How can you buy Ethereum in Canada? The answer is simple: with a cryptocurrency exchange.
Buying Ethereum, or other cryptocurrencies in Canada is relatively simple:
- Create an account with an exchange you like.
- Add your fiat funds (or other cryptocurrencies) to your digital wallet on the exchange.
- And finally, buy the cryptocurrency when the Ethereum price is what you are willing to pay.
Of course, you might want to know a bit more about Ethereum before you decide to invest in it. And now more recognized financial institutions are jumping on the bandwagon like Wealthsimple: a traditional exchange that now offers Ethereum and Bitcoin.
What is Ethereum
Ethereum was conceptualized in 2013 by blockchain-prodigy Vitalik Buterin, a Russian-Canadian. In 2014 Ethereum was launched using the same digital architectural platform that made Bitcoin possible, blockchain. The launch turned out to be the most successful example of crowdfunding to date.
There is an important difference between BTC and ETH, and it affects the Ethereum price tag. Bitcoin was created strictly as a digital asset to make transactions with, just like cash. So, Bitcoin’s only value is speculative, which makes it much like gold (the metal).
However, the price is determined by other factors because ETH is simply the native token that funds the Ethereum blockchain project.
Just like Bitcoin, the Ethereum cryptocurrency uses blockchain. The major difference between the two cryptocurrencies is that you can build countless different applications on top of the Ethereum blockchain, which is different from the cryptocurrency ETH.
Bitcoin is just money to spend or hold. Currently, the Ethereum blockchain is being used to build all kinds of decentralized games and apps. But it is also used to build secure government portals that store and share electronic documents.
So, ETH (the token) is a valuable cryptocurrency, which is traded on cryptocurrency exchanges. And is it also the token that is used to run the Ethereum blockchain and all of their projects.
Choosing a Method of Payment
Now that you are interested in buying Ethereum (ETH), you will need to choose a cryptocurrency exchange and set up an account with them.
If you are in Canada, there are a few factors to consider, such as:
- Which exchanges accept CAD or Interact
- And what are there KYC compliance protocols
These two factors are important because if you are in Canada, you can use your debit card or bank account to make an Ethereum purchase.
This is great because it cuts down on fees and the amount of time it takes to make a transaction. There are currently many Canadian exchanges that accept CAD for Ethereum. You can also use your debit card or link your bank account to the exchange for fast, easy, and safe purchases.
Many exchanges accept wire transfers and credit cards as well. These methods of payment are also very convenient. But you are going to pay more fees if you use a credit card to buy Ethereum.
Choosing an Exchange
Several of the Canadian exchanges which accept Interact and e-transfers are:
- CoinSmart: a cryptocurrency exchange, they also have a referral program and can guarantee transaction times
- Wealthsimple: a traditional exchange that now offers Ethereum and Bitcoin
Here are other Canadian based exchanges that you can buy Ethereum with CAD:
Note to Investors
All of these Canadian exchanges will require your personal information to verify your account. Most Canadian operated exchanges are opting to follow basic Know Your Customer (KYC) and Anti Money Laundering requirements.
This is for the following major reasons:
Rev Canada treats digital assets in much the same way that they treat other assets. That means that if you earn capital gains from your Ethereum sales, you are required to report these earnings to Rev Canada -the same way you report capital gains from other assets.
That means that many exchanges have partnered with Canadian finance and credit bureaus. In many ways, this is a very good thing, as it offers better identity protection, as well as easier registration processes.
This also means you can buy Ethereum easily and quickly with your debit card!