The world seems to be embracing the idea of a unified cryptocurrency ecosystem. Canadians are just as drawn to the fuss as anyone, but many don’t know where to start when buying Bitcoin.
There are several easy and straightforward ways to buy Bitcoin, while some require a higher level of tech awareness. Here are five convenient ways for Canadians:
1. Online exchanges
Exchanges such as Gemini, Coinbase, and Kraken offer the most seamless and secure method of buying and selling cryptocurrency. All the buyer is required to do is deposit money into their accounts to buy Bitcoin, Ethereum, etc. The downside to this transaction method is that service fees are charged for the exchange.
Online exchanges are the most popular cryptocurrency transaction method, so there is enough information out there on buying Bitcoin in Canada if you want to get the hang of the specifics.
2. Bitcoin ATMs
Bitcoin ATMs are a pretty old method of buying Bitcoin in Canada, but they have stood the test of time for a reason: they are convenient and give frequent buyers a clear path around online exchange transaction hurdles. Most people fancy Bitcoin ATMs over online exchanges for the sheer fact that they allow you to transact using cash. This means you don’t have to link your personal banking information and expose sensitive details to anyone. That said, you will have to part with more money in service fees to use a Bitcoin ATM.
3. Peer-to-peer network
Another older method is the use of a peer-to-peer network. This option doesn’t require go-betweens and is a relatively cheap way to add Bitcoin to your wallet. That said, popular systems such as Localbitcoin.com offer escrow services, which is a third party that handles money, paperwork and more, which they charge for.
Always make sure to review any attractive offer before committing. Many people have been mugged on these networks, all on the watch of said escrow services.
4. Over the counter transaction
Over the counter (OTC) transactions don’t involve any middleman whatsoever. It is up to the two parties to decide whether or not to use escrow services. Of course, this is a pretty risky method, but it saves you from a costly phenomenon called slippage. This is when you want more Bitcoin than the largest seller has to offer, prompting the exchange to slip your order to the next sale price, which is usually higher. Consequently, you end up paying more than you would if you bought a lesser amount or if you didn’t involve the exchange.
Over-the-counter transactions are incredibly convenient for purchases of cryptocurrency worth more than $25,000. They help you circumvent the drawbacks of exchanges and give you the best value for your money.
Buying Bitcoin in Canada only looks hard for those who haven’t dipped their toes into the world of cryptocurrency. Anyone who has completed a transaction that was preceded by thorough due diligence will tell you it was a quick and easy process. The above mentioned options are some of the more popular choices in Canada. Examine each, and choose what you think suits your preferences.
I began writing as a professional on my personal blog and then discovered my true calling, which is writing about technology, News, Home Improvement, Business and in general. I am a technical writer, author and blogger since 2010.