Buy Bitcoin Montreal 2021
Making Crypto Simple
Over the past decade, Bitcoin would pop up in the media now and then, referred to as something distant and far-fetched like “the funds of the remote digital era” or “the assets of the future”. Well, the future has arrived and Bitcoin is rocking world markets.
Now, you’re convinced that Bitcoin is the right choice but you feel a bit lost dealing with such a diverse market because you’re at the very beginning. Take it easy! We’re here to explain how to use the overwhelming number of Bitcoin purchase methods in your favor. Our team has covered the most reliable and secure ways of doing so in Montreal, Quebec.
For starters, read our guide on How to Buy Bitcoin in Canada and gain valuable information about the more general aspects of Bitcoin practices in Canada.
How to Buy Bitcoin in Montreal
Montreal is a promising Bitcoin destination so you can easily find a way to buy Bitcoin for the first time via a payment method that corresponds with your existing purchase habits. You may have already heard that Bitcoin purchase is mostly associated with cryptocurrency exchanges. If we take into account the 100+ crypto exchanges available in Canada and their incredible trading volumes, this assumption is definitely correct.
On the other hand, cash has never stopped being a desired payment method even when it comes to digital assets. Moreover, the Canadian Bitcoin community also tends to implement the latest trends for buying Bitcoin such as Bitcoin ATMs and prepaid vouchers. Therefore, our guide will focus on the following three:
- Use Bitcoin/Cryptocurrency Exchanges to buy Bitcoin
- Buy Bitcoin with Cash (via OTC Brokers and vouchers)
- Buy Bitcoin from a Bitcoin ATM
Buy Bitcoin on a Cryptocurrency Exchange
Cryptocurrency exchanges are platforms that enable users to trade a given cryptocurrency for another asset, such as fiat money or other digital currencies. Relying on a reputable cryptocurrency exchange is the safest step you can take as a beginner. There are several factors to determine whether the exchange can earn the reputation of being reliable: easy-to-use interface, low-cost fees, no history of security breaches, high volume of transactions, and helpful customer support. For a detailed comparison, read our guide on The Best Crypto Exchanges in Canada for 2021.
Bitbuy is a Canadian-based platform that has satisfied all of our criteria, so we’ll be using it as a model to explain the Bitcoin purchase process in eight simple steps:
- Go to the Bitbuy webpage and create an account. You can also download their mobile app for free.
- Activate 2FA authentication.
- Continue with the process of automated verification. If the system fails to recognize your data, switch to manual verification.
- Find Express Trade at the top of the page to deposit Canadian Dollars to your account.
- Click Buy and find the desired cryptocurrency (in this case BTC).
- Select a payment method: bank transfer, Interac e-Transfer, or Express Interac e-Transfer.
- Enter the number of Canadian Dollars you intend to invest. The amount of Bitcoin will be automatically calculated under Transaction Summary.
- Confirm the transaction by clicking Purchase.
Buy Bitcoin with Cash
If you’re looking for a suitable way to buy Bitcoin with cash in Montreal, we would like to focus your attention on these two alternatives:
OTC (Over-the-Counter) Brokers
When the topic is Bitcoin, over-the-counter (OTC) desks provide the opportunity for private transactions that occur directly between two parties without listing orders in public ledgers. The OTC broker stands as a private intermediary offering you deals from their high-liquidity order books. You don’t have to share any personal data or undergo the KYC process, as you’ll be connected directly to the counterparty of the deal.
Such customized trading is designed exclusively for high-volume Bitcoin transactions. Regular crypto exchanges usually fail to provide optimal service to “big” corporations or individuals as they have established strict weekly/monthly limits for both deposits and withdrawals. What’s more, standard exchanges can’t offer a fixed price for huge investment capital and convenient execution of large transactions. However, OTC trading has been criticized for being time-consuming and intransparent with brokers’ pricing. Pay full attention before you start negotiating your next big deal.
Some of the most popular exchange platforms in Canada like Bitbuy and Coinsquare offer OTC services customized for the needs of large investors. itBit, Genesis, and Vancouver Bitcoin are also well-known spots for OTC trading in Canada
In addition to the existing purchase methods, you can use a Flexepin voucher to buy Bitcoin using cash, directly from one of the 4,000 locations in Canada. The prepaid voucher in the amount of $50- $2,000 can be redeemed at any exchange platform that supports this type of service (Bitbuy, for example). All you have to do is check whether your exchange supports Flexepin. If it does, go to the Buy Bitcoin section and select Flexepin as a payment method. Insert the unique 16-digit pin and the desired amount of Bitcoin will be instantly transferred to your exchange account. However, the $2,000 voucher is the weekly limit for buying Bitcoin with this method.
Buy Bitcoin from a Bitcoin ATM
Bitcoin and regular ATMs share the time-saving feature of convenience. However, unlike traditional ATMs where you can withdraw local currency with your debit card, the Bitcoin machine allows you to purchase Bitcoin using cash or debit card without exposing your bank information. Keep in mind that you still need to undergo ID verification and scan the QR code of your wallet before starting the purchase process.
Compared to online exchanges, both the verification and the purchase will be done much faster and your “piece” of Bitcoin will be transferred to your exchange account or digital wallet in real-time. The commission is around 5% higher than an average transaction fee but for a large portion of crypto traders, the buy-as-you-go system has proven to be worth the extra cost. Furthermore, you can track the nearest location in your area on Coinradar. In Montreal, you don’t have to walk far as there are 143 available BATMs.
Frequently Asked Questions
Bitcoin is not considered legal tender in Canada. However, Canada doesn’t restrict the use of blockchain-based currencies for trading purposes. It means you can buy, sell or exchange Bitcoin for fiat money or other cryptocurrencies. You are also allowed to pay available goods and services with Bitcoin, which is treated as a barter transaction and subject to GST/HST (Goods and Services Tax/ harmonized sales tax).
Only a restricted number of reputable exchange platforms in Canada allow you to buy Bitcoin using your credit card (Coinbase, Coinsmart, Coinberry). However, we highly recommend you avoid this payment method due to the extremely high double fees and risk of exposure. If you still find it a suitable way for your purchase needs, always double-check the exchange’s reputability.
As long as you own a certain amount of Bitcoin (BTC) or other common altcoins like Litecoin (LTC), Ethereum (ETH), Bitcoin Cash (BCH), Ripple (XRP), and Stellar (XLM), you can sell them at most of the well-established exchanges. Compare the exchanges’ reputability, withdrawal fees, and accepted cryptocurrencies, and follow the instructions to convert your digital assets into fiat money and transfer them to your bank account.
Theoretically, each individual Bitcoin is divisible to 0.00000001 BTC, so there is no actual minimum limit when it comes to buying Bitcoin. However, the majority of Bitcoin exchange platforms do set a minimum order which differs from one exchange to another, usually exceeding the amount of 50 USD.
LocalBitcoins is one of the peer-to-peer services that allows buyers and sellers to make a direct transaction with no intermediary to facilitate the transaction. It’s available in over 200 countries including Canada. However, peer-to-peer exchanges aren’t a recommended way of buying Bitcoin due to the low customer protection and high risk of potential scams.