If you want to buy cryptocurrency with Canadian dollars, using a crypto exchange that accepts bank transfers can be one of the cheapest and most convenient solutions. But if you’re new to cryptocurrency, it can be tough knowing where to get started.
Read on for a list of which exchanges accept bank transfers and how you can buy crypto with your bank account.
Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific
provider, service or offering. It is not a recommendation to trade.
Where to buy cryptocurrency with a bank transfer
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Must read: Bank account payment methods
There are a couple of ways you can buy crypto with your bank account:
Bank transfer. Bank transfers, also known as wire transfers, are usually free and offer a simple way to deposit funds – just enter the exchange’s bank account details from your financial institution’s Internet banking portal like you would for any other payment. However, these transfers can take one to two business days to arrive.
Interac e-Transfer. Offered by participating banks and financial institutions in Canada, Interac e-Transfer allows you to send, request and receive money directly from your bank account. Unlike a bank transfer, Interac e-Transfer can be received in under 30 minutes, however the money is usually available almost immediately. Interac offer a variety of deposit methods which crypto exchanges may implement, including Express Interac e-Transfer, Interac e-Transfer and Interac Online. These deposit methods will likely vary in terms of pricing, funding times and minimum and maximum daily limits.
Depending on the exchange you choose, the exchange may support one or both of these payment methods.
How to buy cryptocurrency with your bank account
Buying crypto with your bank account is actually quite easy. To show you how to do it, let’s look at an example of how to buy bitcoin (BTC) with Canadian dollars.
For security reasons, you shouldn’t store digital coins or tokens on an exchange for an extended period of time. Instead, before buying any crypto, you should set up a secure wallet where you can store your private keys.
Bitbuy.ca is a Canadian based exchange that accepts four types of deposits from Canadian bank accounts: Wire transfer, Interac e-Transfer, Express Interac e-Transfer and Interac Online. To register for a Bitbuy.ca account, you’ll need to provide your email address and create a password.
To become a verified member, you’ll need to provide the following:
A copy of your passport or driver’s licence must be uploaded in colour
A copy of a bank statement or utility bill showing your name and proof of address
A photo of yourself holding your government-issued ID
If you have a business account, you must provide additional documents proving authority to act on behalf of a corporation.
Remember to also enable 2-factor authentication on your account for an extra layer of security.
Click the “Deposit” link from your account dashboard and choose your payment method – we’ll use wire transfer for this example.
Enter the amount of CAD you wish to deposit and choose the bank account you will be depositing the funds from. You’ll be taken to the online banking service for your chosen bank account. You can then enter your Internet banking login details and follow the prompts to confirm payment.
Once you’ve funded your account, you can then click the “Buy/Sell” tab, find bitcoin in the list of currencies and click on “Buy BTC”. Simply enter the amount of BTC you want to buy and take a moment to review all the details of your transaction before you click “Buy BTC”.
Once the transaction has been processed, remember to move your bitcoin off the exchange and into your private wallet.
Choosing the right exchange
There are a number of platforms to choose from when purchasing crypto with your bank account, so compare your options to see how each exchange performs across a range of key areas:
Bank account payment methods. How can you send CAD to the exchange from your bank account: bank transfer or Interac transfer?
Fees. How much will it cost you to complete your transaction? Remember to also consider the trading fees the exchange charges.
Transaction limits. Are there any minimum or maximum limits on the amount of crypto you can purchase? When you want to transfer the crypto you purchase away from the exchange, what is the minimum withdrawal limit?
Processing times. How long will it take for you to complete your crypto purchase from start to finish? For example, while Express Interac e-Transfer deposits usually clear within two hours or less, bank transfers can take one to two business days.
Supported cryptocurrencies. Which cryptocurrencies can you purchase directly with CAD? Some platforms will only provide access to one or two popular digital currencies, while others will offer a much wider range.
Ease of use. Does the platform have a simple and intuitive user interface that you can navigate without any problems?
Sign up and verification. What information and documentation will you need to provide to register for an account? How long does the verification process take?
Security features. What protective measures are in place to ensure the security of your funds? For example, does the platform support 2-factor authentication? Where are your funds stored? Has the exchange ever been hacked?
Customer support. How can you contact the customer support team? What contact methods are supported and during what hours is the team available? Is there an online help centre where you can easily find solutions to a range of common problems?
Reputation. Check out online forums and reviews to gauge what level of community trust the platform has. Would other users recommend it?
Answering these questions should help you narrow down your choices and find a platform that will work for you.
If you want to store your newly acquired crypto coins on the exchange where you bought them, you can. However, this is not recommended for a couple of reasons:
You don’t control your private keys, the exchange does
Exchanges are frequently targeted by hackers and there have been numerous incidences of security breaches
With this in mind, the safest course of action is to move your digital coins into a secure wallet that allows you to retain control of your private keys. From desktop and mobile wallets to online and hardware wallets, there are plenty of options to choose from. Make sure you do your research before picking one that’s right for you.
Buying crypto with a bank account offers a safe and secure way to exchange CAD for digital currency, but only if you’re certain you’re dealing with a reputable exchange provider. With this in mind, it’s essential that you thoroughly research the credentials of any platform before transferring any funds.
You’ll need to find out the following:
Who are the people behind the platform?
Where is it based?
How is it regulated and is it properly licensed?
How long has it been in business?
Of course, if you plan on buying cryptocurrency from someone through a peer-to-peer platform, you’ll need to be certain you’re dealing with a reputable seller before transferring any funds. This is why it’s a good idea to set up the trade through a marketplace that uses some sort of reputation system and has security measures in place to protect against fraud.
From a broader point of view, you should also be fully aware of the risks associated with buying cryptocurrency before you make a purchase. Cryptocurrencies are complicated and volatile assets, so there’s a risk of losing some or all of the money you spend.
Pros and cons
Pros
Buy crypto directly with CAD
Relatively simple process
Often cheaper than buying with a credit card
Suitable for beginners looking to get their hands on some digital currency
Cons
Bank transfers can take several business days to process
Only a limited selection of altcoins can be purchased with CAD – many digital currencies can only be exchanged for other cryptocurrencies
Fiat-to-crypto trades usually attract higher fees than crypto-to-crypto trades
Next steps
If you want to buy crypto with your bank account, the first thing you need to do is start comparing a range of cryptocurrency exchanges. Compare their features, accepted payment methods, transaction limits, fees and level of community trust to find a platform that’s right for your needs.
Yes, at the time of writing, it’s legal to buy crypto with your bank account in Canada.
You can almost instantly deposit with some Interac methods, however it will likely take a couple of hours for your funds to be deposited onto the exchange. Bank transfers usually take between one to three business days to be processed.
If you’re making a peer-to-peer trade, it may be possible to buy crypto with your bank account without providing proof of ID. However, if purchasing through a crypto exchange or broker, you will need to provide your personal details and proof of ID before you’ll be allowed to buy cryptocurrency using your Canadian bank account.
For those looking to buy bitcoin anonymously, it’s worth pointing out that your bank account will be linked to your ID, so paying for your crypto via bank transfer (or Interac transfer) won’t allow you to protect your identity.
Disclaimer: Cryptocurrencies are speculative, complex and involve significant risks – they are highly
volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of
future performance. Consider your own circumstances, and obtain your own advice, before relying on this information.
You should also verify the nature of any product or service (including its legal status and relevant regulatory
requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may
have holdings in the cryptocurrencies discussed.
Images: Shutterstock
Disclosure: At the time of writing, the author holds ADA, ICX, IOTA and XLM.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors. See full bio
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