Welcome to our guide on how to buy ethereum in Canada. Ethereum is a decentralized, open-source blockchain platform that enables smart contracts and decentralized applications to be built and run without any downtime or interference from a third party. It has gained widespread popularity due to its potential to revolutionize a wide range of industries. If you’re based in Canada and looking to get started with buying ethereum, you have a few different options to choose from. In this guide, we’ll cover both custodial and non-custodial purchasing methods, as well as provide some tips for safely buying ethereum in Canada.
When it comes to buying ethereum in Canada, you have two main options: custodial and non-custodial purchasing. Custodial purchasing refers to buying ethereum through a third party, such as an exchange or online broker, which holds onto the ethereum on your behalf. These types of platforms are often user-friendly and offer a range of payment methods, but it’s important to be aware that you are trusting a third party with your ethereum. Non-custodial purchasing, on the other hand, refers to buying ethereum directly from another person or entity, without the involvement of a third party. This allows you to have full control over your ethereum, but it may require more effort and technical knowledge to set up. In the following sections, we’ll delve into the pros and cons of each method and provide some examples of popular options in Canada.
Getting Started Buying Ethereum: The first steps
So you’re ready to take the plunge and start buying ethereum in Canada. Great! Before you begin, there are a few key things to consider and steps you should follow to ensure a smooth and safe process.
- Determine your budget: First and foremost, it’s important to determine how much money you are comfortable spending on ethereum. Remember, the price of ethereum can be volatile, so it’s important to only invest what you can afford to lose.
- Choose a purchasing method: As mentioned earlier, there are two main ways to buy ethereum in Canada: custodial and non-custodial purchasing. Consider the pros and cons of each method and decide which one is the best fit for you.
- Research and compare options: Once you’ve decided on a purchasing method, take the time to research and compare different options. This may include exchanges, online brokers, peer-to-peer platforms, or ethereum ATMs. Look for platforms that are reputable, have good reviews, and offer the payment methods and features that are most convenient for you.
- Set up an ethereum wallet: Before you can buy ethereum, you’ll need a place to store it. This is where an ethereum wallet comes in. There are different types of wallets to choose from, including software wallets, hardware wallets, and paper wallets. Consider your needs and do some research to find the best wallet for you.
- Gather necessary information: Depending on the purchasing method you choose, you may need to provide personal and financial information to complete the transaction. Have this information ready to go before you start the buying process to make things easier.
By following these steps and taking the time to do your research, you can set yourself up for a smooth and successful ethereum buying experience in Canada.
Non-custodial purchasing refers to the process of buying ethereum directly from another person or entity, without the involvement of a third party. This means that you have full control over your ethereum and are not reliant on the security measures and reputation of a third party platform. Non-custodial purchasing options in Canada include peer-to-peer platforms and ethereum ATMs.
Custodial Purchasing Options
Custodial purchasing refers to a method of buying Ethereum where a third party holds onto the cryptocurrency on your behalf. This means that you do not have direct control over your Ethereum and are trusting the third party to keep it safe. Some examples of custodial purchasing options in Canada include exchanges and online brokers.
Exchanges are platforms that allow you to buy, sell, and trade bitcoin and other cryptocurrencies. They generally offer a wide range of payment methods, including bank transfers and credit/debit card payments. Some popular exchanges in Canada include Coinbase, Kraken, and Binance.
Online brokers are similar to exchanges, but they often have a more streamlined and user-friendly interface. They also typically offer fewer cryptocurrencies to choose from, but may have lower fees. Some popular online brokers in Canada include Wealthsimple Crypto and MogoCrypto.
How To safely use custodial exchanges
Using custodial exchanges to buy ethereum is generally a convenient and user-friendly option, but it’s important to be aware that you are trusting a third party with your ethereum. To ensure the safety of your ethereum when using custodial exchanges, it’s a good idea to follow these steps:
- Choose a reputable exchange: Before you start using a custodial exchange, be sure to do your research and choose a reputable platform. Look for exchanges that have a good track record, strong security measures, and are transparent about their operations.
- Enable two-factor authentication: Most exchanges offer the option to enable two-factor authentication (2FA), which adds an extra layer of security to your account. This typically involves receiving a code via SMS or an authentication app whenever you log in or make a transaction.
- Withdraw your ethereum to a personal wallet: After you’ve bought ethereum on a custodial exchange, consider withdrawing it to your own personal wallet. This will give you full control over your ethereum and reduce the risk of it being lost or stolen due to a security breach on the exchange.
- Use a hardware wallet: If you plan on holding onto your ethereum for a longer period of time, consider using a hardware wallet to store it. Hardware wallets are physical devices that store your ethereum offline, providing an extra level of security
Non-Custodial Purchasing Options
Non-custodial purchasing options for ethereum in Canada include peer-to-peer platforms and ethereum ATMs.
Peer-to-peer platforms, such as Localethereum and Paxful, allow you to buy ethereum directly from other individuals. These platforms typically have a range of payment options available, including bank transfers, credit card payments, and even cash. The process for buying ethereum on a peer-to-peer platform typically involves finding a seller, agreeing on a price and payment method, and completing the transaction.
Non-Custodial Exchanges offer an alternative to traditional custodial exchanges and allow you to buy and sell ethereum directly to and from your own wallet, without the involvement of a third party. This means that you have full control over your ethereum and are not reliant on the security measures and reputation of a third party platform.
Ethereum ATMs, on the other hand, allow you to purchase ethereum with cash. These machines are available in various locations around Canada and offer a convenient way to buy ethereum on the spot. However, it’s important to note that ethereum ATMs often have high fees compared to other purchasing methods.
While non-custodial purchasing options offer the benefit of giving you full control over your ethereum, they may require more effort and technical knowledge to set up. It’s therefore important to do your research and choose a reputable platform or ATM to ensure the safety of your transaction
How to Buy Ethereum on a Non-custodial Exchange
Using MyBTC as an example this is how you could easily purchase ethereum in Canada.
- Create an account: The first step is to create an account on MyBTC.ca. This involves providing some personal and financial information, such as your name, email address, and phone number. You’ll also need to create a secure password to protect your account.
- Select your payment method: MyBTC.ca offers a range of payment methods to choose from, including bank transfers, credit card payments, and even cash. Simply select the payment method that is most convenient for you.
- Place your order: Once you’ve chosen your payment method, you can place your order for ethereum. You’ll need to specify the amount of ethereum you want to buy and the price you’re willing to pay.
- Make your payment: After you’ve placed your order, you’ll need to make your payment according to the payment method you’ve selected. For bank transfers and credit card payments, this will typically involve providing your bank account or card details. For cash payments, you’ll need to visit a designated location to make the payment in person.
- Wait for the transaction to be processed: Once your payment has been received, your order will be processed and the ethereum will be transferred