Cryptocurrency Trading - How do I buy cryptocurrency in Canada?

Cryptocurrency trading is the act of speculating on cryptocurrency price movements via a CFD trading account, or buying and selling the underlying coins via an exchange. Here is am answer to how do I buy cryptocurrency in Canada.

CFD trading on cryptocurrencies

CFDs trading are derivatives, which enable you to speculate on cryptocurrency price movements without taking ownership of the underlying coins. You can go long (‘buy’) if you think a cryptocurrency will rise in value, or short (‘sell’) if you think it will fall.

Both are leveraged products, meaning you only need to put up a small deposit – known as margin – to gain full exposure to the underlying market. Your profit or loss are still calculated according to the full size of your position, so leverage will magnify both profits and losses.

Buying and selling cryptocurrencies via an exchange

When you buy cryptocurrencies via an exchange, you purchase the coins themselves. You’ll need to create an exchange account, put up the full value of the asset to open a position, and store the cryptocurrency tokens in your own wallet until you’re ready to sell.

Exchanges bring their own steep learning curve as you’ll need to get to grips with the technology involved and learn how to make sense of the data. Many exchanges also have limits on how much you can deposit, while accounts can be very expensive to maintain.

How do cryptocurrency markets work?

Cryptocurrency markets are decentralized, which means they are not issued or backed by a central authority such as a government. Instead, they run across a network of computers. However, cryptocurrencies can be bought and sold via exchanges and stored in ‘wallets’ .

Unlike traditional currencies, cryptocurrencies exist only as a shared digital record of ownership, stored on a blockchain. When a user wants to send cryptocurrency units to another user, they send it to that user’s digital wallet. The transaction isn’t considered final until it has been verified and added to the blockchain through a process called mining. This is also how new cryptocurrency tokens are usually created.

How to buy cryptocurrency?

Buy and sell crypto while on the go. Have trades execute immediately or when your buy/sell price has been hit (limit orders). Monitor your account balances easily on desktop and on our mobile app. Synced between mobile and web, you can have an access to your account on a web browser, desktop or through our mobile app.

With Netcoins you have support 7 days/week. Lost and need help? Our customer support team can help over multiple channels! See how to get in touch with us here. Cash out whenever you want to. Enjoy free cash withdrawals via Interac e-Transfers or bank wires. Netcoins is designed as an open loop – meaning both crypto and fiat (Canadian and U.S. dollars) can go in and out of the app quickly. We make it super easy for you to take control of your finances, whether it’s tax on crypto Canada or US dollars.