What is Ethereum (ETH)?
Anyone who has heard of cryptocurrency has heard of Ethereum, but what exactly is it? Ethereum is the world's programmable blockchain; it is a technology that lets you send cryptocurrency to anyone and powers applications that everyone can use. It is more than about payments, it is a marketplace for financial services, games and apps.
Ether (ETH) is digital, global money that is the currency of Ethereum apps. It is a cryptocurrency (or digital money) that you can use on the internet. Many newcomers to cryptocurrency are confused with the terms Ethereum and Ether (ETH). Ethereum is the blockchain whereas Ether is the coin, or the primary asset of Ethereum. People often say they want to buy Ethereum, but what they really want is to buy Ether, the currency of Ethereum.
Where can I buy ETH?
ETH is a hugely popular cryptocurrency, due to Ethereum's wide-reaching application. Ether is the second largest cryptocurrency by market capitalisation, (only Bitcoin is bigger), so it can be bought on virtually any crypto exchange in Canada. However, the biggest hurdle is choosing a crypto exchange that is trustworthy, safe and legitimate. To ensure you are are safely investing in Ethereum, you can choose from one of the best Canadian cryptocurrency exchanges (see full list here) that are all safe choices.
My #1 recommendation for Canadians looking to buy Ether is Bitbuy because it is extremely easy to use for complete beginners, and there are also features for more experienced traders. The Pro Trade function gives access to advanced charts from TradingView, and there are even options for OTC trades and an API to automate your trades. Bitbuy is registered with FINTRAC as a Money Services Business, and it is the most secure and trusted exchange in Canada. If you want to read more about Bitbuy, read my in-depth review here.
How to buy Ethereum?
You can own some Ether in four easy steps which I will expand on below:
Step 1: Compare crypto exchanges
Step 2: Open an account
Step 3: Deposit CAD into your account
Step 4: Buy ETH
Step 1 - Compare the best crypto exchanges
The first step is to choose a legitimate and trusted cryptocurrency exchange that suits your personal needs. My recommendation of the 3 best exchanges for Canadians are listed below. In this guide on how to buy Ethereum, I will be using screenshots from my Bitbuy account. If you want to follow along easily with this article, I suggest you open an account with Bitbuy.
Top 3 Recommendations
Lots of Services & Coins
No Trading Fees
If you want to do more research before choosing a crypto exchange, take a look at this breakdown of the best crypto exchanges in Canada which you may find helpful.
Step 2 - Open an account
It is easy to open an account with Bitbuy. Just click on this link https://bitbuy.ca, click on 'Sign up for Free', fill out the details in the short form, then click Create Account.
Once you have opened your Bitbuy account, you should see a pop-up window prompting you to verify your account. To buy and sell Ether, you will need to complete this verification. Click on Verify Account and follow the instructions which should only take you a few minutes.
Step 3 - Deposit CAD into your account
When your account has been verified, you can deposit CAD into your Bitbuy account. Click on Accounts in the top left (circled in green below), then click on Add Funds on the right (circled in blue).
You can see the deposit options on your screen. You can use either Interac e-Transfer or Wire Transfer to fund your account with CAD by clicking on the relevant button. Many users prefer to use e-Transfer because the funds are in your Bitbuy account almost immediately. With Wire transfer, although the fee is lower, you have to wait 2-3 business days, and the price of crypto can change a lot by the time your funds have gone in.
In this guide, I will show you how to deposit with e-Transfer, since it is the more popular method. Click on 'Use e-Transfer' and you should see on your screen the details you need to make the deposit. Open another tab in your browser and log in to your regular online banking website. Add a new recipient and enter the information on your Bitbuy screen, then transfer however much CAD you want to spend (between $50 and $10,000).
Step 4 - Buy ETH
When your Canadian Dollars have arrived in your Bitbuy account, it is time to invest in Ethereum! The fastest and easiest way is to click on Express Trade (circled in green below). Make sure the Buy tab is selected (highlighted in green below), and then click on the orange drop down arrow (circled in blue) to choose which cryptocurrency you want to buy. In this guide, we are looking to buy ETH, so click on Ethereum (ETH) and you should see it displayed on your screen. Enter the amount of Ether you wish to buy in CAD, and then click Buy Ethereum and follow the prompts.
Congratulations, you now own your first Ether! It will be stored in your Bitbuy wallet, and if you want to sell it, you can easily do so via the Express Trade function. Remember to switch to the Sell tab if you are looking to convert your ETH back to CAD.
Frequently Asked Questions
Where do I store my ETH after buying?
If you bought Ether at one of the recommended crypto platforms it will automatically be stored in your Ethereum wallet on the exchange. However, for long term storage, it is NOT recommended to store Ether on a crypto exchange. When your cryptocurrency is stored on an exchange, the private keys are held by the exchange, so you don't have full control of your funds. If the exchange is hacked, you can lose access to all your assets. The best way to store Ether safely, is to transfer it from the crypto exchange to your personal wallet (hot wallet app, or a hardware cold wallet). Before choosing a wallet, remember that some wallets may only store Bitcoin and are not compatible with Ethereum. The crypto exchange will usually charge a transfer fee to cover the transaction costs when you send ETH to your personal wallet.
Is buying ETH in Canada legal?
Yes, it is legal to buy, sell, trade and invest in Ether in Canada.
Does this method work for all cryptocurrencies or only Ethereum?
Bitbuy supports 9 of the most popular cryptocurrencies, so if you want to purchase any of them, you can follow the same method as shown above. If you are interested in buying Bitcoin, you can also check out my guide here. If you are looking to buy cryptocurrencies that are not listed on Bitbuy, you will need to use a different exchange. The method will not be exactly the same on a different crypto exchange, but you should be able to follow the general steps.
How to buy Ethereum with credit card?
How to buy Ethereum with debit card?
How do I buy Bitcoin in Canada?
Is buying Ethereum in Canada safe?
Yes, buying, selling and trading Ether in Canada is safe as long as you are using a legitimate and reputable crypto exchange. These exchanges (such as Bitbuy) all feature multi-layered security, with storage of the majority of their crypto assets in offline cold storage.
Marketplacefairness.org provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade or sell cryptocurrency or use any specific exchange. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. This post includes affiliate links with our partners who may compensate us.