How to Buy Bitcoin in Canada: Step-by-Step for Beginners | The Coin Shack
How to buy Bitcoin in Canada, step by step
Buying Bitcoin for the first time is simpler than it looks. This guide walks through each step, from getting a wallet to receiving your first Bitcoin, and explains the choices you will make along the way.
TL;DR
- 1. Get a wallet and write its backup words on paper. (We set one up with you free in our store.)
- 2. Pick a registered seller: online is cheapest, Bitcoin ATMs are the most expensive.
- 3. Verify your ID once (a few minutes online; in store, cash under $1,000 needs none).
- 4. Pay by Interac e-Transfer and get your Bitcoin, usually within an hour.
- 5. Keep it safe: never share your backup words, and send a small test first.
Step 1: get a Bitcoin wallet
A wallet is an app (or a small device) that holds the keys to your Bitcoin. With a wallet you control, nobody else can freeze or lose your coins. Popular phone wallets are free to download. When you set one up, it shows you 12 or 24 backup words: write them on paper and keep them somewhere safe. Anyone with those words can take your Bitcoin.
Not sure which wallet to choose? We set one up with you for free, in our store or over the phone. Book a free setup.
Step 2: choose where to buy
In Canada you can buy online from a registered dealer, in person at a shop, or at a Bitcoin ATM. Online is usually the cheapest; ATMs are usually the most expensive. Whoever you use should be registered with FINTRAC as a money services business.
Step 3: verify your ID
Canadian law requires Bitcoin dealers to verify who you are before you trade online. With The Coin Shack it takes a few minutes when you sign up. In our store, cash trades under $1,000 need no ID.
Step 4: pay and receive your Bitcoin
Online, choose how much to buy, pay from your own bank by Interac e-Transfer, and lock your price. We send the Bitcoin to your wallet address, usually within an hour of your e-Transfer arriving. Our fee is 2.35%, already in the price. We pay the Bitcoin network fee (want it faster? You can choose a $2 or $5 speed-up).
In person, hand over cash and watch the Bitcoin arrive in your wallet at the counter.
Step 5: keep it safe
- Keep your backup words offline, never in a photo or an email.
- Send a small test amount before moving a large one.
- Be suspicious of anyone who contacts you about Bitcoin and asks you to send it somewhere.
- For larger amounts, consider a hardware wallet. Our OTC Desk can help.
Questions
How much do I need to start?
With us, online and in-store buys start at $100.
Do I have to buy a whole Bitcoin?
No. Bitcoin divides into tiny parts, so $100 buys a small fraction of one Bitcoin.
How long does it take?
Online buys are usually sent within an hour of your e-Transfer arriving. In store it happens at the counter.
