What's the Best Crypto to Buy in 2024?
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As cryptocurrency continues to grow in popularity, more and more Canadians consider adding coins and tokens to their investment portfolios. If you’ve been bitten by the blockchain bug we’re here to help you understand how to buy cryptocurrency in Canada safely and legally.
In this guide, learn where to purchase cryptocurrency in Canada and the best cryptos to buy in the short term and long term.
How to buy crypto in Canada?
By far the best way to buy crypto in Canada - and certainly the safest - is to open a trading account with a reputable exchange.
Similar to traditional investment brokers, cryptocurrency exchanges in Canada and beyond make it easy to buy and sell cryptocurrency in a fair, transparent market by bringing together individuals and financial institutions with coins to buy and sell. In exchange for facilitating these transactions, the exchanges charge small transaction fees, as well as processing fees for account operations like withdrawals or conversions.
Daytraders and speculative investors can also purchase cryptocurrency or bet on market movements through retail brokerages that specialize in contracts for difference (CFDs). Unless you’re an experienced trader, however, we suggest focusing on cryptocurrency exchanges.
You’ll want to take into account several factors when choosing a broker or exchange, including the number of cryptocurrencies available for purchase, transaction fees and security. If you buy crypto on Binance, for example, you pay slightly lower fees than if you buy crypto on WealthSimple.
Once you’ve decided where to buy and sell, here is how you’ll start your crypto journey:
- Open an account and complete the verification process. The largest and most trustworthy crypto exchanges in Canada are subject to anti-money laundering regulations, which means they must collect “Know Your Customer” data.
- Decide how to fund your account. Depending on the exchange, you may be able to add money to your account via debit card, credit card, Interac e-Transfer, bank transfer or PayPal.
- Make your first purchase. Navigate to the virtual trading floor, enter a ticker symbol for your preferred currency and collect your coins.
- Store your crypto somewhere safe. While you can always opt to leave your coins in your brokerage account, we don’t recommend this option. Crypt exchanges aren’t backed by the CDIC, which means you aren’t protected from loss in the event of theft. Smart wallets on your phone or tablet offer slightly more security but are still vulnerable to attack because they connect to the internet. Your best bet? A crypto wallet on a USB drive or other offline storage device.
Watch out!
Cryptocurrency exchanges are not subject to the same regulations as traditional trading venues, such as the TSX, NYSE or LSE. Decentralized exchanges are entirely unregulated. Before investing in cryptocurrency or similar assets, speak with a financial advisor to ensure you fully understand the potential for profit and loss.
How do you sell crypto in Canada?
To sell cryptocurrency in Canada you’ll follow a similar process as you would to buy cryptocurrency in Canada: create or open an account and then offer your coins for sale. Depending on the platform, this may be as easy as clicking a “SELL” button and receiving dollars. In other cases, however, you may need to wait for a buyer to accept your quoted price.
Profits made from the sale of cryptocurrency qualify as capital gains and must be reported to the Canadian Revenue Authority. Cryptocurrency exchanges are required to report transactions worth more than $10,000, but may also choose to disclose all transactions.
Compare the best crypto exchanges
Top 5 tips for buying crypto:
Starting your crypto investing journey might seem a bit daunting, particularly if you’re still familiarizing yourself with terms like “initial coin offering” and “cold wallet”. To help get you off on the right foot, we suggest the following steps:
- Do your research. Take the time to educate yourself, not just about cryptocurrency, but retail investing in general. Understanding how markets move and learning to manage your emotions around sharp upswings and dips can take some effort but will pay off when it comes time to develop and implement a strategy for buying, holding and selling your coins.
- Define your investment goals. Decide whether you’re buying and selling crypto to generate short-term profits or intend to hold it for a more extended period. Understanding your goals will help define your risk tolerance and guide you to the best coins for your investment goals.
- Choose a reputable exchange. If you’re new to buying cryptocurrency, you’ll want to make sure you’re buying and selling through a safe, secure exchange. Signs you’re in the right place? An exchange has high trade volume and no known history of successful hacks.
- Start slowly. Some cryptocurrency exchanges allow you to trade on margin. While leveraged trades can amplify your good decisions, they can also lead to sizable debt if your chosen coins lose value.
- Only invest what you can afford to lose. As interest in cryptocurrency increases, it can be tempting to jump into this exciting opportunity headfirst.
What are the best cryptos to buy now?
The best crypto to buy right now is the one that supports your investment goals and aligns with your values.
Deciding to buy crypto isn’t fundamentally different from any other personal finance decision, which means the best crypto to buy now might be different from the best crypto to buy in a few years. It may also mean that you and your friends could see different results, even if you both buy today.
Before investing in cryptocurrency, take the time to educate yourself on how blockchains work. Why? Because the value of a cryptocurrency depends in part on the size and stability of the blockchain responsible for issuing the coins.
Understanding the technology behind blockchains will also help you make an informed decision about whether a given project - and its tokens - are likely to succeed.
Which crypto to buy for the long-term?
Similar to purchasing stocks or derivatives, buying cryptocurrency for the long term involves a fair degree of research. Even Bitcoin and Ethereum, fluctuate wildly in value and, unlike banks, cryptocurrency exchanges aren’t required to hold assets in reserve to reimburse clients if the token loses value.
Before you buy crypto for the long term, we recommend taking the following steps:
- Research the project. Read the whitepapers and technical documentation to understand whether or not the project backing your coins is sound and has the potential to grow over several years.
- Review the team. Are the people in charge of the project well-versed in blockchain, DeFI, Web3 or other relevant sectors? How much experience do they have?
- Investigate the community. A large, engaged community can provide you with additional insights into the utility and viability of the project.
Before investing in cryptocurrency, you may want to speak to a licensed financial advisor to understand how this novel asset fits into your long-term investment strategy.
Which crypto to buy for the short-term?
If you intend to buy a cryptocurrency for the short-term, you’ll want to focus on market dynamics, much as you would with any other asset you don’t intend to hold for a long period.
Daytraders and professional investors will find many opportunities in the highly volatile cryptocurrency markets. For those less familiar with technical trading, however, the risks may outweigh the benefits.
As a starting point, short-term crypto buyers should focus on new and emerging projects with backing for institutional investors. Focusing on projects within well-known blockchain ecosystems, such as Ethereum, Avalanche and PolkaDot may also improve your odds of success. Finally, monitoring market trends can help you identify fast-growing niches like DeFi and GameFi early.
Good to know
Cryptocurrencies, like all investments, involve a degree of speculation. If you’re a daytrader or other retail investor, be aware that high volatility in the cryptocurrency markets can lead to significant gains - and losses.
What banks allow you to buy cryptocurrency in Canada?
If you plan to invest seriously in cryptocurrency, you’ll want to make sure you have an account with a bank that allows you to buy and sell crypto.
While some Canadian banks have taken a cautiously open position towards crypto and support buying and selling through a number of methods, others have shown skepticism. To buy crypto with RBC, for example, you can pay with a debit card or Interac e-Transfer with a low transaction fee. Laurentian Bank, on the other hand, will block transactions of any kind with cryptocurrency exchanges.
| Bank | Credit Card | Debit Card | Interac e-Transfer | EFT or Wire Transfer |
|---|---|---|---|---|
| Royal Bank of Canada (RBC) | ||||
| Toronto Dominion (TD) | ||||
| Bank of Montreal (BMO) | ||||
| Scotiabank (Bank of Nova Scotia) | only Canadian cryptocurrencies | |||
| Canadian Imperial Bank of Commerce (CIBC) | - | |||
| National Bank of Canada | ||||
| HSBC Canada | - | |||
| Tangerine |
How to buy crypto with a debit card?
Good news! Most cryptocurrency exchanges that accept Canadian customers make it easy to buy cryptocurrency with a debit card. You can do this by opening an account and using your debit card to add the dollars you need to purchase coins on the exchange.
To buy crypto with a debit card, just enter your card information when creating your broker account and indicate the amount of money you’d like to add to your trading account. Once in your account, these funds can be used to purchase cryptocurrency on the exchange, which you’ll store in your brokerage account or a virtual wallet.
Compare the best crypto exchanges
How to buy crypto with PayPal?
While the popular payment platform does allow users to purchase cryptocurrency, it’s not currently possible to buy crypto with PayPal in Canada due to regulatory restrictions.
Living abroad? Follow these steps to buy crypto with PayPal:
- Create or log in to your PayPal account and click on “Finances” (next to “My Dashboard” at the top of the screen).
- Click on “Crypto”.
- Select the cryptocurrency you wish to purchase: Bitcoin, Bitcoin Cash, Ethereum or Litecoin.
- Enter the payment amount, confirm your payment method and tap “Buy”.
- Confirm the details of your transaction and verify the change in your PayPal account balance.
Because PayPal has a limited number of coins available for purchase and charges higher transaction fees than exchanges, it may not be the most economical way to buy crypto.
If, however, you only intend to buy a small amount of cryptocurrency or prefer to avoid setting up a separate account on a trading platform, PayPal can be a convenient solution.
How to buy cryptocurrency with a credit card?
Hoping to buy crypto on a Canadian credit card? A small number of cryptocurrency exchanges allow you to fund your trading account with a credit card, however, the associated costs can be steep.
The best sites to buy crypto with a credit card are exchanges that allow you to use a credit card to fund your account:
| Exchange | Fees |
|---|---|
| CoinSmart | 6% transaction fee |
| MyBTC.ca | 9.75% processing fee |
| Trust Wallet | 3.5% transaction fee, or a minimum of $10 USD (whichever is greater) |
| CEX.io | Visa: transaction fees of up to 3% + $1.20; commissions of up to $3.80 Mastercard: transaction fees of up to 1.8% + $1.20); commissions of up to 1.20% + $3.80 |
When you buy cryptocurrency with a credit card, the issuer and the payment processor take on additional risk and have to do more work to put through the transaction. As a result, cardholders end up paying higher fees than they would if they opted for other payment methods.
Because Canadian law requires cryptocurrency exchanges to follow the same anti-money laundering rules as more traditional financial institutions, you cannot buy crypto with a credit card and no verification.
How to buy crypto with a prepaid card?
To buy crypto with a prepaid card, you’ll need to open an account with a reputable exchange that accepts these cards as a funding method, such as CEX or Coinbase.
Be aware that using a prepaid credit or gift card to purchase cryptocurrency may not be the most cost-effective option. Similar to credit cards, issuers may charge higher than usual transaction fees to fund your crypto trading account.
What crypto can you buy on Wealthsimple?
For casual investors hoping to add some crypto to a diverse portfolio, the popular retail investment brokerage WealthSimple allows users to open a specialized account just for cryptocurrencies.
And while hefty fees - 1.5% of the value of a transaction - might give daytraders pause, the variety of coins available to buy and sell has benefits for those just learning the ins and outs of different assets.
WealthSimple users can choose from over 50 coins, including Avalanche, Bitcoin, Ethereum and Litecoin.
What are the best Metaverse crypto to buy?
If you have your eye on a charming four-bedroom in the best virtual neighbourhood, chances are you will need some virtual currency to seal the deal. But which one?
Unlike cryptocurrencies that trade on exchanges and have some relationship, however distant, with the physical universe and fiat currencies, metaverse cryptocurrencies have value only in the new and exciting mashup of social media, virtual reality and augmented reality that is the Metaverse.
In practical terms, that means that the best Metaverse crypto to buy depends entirely on the specific purchase you’d like to make. If you’d like to buy a Theta Network NFT, for example, you’ll need to invest in Theta tokens.
Because the value of metaverse cryptos hinges entirely on the success of the virtual project to which they’re attached, they’re not recommended for risk-averse investors or anyone beginning to explore crypto.
What can you buy with crypto?
In theory, you can use cryptocurrency to buy any good or service you might purchase with fiat currency. In reality, converting your coins into, say, clothes can require some extra work.
Depending on the particular cryptocurrency, you may be able to sign up for a crypto debit card backed by a traditional processor, such as Visa or MasterCard. Other cards, such as Shakepay, reward users with cashback bonuses denominated in Bitcoin.
Otherwise, the fastest way to purchase with cryptocurrency involves converting it to Canadian dollars and making a withdrawal from your exchange account.
Some vendors do accept cryptocurrency as a method of payment. Travel giant Expedia will allow you to book a car or a flight using Bitcoin, provided you have a Coinbase account, while the upscale department store Nordstrom will let you pay in Bitcoin.
Compare the best crypto exchanges
