How to buy Bitcoins in Canada?
What are Bitcoins?
You might be wondering, what’s all the fuss with bitcoins? What is the reasoning behind tagging it as the “future of money”?
Before investing in bitcoins, you need to know what you are getting yourself into. The Canadian’s Senate said in 2015 “There has been a new wave of digital currencies and out of all of them, it can be said that Bitcoin is the most notable. These currencies have beguiled the imagination of individuals and at the same time created a cause for alarm and confusion in others.” This statement describes it all.
So, what is this virtual currency everyone is talking about?
A lot of individuals have questions about bitcoins. What are bitcoins? Where can you get them? How can I buy them?
Well, Bitcoin is a virtual banking currency, otherwise called cryptocurrency. This is the currency of the internet. Some say it is the future due to the fact that it is a currency without country alliances and is not controlled by one country. The bitcoin is electronic in form and uses peer to peer technology, and is decentralized. There is no central authority or server. They are made through a process called cryptocurrency mining.
Are you a resident in Canada, and looking to buy bitcoins?
These are the different ways you can buy bitcoins in Canada.
ATM: This is the easiest and also the most anonymous method to acquire bitcoins. You know them, these machines that help you deposit and withdraw money with your card. There are ATM-machines for bitcoins, allowing you to purchase bitcoins with cash.
Direct brokers: The function of the direct brokers is similar to foreign exchange agents. They buy bitcoins from an official source (exchange market) and put it up for sale for interested parties. All you need to do is pay a visit to the brokers website, browse through the prices available on the platform, choose your means of payment, remit the payment, and get the bitcoins.
The rate charged by these direct brokers varies between 1% to 5%. Often times, the direct commercial exchanges also make a profit from the difference between their purchase price and the sale price.
Peer to peer Markets: Also known as P2P, it is a platform where interested parties (both sellers and buyers) gather to make sales and purchases. Compared to the direct brokers, the amount charged on these platform is relatively low (0% to 1%). On this market, the seller can sell at a price they wish until a buyer makes an offer to buy. This allows you to buy relatively large amounts of bitcoin at affordable prices.
Exchange platforms: Looking to buy bitcoins regularly? Exchange platforms are the best places. They offer bitcoins at very good prices. Several exchanges platforms allow trading with Canadian Dollars. The prominent platforms are Kraken and CoinSquare. The trade fees and the margin spread are low. However, you have to disclose private information.
Those are the various avenues you can use to purchase bitcoins. For the best experience, use exchange platforms as they are faster and easier. Which is the best exchange platform to use? CoinSquare is the leading digital currency exchange platform, for buying and selling of bitcoin.
What makes CoinSquare the Best Exchange Platform?
- You can buy and sell bitcoins without worrying about safety due to its secure nature. CoinSquare has a safe coin management system.
- Bitcoin transactions are fast. They review and accept transactions within 24 hours.
- Low Fees. They charge very low commissions, ranging between 0.1% and 0.7%.
- It offers a variety of cryptocurrencies to trade: bitcoins, ethereum and litecoin.
- The bitcoin storage is encrypted with high security features. You don’t have to worry about the safety of your bitcoin wallet.
The Ultimate Guide on How to Buy Bitcoins with Canada
Buying and selling of bitcoins in Canada is not as difficult as most individuals perceive. The banks and regulators are well familiar with the cryptocurrency concept. This guide will show you how to go about purchasing cryptocurrencies.
Where to Buy?
CoinSquare is one platform you can use to buy or sell bitcoins.
- First you Sign Up to create an account with CoinSquare. All you need is your email address and some basic information. You will be required to verify the account.
- Why should you verify your identity? Verification of identity is done due to 2 reasons. One is for KYC purposes (know your customer) and another is to meet with AML laws (anti money laundering). You will be asked to create a transaction PIN and a password.
- The next step is to verify the personal information given on the site. The purpose behind this is to establish if you are human or a robot.
- After setting up an account add funds to your account and you are ready to start trading.
Do you have a bitcoin in your bitcoin wallet, and are looking to cash out? How do you trade bitcoin to Canadian dollars?
How to buy?
1 bitcoin equals approximately $7,000 Canadian Dollars (CAD). This value also differs from one bitcoin exchange platform to another. With CoinSquare, you can easily convert bitcoins in your wallet.
Why Bitcoin is Gaining Popularity?
Bitcoins are not Regulated by central banks or Governments.
Bitcoins are transferred via a peer-to-peer network between individuals. This eliminates the need for a middleman(bank). Bitcoin wallets are free from interference by any government tax agencies or banks. There is no such thing as withdrawal limits with bitcoins.
Low transaction costs
Bitcoins are designed so that you can control your personal money. There are no banks or middlemen services transacting business on your behalf. Therefore, the transaction fees are relatively lower.
Transactions are faster
Unlike other traditional methods of transactions, bitcoin transactions are fast. Conventional means of transferring money takes several days to be verified. However, bitcoin transfers take just several hours.