Cryptocurrency in Canada

Five Questions and Answers About Cryptocurrency in Canada

Nicoleta Balan Avatar
Oct 24, 2022
4 min reading time

Cryptocurrency has taken the world by storm, but there are still a lot of things about it that many people don’t know. While people are using cryptocurrency, such as Bitcoin, more and more these days, it’s still a good idea for you to learn more about it before you start buying, selling, or trading it.

Besides learning the most recent Bitcoin price in Canada, there are other things you should be aware of, and below are a few of those things.

1. When Did Bitcoin Get Started in Canada?

Bitcoin has been around since 2010, but in 2015 this type of cryptocurrency really took off in Canada, doubling its usage in the country and proving it is here to stay. Just like countries such as Denmark, Sweden, and Norway, Canada is moving toward a cashless society. 

The digitization of our money system is a huge step in that direction. More and more Canadians are interested in at least learning more about cryptocurrencies such as Bitcoin, in part because they find it easier than paying for things in other ways.

One of the biggest advantages of using Bitcoin is that anyone can transact or settle payments, usually with much lower fees. Canada is not there yet because even though the use of cash is starting to decline, it isn’t declining at a fast pace.

2. What Is the Easiest Way to Learn How Much Bitcoin is Worth?

The price of Bitcoin can change from hour to hour, but fortunately, there are tons of apps and websites that provide real-time prices 24/7, so you can visit them anytime, day or night, and find out the exact Bitcoin price in Canada, as well as other cryptocurrencies’ prices. 

A simple Internet search will pull up dozens of sites that you can go on to discover the price and other information, such as the 24-hour low, 24-hour high, 24-hour change, and the market cap. As of this writing, buying Bitcoin will cost you roughly $26,240 CAD, but that is likely to change by the time you read this article.

You can also have various cryptocurrency newsletters delivered to your inbox for free, which will help you learn all about dealing with various cryptocurrencies. 

In fact, if you’re interested in buying or selling Bitcoin or other cryptocurrencies, it’s good to learn all you can about the market so you don’t go into it with blinders on.

This is a good question because each country has different rules regarding cryptocurrency, with some countries banning it altogether. Just know that Bitcoin and other cryptocurrency is completely legal in the country of Canada. 

This being said, cryptocurrency cannot be used as legal tender here. You can, however, buy, sell, and trade with Bitcoin if you like, but if you’re going to do this, it’s a good idea to work with a financial advisor who is an expert on working with Bitcoin and other cryptocurrencies.

4. What is the Best Way to Buy and Sell Bitcoin?

You buy and sell Bitcoin through exchanges, and most of the exchanges doing business in the United States will also help you buy and sell Bitcoin in Canada. 

However Canada also has their own exchanges which is recommended for Canadians as the best Crypto exchange in Canada are required to meet minimum security requirements. So in other words, there are both national and international exchanges to help you through the buying and selling process.

There are other exchanges as well, including some that allow for over-the-counter purchases, which you can usually do in person or through a bank transfer. 

In fact, throughout Canada, there are roughly 700 ATM machines for Bitcoin, although most of them are found in larger cities such as Montreal, Toronto, and Vancouver.

5. What Are the Tax Laws Regarding Cryptocurrency?

Basically, Canada’s laws regarding taxes on cryptocurrency are iffy, although it does have to be reported to the tax agency as property and as a commodity around tax time. If this applies to you, you’ll have to file a T1135 annually. 

Because the Bitcoin price in Canada can change quickly and there are many different scenarios that are possible, it’s best to speak with a tax advisor so that you file properly if you buy or sell any type of cryptocurrency, even if you haven’t really “made” any money yet.

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* The information in this article and the links provided are for general information purposes only and should not constitute any financial or investment advice. We advise you to do your own research or consult a professional before making financial decisions. Please acknowledge that we are not responsible for any loss caused by any information present on this website.
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