How to Buy Ethereum in Canada 2023
- By Ian Cheeseman
- June 26, 2023
Ethereum — the closest crypto competitor to Bitcoin by market cap — is redefining cryptocurrency. As of August 2022, Ethereum has a market capitalization of more than 206 billion with over 121 million coins in circulation.
More than just a currency, Ethereum is a multi-purpose platform that’s home to the coin Ether (ETH), as well as user-made applications, non-fungible tokens (NFTs) and more. The many uses and benefits of the Ethereum network have made it a very popular community with those looking to invest in crypto and other digital assets.
If you're ready to purchase Ethereum for the first time, it’s important to understand the different ways you can go about it. So, let’s get started! This quick guide will cover all you need to know about how to buy Ethereum in Canada and the U.S.
Browse This Content:
- What to Consider Before You Buy Ethereum?
- What You Need to Start Buying Ethereum
- 3 Best Ways to Buy Ethereum in Canada
- How is Ethereum Taxed in Canada?
- Frequently Asked Questions (FAQs)
- Buy Ethereum in Canada With Localcoin!
What to Consider Before You Buy Ethereum?
First, it's essential to understand how the Ethereum blockchain works, and the technology behind it (blockchain). Familiarize yourself with key concepts like smart contracts, decentralized applications, and Ethereum's role in the broader crypto ecosystem.
Secondly, you should be aware that Ethereum prices can be highly volatile. Be prepared for significant price fluctuations and assess whether you're comfortable with the potential risk and reward associated with Ethereum investments.
Stay updated with the latest news and developments in the Ethereum ecosystem. Understand the factors that can influence Ethereum's price, such as technological upgrades, regulatory changes, and market sentiment.
Finally, for novice investors, we recommend considering guidance from a financial advisor or investment professional who understands cryptocurrencies. Their insights can help you make more informed decisions based on your financial situation and goals.
What You Need to Start Buying Ethereum
So you’ve got the information you need about Ethereum and Ether. Now it’s time to get organized to make your purchase. Depending on how you choose to buy Ethereum, here’s a breakdown of what you’ll need to make a purchase.
1. An Ethereum-Compatible Crypto Wallet:
Crypto wallets are a necessary part of any cryptocurrency transaction. You’ll need to set up your wallet of choice and get familiar with how it works before you get to the point of purchase. It’s also important to make sure your wallet is compatible with Ethereum.
2. A Method of Payment:
You will need one of the following methods of payment handy:
- Debit or credit card (Yes, you can buy Ethereum with a debit card!)
- Canadian or American bill(s)
- PayPal account
- Wire transfer
- Gift cards (for peer-to-peer transactions)
- E-transfer information
3. Personal Identification:
Many exchange platforms, brokers, trading apps and cryptocurrency ATMs require identity verification. This may also depend on the amount of Ethereum you are buying.
4. Directions to A Local Crypto ATM:
If you’re using a crypto ATM to purchase Ethereum, find an ATM that’s easy for you to get to, whether you’re coming from home, work or running errands in the neighbourhood. You can find the Localcoin ATM nearest you here.
5. An Account on an Exchange, Trading or Peer-to-Peer Platform
If you’re using an online platform to purchase Ethereum, set up an account with a secure internet connection.
3 Best Ways to Buy Ethereum in Canada
Now that you know about the essential things you need before purchasing Ethereum you might be wondering: where to buy Ethereum in Canada
Buying crypto for the first time can seem daunting; you can’t just buy Ethereum at the bank, and a quick online search will generate thousands of options. But it’s easier than you think!
Here are three popular methods for how to buy Ethereum (ETH) in Canada:
1. Online Crypto Exchange Platforms
One of the most common ways to buy, sell and trade cryptocurrencies like Ethereum is through online exchange platforms. These are marketplaces that use internet-connected crypto wallets to facilitate crypto transactions. Once you’ve made an account, you can purchase coins using traditional currencies such as the Canadian dollar, or by trading between crypto coins.
- Cryptocurrency exchanges allow for convenient transactions but come with security risks
- Exchanges may collect your personal information to verify your identity
- Ethereum transaction fees on exchanges vary widely between exchange platforms
2. Peer-to-Peer Platforms
In contrast to exchange platforms, peer-to-peer marketplaces match up individual buyers and sellers, making direct trades possible. These platforms operate without holding any funds during the trade, and even allow you to trade for other commodities such as gift cards. That said, these exchanges can invite scams and fraudulent behavior. The security, safety, privacy and asset control associated with these peer-to-peer exchanges can vary drastically. This makes them a less than ideal option for newcomers to cryptocurrency.
- Peer-to-peer platforms allow users to make direct trades with other users
- Other users may use peer-to-peer platforms fraudulently
- They may also collect personal information to verify your identity
- Ethereum transaction fees can vary widely
3. Cryptocurrency ATMs
Using a local crypto ATM is an excellent, user-friendly option for newcomers discovering how to buy Ethereum (ETH) altcoin in Canada. These internet-enabled terminals help both newcomers and experts buy and sell crypto safely, securely and with ease. They work by connecting directly to blockchain networks, allowing you to purchase cryptocurrency with cash or sell cryptocurrency from your wallet. Because they don’t host your wallet, you have the freedom to choose which crypto wallet works best for you! Once you’ve located your local crypto ATM in your neighbourhood, the process is simple and straightforward:
- Step 1: If the ATM offers buying/selling services for more than one currency, select Ethereum (ETH).
- Step 2: Find the QR code associated with your public address in your wallet.
- Step 3: Scan the QR code using the built-in camera.
- Step 4: Insert your bills when prompted.
- Step 5: Confirm the amount and complete your purchase. Transactions are usually instantaneous but may take anywhere between 10–30 minutes, or even 1–2 hours in some cases.
- Step 6: It’s recommended to wait for at least one confirmation on the blockchain before spending or sending your purchased funds.
- Cryptocurrency ATMs are physical locations that make crypto transactions easy, safe and secure for those learning how to invest in Ethereum in Canada and the U.S.
- Identification may be required for transactions over a certain dollar amount.
- ATM service fees are tied to changes in the price of Ether.
- Many different Ethereum-compatible wallets work at crypto ATMs, so choose the one that’s best for you!
How is Ethereum Taxed in Canada?
The taxation of Ethereum and other cryptocurrencies varies depending on your jurisdiction. In Canada, Ethereum and other cryptocurrencies are considered commodities for tax purposes by the Canada Revenue Agency (CRA). This means that transactions involving Ethereum, such as buying, selling, or trading, can be subject to capital gains tax.
When you sell Ethereum for more than you paid to acquire it, you'll likely incur a capital gain, which is taxable. However, if you use Ethereum for personal transactions or as payment for goods and services, it might also be subject to Goods and Services Tax (GST) or Harmonized Sales Tax (HST). It's essential to report your Ethereum activities accurately on your tax returns and consult a tax professional for guidance tailored to your situation.
Frequently Asked Questions (FAQs)
Can I buy ETH on TSX?
Ethereum (ETH) itself is not directly traded on the TSX (Toronto Stock Exchange). However, there are certain exchange-traded funds (ETFs) or trusts available on TSX that offer exposure to cryptocurrencies, including Ethereum.
Is buying ETH risky?
Yes, buying Ethereum carries risks due to its volatile nature and potential price fluctuations. It's essential to thoroughly research, understand the market, and only invest what you can afford to lose.
Where is the best place to buy Ethereum?
The best place to buy Ethereum is either through a crypto ATM in your neighbourhood or through a reputable cryptocurrency exchange like Coinbase or Binance. These platforms offer user-friendly interfaces and a wide range of payment methods.
Buy Ethereum in Canada With Localcoin!
By understanding how to buy Ethereum in Canada, crypto enthusiasts can potentially benefit from Ethereum's long-term growth prospects by making an informed investment decision.
Localcoin ATMs offer a simple, user-friendly way for anyone to buy and sell Bitcoin, Ethereum, Litecoin and Dogecoin. Newcomers and experts alike can easily access Localcoin ATMs when and where they need to. As one of North America’s largest Crypto ATM networks with more than 800 terminals across Canada, we provide the best way to buy crypto in Canada by making the transaction process easy and accessible for crypto enthusiasts in their communities.
At Localcoin, our mission is to provide a simple, secure buying and selling experience of digital currency for customers across North America. From running North America’s largest Bitcoin ATM network to our online retail platform, we are constantly seeking to innovate in the blockchain infrastructure space. Welcome to our blog, where customers can educate themselves on the world of cryptocurrency, learn more about our company vision and more!