Are you looking to invest in the cryptocurrency market? As a Canadian, you may be considering buying Ethereum. You’re not alone.
Many people ask how they can buy these currencies and wonder if it’s worth the risk.
Today, the cryptocurrency market is one of the most exciting and potentially lucrative avenues for investment in recent years.
However, finding the best ways to buy Ethereum is challenging, especially if you’re new to cryptocurrencies.
This guide will walk you through how to buy ethereum in Canada. You’ll also discover where to buy the coins.
What is Ethereum?
Ethereum is a decentralized platform for applications that run as programmed without any chance of fraud, censorship or third-party interference.
Because of its flexibility and security features, Ethereum has attracted a strong community of developers and entrepreneurs.
It has also become a platform for many altcoins that integrate its technology in various ways.
Ethereum’s cryptocurrency is called “ether,” which is used to pay for computation within the Ethereum system.
Ether is a tradable asset and gives programmable transactions some added flexibility. It can be used to pay for transaction fees and computational services on the Ethereum network.
It is like a vehicle for moving around on the Ethereum platform and is sought by mostly developers looking to develop and run applications inside Ethereum.
But it is not limited to developers only. It can be used by anyone looking to make instant transactions, send or receive money across the globe in real-time.
With Ethereum, you can easily create new cryptocurrencies; smart contracts, decentralized exchanges, gambling apps, financial tools, and much more. The possibilities are endless.
5 Steps to Buy Ethereum in Canada
There are many ways to buy Ethereum in Canada. The most common way is through a cryptocurrency exchange.
These are websites that facilitate fiat currency exchange for Ethereum and other cryptocurrencies.
Below is how to buy Ethereum with a cryptocurrency exchange:
1. Set Your Budget
Before purchasing ETH, it’s essential to set your budget and understand how much it will cost to buy a certain amount of Ether.
Think about the amount of money you are willing to invest into this new cryptocurrency and do not go over that amount.
It is one of the most important steps because you do not want to buy more Ethereum than you can afford and end up losing money due to panic selling.
The best way to set your budget is to calculate how much you can invest and divide it by the cost of one Ethereum token.
2. Select an Ethereum Exchange
The second step in buying Ethereum is researching which exchanges offer Ethereum. This will take some time and effort, but it will help you find the best exchange for your needs.
Selecting a cryptocurrency exchange is the gateway to buying, selling and trading cryptocurrencies.
Depending on your needs, there are many different factors to consider when selecting an exchange.
When choosing a cryptocurrency exchange, you should know that gees vary depending on traded volume.
Also, different exchanges allow users to deposit money in different ways. Some exchanges accept bank transfers, while others accept Canadian crypto credit cards or Paypal payments.
Additionally, some exchanges will charge for deposits and withdrawals from their platform, while others will only charge for withdrawals.
3. Register and Verify Your Identity
Once you’ve chosen an exchange, you’ll have to create a user account, which involves submitting personal information such as your name and email address.
Then comes the verification stage. This step can vary by exchange, but this process typically requires a copy of your government-issued identification, such as a driver’s license.
Like registration, this process can take just a few minutes, depending on the specific exchange used.
4. Fund Your Account
The process of funding your account will differ between exchanges. Some exchanges will not accept fiat currency deposits and only deal in cryptocurrency.
You can also fund your exchange account via bank transfer or wire transfer. Most exchanges offer free bank transfers for buying cryptocurrency, but some charge fees.
Do your research before funding your account with fiat currency to avoid any surprises.
The time it takes for a fiat deposit to credit depends on the exchange you use and the payment method you choose.
Most exchanges accept wire transfers and Interac e-Transfers (instant) via online banking.
Wire transfers are almost always free of charge, but Interac e-Transfers may include fees that vary depending on your financial institution.
Once your deposit has been credited, you will be able to buy or sell crypto assets at a price listed on the exchange.
5. Buy Ethereum
Once you’ve funded your account, you’re ready to buy. For buying Ethereum in Canada, there are several order types available.
If you’ve never traded on an exchange before, starting with a simple market order is better.
Market orders are placed by buyers and sellers who want to execute their trade at the best available price quickly.
So what is a market order? A market order is an order to buy or sell a specified quantity of an asset at best available current price.
This means that if you want to buy $1,000 worth of ETH and there’s only one seller with 100 ETH for sale at $600 each, your order will secure the full $1,000 in ETH and cost $600.
However, if multiple sellers have 100 ETH for sale for $600 each, your order may secure less than $1,000 worth of ETH.
However, while market orders can be helpful, they are not guaranteed to get you the best price.
Where to Buy Ethereum in Canada
So you’ve decided to buy Bitcoin or Ethereum, but you’re not sure where to start?
Several options are available to purchase these cryptocurrencies, which can be confusing.
Some of the best cryptocurrency exchanges for purchasing Ethereum are as follows:
has been a reliable cryptocurrency exchange since its opening. It’s based in Canada and allows you to buy and sell Bitcoin, Ethereum, and Litecoin.
You can choose from several payment options, including Interac e-Transfer, debit card or credit card.
Furthermore, the process of signing up and verifying your account is relatively easy. Bitbuy does not have any hidden fees, and its service is quick.
Trading fees: Deposits and withdrawals are charged 0.10 to 0.20 %.
Coins: over 15 coins, including Ethereum.
Funding of accounts: Wire transfers and Interac e-Transfers.
Bonus: Get $40 when you make a first deposit of $250 or more.
The National Digital Asset Exchange offers instant buys of several coins. It is also based in Canada.
NDAX is another top cryptocurrency exchange based in Canada that offers an easy-to-use interface and several features not found on other sites.
Also, NDAX does not charge an extra fee for buying or selling cryptocurrency on their exchange, unlike most other exchanges!
Trading fee: 0.20%, but there is no charge for deposits.
Coins: Over 30 coins, including Ethereum
Funding of accounts: Cryptocurrency, wire transfer, Interac e-Transfer, and bank draft.
Bonus: If you open an account and deposit at least $100, you’ll receive a $10 bonus.
CoinSmart is a Canadian cryptocurrency exchange that enables Canadian residents to purchase and sell Ethereum and other digital currencies.
The exchange also allows for the use of Interac Online, which lets users buy Bitcoin with a credit card instantly.
You can purchase Ethereum directly from your Canadian bank account without converting your CAD into USD or Euro.
Additionally, you won’t have to pay expensive international wire transfers or credit card fees.
Trading fee: 0.20%; deposits can be made for free.
Coins: over 13, including Ethereum
Funding of accounts: Cryptocurrencies, Interac e-Transfer, Bank wire, debit card, credit card, SEPA, and bank draft.
Bonus: When you deposit $100, you will receive a $20 welcome bonus.
Wealthsimple Crypto is one of the most popular, and many would say, the most accessible platforms to buy Ethereum in Canada.
They have a simple interface that makes it easy to buy and sell your cryptocurrency online.
Whether you’re an experienced trader or just getting your feet wet in the crypto space, Wealthsimple makes it easy to buy Ethereum and other cryptocurrencies.
Additionally, Wealthsimple Crypto doesn’t charge any fees for buying or selling cryptocurrency through its platform. However, they take a 1.5% cut when investing in one of their different cryptocurrency portfolios.
Trading fee: 1.5%, but withdrawals and deposits are free.
Coins: Over 35, including Ethereum.
Funding of accounts: Crypto deposits and Electronic Funds Transfer
Bonus: When you deposit $150 in crypto and trade it, you’ll receive a $50 referral bonus.
Coinberry is one of Canada’s leading cryptocurrency exchanges. It allows users to buy, sell and trade cryptocurrencies like Bitcoin and Ethereum.
It is an easy-to-use online platform that offers fast transactions, a user-friendly interface, high liquidity and state-of-the-art security.
The platform allows you to buy Bitcoin with Interac bank transfers or Interac e-transfers. You can also use SWIFT or one of the best credit cards Canada.
Coinberry is one of the most diverse selections of coins available anywhere online. Users can register in just a few minutes and start investing with as little as $50.
Trading fees: No fees for CAD deposits or withdrawals.
Coins: over 20, including Ethereum
Funding of accounts: Bank transfers, Interac e-Transfers, SWIFT, and credit/debit cards.
Netcoins is a Vancouver-based Canadian cryptocurrency exchange. Through Netcoins, you can purchase and sell major cryptocurrencies like bitcoin and ethereum through Interac e-Transfer, online bill payment, or wire transfer.
Fees are 0% for funding and withdrawals in FIAT, and 0.5% for trading. Support is available to customers through live chat, email, and phone during business hours.
Trading fees: 0.50%; deposits and withdrawals are free.
Coins: over 8 including Ethereum
Funding of accounts: Interac e-Transfer, online bill payment, and bank wire.
Bonus: Invest at least $100 in cryptocurrency and receive a $10 bonus.
Where to Store Your Ethereum
There are two kinds of wallets: cold and hot wallets. A cold wallet refers to any type of wallet that is not connected to the internet.
It is simply a physical storage device such as a hard drive, USB stick, or paper wallet. The other kind of wallet is an online connection. Online wallets are wallets that you can use on exchanges like Coinsmart.
Hot wallets have the advantage of being accessible from anywhere globally, making them easy to use for trading purposes.
Keeping your coins in hot wallets is fine if you don’t care too much about security but want easy access to them.
The main risk with exchanges is that they get hacked often. So keep in mind that if you don’t have your private key, your funds will be lost forever.
However, if you have your private key, it doesn’t matter if the government hacked or shut down the exchange.
Nevertheless, if you want to keep your Ethereum safe, consider storing it in a cold wallet.
You can manually connect these offline storage devices to the internet whenever you need access to your crypto.
Is Ethereum Safe?
If you’re thinking of investing in cryptocurrencies, you must understand the risks involved.
Cryptocurrencies are highly volatile, and their values can easily change by 20% or more on any given day.
This means you could wake up one morning and discover you’ve lost 50% of your investment in a cryptocurrency.
Ethereum is very volatile, but it’s also been growing rapidly. This combination makes it risky to invest in speculations like Ethereum without considering possible price changes.
On the other hand, cryptocurrencies tend to be valued based on supply and demand, much like gold and other precious metals.
If many people want to buy a cryptocurrency, but there aren’t many people selling it, the value can increase rapidly.
Risks can also be associated with price cyberattacks, fraud, and lack of regulation. Keeping your Ethereum in an offline wallet and encrypting online backups can reduce your risk of losing it to cyber-attacks.
Tips on How to Buy Ethereum in Canada
Ethereum (ETH) is one of the most popular cryptocurrencies today. Many people use it to invest and make a profit.
With the correct information, you can start buying Ethereum today. Here are some tips that will be of help when buying Ethereum in Canada:
- Ensure that you are using a trusted exchange
- When making transactions, double-check the addresses.
- You should not share your private key with anyone
- If you plan on storing a lot of Ether, use hardware wallets
- You should utilize multi-factor authentication and choose exchangers that do comprehensive identification verification
- If you do not intend to trade your Ether, move it to a hardware wallet instead of an exchange.
Buying Ethereum may seem a daunting task for the newcomer because there are many crypto exchanges and so many things to consider.
But, as you can see, the buying process for Ether is relatively straightforward. It’s important to remember that whenever you buy crypto, you need to take some time to ensure you select the best service for buying in Canada.
The last thing you want to do is buy from an exchange that will not work for you.
Hopefully, using this guide as a starting point will make it much easier for you to select a good exchange and buy quickly from the best exchange.
What is the minimum amount to buy Ethereum?
You can purchase a small share of Ethereum for as low as $25.
Can you cash out Ethereum?
You can conveniently cash Ethereum through a cryptocurrency exchange.
Is it safe to invest in Ethereum?
Even though Ethereum investment is risky, it could prove lucrative in the long run.
When should I sell my Ethereum?
Whenever you need money or reach your profit goal, you should sell your Ethereum.