Ethereum is an open-source blockchain platform powered by its own cryptocurrency – Ether.
Ether is the second most popular cryptocurrency, following Bitcoin. Combined with its blockchain, it has found several practical uses in payment technology, investing, gaming, crowdfunding, and more.
Read on to learn about Ethereum, how to invest and buy Ether in Canada, and whether it is safe.
Related: How To Trade Bitcoin in Canada.
How To Buy Ethereum (Ether) in Canada
It has become easier to buy and sell Ethereum in Canada compared to a few years ago.
After creating an account on a cryptocurrency exchange, fund it with Canadian dollars or whatever fiat currency is accepted, and you can start trading Ethereum.
The top cryptocurrency platforms for buying Ethereum are:
1. Bitbuy
Bitbuy is a digital currency exchange based in Toronto. It is one of the first digital currency platforms to be registered with the OSC.
Coins offered: Ethereum, Bitcoin, Bitcoin Cash, Litecoin, Stellar, Aave, EOS, and several others.
Account funding: Interac e-Transfer, crypto and bank wire.
Trading fees: Up to 2%; free fiat deposits, and 1.50% fee on withdrawals.
Promotion: $50 bonus when your initial deposit is $250 or more.
Bitbuy Crypto Exchange
Get a $50 bonus if your initial deposit exceeds $250
Trade over 50 popular coins
Great for new & advanced traders
0% to 2% trading fee
2. VirgoCX
The VirgoCX crypto brokerage platform offers instant buys of several coins. It is also based in Canada.
Coins offered: Ethereum, Bitcoin, Dogecoin, Litecoin, Tether, Cardano, Stellar, Polkadot, XRP, EOS, Uniswap, Compound, and over 60 others.
Account funding: Interac e-Transfer, wire transfer, bank draft, and cryptocurrency.
Trading fee: 0.50% to 2.50%, depending on the coin; deposits and withdrawals are free.
Promotion: $20 bonus when you open an account and fund it with at least $100.
VirgoCX
Get a $20 bonus when you deposit $100
Great crypto broker for newbies
0.50% to 2.50% trading fee
Trade several popular coins
3. Wealthsimple Crypto
Wealthsimple Crypto’s trading app is hosted on the same platform you can use to buy and sell stocks and ETFs.
Coins offered: Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Compound, Uniswap, Curve, Aave, Yearn.Finance, Synthetix, and several others.
Account funding: Electronic Funds Transfer (ETF) and crypto deposits (BTC and ETH only).
Trading fee: 1.5%-2%; deposits and withdrawals are free.
Methodology:
To choose the best crypto apps in Canada, Savvy New Canadians assesses cryptocurrency exchanges and apps based on their coin offerings, trading and transaction fees, ease of use, access to advanced trading tools, user interface, company reputation, security measures, funding options, and other features. While these crypto trading platforms are some of the top ones on the market, they may not be right for you. Visit the company’s websites using the links to read their current terms and conditions before applying.
What is Ethereum?
Ethereum was introduced by Vitalik Buterin in 2013 alongside several other developers. It uses blockchain technology similar to Bitcoin and can be extended to run decentralized applications (dapps).
By using ‘smart contracts,’ intermediaries can be excluded from financial and other transactions, resulting in increased privacy and lower transaction fees.
Ether is the native digital currency that powers the Ethereum ecosystem.
In addition to Ether, the Ethereum network supports hundreds of other tokens, known as stablecoins. Examples include Dai, USDC, and Tether USDT.
Ether is traded under the symbol ETH, and there is currently no limit to the number of Ether that can be issued.
Benefits of Ethereum include:
- A decentralized financial system that is accessible anywhere in the world.
- Peer-to-peer payment network without intermediaries.
- The flexible blockchain accommodates the creation of other tokens, blockchain projects, and more.
Is Ethereum Trading Legal In Canada
Ethereum (Ether) is not a legal tender in Canada. That said, it is not against the law to buy and sell Ethereum using a cryptocurrency exchange or broker.
The capital gains you realize when you trade Ethereum for a profit may be subject to taxes.
You should check with the Canada Revenue Agency or read the guides they have provided to show the tax treatment of cryptocurrency for tax purposes.
Is Ethereum Safe?
Cryptocurrencies are speculative investments, and you can lose all the funds you invest.
Bitcoin and Ether are no different. Both coins have minted millionaires, and many have also lost money trading both currencies.
The risk of trading digital currencies extends beyond their intrinsic value. There are also risks related to price volatility, cyber-attacks, fraud, and regulation or the lack thereof.
You can reduce your risk of loss due to cyber-attacks by withdrawing your Ethereum to an offline wallet and encrypting online backups.
The various types of wallets used for Ethereum storage include:
- Hardware wallets
- Desktop wallets
- Web wallets
- Mobile wallets
- Paper wallets
Bitcoin vs. Ethereum: Is Ethereum a Good Investment?
One of the top questions people are asking about Ethereum right now is whether it is the next Bitcoin. Is Ethereum going to reach $10,000, $50,000, or higher?
My best guess is that no one knows. It could go up significantly in price, and it could also potentially crash to $0.
You should only invest money you can afford to lose in any cryptocurrency.
In my opinion, that means you should not invest your retirement savings, emergency fund, or money you need for day-to-day expenses.
Disclaimer: Cryptocurrency is a volatile and speculative investment. If you decide to invest, we recommend you do your own research and only commit funds you can afford to lose. The author may own one or more of the crypto assets mentioned in this article.
