How to Buy Bitcoin in Canada (2025 Guide)

AI summary

Buying Bitcoin in Canada is straightforward and legal, thanks to a clear regulatory framework and reliable local exchanges registered with FINTRAC. The process involves choosing a compliant exchange, verifying your identity, depositing Canadian dollars, purchasing Bitcoin, and securing it in a hardware wallet for optimal safety. Canadians should be mindful of trading fees, payment methods, and tax obligations on capital gains when selling or using Bitcoin.

Buying Bitcoin in Canada has never been simpler. The country has a clear regulatory framework, a mature crypto market, and reliable payment rails that make it easy for anyone to get started. Bitcoin is entirely legal in Canada and treated as a digital asset under federal law. Anyone can buy, hold, and sell it as long as they use compliant platforms and understand the tax rules associated with ownership. The buying process is straightforward: choose a trusted exchange, verify your identity, deposit Canadian dollars, purchase BTC, and secure it in your Tangem wallet. This guide walks you through each step in a beginner-friendly way while covering regulations, taxes, payment methods, and best practices for storage.

Is It Legal to Buy Bitcoin in Canada?

Bitcoin is legal across Canada, and Canadian regulators recognize it as a digital asset rather than a currency. Canadians are free to buy, own, trade, or mine Bitcoin without restrictions. What matters is where you buy it. Crypto exchanges operating in Canada are required to register with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) as Money Service Businesses. This registration ensures platforms comply with Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA). It also requires exchanges to adhere to strict rules regarding identity verification, reporting, and record-keeping.

Banks and regulators continue to closely monitor the crypto industry as part of their consumer protection initiatives. Meanwhile, the Bank of Canada is exploring the potential for a Central Bank Digital Currency (CBDC), often referred to as the Digital Canadian Dollar. While a CBDC would serve different purposes than Bitcoin, the project signals Canada’s ongoing interest in digital assets.

Primary takeaway: Buying Bitcoin in Canada is legal, regulated, and safe when using FINTRAC-registered platforms.

Step-by-Step Guide to Buying Bitcoin in Canada

Below is a simple walkthrough of how to buy Bitcoin in Canada from start to finish.

Step 1 – Choose a Bitcoin Exchange

Your first decision is selecting a crypto exchange. Canada has several reputable, locally registered platforms, as well as global exchanges, that support CAD deposits.

Popular Canadian Exchanges: These platforms are registered MSBs and are commonly used by Canadian residents:

• Bitbuy – Known for strong security and transparent pricing
• NDAX – Low-fee trading and excellent CAD support
• Newton – Zero-commission trading with spreads
• Coinsquare – Long-running Canadian exchange with broad assets

International Exchanges Serving Canada: Some global exchanges accept Canadian users and support CAD deposits or crypto-only trading:

• Kraken – Trusted, low-fee, and secure
• Coinbase – Beginner-friendly with a simple interface
• Binance – Limited features due to Canadian regulations

Consider the following when choosing the best exchange:

• Security: cold storage, audits, insurance
• Fees: trading fees, spreads, deposit and withdrawal fees
• Payment methods: Interac e-Transfer, bank wire, credit/debit
• Ease of use: mobile app, simple navigation
• Asset selection: if you plan to expand beyond BTC

For a broader comparison, check our article on the Best Exchange in Canada.

Step 2 – Complete KYC Verification

Canadian regulations require exchanges to verify your identity before you start trading. This process is called KYC (Know Your Customer).

You will typically need:

• A government-issued photo ID (passport or driver’s licence)
• Proof of address (bank statement, utility bill, or government letter)
• A selfie or live video verification

Most exchanges complete verification within minutes, although manual reviews can take longer. Common issues include blurry photos, mismatched addresses, or expired identification. FINTRAC regulations require platforms to collect this information to prevent fraud and money laundering. Every legitimate exchange in Canada follows this process.

Step 3 – Deposit CAD Funds

After verification, you can deposit Canadian dollars into your account. You’ll choose a deposit method based on speed, convenience, and fees. Once your Canadian dollars arrive, you’re ready to buy Bitcoin.

Step 4 – Buy Bitcoin

You can now place your first order.

Order Types

• Market order: buys instantly at the current price
• Limit order: lets you choose the exact price you want

Trading Pairs

• BTC/CAD – direct way to buy using Canadian dollars
• BTC/USDT – stablecoin trading pair available on global exchanges

Example: If you deposit 500 CAD, you simply go to the BTC trading screen, enter 500 CAD, and confirm your buy order. The exchange displays the amount of BTC you’ll receive after fees and spreads.

Step 5 – Store Bitcoin Safely

Leaving your Bitcoin on an exchange is a risky move. Exchanges can suffer hacks, service outages, or insolvency. The safest approach is to move your BTC to a hardware wallet.

Recommended Hardware Wallet

• Tangem – Secure, mobile-first, card-style hardware wallet

Tangem Hardware wallet protects your private keys offline, away from hackers. That approach aligns with the core principle of responsible self-custody: Not your keys, not your coins. For more information, visit the Tangem wallet page.

Best Payment Methods to Buy Bitcoin in Canada

Canadians have several reliable options for funding their crypto accounts. Here is how they stack up.

How Much Does It Cost to Buy Bitcoin in Canada?

Your total cost depends on:

• Trading fees
• Spreads
• Deposit and withdrawal fees
• Network fees when transferring BTC

Typical Fee Comparison: These are general ranges; exact fees vary by platform:

• Bitbuy: 0.1 to 0.2 percent
• NDAX: 0.2 percent
• Newton: no trading fee, but spreads apply
• Coinbase: higher fees due to convenience
• Kraken: 0.16 percent maker / 0.26 percent taker

Example Calculation: If you spend 1,000 CAD:

• Exchange fee: around 2 CAD
• Spread: around 0.5 to 2 percent, depending on the platform
• Net BTC received: approximately 980 to 995 CAD worth of BTC

Exchanges with tight spreads and transparent pricing usually give the best value.

Taxes on Buying and Selling Bitcoin in Canada

The Canada Revenue Agency (CRA) treats Bitcoin as a commodity for tax purposes. There is no tax when you buy or hold Bitcoin, while you owe capital gains tax when:

• You sell BTC for CAD
• You convert BTC to another crypto
• You use BTC to purchase goods or services

Half of your gain is taxable.

Example: You purchased BTC for $1,000 CAD and sold it later for $1,600 CAD.

• Profit: $600
• Taxable amount: $300 (50 percent of the gain)

Business traders may be subject to income tax rather than capital gains tax. For more guidance, check our article on Crypto Taxes in Canada.

Safest Way to Buy and Hold Bitcoin in Canada

The safest approach is simple:

1. Use a FINTRAC-registered exchange.
2. Buy your Bitcoin with CAD.
3. Immediately transfer your BTC to a secure hardware wallet.

Tangem hardware wallet offers cold storage security without the complexity of traditional devices. It’s portable, durable, and designed for long-term self-custody. Its design eliminates exchange risk and ensures you control your private keys at all times.

Alternatives to Buying Bitcoin on Exchanges in Canada

If you prefer not to use a traditional exchange, several alternative options are available.

• Peer-to-Peer Marketplaces: Platforms like Paxful and LocalCoinSwap, as well as decentralized tools like Bisq, allow users to buy Bitcoin directly from one another. These methods offer privacy but require caution and experience.
• Bitcoin ATMs: Canada has thousands of Bitcoin ATMs in major cities, including Toronto, Vancouver, Montreal, Calgary, and Ottawa. Bitcoin ATMs enable you to purchase Bitcoin using cash or a debit card. Fees are higher, but transactions are instant.
• Fintech Apps: Apps like Wealthsimple, PayPal, and Revolut allow simplified crypto purchases. These services often limit withdrawals to external wallets, making them more suitable for beginners than for long-term holders.

Future of Buying Bitcoin in Canada

Canada’s crypto landscape continues to evolve. Here are trends shaping the years ahead:

• Stronger Regulation: FINTRAC is expected to tighten its requirements for exchanges, particularly in terms of reporting and compliance. The goal is to create safer, more transparent trading environments.
• Digital Canadian Dollar (CBDC): The Bank of Canada continues to research the potential development of a national digital currency. Although the government hasn’t announced a rollout date, the project highlights Canada’s commitment to digital innovation.
• Growing Adoption: More institutions, retailers, and investment firms are exploring Bitcoin and blockchain technologies. Younger Canadians are driving retail investment, and long-term adoption trends look strong.

FAQ About Buying Bitcoin in Canada

Is Bitcoin legal in Canada?

Yes. Bitcoin is legal and regulated under Canadian law. You can buy, sell, and hold it as a digital asset.

What is the cheapest way to buy Bitcoin in Canada?

Platforms like NDAX and Kraken offer low fees. Interac e-Transfer is typically the most cost-effective payment option.

Can I buy Bitcoin with PayPal in Canada?

Some platforms support it, but availability is limited. PayPal Canada offers restricted crypto features.

What is the safest Bitcoin exchange in Canada?

Bitbuy and NDAX are two of the most trusted FINTRAC-registered exchanges.

Do you pay tax when buying or selling Bitcoin in Canada?

You don’t pay tax when buying. When selling or using BTC, you must report capital gains or losses to the CRA.