Kraken Cryptocurrency Exchange
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Kraken Cryptocurrency Exchange
Ethereum (ETH) redefined cryptocurrency and the internet by introducing Web3 technology to the world through smart contracts, dapps and tokenisation, which helped ETH reach an all-time-high price of $6,585.65 in November 2021.
While this has helped make ETH the #2 crypto by market cap, Ethereum is still a highly volatile asset capable of major price swings in a single day.
Today ETH is trading for $2,813.00, which is slightly up from yesterday's trading price of $2,771.55. Ethereum's seen an increase of 63% over the past year.
So before you buy Ethereum, make sure you understand these unique risks as well as its legal, regulatory and tax status here in Canada.
If you're ready to get started, read on for step-by-step instructions and a list of platforms you can use to buy Ethereum in Canada.
To buy ETH all you'll need is a smartphone or computer, an internet connection, photo identification and a way to pay.
If this is your first time buying cryptocurrency you'll need to look for a platform that accepts Canadian dollars, like Coinmama or Bitfinex.
Don't worry too much about extra features or coins for now – you can always sign up with another exchange later.
Use the table to choose a platform that meets your needs and click the Go to site button to get started.
Launched in 2015, Ethereum (ETH) is one of the oldest cryptocurrencies and has long been the second largest by market cap. It was initially developed by a team of software engineers to build on Bitcoin's innovative use of blockchain technology while adding new and advanced use cases beyond digital payments.
The key innovation of the Ethereum blockchain is its use of smart contracts. Smart contracts are programmable, self-executing pieces of code that allow parties to reach a consensus without needing an intermediary. Smart contracts also allow you to build software applications on Ethereum, and it was the first blockchain to bring this programmability to cryptocurrencies.
Ethereum's blockchain has since laid the groundwork for thousands of decentralised applications (dapps) to build upon, including DeFi, social networks, games and more. These applications are similar to ones you would find on your computer or on the web, but instead, run on a blockchain to enable additional functionality and security that only blockchains can provide.
Everything running on Ethereum requires the native coin (ETH) to pay for network fees, similar to paying a toll for using the network.Read our beginner's guide to how Ethereum works
To create an account with your chosen crypto platform, you only need an email address or mobile number. This will usually allow you to deposit cryptocurrency, but not CAD.
If you want to buy Ethereum with Canadian dollars, you'll need to pass a Know Your Customer (KYC) check.
This is a standard security procedure for most exchanges in Canada and requires you to upload some photo ID, and in some cases a selfie with today's date.
KYC is usually approved instantly, but in rare cases, you may have to wait a few hours or days.
Once you've set up your account, you'll need to deposit funds to buy Ethereum with. We've listed out some popular ways to buy ETH and what you should know about each payment method.
First things first – you don't have to buy a whole Ethereum.
Most exchanges let you buy as little as $5 worth of ETH, if not less. Just type in how much you want to spend in CAD and let the exchange work out the rest.
Some platforms only offer 1 way to buy Ethereum, while others provide several choices. The 2 most common ways to buy ETH are on the spot market or with an "instant buy" feature.
If it's your first time buying Ethereum this will be the fastest method – but also the least cost-effective.
You'll usually find the instant buy section under a "Buy now" heading on the platform you've chosen.
It should feature a simple interface that lets you enter the amount of Ethereum you want to buy, or Canadian dollars you want to spend.
This is usually the only option available for credit or debit card purchases, but you may also be able to make an instant buy if you've pre-funded your account with a bank transfer.
Be prepared to pay a markup on ETH's market rate in exchange for the convenience.
If you see colourful charts with a range of prices, you're probably in the spot market.
The spot market is where buyers and sellers come together to place bids for ETH on the open market. It's usually the cheapest way to buy Ethereum because it lets traders set their own price.
You'll find the spot market under a "Trade" or "Spot" heading on the site or app menu of the platform you've chosen to use.
There are several different order types that you can make on the spot market.
There are dozens of different trading platforms to choose from when buying Ethereum in Canada, so to help you find your best option, keep these factors in mind:
There are plenty of places to buy Ethereum, and people in Canada can choose from platforms registered here at home or in locations all around the world. Opting for a locally registered ETH exchange typically offers more convenience, but may have some downsides depending on your goals.
You shouldn't invest in any asset, including ETH without doing plenty of research first. Before you buy Ethereum, make sure you understand and weigh up these risks:
Compare today's price of Ethereum ($2,083.70 USD) against its all-time high (ATH) price of $4,878.26 USD on November 10, 2021. The closer the bar is to 100%, the closer ETH is to reaching its ATH again.
Ethereum is considered a digital asset by the Canada Revenue Agency (CRA) and is taxed like an investment. This means you'll be taxed when you dispose of Ethereum (i.e. sell, gift, exchange or trade it).
For individuals, profits or losses are reported as capital gains or losses. For businesses, Ethereum earnings are reported as income or capital gains, depending on how a business classifies cryptocurrency.
Learn more in our guide to crypto tax in Canada.
If you want to buy Ethereum, start by comparing a range of crypto brokers and exchanges available in Canada. Look at their features, fees, security and overall reputation to decide which platform is the right fit for you. Use an exchange registered with FINTRAC for added peace of mind.
Remember that owning and using Ethereum is not without its risks. Carefully consider investing in ETH as part of a wider strategy, and talk to a financial advisor if you have any questions.
Once you've bought some ETH, think about what your short and long-term goals are. This will help you decide whether to keep it on an exchange, or move it to your own wallet.
Unfortunately, there's no easy way of knowing for certain whether any asset is worth buying. A good place to start your evaluation is by considering the asset's utility.
ETH is the gas used for the Ethereum blockchain, so anyone that wants to use it must own ETH. As a result, mass adoption of Ethereum could see demand for ETH rise as well.
Take a look at our expert panel's price prediction for ETH through 2030 to help you to get a better idea as to whether or not Ethereum might be worth buying.
The best place to buy Ethereum will depend on your needs, but a common thing to look for is a platform that supports CAD, which you can do using our table.
You should also consider these things when choosing where to buy Ethereum:
Find out more with our guide to some of the best crypto exchanges in Canada.
Yes, lots of crypto trading platforms can help you buy Ethereum with fiat currencies. Use our table to look for an exchange that supports CAD deposits to get started.
Keep in mind that unless the exchange supports direct trading between CAD and ETH, you may have to convert your CAD to USD or BTC first.
There are a handful of ways to earn small amounts of free ETH, including playing online games or using a crypto rewards credit card.
A much more common approach is to stake ETH you already own or lend it to a platform such as Nexo to earn a yield.
Read our guide on how to earn free crypto for other potential ways to earn some free Ethereum.
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Disclaimer: Cryptocurrencies, including Ethereum, are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance of ETH 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 Ethereum or any other cryptocurrency discussed.
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