Many Canadians wish to purchase Ethereum but are unsure of how to do so. This guide explains the different options available to individuals in the country. Furthermore, it shares the advantages and drawbacks of each option.
Why Purchase Ethereum?
Men and women want to know why they should invest money in Ethereum. Today, it serves as the second-largest cryptocurrency in the world, coming in after Bitcoin in terms of popularity with investors. The company launched six years after Bitcoin and has made a name in the market. Why has it taken off and how to buy ethereum in Canada?
This cryptocurrency serves as the foundation for non-fungible tokens, which took off in 2021. Additionally, it stands as the technical base for the movement to decentralize finance, known as the DeFi movement. The price of Ethereum skyrocketed in just one year, going from $534.27 CAD to $3,860.34 CAD. This equals a 623 percent increase in just twelve months.
What Investors Need to Know
Before purchasing Ethereum in Canada, men and women must decide which funding source they will use to make this purchase. Experts recommend using a site that offers different payment options, such as a debit card, Interac e-Transfer, and wire.
Next, the investor must decide whether they wish to have their purchase sent to a wallet address, as some sites don’t allow for this. This depends on why the investor is making the purchase. If they plan to hold the cryptocurrency only to benefit from price increases, they don’t need a site that will allow them to send it to a wallet. They wait for the value to increase and convert the cryptocurrency back to cash. However, some individuals wish to use the cryptocurrency for other purposes and need a wallet to do so.
Once the user determines this, it is time to make a purchase. Which site should they use when doing so?
Individuals who wish to use the Interac e-Transfer option to purchase Ethereum may wish to use BitBuy. The site only charges 1.5 percent, and the money arrives in the account within an hour after the transfer is complete. Funding an account requires little effort by the buyer. They create an account, log in to the site, and add the funds.
Use the “Add Funds” button on the site to complete the funding. Men and women must click the “I Understand” button before proceeding. When they do, the site takes them to the page with the funding information. Here they will find the Interac e-Transfer option.
This option requires the user to enter their name and e-mail address and provide a security question and answer. After inputting this data, the user can send a bank transfer from their Canadian bank account to complete the transaction. The name on the bank account needs to match the name on the BitBuy account.
Within 30 minutes, in most cases, the funds appear in the individual’s account. They can then transfer the money to another cryptocurrency wallet, send it to a service such as BlockFi, or transfer it to a Canadian bank account, again using the Interac e-Transfer option.
When it comes to reputable cryptocurrency companies today, Coinbase appears at the top of the list. This helps to explain why it is now one of the largest cryptocurrency providers in the world. Founded in 2012, this was the first alternative currency company to go public, doing so on April 14, 2021. Investors may purchase stock in the company through NASDAQ.
Individuals need a Canadian debit card to purchase Ethereum through Coinbase. The company used to allow men and women to use their credit cards for this purchase, but the Canadian credit card companies put a stop to that. However, when an investor uses a debit card, the payment takes place instantly.
One reason many people prefer Coinbase is the site offers a learning section where they can earn free coins by watching videos and completing quizzes. The user can then move the currency to a PayPal account or crypto wallet address.
Completing the purchase requires the user to create an account and upload an ID. Upon verifying the account, they gain access to a dashboard with a Buy/Sell button. Add a payment method and make a purchase.
Withdrawing the Ethereum from Coinbase isn’t difficult. Send the currency to another wallet address that accepts Ethereum or transfer it to a PayPal account.
A company based in Toronto, Canada, Wealthsimple serves as the Canadian equivalent to Robinhood, Acorns, and Wealthfront in America. Men and women find they can purchase and sell their crypto assets on this site, including Ethereum, and the process is both fun and easy. Link a Canadian bank account to your Wealthsimple account and fund the account.
People who choose to hold their cryptocurrency, much as they do stock, find this to be a great option. When the value of the crypto increases, they can sell their holdings and receive the funds in Canadian dollars.
However, men and women must know that they cannot accept Ethereum from other people using this site because it isn’t a true cryptocurrency wallet. Furthermore, the currency cannot be transferred between crypto wallets. For those who aren’t really into crypto, this serves as a great option, as it allows you to hold crypto assets much as you do stocks you own.
Purchasing Ethereum on Wealthsimple requires you to establish an account. To do so, you may need a verification code. Individuals who set up two-factor authentication must take this step, and this type of authentication remains highly recommended.
Click Trade, Crypto, and Add Funds. These buttons appear on the dashboard under the Crypto section. The Add Funds button appears in purple, making it easy to find, and any bank accounts linked to the Wealthsimple account appear on the page.
A person can immediately purchase up to $250 of crypto once they fund the account. Any amount over $250 may take longer, as the site requires the funds to clear for larger purchases. Find Ethereum in the search bar and click on it. Choose the amount to buy and hit the Buy ETH button to complete the purchase.
These serve as the best ways to purchase Ethereum in Canada. BitBuy benefits men and women who wish to use the Interac e-Transfer option, and Coinbase is ideal for those wanting to make a purchase using their debit card. For those who don’t need to send the crypto to a wallet, consider Wealthsimple. All three companies come with an excellent reputation, so it boils down to which funding option they prefer and how the person wishes to withdraw the crypto in the future.
However, men and women need to treat crypto like stocks. Never purchase more crypto than you can afford to lose. The value of any cryptocurrency fluctuates, and the fluctuations are often dramatic. People must recognize this and invest wisely for the best results.