Buy Bitcoin Toronto 2023
Making Crypto Simple
Every time you type “how to buy Bitcoin” into Google, you get hundreds of millions of results and no single idea what’s relevant and what’s a scam. We perfectly understand how discouraging this can be for a newbie in the crypto game.
Therefore, based on deep market analysis and traders’ reviews, our team has collected the most reliable Bitcoin purchase methods available in Toronto, Ontario. You’ll learn that buying Bitcoin nowadays doesn’t have to be a nerve-racking experience as the market has smoothly adjusted to individual traders’ needs and strategies.
Before we start, you can take a closer look at our article How to Buy Bitcoin in Canada.
How to Buy Bitcoin in Toronto
What do we mean when we say “the market has adjusted”? Simply that you can buy Bitcoin using the payment method that suits you the most: bank account wire, international transfer, debit or credit card, Bitcoin ATMs, or even a prepaid voucher. Each method comes with its benefits and drawbacks. Our guide will be focusing on 3 popular ways of buying Bitcoin:
- Use Bitcoin/Cryptocurrency Exchanges to buy Bitcoin
- Buy Bitcoin with Cash (via an OTC Broker)
- Buy Bitcoin from a Bitcoin ATM
Buy Bitcoin on a Cryptocurrency Exchange
As a beginner, we recommend that you purchase your first Bitcoin on a cryptocurrency exchange. A good cryptocurrency exchange is safe and easy-to-use, offering the best rates and high-quality customer support. It’s the key step in defining how securely you will start your crypto journey.
There are hundreds of available crypto exchanges for Canadians and choosing the best one can be tricky sometimes. We’ve prepared a separate article on The Best Cryptocurrency Exchanges in Canada for 2021 to help you choose one. Bitbuy is ranked the highest among the crypto community in Canada so we’ll use it as an example to illustrate the Bitcoin purchasing process:
Sign up and Verify Your Account
- Visit the Bitbuy website or download the mobile app and create an account.
- Enable 2FA authentication on your device.
- Complete the verification process (there is an option for automatic verification)
Deposit Funds (Canadian Dollars) to Your Account
- Go to the Express Trade section at the top of your account page.
- Locate Bitcoin by clicking the Buy button.
- You can choose between wire transfer, Interac e-Transfer, or Express Interac e-Transfer.
- Insert the CAD amount you’re planning to spend, and the amount of Bitcoin will be shown right under Transaction Summary. Then, click Purchase to finish the process.
It’s as easy as it looks.
Buy Bitcoin with Cash
Despite the great shift towards digital payment, cash is still favored by a number of citizens. When it comes to Bitcoin, the current market in Canada does offer a few reputable ways of exchanging cash for Bitcoin.
OTC (Over-the-Counter) Brokers
Regular cryptocurrency exchanges are not always the best solution for high-volume Bitcoin purchases. There are two main reasons for this. First, crypto exchanges have a limited supply of Bitcoin and large investments drastically affect Bitcoin’s price. Buying large volumes via OTC is more cost-effective as it uses a fixed BTC price. Second, trades are not recorded on the public ledger at OTC desks, which makes them private (anonymous). The trade can be personalized for your convenience and needs.
OTC desks provide a fixed rate for a certain period of time protecting Bitcoin investors from slippage, which in the simplest terms, is the difference between the set and executed trade price. It occurs on standard exchanges when a single huge trade is divided into several smaller “chunks” due to insufficient liquidity.
In Toronto, you can visit some of the local OTC desk offices like itBit or Vancouver Bitcoin and get personalized direction for your next big investment. Bitcoin exchanges like Bitbuy and Kraken also provide OTC services for capital over 100,000 USD.
Flexepin vouchers are a relatively new method for an easy Bitcoin purchase. You can buy these top-up vouchers using cash at over 4000 locations across Canada and redeem them for Bitcoin on your exchange (Bitbuy, for example).
As convenient as it may seem, you should first check whether your exchange supports this payment type since for now, only a limited number of crypto exchanges do. There is also a $2,000 weekly restriction on the amount of CAD you can spend on Bitcoin with Flexepein prepaid vouchers.
Buy Bitcoin from a Bitcoin ATM
Toronto is the leader in the number of Bitcoin ATMs in Canada. There are over 400 BATMs located throughout Toronto, usually within malls, gas stations, corner stores, etc. As many crypto traders claim, buying BTC from a BATM is much easier than doing it online. However, it’s also far more expensive due to the withdrawal fees that are around 5% higher than the fees of other payment alternatives.
Even though you are not required to reveal any bank information, don’t get the impression that using a BATM is entirely anonymous. You still need to complete a verification process before you start in order to comply with FINTRAC regulations. Afterward, each BATM follows a purchase pattern depending on the machine’s model. The instructions are clearly stated on the screen, covering registration, payment (inserting cash or debit card), and Bitcoin purchase.
Frequently Asked Questions
As the Bank of Canada stated in 2014, Bitcoin and other blockchain-based coins like Ethereum (ETH), Litecoin (LTC), Ripple (XRP), Bitcoin Cash (BCH), and Stellar (XLM) do not constitute either money or currency. However, it is not illegal to buy and sell Bitcoin against another fiat or digital currency or use it as a payment method for various goods or services. According to the Canada Revenue Agency, Bitcoin is treated as a commodity, so the regulations related to barter arrangements apply only to Bitcoin transactions.
Bitbuy is the most recommended trading platform in Canada. It allows fast Bitcoin purchase, fair fees, and exceptionally high “buy and sell” limits. With an attractive interface and available mobile app, Bitbuy is suitable both for beginners and advanced crypto traders.
This is possible with peer-to-peer services like Paxful or LocalBitcoins, where you can purchase Bitcoin directly from other peers on marketplaces. However, it’s a risky and highly insecure method, which can result in various scams or at least mutual discomfort.
In order to store your Bitcoin securely, you need a proper digital wallet. In a few words, a Bitcoin wallet is a digital platform that stores a collection of private keys, controlled and managed exclusively by the owner. There are two main wallet types: hardware wallets or cold storage (highly secure physical devices) and software wallets or hot storage (free online apps).
Selling Bitcoin in exchange for fiat money is available in Canada on a great number of highly reputable exchange platforms like Bitbuy, Coinsquare, Coinbase, Coinberry, etc. First, you need to set up an account with the platform of your choice and follow the instructions provided by the exchange. Pay attention to the withdrawal fees as they can differ to a great extent from one platform to another.