Canada isn’t quite the leader in cryptocurrencies but the constant barrage of news about Bitcoin has made many want to jump on the bandwagon. There are others that feel like they missed the bandwagon and others that feel that Bitcoin has surged so high that it has only nowhere to go but for a hard crash. Looking at the top 3 cryptocurrencies here are the rates at the time of writing of this article listed at wallet21.com:
- BTC: $17684.43
- BCH: $1714.29
- ETH: $682.06
What does the governour of the Bank of Canada have to say about Bitcoin?
“What their true value is may be anyone’s guess — perhaps the most one can says is that buying these things means buying risk, which makes it closer to gambling than investing”
You can read more about his comments and concerns about Bitcoin on this CBC article here. It’s quite clear that all banks are worried about what cryptocurrencies are doing to disrupt traditional banking and fiat currencies as we know it. It was recently announced that Bitcoin is now the 15th most valuable liquid currency. Bitcoin is almost as valuable than the circulating currency of Saudi Arabia and probably in a week or 2 of publishing this article, it will have surpassed it. It is already worth more than the currencies of both Hong Kong and India. It is now at the halfway point of the value of the Canadian currency.
Where to buy Bitcoin
Before explaining where to buy Bitcoin or any other question you might have, you’ll want to research everything before you jump into it. You should research how Bitcoin works before you buy and you should definitely research the companies you are considering doing business with. Unfortunately it’s not just Canadians but many people around the world are getting scammed with and it’s because they might search for a phrase like “where to buy bitcoin” and automatically trust the sites they see in search results. You’ll want to ask questions and look up any company on Facebook and search for them in a discussion on a site like reddit.com.
We’ll list some places that Canadians can buy/sell Bitcoin and note that this is not a recommendation for any of them but to understand how they work, what their fees and and the pros and cons of using them. There will definitely be an increase in more options in 2018 and beyond:
- Bitcoin ATMs
- QuadrigaCX Exchange
- Kraken Exchange
Bitcoin ATMs in Canada
Yes Bitcoin ATMs do exist all across Canada which is great if you want to buy Bitcoin or sell but keep in mind that these ATMs are not frequently used so that means their fees are fairly high and they are not ideal for transactions unless you need your Bitcoin converted to cash in the shortest period of time.
High fees on Bitcoin ATMs
These Bitcoin ATMs are not cheap to use so you should expect high fees associated with using them in exchange for the convenience. At one Toronto location, we looked up the fee and it was listed as:
- Buy 16.5% from BitcoinAverage
We did find a list that showed the lowest fee to be at 5% which in our opinion is still a bit much to pay and you should be getting a better rate from an exchange.
For a list of Bitcoin ATMs in Canada see
QuadrigaCX Exchange for Canadians
QuadrigaCX is a cryptocurrency exchange which is supposedly based in Canada although the site doesn’t really seem to have a real legitimate mailing address or office. The exchange does however accept Interac for funding your account so this is proof that they are at least Canadian focused. That said, there are a few warning signs with this exchange which when you compare it to the big exchanges like Kraken, the rates you get for trading are not the same and you are really given worse rates with QuadrigaCX. It might be a good way to get your foot in the door but it’s certainly not the best price option.
A few issues worth noting about QuadrigaCX:
- No real office
- No understanding of the founders or people behind the operation
- Lower rates offered to users compared to other major exchanges
Kraken and other major exchanges
Kraken.com is one of the better known exchanges but that said, it’s hard to say if one is better than the other. Just keep in mind that exchanges are not immune to hacking and you’ll want to use them to buy cryptocurrencies but you might not want to store them there.
Online Gambling and cryptocurrencies
Cryptocurrencies like Bitcoin and Bitcoin Cash are starting to gain traction as a popular method for depositing and withdrawing into online casinos. Bitcoin has been a popular method in the past few years but lately a few casinos are adding Bitcoin Cash. Bitcoin is popular for online gambling, Ethereum is gaining traction and is developing more on the software side. Bitcoin Cash is just starting to get off the ground as it has the upper hand on Bitcoin with faster transactions and significantly lower fees.