Buying Bitcoin in Canada is straightforward when you use a regulated platform and understand the process. This guide walks you through every step, from account setup to securing your Bitcoin in your own wallet.
What You Need Before You Start
Before you can buy Bitcoin in Canada, you’ll need three things:
Valid Canadian ID: A driver’s license or passport for identity verification. All regulated Canadian platforms are required to verify your identity under federal anti-money laundering regulations.
Canadian bank account: You’ll need a bank account to fund your Bitcoin purchase. Most platforms accept Interac e-Transfer, electronic funds transfer (EFT), or wire transfers.
Bitcoin wallet (recommended): While you can temporarily hold Bitcoin on the platform where you buy it, withdrawing to your own wallet gives you full control and eliminates counterparty risk. You can set up a wallet before or after your purchase.
Step 1: Choose a Bitcoin Platform
The first decision is where to buy. Canadian Bitcoin platforms fall into three categories:
Bitcoin-only platforms: These focus exclusively on Bitcoin, with no altcoins or token trading. They typically offer clearer user experiences and align with long-term Bitcoin ownership rather than speculation.
Multi-asset exchanges: These offer dozens or hundreds of cryptocurrencies. They’re designed for trading activity, not long-term Bitcoin holding.
Bitcoin ETFs: These are investment products that track Bitcoin’s price but don’t give you actual Bitcoin ownership. You can’t withdraw Bitcoin from an ETF to your own wallet.
If your goal is to own Bitcoin and control your private keys, a Bitcoin-only platform built for Canadian compliance is the most direct path. For Canadians looking to buy Bitcoin in Canada without exposure to altcoins or trading features, regulated Bitcoin-only platforms remove unnecessary complexity.
What “Regulated” Means in Canada
In Canada, Bitcoin platforms must register as Money Services Businesses (MSBs) with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). This registration requires:
- Customer identity verification (Know Your Customer / KYC)
- Transaction monitoring and reporting
- Compliance with anti-money laundering (AML) regulations
- Regular audits and reporting to federal regulators
Platforms operating without FINTRAC registration are operating illegally in Canada. Always verify a platform’s MSB registration before funding an account.
Step 2: Create and Verify Your Account
Once you’ve selected a platform, account creation typically takes 10–15 minutes.
Basic information: You’ll provide your name, email, phone number, and address.
Identity verification: You’ll upload a photo of your government-issued ID (driver’s license or passport) and take a selfie for identity matching. Some platforms use automated verification; others require manual review.
Proof of address (sometimes required): Some platforms ask for a recent utility bill or bank statement to confirm your address matches your ID.
Verification usually completes within a few hours, though it can take up to 24–48 hours during high-volume periods. You cannot buy Bitcoin until verification is complete.
Step 3: Fund Your Account
After verification, you’ll deposit Canadian dollars into your account. Most platforms offer multiple funding methods:
Interac e-Transfer
The most common method for smaller purchases (typically under $10,000). Funds usually arrive within minutes to a few hours. Some platforms have daily or weekly Interac limits.
Electronic Funds Transfer (EFT)
For larger amounts. You initiate a bank transfer from your account to the platform’s bank account. EFT typically takes 1–3 business days to clear.
Wire Transfer
For very large purchases or when speed matters. Wire transfers cost more ($15–$30 typically) but clear faster than EFT, usually within one business day.
Most platforms don’t charge deposit fees for Interac or EFT, though your bank may charge for wires.
Step 4: Purchase Bitcoin
Once your funds are in your account, buying Bitcoin is straightforward.
Enter the amount: Specify how much Canadian dollar value of Bitcoin you want to buy. The platform will show you how much Bitcoin you’ll receive based on the current price.
Review the rate: Check the exchange rate and any fees. Platforms typically charge either a percentage fee (1%–2%) or build the fee into the exchange rate (the “spread”).
Confirm the purchase: Once you confirm, the transaction executes immediately. Your Bitcoin balance will update within seconds.
One-Time vs Recurring Purchases
Some platforms offer recurring purchases (sometimes called “dollar-cost averaging” or DCA). You can set up automatic purchases on a schedule—weekly, bi-weekly, or monthly.
This strategy removes the need to time the market and can reduce the impact of Bitcoin’s price volatility by spreading purchases over time.
Step 5: Withdraw Bitcoin to Your Wallet
This is the most important step and where many new buyers make mistakes.
Why withdraw to your own wallet?
When Bitcoin sits on an exchange or platform, you don’t control the private keys—the platform does. This creates counterparty risk: if the platform is hacked, goes bankrupt, or freezes accounts, you could lose access to your Bitcoin.
The phrase “not your keys, not your Bitcoin” exists for a reason. Withdrawing to your own wallet gives you full ownership and control.
How to Withdraw
Get your wallet address: Open your Bitcoin wallet and copy your receiving address. Bitcoin addresses are long strings of letters and numbers (starting with “1”, “3”, or “bc1”).
Initiate withdrawal on the platform: Go to the withdrawal section, paste your wallet address, and specify the amount of Bitcoin to send.
Confirm the address: Double-check that the address is correct. Bitcoin transactions are irreversible—sending to the wrong address means permanent loss.
Pay the network fee: Bitcoin transactions require a network fee (paid to miners, not the platform). This fee varies based on network congestion but is typically a few dollars.
Wait for confirmation: Bitcoin transactions take 10–60 minutes to confirm on the blockchain, depending on network activity and the fee paid.
Wallet Types
Software wallets (mobile or desktop apps): Convenient for regular use but vulnerable if your device is compromised. Examples: BlueWallet, Sparrow, Electrum.
Hardware wallets (physical devices): The most secure option for long-term storage. Your private keys never leave the device. Examples: Ledger, Trezor, Coldcard.
For holdings over $5,000, a hardware wallet is strongly recommended.
Common Mistakes to Avoid
Leaving Bitcoin on the platform long-term: Platforms are not banks. Withdraw to your own wallet for any Bitcoin you plan to hold beyond a few days.
Not backing up your wallet: If you lose access to your wallet without a backup, your Bitcoin is gone forever. Write down your seed phrase (12 or 24 words) and store it securely offline.
Using unregulated platforms: Stick to FINTRAC-registered platforms. Unregulated exchanges carry significantly higher risk of fraud, hacking, or sudden closure.
Panic selling during volatility: Bitcoin’s price fluctuates significantly. If you’re buying for long-term ownership, short-term price movements shouldn’t trigger emotional decisions.
Sending Bitcoin to the wrong address: Always verify the receiving address before confirming a transaction. Bitcoin transactions are irreversible.
Falling for investment scams: If someone guarantees returns, asks you to send Bitcoin to “multiply” it, or promises risk-free profits, it’s a scam. Bitcoin ownership is not a get-rich-quick scheme.
Large Purchases: When to Use OTC
For purchases over $50,000 CAD, retail platforms may have limitations:
- Daily or weekly purchase limits
- Liquidity constraints causing price slippage
- Higher spreads on large orders
In these cases, Bitcoin OTC Canada services provide locked pricing, dedicated execution, and settlement discretion for large transactions without the constraints of retail platforms.
Tax Implications
In Canada, Bitcoin is treated as a commodity by the Canada Revenue Agency (CRA). This means:
- Buying Bitcoin is not a taxable event
- Selling Bitcoin for Canadian dollars is taxable (capital gains or business income, depending on your situation)
- Using Bitcoin to buy goods or services is considered a disposition and is taxable
Keep records of all purchases, including dates, amounts, and exchange rates. You’ll need these for tax reporting if you sell.
If you’re purchasing Bitcoin as a corporate treasury asset, different accounting rules apply. Review Corporate Treasury Bitcoin Canada for guidance on business and corporate Bitcoin holdings.
What Happens After You Buy
Once you own Bitcoin, you have options:
Hold long-term: Many Bitcoin owners buy and hold for years, viewing it as a savings technology or hedge against currency debasement.
Use for payments: Some businesses in Canada accept Bitcoin for goods and services, though this is still relatively uncommon.
Transfer internationally: Bitcoin can be sent anywhere in the world, 24/7, without intermediaries or foreign exchange fees.
The key decision is custody. Keeping Bitcoin in your own wallet—secured with a strong backup strategy—is the foundation of actual Bitcoin ownership.
Summary: Your Buying Checklist
- Choose a regulated, FINTRAC-registered platform
- Complete identity verification
- Fund your account using Interac, EFT, or wire
- Purchase Bitcoin at current market rate
- Withdraw Bitcoin to your own wallet
- Secure your wallet backup (seed phrase)
- Keep records for tax purposes
Buying Bitcoin in Canada takes less than an hour once your account is verified. The process is designed to be compliant, transparent, and accessible for Canadians who want long-term Bitcoin ownership without the complexity of trading platforms or altcoin exposure.
