What is cryptocurrency?

Crypto Finder's™ beginner's guide to getting started with crypto

How does crypto work? Learn more about it
Ready to buy some crypto? Learn how in 5 easy steps

You might have heard about Bitcoin, but there’s so much more to cryptocurrency than that. Our guides make learning about cryptocurrency easy – allowing you to buy, trade, hold and earn crypto in less time than it takes to set up a new bank account.

Start investing today with our picks for the best crypto exchanges in Canada or learn more about individual coins and where to buy them . Don’t forget to check out our best crypto wallets guide to learn how to keep your crypto safe.

This is not an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade or use any services.

What is cryptocurrency?

Cryptocurrencies are digital assets that have a value, just like a $10 note is a physical token with 10 dollars of value assigned to it.

The difference is that digital currencies are electronic – they only live on the internet. In order for a cryptocurrency to have value, its coin needs to be unique, verifiable and unreplicable. The Bitcoin blockchain was the innovation that made this possible.

Crucial to crypto is the principle of decentralization. There is no single authority or business (such as a bank or government) that controls cryptocurrencies. This idea of sovereignty over your assets and removing reliance on any sort of intermediary is something you’ll hear about a lot.

Decentralization also makes crypto a powerful medium of exchange because it minimises the costs and processing times of transactions.

Thanks to these innovations, legacy companies like Visa, PayPal and several banks have also begun adopting cryptocurrency and blockchain technologies.

Learn how to get started with crypto

Crypto quick start

Skip ahead to one of our guides

How does cryptocurrency work?

Cryptocurrency uses cryptographic technology to secure individual assets on a database called a “blockchain”. A blockchain records transactions on a network in a way that cannot be altered.

You can think of a blockchain as hundreds of connected computers sharing information with one another. This builds a ledger of data that can be used to validate that each crypto transaction is legitimate and secure.

Some blockchains use a variation of proof-of-work or proof-of-stake consensus algorithms to execute transactions. Proof of work is where the term “Bitcoin miners” comes from.

Miners operate powerful computers that solve complex mathematical problems, which helps secure the blockchain.

Proof of stake is a bit different. This algorithm uses staking – the process of locking up cryptocurrency on a specified blockchain wallet in exchange for a reward. Staking protocols use “nodes” – small copies of the blockchain being run on thousands of different computers.

Understanding how a crypto’s algorithm works in detail isn’t essential – or easy – but it can help explain movements in price.

How to buy cryptocurrency

  1. Compare crypto exchanges.
    The easiest way to purchase cryptocurrency is through an exchange or trading platform. Features to look out for are low fees, supported coins and deposit methods. Registering an account with a Canada-based exchange will require you to provide a form of government identification.
  2. Deposit funds.
    To deposit Canadian dollars to your exchange account, first, you’ll need to verify your identity in a process known as KYC. Most exchanges accept instant transfers from a bank account, while others also support credit card purchases and sometimes even cash.
  3. Choose a cryptocurrency.
    There are thousands of cryptos to choose from. Thoroughly research any you’re interested in, check what’s trending, and keep on top of the latest crypto news before investing any money.
  4. Build your crypto portfolio.
    Most exchanges allow you to instantly buy cryptocurrency with the funds deposited to your account. Some platforms also have advanced market options and trading pairs which may be useful for more experienced traders.
  5. Store your crypto.
    You can choose to leave your assets in your exchange wallet, but this does come with some added risks. It’s generally recommended that you transfer your crypto to a non-custodial or hardware wallet for increased security.

Where to buy, sell and store crypto in Canada

Investors can now choose from a number of established and feature-rich crypto exchanges. If you’re just starting out, look for exchanges registered with the Financial Transactions and Reports Analysis Centre (FINTRAC) that offer Canadian dollar deposits with your preferred payment method.

Click the Go to Site button when you’re ready to create an account with any of the providers.

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Name Product GXFCY Deposit methods Fiat currencies Cryptocurrencies Offer Disclaimer Go to site
Uphold
Uphold
Bank transfer, Credit card, Debit card, Apple Pay, Google Pay

27

237

Go to site

Capital at risk

View details
Paybis Cryptocurrency Exchange
EXCLUSIVE
Paybis Cryptocurrency Exchange
Bank transfer, Credit card, Debit card, Neteller, Skrill, Apple Pay

60

87

Use code Finder25 to get a 25% discount on all commission for 1 transaction. T&Cs apply.
Go to site

Capital at risk

View details
Kraken
Bank transfer, Credit card, Cryptocurrency, Debit card, Apple Pay, Google Pay

7

207

Certain trading features are limited or unavailable to residents of Ontario and Quebec.
Go to site

Capital at risk

View details
OFFER
Bitbuy Digital Currency Exchange
Cryptocurrency, Interac e-Transfer, Wire transfer

1

53

Limited time only: Free $40* when you sign up and fund your Bitbuy account. T&Cs apply.
Go to site

Capital at risk

View details
OFFER
Bitget
Bank transfer, Credit card, Cryptocurrency, Debit card

45

874

Sign up and receive a 6,200 USDT newcomer's gift package.
Go to site

Capital at risk

View details
OFFER
VirgoCX Cryptocurrency Exchange
Credit card, Cryptocurrency, Debit card, Interac e-Transfer, Wire transfer

2

78

Get a $20 bonus when you open a new account and deposit $100+. T&Cs apply.
Go to site

Capital at risk

View details
Changelly Crypto-to-Crypto Exchange
Credit card, Cryptocurrency, Debit card, Wire transfer, Apple Pay

58

391

Go to site

Capital at risk

View details
Finder Award
Coinbase
Debit card, Electronic Funds Transfer, Interac e-Transfer, PayPal

1

242

Capital at risk

View details
Finder Award
Crypto.com App
Bank transfer, Credit card, Cryptocurrency, Debit card

31

372

Capital at risk

View details
Coinberry Cryptocurrency Exchange
OFFER
Coinberry Cryptocurrency Exchange
Credit card, Debit card, Interac e-Transfer, Wire transfer

1

24

Capital at risk

View details
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1 - 5 of 67
Product GXFCY-WLT Wallet type Supported assets Price (USD) Offer Disclaimer Link

Mobile

180+

Free download

Hardware

5,500+

$149

Free shipping

Hardware

1,000+

$129

Hardware

5,500+

$79

Hardware

9,000+

$59

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Is cryptocurrency safe?

There are a number of risks associated with buying, storing and using digital currencies. Before jumping in, do plenty of research and make sure you understand how to keep your crypto safe. Some key risks to be aware of include:

  • Poor regulation. Cryptocurrency is still a largely unregulated market, which means you may not be protected if your funds are lost or stolen. Look for platforms that are registered with FINTRAC and provide an insurance fund.
  • Volatile prices. Crypto is much more unpredictable than traditional markets and massive price fluctuations within a short window are not uncommon. Because of this, your investment can quickly lose its value.
  • Vulnerable to hacking. Several million dollars have been lost to successful hacks of crypto exchanges, wallets and blockchains. It’s important to understand that without appropriate security measures like using a hardware wallet, securing your private key and enabling 2-factor authentication, your funds could be stolen.
  • Steep technical learning curve. Grasping the complex technical foundations of potential crypto investments can quickly become confusing. You’ll also need to fully understand concepts like gas fees and wallet addresses before interacting with a blockchain, or else risk total loss of funds.
  • Scams. As crypto has become popular, so too have crypto scams. Be extremely wary of deals that seem too good to be true, thoroughly research all platforms or projects before putting your money in, and never disclose your private key.

FAQs

Get started with crypto

If you’re just starting out in the world of crypto, it can feel overwhelming. Use our simple guides to research and compare different coins or take a look at our curated list of the best crypto exchanges and wallets to buy and secure your chosen assets.

Learn how to buy Bitcoin, Ethereum and other cryptos

There are now well over 10,000 cryptocurrencies and tokens, with new coins launching all the time. We’ve cut through the noise and written guides on how to buy some of the most traded cryptos, like Bitcoin and Ethereum, as well as hundreds of others.

Compare crypto exchanges in Canada

Compare dozens of major exchanges on features, fees, selection of cryptos and more in our comprehensive platform reviews.

Find the best crypto wallets to store your cryptos

Hardware, mobile, hot, cold… it’s tricky knowing where to start with crypto storage. Our guides explain what’s in a wallet to help you find your best options for convenience and security.

Get familiar with crypto trading

For more advanced investors, crypto could be a way to diversify your portfolio. Read our range of trading guides to get your bearings first.

Learn how to earn crypto returns

Crypto earning products are still in their infancy right now. Make sure you’ve got everything you need to make an informed decision.

Dive deeper into DeFi

From staking to smart contracts, our guides demystify DeFi and help you get your head around the new frontier of finance.

Cryptocurrency stats and predictions

Get expert insights and analysis across the crypto sector or use our forecasting tools to help predict where a coin’s price might move.

Crypto research and tools

Crypto evolves at breakneck speeds, with new concepts, coins and technologies emerging all the time. Keep on top of the latest trends with our industry data, consumer research and handy tools.

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.

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