How to Buy and Sell Ethereum in Canada – A Full Guide

Ethereum is the no.2 crypto by market cap, just behind Bitcoin. So, we can understand your buzz about investing in it, but how do you do that exactly? Let’s take a look at the process of buying and selling Ethereum in Canada!

A Brief History

Ethereum was launched in 2015, so it is one of the oldest cryptocurrencies. Initially, it was created to take full advantage of Bitcoin’s use of blockchain technology, all while adding new uses beyond transactions.

As stated above, the key novelty Ethereum introduced was the use of smart contracts – programmable and self-executing pieces of code that all users to reach a consensus without a mediator.

Moreover, smart contracts make it possible to build software applications on Ethereum, and its blockchain laid the foundations for the development of decentralized applications, including DeFi.

Is Ethereum Legal in Canada?

Before investing in any cryptocurrencies, you need to pay close attention to the regulatory framework of the country.

As such, cryptocurrencies in Canada are legal, but they are not classified as legal tender. This means that the government won’t accept them as a form of payment, but since you can legally get your hands on cryptocurrencies, you are bound to pay taxes for them.

Different Options to Buy Ethereum in Canada

You will be happy to know that you are not limited to just one option for buying Ethereum in Canada. Let’s take a look at how you can get your hands on the world’s second-biggest cryptocurrency.

1. Crypto Exchange

Arguably the easiest and the most popular way of buying Ethereum in Canada is through a crypto exchange.

Since Ethereum is the second-largest cryptocurrency in the world, you shouldn’t face any difficulties finding a crypto exchange.

So, the process of buying Ethereum this way would go as follows:

1. Find a platform for trading Ethereum – Canadians are flooded with options here, with the likes of Bitbuy, Coinbase, Kraken, CoinSmart, Binance, and Netcoins being among the most reputable platforms.
2. Create an Account – you can now go through the short registration process, but note that you will also be likely to complete the KYC requirements.
3. Deposit – choose CAD as your currency. You can add money through your bank account or debit card.
4. Start trading – just enter the ETH ticker symbol in the “Buy” field of the platform and enter the amount you want to buy, it is that simple!

2. P2P Platforms

P2P platforms have seen a drastic increase in popularity over the past few years as they eliminate the need for intermediaries in transactions – i.e. custodians, or crypto exchange platforms.

In P2P sites, users create offers themselves whenever they want to buy or sell Ethereum, thus setting their own terms and conditions. When they find a match, the transaction will occur directly between the two parties – promoting transparency and reducing fees and processing times.

If you are already attracted to the seamless nature of P2P Ethereum transactions, then you can pursue the following route:

1. Find a P2P platform and sign up – similar to crypto exchanges, you will need to go through a short registration process.
2. Verify your ID – some P2P platforms in Canada will ask you to provide photo proof of your ID.
3. Filtrate offers – you need to choose the Buy ETH option on the P2P platform, enter your desired fiat amount and your payment method to filter the offers.
4. Place your order – once you have found your advertiser, click on the Buy field to proceed with the payment.
5. Confirm the transaction – once you transfer the funds, confirm the transaction on the P2P platform’s website or app.
6. Wait for confirmation – the seller should get a notification of the payment, after which they will confirm the transaction.
7. Transfer the assets to your Ethereum wallet – now, you can transfer your assets to your wallet and do with them as you please!

You can even arrange for a meet face-to-face with the people with whom you trade Ethereum if you wish to go outside of the platform. Note that if you do decide on this step, you need to be careful not to disclose your true identity or where you live.

With that in mind, Lending Loop and goPeer are the most prominent choices for P2P Ethereum trading in Canada.

3. Bitcoin ATM

Don’t be confused by the name, Bitcoin ATMs make it fully possible for you to buy Ethereum. Here is a quick breakdown of the process you need to follow:

1. Get a crypto wallet – regardless of how you want to buy Ethereum, a crypto wallet is a necessity.
2. Find a Bitcoin ATM – Canada is home to more than 2,600 Bitcoin ATMs, so you won’t struggle to find one.
3. Scan your Ethereum QR code.
4. Buy Ethereum – insert money into the ATM and confirm the transaction.

How to Sell Your Ethereum

Let’s say you got a solid amount of Ethereum and you want to sell it so you can have some real money to use in Canada. Well, you will be delighted to know that the process of selling it is a walk in the park, regardless of how you choose to do it!

Let’s start with crypto exchanges. Here is how you can convert Ethereum into cash using them:

• Sign in to your exchange platform
• Put Ethereum from your wallet into your account
• Sell your Ethereum – choose a trade (ETH/CAD for example) and swap Ethereum for the currency. Here, you can choose to sell for the going rate or you can pick a set price.
• Get your money – you can now move your money straight into your account!

Up next, we have P2P platforms that let you swap Ethereum directly with other users. Here is how the process would go at such sites:

1. Sign in to the platform
2. Find a buyer – don’t forget to check the conditions to make sure they work just fine for you.
3. Start the deal – the P2P platform will hold your Ethereum until you get paid.
4. Get paid – you and the buyer will agree on the method of transaction.
5. Send the Ethereum – once you confirm that you have the money, the platform will send over the Ethereum to the buyer.

Lastly, crypto ATMs are also a convenient way for you to get fiat currency for your virtual assets:

• Find an ATM – as mentioned, Canadians shouldn’t have difficulties finding a crypto ATM.
• Choose the Withdraw option – follow the on-screen instructions and scan the QR code from your wallet.
• Choose how much you want to take out
• Confirm the transaction

All in all, as long as you choose reliable platforms and ATMs for your Ethereum transactions, you shouldn’t face any difficulties! Hopefully, this guide was enough for you to get started with trading Ethereum – the second-largest cryptocurrency in the world!