When it’s time to invest, one thing that can give good returns is Ethereum.
Ethereum cryptocurrency can be one of the best investments to get a high return. But, there’s a problem which is some people are not aware of “How to buy Ethereum in Canada?”
Don’t worry I will get you everything to know about how to buy Ethereum in Canada so that you can also earn a lot of money by investing in it. Ethereum can be purchased in Canada through a wide variety of applications and websites.
So, let’s dive deep into it and learn everything about it……
1. How to Buy Cryptocurrency in Canada?
There are a few stages involved in purchasing Cryptocurrency in Canada.
To receive your crypto, you must first establish a cryptocurrency wallet. You have two options: get an open-source software wallet or buy a physical wallet.
If you intend to purchase a sizable quantity of crypto, hardware wallets are the best option despite the fact that they’re more expensive and less secure.
There are many software wallets if you’re looking for a less costly option. These wallets are best used for small coin investments. They are simple to use, inexpensive, and quick to set up, despite having a lower degree of security and having a chance of hacking at any time.
The following action you need to take is to fund your pocketbook. One method to do that is to transfer money from a savings account to a credit card, debit card, or personal wallet that you own.
An alternative option is to accept payments using the Rapyd Collect API. The third option is to make a cash deposit using any point-of-sale system.
The next phase involves starting to trade cryptocurrency. The simplest action to take if you are new to investing is to place a market order to buy cryptocurrency at the next reachable price.
2. Where You Can Buy Ethereum?
For Canadian investors, Bitbuy stands out because it is a Canada-only exchange. There are various benefits when it comes to using Bitbuy to purchase Bitcoin in Canada.
- Use Interac e-Transfer to transfer CAD with ease (1.5% fee, 1-4 hours to complete). Alternatively, if you transfer at least £$20,000, you can use a bank wire to deposit funds.
- With a flat charge of just 0.2%, users may utilize the CAD in one account to purchase Ethereum through BitBuy’s Express Trade feature. (For specifics, see our guide below.)
- When it refers to legislation, Bitbuy gives you room to breathe. This is due to the fact that BitBuy is one of the few platforms to have received endorsement and supervision from both FINTRAC and the Ontario Securities Commission.
- BitBuy upholds the security standards one would anticipate from a leading exchange. This entails the use of SSL technology on-site and the requirement for two-factor verification when logging in. Furthermore, Bitgo offers financial insurance, and 95% of customer cryptocurrency is stored in “cold” wallets (i.e., offline) wallets.
The magnitude of Crypto.com is significantly larger than that of Bitbuy. Tenth-largest cryptocurrency market globally is US-based Crypto.com. It provides a selection of 200 coins, which include Ethereum, and manages more than $1 billion in daily cryptocurrency trades.
For Canadian investors, funding Crypto.com with a bank deposit makes it simple to buy Ethereum right away. Alternatively, you can buy stablecoins and sell Ethereum on Crypto.com’s main exchange. Alternately, in some countries, you can buy ETH straight up with a credit card.
Crypto.com is both more complicated and less upfront about its costs when compared to BitBuy. However, the exchange excels if you’re interested in using the Ethereum you buy to partake in cryptocurrency funding options:
- Bitcoin Staking
Lending out your ETH for a set time of three months will earn you 3% APY (Annual Percentage Yield). You’ll need some private crypto CRO to get started. The more CROs are available the higher the cost.
- Credit Wallet for Crypto.com
Customers in the US can apply for a Crypto.com credit card, which accepts cryptocurrency payments and gives 8% cash back on all purchases.
We advise those who are new to cryptocurrency to start their Ethereum journey with the straightforward Bitbuy service before moving on to Crypto.com once they have figured out the easiest method to buy Ethereum in Canada.
The largest cryptocurrency exchange in the globe is Binance.
Given the wide variety of options, Binance is a solid choice for Canadians looking to purchase Bitcoin. ETH can be directly purchased using USD and a credit card. You can fund your Binance account with another cryptocurrency and use that to sell ETH on the company’s primary exchange. On Binance’s P2P platform, you can conduct straight trades with other users. Furthermore, you can use real money to directly purchase ETH from Binance.
3. How You can Store Ethereum?
If you want instantaneous access to your money, you can keep your Ethereum in a smart wallet. You can exchange more frequently because hot wallets are simple to use. They are more at risk of loss because they are online.
It is preferable to store your Ethereum inside a cold wallet. Any time you require to access your cryptocurrency, you can manually link such offline storage devices to the Internet.
4. Should You Consider Ethereum to Purchase?
Unless a potential investor is certain that Ethereum is the best cryptocurrency to support, the issue of how to buy Ethereum in Canada is moot.
Fortunately, you don’t have to choose one coin when you purchase cryptocurrency.
You might be able to manage to purchase multiple cryptocurrencies at once thanks to top Ethereum marketplaces like BitBuy, which only require an initial investment of $50 CAD. This diversity is a wonderful strategy for risk management.
It would help if you balanced your cryptocurrency acquisition with less risky investments like stocks in order to further control risk.
4.1 Invest in the Internet’s Support Structure
All buyers are familiar with the cryptocurrency Bitcoin, which has a $769 billion market cap. With a capitalization of $367 billion, Ethereum is about half as large but unquestionably more important.
Bitcoin is a store of money. Ethereum, in comparison, is a customizable wealth store.
With the launch of the Blockchain in 2015, the creation of intelligent contracts, which enable decentralized financial processes, began.
Using ERC-20 assets on Ethereum, developers are now producing DApps (Decentralized Applications), Neurofibrillary tangles (Non-Fungible Tokens), and other coins. Do you know what “Decentralised Finance” (DeFi) is? That uses Bitcoin as well.
4.2 Decide to Upgrade to Ethereum 2.0 now.
The technology behind Ethereum is constantly being updated. This year, a second blockchain level is being introduced (2022). Why? Since Ethereum’s scalability was achieved last year with 1 million daily transactions. Due to this, blockchain transactions became very pricey. A novel strategy will reduce congestion. Additionally, switching from Evidence to Proof-of-Stake verification will significantly lower Ethereum’s energy consumption.
ETH’s worth will probably increase if the Ethereum transition proceeds as planned.
4.3 Ethereum Stake for Awards
You can stake ETH online for prizes if you have it. This entails giving it to a 3rd person for a time of 30, 60, or 90 days in exchange for interest, which is typically paid in ETH. This is similar to giving fiat money to a traditional bank to make interest.
Obtain 3% on Ethereum with the US platform Crypto.com. To qualify, you must purchase some company-owned cryptocurrency CRO. You can make a rate of 4.0% if you have more than $4,000 CRO. You also receive a percentage of 6% on your ETH investment when you have $40,000 or more in CRO.
With the major currency Binance, you can deposit ETH and make 2.4% on it while having access to it whenever you want. Alternatively, you could indeed secure your ETH and makeup to 5.2% in addition to normal benefits while Ethereum is still being upgraded.
4.6 Get NFTs.
By the end of 2021, the marketplace for Non-Fungible Coins had grown dramatically from a meager $10 million. NFTs were thought to be nothing more than a froth that would eventually pop. However, values have stabilized over the previous six months, indicating that the market for distinctive digital content will be here to stay.
The majority of NFTs—but not all—are issued on the Ethereum network. Additionally, you’ll need ETH to purchase 90% of NFTs.
5. How to Buy Ethereum in Canada?
How can I purchase ether in Canada? There are numerous choices.
5.1 Step1:- Buy Ethereum with CAD in Your Exchange Account
The quickest and easiest method to purchase Ethereum is to open an account with an online cryptocurrency exchange, make a deposit, and then purchase Ethereum with that money. For instance, Canadian specialists BitBuy give this hassle-free service.
5.2 Step2:- Purchasing Bitcoin Using Other Crypto
With maybe some platforms, you can transfer another cryptocurrency you own using a crypto wallet and then use that cryptocurrency to purchase ETH. With Binance, for instance, you are able to do this. Additionally, if you possess BNB, the native cryptocurrency of Binance, you receive a 25% discount on trading costs on the primary market.
5.3 Step3:- Buying Ether with Bitcoin
In 2021, PayPal introduced a restricted-access tool for buying cryptocurrencies. PayPal’s use is limited as a result, and it’s growing harder to locate an internet application that accepts it:
PayPal can be used to give other users cryptocurrency if you’re using Binance’s peer-to-peer selling function.
US customers can pay off one‘s Crypto.com Visa debit card using PayPal.
5.4 Step4:- Purchase Bitcoin Using a Credit or Debit Card
We advise visiting Crypto.com in order to purchase ETH using a credit or debit card. Direct purchases of ETH can be made there using a card. Many exchanges, including Coinbase, the second-largest platform in the world, are discontinuing a few credit card services due to concerns about fraud and legislation.
5.5 Step5:- Purchase Bitcoin OTC or Through a Concierge Service
Some online marketplaces, like BitBuy, give this Over trading service if you have a lot of money to spend. This indicates that one’s trade would be handled directly and at a discount. Beginners should not use this tool.
6. How Can I Purchase Bitcoin the Best?
There are only three options for vendors when determining how to purchase ETH in Canada:
6.1 A centralized Market Like BitBuy and Crypto.com
A centralized exchange provides a good mix of convenience, safety, and cost when it comes to purchasing Ethereum in Canada.
To purchase from a centralized exchange, you do not need to create a cryptocurrency locker. Additionally, the exchange will handle the safe keeping of the ETH you’re about to purchase on your behalf.
With just a few taps, you can acquire Ethereum (ETH) utilizing Bitbuy’s Express Service for just a 0.2% commission. It’s nearly as good as Binance’s market-leading fee rate of 0.1%.
6.2 Trade that Is Decentralized (DEX)
When using a decentralized market, you are not required to pay any money to a single operator. Instead, you use the DEX platform to trade directly with another individual or business. Some investors favor this because there are more cryptocurrency options and costs are typically lower.
Exchange-traded funds, cryptocurrency platforms for Canadian coin trading, digital currencies for bank accounts, and the Ethereum blockchain
However, you are helpless if the transaction falls through with a DEX. Additionally, you must be able to set up a cryptocurrency wallet, which is a technical procedure, in order to connect with both the DEX in the first place.
6.3 Bitcoin Locker
Some cryptocurrency wallets let you buy and trade Ethereum directly. Frequently, the number of cryptocurrencies available for exchange is small, and the commission rates are expensive. However, some buyers favor the simplicity it offers.
This was all about buying Ethereum in Canada. Just follow the above steps to get to know everything to know about investing or buying Ethereum in Canada. Moreover, you can do your own research about which is the best platform to buy a cryptocurrency and you can have your own decision making.
Check out the Top 10 Myths Of Cryptocurrency That Needs To Be Deflated In 2023 if you want to know about cryptocurrency myths that need to be deflated.
Frequently Asked Questions
The following is a discussion of some of the most frequent inquiries about purchasing Bitcoin in Canada:
Q1. Which is Ethereum?
Along with several other developers, Vitalik Buterin unveiled Ethereum in 2013. It utilizes Bitcoin-like blockchain technology and can be expanded to operate decentralized applications (D apps).
Intermediaries can be removed from financial and other operations by using “smart contracts,” which increase privacy and lowers transaction costs. The original digital currency of the Ethereum ecosystem is called ether.
Q2. Which is a cryptocurrency exchange?
A cryptocurrency exchange is a website where cryptocurrencies can be traded. despite the reality that platforms commonly have low fees, newcomers to cryptocurrency investing may find their more complex user interfaces, a wide variety of transaction kinds, and leads to more efficient charts intimidating.
The most well-known cryptocurrency platforms in Canada are Binance Canada, Coinbase, Netcoins, Newton, and Cranberry.
Q3. Is Ethereum safe?
Beyond their intrinsic worth, trading digital currencies carry additional risk. Risks include those associated with fraud, price volatility, cyberattacks, and a lack of oversight.
By moving your Ethereum to an external wallet and securing online copies, you can lower your risk of suffering losses as a result of cyberattacks.
Q4. Are there any taxes on buying Ethereum?
Canada does not recognize Ethereum (Ether) as a legal currency. However, using a cryptocurrency exchange or broker to purchase and sell Ethereum is not illegal.
You might have to pay taxes on the capital gains you make when you sell Ethereum for a commission.
The tax treatment of cryptocurrencies for tax reasons can be found in the guides provided by the Canada Revenue Agency, which you should consult.As an Amazon Associate, Icy Canada earns from qualifying purchases.