Bitcoin is now considered a mainstream asset offered and sometimes promoted by household investment names such as Fidelity and BlackRock. It’s hard to believe, but the U.S. may soon hold bitcoin and other cryptocurrencies as a strategic reserve asset because the Trump administration sees crypto as an important part of the future of finance.
But how exactly do you buy and sell bitcoin and crypto in Canada? Do crypto ETFs actually hold crypto? Is crypto eligible for registered accounts? Let’s look at these questions and more.
The best crypto platforms and apps
We’ve ranked the best crypto exchanges in Canada.
Option 1: Buying crypto directly from a crypto exchange/platform
The most direct way to get exposure to crypto is to buy BTC, ETH or other cryptocurrencies from a crypto exchange. A crypto exchange, also called a crypto platform or app, works in many ways like a stock exchange. It’s where you buy and sell BTC and other cryptocurrencies.
You can set either market or limit order:
- Market orders get filled immediately during trading hours if the cryptocurrency you’re buying or selling is liquid. This is because you’re agreeing to buy or sell at the prevailing market price.
- Limit orders are for trades you want to make only at a certain predetermined price. You may have to wait until there is a buyer or seller who agrees to your price.
Make sure you’re getting your crypto from an exchange that’s registered (meaning that it’s authorized to do business in Canada) by the Canadian Securities Administrators (CSA). Here are the top five platforms on MoneySense’s list of the best crypto exchanges in Canada. (Use your finger or mouse to scroll to the right.)
Once you buy the crypto, you can leave it on the exchange—in which case it is kept under your account but in the custody of the exchange—or you can transfer it into a crypto wallet.
Crypto stored in a wallet is entirely yours and its safekeeping is your responsibility. Broadly speaking, there are two types of wallets. A hot wallet is always connected to the internet, and a cold wallet is one that can be disconnected from the internet. Cold wallets are less convenient, but they’re also less susceptible to online hacks.
Here are some of the most popular crypto wallets:
