.
Step 5: Bitcoin will be credited to your account
Wait for your order to be filled. Once your order is filled, the Bitcoin will be credited to your Binance account.
Once you have bought your Bitcoin, you can store it in crypto wallets or sell it for Canadian dollars on Binance.
Ways to fund your Canadin Binance account
Binance offers a variety of options for funding your account, including:
Interac e-transfer
You can deposit funds directly from your bank account to Binance using Interac e-transfer. This is a quick and easy way to fund your account, but the funds may take a few minutes to be credited.
Wire transfer
You can also deposit funds into your Binance account using a wire transfer. This wire transfer option may take longer than Interac e-transfer, but it is a secure way to transfer large amounts of money.
Credit or debit card
Binance also accepts credit or debit card deposits. This option is convenient but may cost more than other methods.
Add your information, card number, and details, and click [Next].
The only thing left is to enter your billing address and click [Add card]. Your card is now connected to your Binance account, and you can purchase Bitcoin.
Bitcoin ATM
If you prefer to deposit cash, you can also deposit funds into your Binance account using a Bitcoin ATM for Bitcoin payments. This option is available in select Canadian cities and may incur higher fees than other deposit methods.
It is important to note that Binance is a Money Services Business and, as such, is subject to the regulations of the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and the Canada Revenue Agency (CRA). Binance must verify your identity and report certain transactions to FINTRAC and the CRA.
It is also important to note that capital gains may apply as per the Income Tax Act when purchasing crypto assets, and the individual must report it to the Canada Revenue Agency.
It’s also important to note that before depositing CAD or any other fiat currency, you should check the fees the exchange charges. Some exchanges have higher fees than others, and it’s important to choose the crypto destination with the lowest fees to get the most of your money.
Tips Storing and securing your Bitcoin
Once you have bought Bitcoin on Binance, it is important to store and secure your crypto.
Here are some best practices for storing and securing your Bitcoin:
Use a hardware wallet
A hardware wallet is a physical device that stores your Bitcoin offline, making it much more secure than software wallets.
Some popular hardware wallet options include Ledger Stax and Trezor Model T.
More details
Ledger Stax is the markets most stylish cryptocurrency hardware wallet with NFT customized lock screen, user-friendly touchscreen, Bluetooth-enabled device and supports 5500+ altcoins. Its Qi charging technology makes a single last for months.
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Large-sized e-ink screen for easy usability.
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Bluetooth-enabled connectivity.
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Sturdy and transportable case
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Best design in the industry.
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Higher cost than its competitors
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Restricted scalability selection.
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Not broadly adopted.
More details
The Trezor Model T is a high-quality hardware wallet that offers top-notch security for cryptocurrency investors. Trezor is known for its transparency and trustworthiness. The ability to store 1500+ tokens and Non-Fungible Tokens (NFTs) justifies the premium price of $219. However, some users have reported issues with the MicroSD card slot. Trezor Model T is a solid pick to safeguard crypto despite minor concerns.
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It supports 1400+ crypto assets.
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Touch screen for a user-friendly operation.
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It supports NFTs storage.
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Too expensive when compared to its competitors.
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It has limited mobile compatibility.
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A bulky design that is quite hard to carry around.
Use a software wallet
A software wallet is a digital wallet that stores your Bitcoin online.
While software wallets are less secure than hardware wallets, they are still a good option for storing small amounts of Bitcoin.
Some popular software wallet options include Metamask or crypto.com wallet.
More details
The Crypto.com DeFi wallet provides comprehensive DeFi services including token storage, staking, swapping, and transfers. With full control over private keys, users ensure their funds' security even amidst potential Crypto.com mishaps. This wallet caters to those who prioritize privacy and are adept at secure asset management.
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Best for beginner and advance traders.
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Highly secure with advanced safety features.
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Offers numerous transfer options.
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Great web3 wallet.
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Geo-restrictions in many countries.
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Not ideal for new users.
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High transaction fees.
More details
MetaMask is a popular cryptocurrency wallet famous for its extensive support of Ethereum-based cryptocurrencies and NFTs. Even though it supports multiple blockchain networks, MetaMask does not currently support Bitcoin. It can be a turn-off for investors primarily focused on Bitcoin traders.
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Easy setup process.
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Rewards via staking and holding.
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Supports all of ERC-20 tokens.
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Go-to web3 wallet.
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In-build dApp hub.
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Doesn't support Bitcoin.
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Potential privacy and security risks.
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Complex for new users.
Keep your private key safe
Your private key is the code that grants you access to your Bitcoin. Keep your private key safe, and never share it with anyone.
Enable two-factor authentication
Two-factor authentication adds an extra layer of security to your account by requiring a code sent to your phone or e-mail and your password.
Be wary of phishing scams
Be careful of phishing scams that trick you into giving away your private key or other sensitive information. Always verify the URL of any website you visit, and never click on links from unknown sources.
Keep your software up to date
Keep your software up to date to protect against any potential security vulnerabilities.
It’s important to note that some exchanges also have their own wallets that can be used to store your Bitcoin or other digital assets. Still, it’s also important to remember that when storing your investments on an exchange, you don’t have complete control over your private keys, so moving your assets to your personal wallets is always recommended.
It’s also important to note that some exchanges may offer cold wallet storage services, but checking the fees and the insurance of your assets in case of hacking is essential.
When storing your cryptocurrency holdings in Bitcoin or storing cryptocurrency, it’s also important to consider the legal aspect of it, as Bitcoin and other digital currencies are not considered legal tender in Canada. However, buying, selling, or owning digital currencies in Canada is legal.
Summing Up
In this guide, we have provided a step-by-step guide on how to buy Bitcoin and other cryptocurrencies in Canada using Binance as an example. We have covered setting up an account on Binance, funding your account with Canadian dollars, buying Bitcoin and other cryptocurrencies on the platform, and storing and securing your Bitcoin.
When buying Bitcoin in Canada via a broker or crypto exchange, it’s important to consider the fees, trading pairs, and the exchange’s security measures. Binance is a great choice for Canadians, as it offers a wide range of trading pairs and lower trading and withdrawal fees than other Canadian crypto exchanges. Additionally, it offers advanced trading options and a Canadian-registered marketplace for selling Bitcoin.
It’s also important to note that when buying, selling, or trading Bitcoin and other crypto assets, capital gains may apply as per the Income Tax Act, and the individual’s responsibility is to report it to the Canada Revenue Agency.
Finally, it’s important to know that Bitcoin and other digital currencies are not considered legal tender in Canada. Still, buying, selling, or owning virtual currency or digital currencies in Canada is legal.
If you want more information on buying Bitcoin in Canada, you can check out other Canadian Bitcoin exchanges, ATMs, or other crypto apps. Additionally, you can check out the Canadian government’s website for information on the regulations surrounding digital currencies.
Legal Canadian exchanges like CoinSmart, Bitbuy, VirgoCX, and Crypto.com accept Interac e-Transfer for buying Bitcoins. Additional methods include bank wire, credit/debit cards, and more.
Binance faced restrictions in Ontario starting from 2022 and decided to protect its Canadian users by exiting the market. Affected customers will receive email notifications regarding their accounts.
TD Bank users can buy cryptocurrencies in Canada by transferring CAD to a FINTRAC-licensed crypto exchange via bank transfer, debit/credit cards, e-Transfer, or other available payment methods.
Suchet Salvesen
Suchet is a Norwegian economist, entrepreneur, and investor, serving as the CFO and COO of Brainfund. With over a decade of experience in global expansion, venture capital, and emerging technologies, he earned his MBA from the NMBU School of Business & Economics. He held dual bachelor's degrees from the University of South-Eastern Norway. His career spans roles at NextToMe, Get, and Conax before joining Everipedia, now Brainfund, in 2017.
