What is Ethereum?
Ethereum is an open-source blockchain network that is decentralized on top of which smart contracts may be hosted. Russian-Canadian Vitalik Buterin came up with the idea for Ethereum back in 2013 at just 19 years old at the time, before taking him another two years to put together a group of developers who were then able to launch the network in July of 2015. Since its inception, Ethereum has risen in both popularity and market valuation, and it is now the second most valuable cryptocurrency in the world, behind only Bitcoin. When combined with its blockchain, Ethereum has a variety of practical applications in areas such as payments technology, investment, gaming, and crowdfunding, among others. In contrast to Bitcoin, anybody may start a blockchain project on the Ethereum network. Individuals and businesses can take advantage of blockchain technology without having to build their own blockchain networks, which has made it more accessible. To create a project on Ethereum, you will need some Ether or ETH, the native cryptocurrency that the network is powered by. Several network improvements have been planned by the Ethereum Foundation, the governing organization that oversees Ethereum’s development. Since its launch, Ethereum’s core developers have been working on upgrading it to a new version called Ethereum 2.0. Note: To learn more about the Ethereum ecosystem, its community of users, miners (or soon-to-be stakers), and developers, please read our How to buy Ethereum guide.
Ethereums’s history in Canada
When it comes to cryptocurrency, Canada has favorable regulations that make it a leading nation in terms of adopting the asset. The country has classified cryptocurrencies as commodities, which indicates that they are legal to buy and use as digital currency. In addition, the government permits the purchase and sale of Ether on open trading platforms. Whereas crypto ATMs, such as the world’s first publicly accessible Bitcoin ATM in Vancouver in 2013, offer another alternative way for individuals to get their hands on Ethereum. However, despite this, Ether and other digital currencies are not recognized as legal tender in the nation. Nevertheless, due to the growing popularity of the asset, investors in Canada looking for a way to diversify their holdings in the cryptocurrency market may now gain exposure through Evolve Cryptocurrencies exchange-traded fund (ETF), among other ETFs that holds both Bitcoin and Ethereum that are traded on the Toronto Stock Exchange. Notably, Bitcoin and Ethereum, taken together, account for around 65% of the whole cryptocurrency market as of October 20, 2021, according to Finbold data.
Best platforms to buy Ethereum in Canada
Although you may acquire Ethereum using a Bitcoin ATM, the most convenient and practical way to buy Ether in Canada is to utilize cryptocurrency trading platforms. Since it is critical that you choose the most appropriate trading platform for your Ethereum transactions, we’ll introduce you to three respectable and well-recognized platforms that will protect your purchases while still charging reasonable rates for the multi-utility cryptocurrency.
#1 VirgoCX (recommended platform)
Canada’s top regulated cryptocurrency trading platform VirgoCX was created in 2018. Since then, the company has been committed to providing its users with the latest technology, exceptional liquidity, and top-tier security. In the first half of 2021, the Canadian regulated business obtained record growth in trading volume and user base with a total volume of over 300 million Canadian dollars (CAD). Among the most traded and bought cryptocurrencies on the platform was Ethereum, as a demand emerged for a safe platform for acquiring, selling, and trading digital assets. This has resulted in the goal of VirgoCX striving to become “the trusted full-service solution for all things cryptocurrency for all Canadians.” Due to increased interest in cryptocurrency trading, the company’s rapid growth has been fueled by its continuous efforts on improving the trading experience and addressing growing customer needs. Through its efforts, VirgoCX has streamlined trading and financing, lowered entry barriers and fees to the cryptocurrency markets, validated and listed significant digital assets after conducting extensive due diligence to protect investors’ interests, and established a trusted platform cryptocurrency trading. Note: Please see our in-depth VirgoCX review for further information on the platform and its major products.
How to buy Ethereum on VirgoCX
VirgoCX customers simply need to go through an easy three-step procedure in order to purchase Ethereum via the platform: Step 1: Register for an Account: Get started instantly by scanning the QR code below or by clicking here to sign up on the VirgoCX website or app. Step 2: Complete Verification: Customers will then be needed to complete a brief verification process by supplying the necessary personal information to the platform. Step 3: Fund and Buy Ethereum: INTERAC e-Transfer and Wire Transfer are both acceptable methods of depositing funds into your account to purchase ETH. Note: If your Canadian Bank accepts Interac e-Transfer as a payment option, you may benefit from it by getting your funds in your VirgoCX account instantly. The next sections will walk you through the processes for each of these stages, which will allow you to start the process of acquiring Ethereum right now.
Register and obtain verification
Step 1: To begin purchasing Ethereum, you must first register an account with VirgoCX. To do so, just sign up on the company’s website or download the company’s Android or iOS mobile apps. Step 2: In the next step, you’ll be asked to provide some personal information. VirgoCX, like all other financial companies, are required to authenticate the identity of every client to comply with AML (Anti-Money Laundering) & ATF (Anti-Terrorist Financing) policies. (For further information, see our comprehensive, step-by-step VirgoCX KYC guide.) Step 3: Finally, you can begin funding your account to purchase Ethereum through either an INTERAC e-Transfer instantly or a Wire Transfer.
Fund and Buy Ethereum
High crypto-trading and depositing rates on cryptocurrency platforms might limit your earnings; however, VirgoCX consumers can rest assured that all costs linked with depositing and trading will be waived for them, owing to the company’s no fee deposit policy. Users also benefit from commission-free trading as an average 0.5% fee is already built into the bid-ask spread. The spread is considerably lower than the industry average in the country so users can still enjoy attractive buy and sell prices. Thus, clients bear no expenses other than the spread when acquiring Ethereum using fiat payments that are handled quickly and transparently by the fully regulated platform. VirgoCX asserts that its spreads and pricing are comparable with those of other major platforms in terms of overall buying prices. However, VirgoCX’s spread doesn’t fluctuate as much as the coin price does. The following are three ways of depositing funds into your account:
The Interac e-Transfer processing time is instant, and the minimum and maximum deposit amounts are $0 and $100,000, respectively.
Wire Transfers may take up to 24 hours to complete, although they usually clear within 45 minutes. The lowest deposit amount is $3000, and the maximum is unlimited. Deposits in US Dollars via Wire Transfer are exactly the same except for a minimum deposit of $500.
All crypto deposits are completely free, and the transaction processing time is near-instant. As mentioned , there are no trading commission costs, thus what you see is what you pay. There won’t be any extra fees on top of that. What’s more VirgoCX only has CAD/crypto trading pair so users can’t swap coins.
It is worth noting that there are currently just two currencies accepted by VirgoCX: Canadian and U.S. dollars.
Fund account with Canadian Dollars
The following steps must be followed in order to deposit money into your VirgoCX account via an Interac e-Transfer: Step 1: For the first step, go into the online banking interface of your Canadian bank in order to start the e-Transfer procedure. Step 2: Go to your VirgoCX account and click [Fund] from the left-hand dashboard, then [Interac e-Transfer.] Copy the details and complete your financial transaction. Step 3: Third select each item by clicking on the copy button to the right of it and then pasting it into your banking system to save it for future reference. Conversely, funding through Wire Transfer is as easy as choosing [Wire Transfer] and following the on-screen steps to complete the transaction without encountering any difficulties. Note: For more information on VirgoCX’s trading costs, please see our VirgoCX Fees Guide.
VirgoCX Trading platform
You may conveniently purchase Ethereum from your phone or desktop, thanks to the user-friendly design and automated verification mechanism that allows quick account setup and funding. Following the financing of your account, there are two methods to purchase Ethereum, with trading screen choices separated into two categories: “Quick Trade” and “Advanced Trade,” all of which are available to investors of any sort. Inexperienced traders or investors who are just getting started may benefit from using Quick Trade, which places orders of modest to medium size alongside market orders that are subject to pricing and liquidity risks. Go to the Dashboard and choose “Quick Trade,” then input the amount of Canadian dollars you intend to spend on Ethereum. Please double-check the number and then click “Proceed” to finish the purchase transaction. More savvy investors will benefit from technical analysis, charting tools, recent transaction history, limit orders, and several other tools that come with the Advanced Trade option. Advanced Trade enables you to keep track of real-time market activities, while you can also place limit orders to buy Ethereum.
#2 Wealthsimple Trade
On August 7, 2020, Wealthsimple Crypto became Canada’s first regulated cryptocurrency exchange. The platform is a crypto-related service provided by Canada’s leading online financial manager, Wealthsimple, which allows you to buy and sell Ethereum. Wealthsimple Crypto is designed to be straightforward to use as you can get started with as little as $1. The user interface is highly intuitive, and the design is simple and well-organized, so it’s suitable for both newcomers to cryptocurrencies and investing, as well as more experienced traders. There is no account minimum and no fees related to depositing or withdrawing money for customers to buy or trade Ethereum as well as the 27 other cryptocurrencies. Hence, users will be able to purchase and trade Ethereum without paying exorbitant costs in real-time. One thing worth mentioning is that the withdrawal of cryptocurrencies is not supported on Wealthsimple, which is not ideal for traders who want to store their assets in their own wallets. Furthermore, all of the coins are held by Gemini Trust Company, which is a registered cryptocurrency custodian with a cold storage insurance coverage worth up to $200 million. In order to use Wealthsimple Crypto, users must first download the Wealthsimple Trade app, which can be available in both the Apple App Store and the Google Play Store. Note: To discover more about how the platform works, read our comprehensive Wealthsimple review.
Crypto trading fee
Purchase costs for Ethereum are modest on Wealthsimple Crypto; the only expenditure user incur is an operation charge. The 1.5%-2% operation fee is added to the bid and ask prices when buy and sell orders are performed, which is a lot higher than VirgoCX’s 0.5% average spread. When you use Wealthsimple Crypto, the pricing is simple and transparent; therefore, you’ll see operation fees appear. This charge covers both the third-party custodian, Gemini, and its own company operational expenses. Each transaction on Wealthsimple incurs an operating charge of 1.5% to 2%, depending on the amount of cryptocurrency being traded. A spread is added to the difference between the bid and ask prices whenever buy and sell orders are completed. For instance, in the case of a 200 basis point spread, if you want to buy $100 in Ethereum, you’ll have to pay $2 to complete the transaction.
Add funds to Wealthsimple
To purchase Ethereum, traders may use either their Canadian bank account or money from an existing Wealthsimple account. Step 1: The first step is to log into your cryptocurrency portfolio through the app by choosing [Crypto] from the list of investment accounts that displays beneath your account symbol in the upper left corner of your app’s screen. Step 2: Choose the crypto option. Step 3: Make a deposit into your cryptocurrency account and you can begin buying Ethereum. If you opt to withdraw your earnings once your assets have been converted to Canadian dollars, the money may be sent back to your bank account.
Set up Ethereum auto-deposits
Automated cryptocurrency deposits are a convenient method to begin collecting Ethereum right away, and you have the option of arranging your crypto auto-deposits to occur on a weekly, biweekly, or monthly schedule. Putting your finances on autopilot entails the following steps: Auto-deposits – are contributions to Ethereum that are made on a regular basis without the need for human intervention. Automatic rebalancing – in reaction to market volatility, Wealthsimple will automatically adjust your portfolio. Easy access – customers can also manage their accounts using the company’s website or mobile application from any location at any time. Note: See our How to Invest in Crypto on Autopilot guide for more information on investing on autopilot with Wealthsimple and other platforms.
#3 Coinbase
Coinbase is most known for its consumer product, letting users buy and sell cryptocurrencies through a brokerage platform. Customers may buy, trade, and convert Ethereum through Coinbase. Getting started with Coinbase is straightforward, fast, and secure, and the platform is designed to keep your personal information safe and private. To protect yourself from identity theft or fraud, you’ll need a picture ID to prove that you are who you say you are. In addition, Ethereum and other crypto-assets are protected by industry-leading security and insurance. Based in California, the U.S. exchange is trusted by over 68 million customers worldwide allowing users to purchase Ethereum with as little as $25 via their debit card. Note: For additional information about Coinbase, please see our in-depth Coinbase review.
How to buy Ethereum on Coinbase
Despite the fact that Coinbase allows instant deposits, debit cards remain the only option of making a deposit while utilizing this cryptocurrency exchange platform to purchase Ethereum in Canada. Furthermore, since Coinbase does not accept bank account payments. Unlike VirgoCX, Canadian clients will be unable to make payments using their bank accounts on Coinbase. Following the deposit of cash into your account, the site offers a straightforward method of buying Ethereum with a single click of a button. Before making a transaction, you must, however, go through the regular Know Your Customer/Anti-Money Laundering (KYC/AML) procedures. Note: See our How long does Coinbase KYC take guide for more information on setting up and verifying your account. Follow these six steps to link a debit card to your account to begin purchasing Ethereum: Step 1: Navigate to [Settings] > [Payment Methods]. Step 2: Select [Link a New Account]. Step 3: From the drop-down option, choose Debit Card. Step 4: Please provide your debit card information (two small, temporary debits will be applied to your card). Step 5: Locate the two temporary debits on your card’s online statement by visiting the website for your bank’s debit card. Step 6: In order to complete the process of adding and confirming your card on Coinbase, enter the right amounts in the respective sections. After linking the card, just click [Buy/Sell] in the upper right corner of your Coinbase dashboard.
Buying Ethereum fees
Costs are 3.99% per debit card purchase, and your Ethereum order will be quickly delivered, albeit there is an additional 0.50% charge on any buy or sell transactions conducted via Coinbase in addition to the minimum 3.99% card fee. Whatsmore, the payment choices drop-down box on the Buy page now allows you to finish a purchase by selecting your card as the payment method of choice. Please bear in mind that it is not possible to sell cryptocurrency and have the funds credited to a card. Note: Consult our comprehensive Coinbase fees guide to learn about the expenses associated with Coinbase’s most popular products.
Conclusion
In conclusion, all three cryptocurrency trading platforms and exchanges in Canada provide a solid, safe, and reputable service for anybody interested in purchasing Ethereum or other cryptocurrencies. The fact that there are several options accessible necessitates a comparison of the deposit and withdrawal methods, fees, and transaction speeds offered by each platform, as well as its usability and simplicity, before deciding which is the best fit for your needs. For those of you who are still undecided about which platform to use, we suggest that you read our in-depth individual evaluations on each of the three sites that we have selected for this guide to purchasing Bitcoin in Canada in order to get further knowledge before making your final selection.
