Cryptocurrencies are now mainstream investment products, just like stocks, foreign currencies, and exchange traded funds (ETFs). This asset class is growing in popularity, so much so that as many as 3 in 10 Canadians now own cryptocurrencies. At the time of writing, Bitcoin, a cryptocurrency that was worth less than a cent when it was launched in 2009, costs currently more than $90,000 Canadian. So here are 5 ways to invest in Bitcoin.
1. Bitbuy
This Canadian cryptocurrency exchange allows you to buy Bitcoin and about 25 other cryptocurrencies, including Ether, Litecoin and Dogecoin. Bitbuy’s fees are tiered depending on your trading volume over the last 90 days and range from 0.10% to 1.5% of both buying and selling transactions.
Bitbuy has very high buy and sell limits and is able to handle large transactions with its over-the-counter (OTC) trading service. You can easily buy Bitcoin by funding your Bitbuy account via Interac eTransfer, bank wire, or by transferring in your existing crypto holdings from another wallet.
2. MyBTC.ca
The Canadian cryptocurrency exchange MyBTC.ca is not so much a trading platform as it is an online Bitcoin ATM. Indeed, unlike other Canadian crypto exchanges, MyBTC.ca only allows you to buy two cryptocurrencies: Bitcoin and Ethereum. Moreover, the exchange does not offer a cryptocurrency wallet. When you buy Bitcoin and Ethereum on this exchange it is immediately transferred to your own external wallet.
The platform also stands out by offering a large number of payment methods, including Interac eTransfers, credit cards, and even cash by purchasing Flexepin coupons, which are offered at over 4,000 outlets in Canada. Thus, this platform is mostly used by investors wishing to buy Bitcoins to trade on platforms that do not support Canadian Dollar transactions. MyBTC.ca does not charge any transaction fees on Bitcoin buy orders over $350 but charges a fairly high deposit fee ranging from 7.75% for Interac transfers to 9.75% for credit card payments.
When buying or selling crypto on MyBTC.ca, you may need to pay an order fee that can range from $3.50 to 4.95% of the transaction depending on the size of your trade and whether it’s on the Bitcoin network or Ethereum network.
3. Shakepay, one of the best ways to buy bitcoin
Shakepay is a cryptocurrency trading mobile app that features only two cryptocurrencies: Bitcoin and Ethereum. The crypto exchange does not charge any deposit or withdrawal fees, or even transaction fees. Shakepay offers a few ways to buy Bitcoin via Interac eTransfer, bank wire, transferring Bitcoin and Ethereum from another wallet, and even receiving Canadian funds from other Shakepay users.
Of course, nothing is free in life and Shakepay is not the exception that proves the rule. In fact, like most exchanges, Shakepay generates revenue by marking up the purchase price of cryptocurrencies by about 1%, known as the spread.
4. NDAX.io
NDAX.IO is a Canadian cryptocurrency exchange that lets Canadians buy and sell Bitcoin, as well as 33 other coins, quickly and easily in a safe and regulated environment. Traders will pay 0.20% for buying and selling and that’s it. There are no fees to fund your account with Canadian dollars via Interac eTransfer, bank wire, or bank draft. All withdrawals are charged a flat fee of $4.99.
What makes NDAX stand out is its stance on safety and security. It has a multi-signature failsafe for its hot wallet and stores most of its client’s assets in off-line cold wallets that also require multi-signatures for access. NDAX is also registered with the Financial Transactions and Reports and Analysis Centre of Canada (FINTRAC), Revenu Quebec as a Money Service Business (MSB). The exchange conforms to the Terrorist Financing Act (PCMLTFA) and other applicable laws and regulations in addition to having insurance policies that can cover fraud.
5. VirgoCX
VirgoCX is another Canadian-regulated cryptocurrency exchange where you can buy and sell Bitcoin. However, the platform stands out by offering several metaverse-related cryptocurrencies, as well as a marketplace for buying and selling NFTs.
The platform charges a spread on crypto trades ranging from 0.5% to 2.5% depending on which coins you are trading. It is free to deposit CAD to your account via Interac eTransfer, wire transfer, bill payment, while funding by debit card will cost either 2.99% or $1.00, whichever is more. Withdrawals are free via eTransfer and bank wire. They have a great referral program as well as support for retail trading and institutional trading.
This article is the shortened version of an article originally published on Hardbacon.ca by Arthur Dubois under the title "20 Ways to Buy Bitcoin in Canada".
