How To Buy Ethereum In Canada: A Detailed Guide
What is Ethereum?
Before you buy Ethereum you should know what it is! Ethereum (Ether) is one of the major cryptocurrencies available today and has been incredibly popular since it’s release in July 2015. It was originally designed to push blockchain technology into new frontiers, and many would agree it has done so. Ethereum is a blockchain that can be used to create decentralized applications, operate smart contracts and much more.
Vitalik Buterin, the founder of Ethereum, sought to create a new blockchain project that was unique from Bitcoin. This led him to create a programming language that allows developers to create further programs in which blockchain transactions automate outcomes, hence ‘smart contracts’.
Vitalik was quoted as saying “I thought [those in the Bitcoin community] weren’t approaching the problem in the right way. I thought they were going after individual applications; they were trying to kind of explicitly support each [use case] in a sort of Swiss Army knife protocol.”
For more on what Ethereum is and how it works, you’ll want to check out the Ethereum comprehensive starter guide.
Smart contracts help you exchange items such as money, property, shares, or really anything of value. Smart contract transactions happen in a transparent, conflict-free way while avoiding the services of a middleman.
For example, codifying a legal agreement without the need for an actual lawyer. When you start understanding how a Smart Contract works, you can see that the usages of Ethereum are literally endless.
For more on Smart contracts, see our previous article here.
What is ETH used for?
Ethereum’s cryptocurrency, Ether or ETH, is often used to pay for transaction fees, development work on the Ethereum network, online payments and more. ETH is also the currency of choice for funding ICO’s that are built on top of the ERC20 protocol.
Another extremely promising use case for Ethereum is decentralized finance applications, sometimes called “DeFi”. These applications include smart contract powered loans and agreements, minting of new currencies or stablecoins, and decentralized exchanges. A notable recent example is “MakerDAO”, which through the use of elaborate usage of Ethereum smart contracts, has built a stablecoin (DAI) that is backed by Ether and is always worth $1 USD. For more information on MakerDAO please read our guide here.
The last reason people buy Ether and many other cryptocurrencies is because they speculate that the price will go higher. People look at Ethereum as the premiere Web 3 platform and want to get in on the action by buying the currency the fuels the system. Whether the bet they make is right or now remains to be seen but so far Ether has outperformed traditional asset classes since its inception.
Now that you know a little bit more about Ethereumand all of its great use cases, you will want to know how you can get your hands on some yourself. If you are looking to buy ethereum in Canada, look no further. In this guide we walk you through the easiest and quickest way to buy Ether in Canada.
How To Buy Ethereum In Canada
If you want to leverage the Ethereum blockchain for any of the reasons listed above, you will need to buy Ether from a trusted source. The best way to get Ethereum is through a trusted online exchange. Online exchanges offer fast access, low fees and are by far the most convenient way to buy Ether in Canada.
Step 1: Set Up an Exchange Account
Bitbuy is our preferred exchange for buying or selling crypto in Canada (BTC, ETH, XRP, LTC, BCH). It’s a simple platform for beginners looking to buy, sell and trade digital currencies. Bitbuy also has a Pro trading platform for more advanced traders. Signing up takes seconds – you’ll need to provide some basic info, get your identity verified (automatically or manually by Bitbuy staff), and confirm your email address.
Step 2: Fund Your Account
Once you are verified, go back to your dashboard and click “Add Canadian Dollars” then choose your preferred funding method. E-Transfer is your best bet to fund your account quickly in order to get your Ether fast. E-transfers are easy to complete using your online banking app or site.
Step 3: Buy Ethereum (Ether) with CAD or Bitcoin
Once you’ve funded your account with CAD, you’re ready to buy some Ether. For fast access, use Bitbuy ‘Express Trade’ to execute a market order in seconds. Enter the amount you would like to buy in Canadian dollars, and Bitbuy will show you how much Ether you will get and what the current price is. More advanced traders can use Bitbuy Pro Trade to set your own price via a limit order and in the case that you already have Bitcoin and want to trade it for Ether you can do that too by using the ETH/BTC trading pair on Bitbuy Pro Trade.
More On Bitbuy
Bitbuy is known for their great support, transparent and low fees and their commitment to security. They were recently audited for proof of reserves, crypto/fiat solvency as well as cold storage and security protocols. They are also registered as an MSB with FINTRAC, a Canadian government entity. A transparent and compliant organization is important when dealing with digital currencies, as it builds confidence that your money and digital assets are safe. Bitbuy is also the only exchange to offer 1:1 BTC insurance in Canada.
Other Exchanges To Get Ethereum For International Users
Coinbase is a digital currency exchange headquartered in San Francisco, California. They sell Ethereum, Ethereum Classic, and many more crypto coins for fiat currencies. Similar to Canada’s Bitbuy, Coinbase offers a simplified and more advanced version of their platform. This makes it great for beginners and experts alike. They also have potentially the most brand recognition in the US in the crypto space. When examining fees, Coinbase is great for US based customers. It is not recommended for Canadians because it has very high fees, and low limits due to Canadian banking regulations. Be careful when buying cryptocurrency on Coinbase if you use a credit card, as your bank may consider it a ‘cash advance’ and charge you additional fees.
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies. Binance primarily operates in the crypto-to-crypto trading space meaning you will need to already own some type of digital currency in order to make trades on the platform. Binance features many Ether pairs, meaning you can trade many different digital currencies you may have in exchange for Ethereum. Since early 2018, Binance is considered as the biggest cryptocurrency exchange in the world in terms of trading volume. Binance offers very competitive fees for crypto trading, however it may not be the best for beginners as it is more of an advanced platform.
Don’t want to use an online exchange?
Some people don’t want to use online exchanges for a variety of reasons. Most require personal information, so if you want to be more anonymous , there are other ways to buy Ethereum in Canada. We take a look at two other popular methods of buying Ethereum in Canada.
Buy Ethereum via Peer to Peer Transactions
Peer to peer transactions could be for you if you don’t want to pay transaction fees, but you take on a lot of risk. You need to connect with other Ethereum owners looking to sell on sites like LocalBitcoins or Facebook Marketplace. Local Bitcoins uses an escrow service so it’s considered a ‘safer’ peer to peer network. However, prices, fees etc can always Unfortunately, as with anything, social media marketplaces can be full of scam artists. Be careful and make sure you trust whoever you buy Ether from during a peer to peer transaction.
Buy Ethereum with Cryptocurrency ATMs
Crypto ATM’s can offer users anonymity when they buy Ethereum, but it comes at a price. Crypto ATMs are known for their high fees. You have likely seen a Bitcoin ATM at your local mall or a convenience store near you. Typically fees for Canadian crypto ATM’s are anywhere from 3% to 7%.
If you want to find a crypto ATM close to you, CoinATMRadar is a great resource. Make sure the machine you find has Ethereum, as many only sell Bitcoin, which is the most popular crypto sold on exchanges and ATM’s.
As you can see, the Ethereum protocol is an amazing cryptographic achievement with a growing list of uses. It has been around for 4 years and it clearly isn’t going anywhere. If you are looking to get access to Ethereum (Ether) we hope you found this guide a useful tool.