Bitcoin has had a fantastic year. Some analysts predict that the coin will eventually be worth $500,000 each by the end of the current decade, while some think it could even hit a million.
While the price of Bitcoin has already skyrocketed from what it was a year ago, it’s still far below these prices, which means many people are scrambling to buy it. Yet if you want to buy Bitcoin in Canada, what are your options?
In this guide, we’re going to take a look at how you can join the cryptocurrency craze and buy Bitcoin in the great white north. Ready to learn more? Then read on!
4. Bitcoin ATMs
Buying Bitcoin offline is possible but it comes with some significant drawbacks. Bitcoin ATMs were one of the most popular ways to buy Bitcoin offline back in the day, but now they should be avoided if at all possible.
Using a Bitcoin ATM is easy. You go to the machine, pay cash, then get your Bitcoins. Calling it an ATM is something of a misnomer, as it’s more like a bureau de change or a vending machine.
The advantage that Bitcoin ATMs have is that it’s very easy to buy cryptocurrency like this and remain anonymous. It’s like buying a pre-loaded debit card with cash.
The biggest disadvantage, and oh boy, is it a big one, is that you’re going to pay a lot in fees when you use it. You can expect to pay fees of around 8 percent, which adds up fast.
Ultimately, you should weigh up your priorities when deciding to use a Bitcoin ATM. If you want to be truly anonymous, they’re okay, but the high price is a big disadvantage.
3. Buying on Online Exchanges
If you want to buy Bitcoin in the simplest possible way, then you should be looking at online exchanges like Binance, Coinsmart, or Netcoins. These exchanges work like stock markets.
To use an online exchange, you’ll create an account, usually providing some level of personal information to protect against money laundering, etc. Then, once you’ve made an account, you’ll link a bank account or a debit/credit card.
From there, you navigate to the coin that you want to buy, select an amount that you want to buy and the exchange will give you a quoted price. While the market’s price will fluctuate, as long as you make the purchase within a certain time limit, you will pay the quoted price. If you don’t make it in time, the offer will expire and you will need to start a new purchase.
So, when you buy on a crypto exchange, who are you actually buying from? You buy from other users of the exchange who want to sell but you don’t actually interact with the other user. The exchange acts as an intermediary, which can help to prevent scams.
Most exchanges also let you exchange crypto for fiat currency, which makes selling a breeze. The minimum amount you can invest in Bitcoin will vary from exchange to exchange, so choose yours carefully if you only have a small amount of capital.
2. Retail Locations
If you’d like to buy your crypto in person but don’t want to use a Bitcoin ATM for the reasons that we outlined, then you should consider buying your Bitcoin at a retail location. Retail locations offer a great way to buy crypto anonymously, without the disadvantages that come with using an ATM.
While the fees that you’ll be charged vary a lot from location to location, many crypto brokers and currency exchanges charge fairly reasonable fees. There will also be some variance in payment methods, so if you want to pay cash or with other less common payment methods, do your research to find the right broker for you.
1. Buying P2P and OTC
If you are a free-market purist and don’t want an intermediary, then a P2P (peer-to-peer) exchange is the best option for you. These exchanges are all about the free market: you’ll look for people who want to sell their Bitcoin and make them an offer. If they agree to that, you make your payment and receive your crypto.
As you may expect, the lack of an intermediary does open up some doors for potential fraud. It’s possible to get taken advantage of on these exchanges if you aren’t careful. You may not receive the right amount of crypto or may not receive any at all.
Think of these exchanges as working on the same principle as eBay. Use established sellers and use your common sense. If a deal sounds too good to be true, it probably is.
A closely related method is buying over-the-counter or OTC. This is another type of trade where there is no middleman, and it’s a great way to buy large amounts of crypto. If you’ve got a large amount of capital, you should find out more about this specific kind of trade.
The best advantage of this kind of trade is that it prevents slippage, which is where the price changes while a trade is being made. You can set a price for a large amount of crypto (say, 10 Bitcoins), and pay that price regardless of any market fluctuations.
Invest in Bitcoin in Canada Today
Investing in Bitcoin in Canada is likely to prove to be a smart move. The market is looking strong and while there are no guarantees, you may make a lot of profit.
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