What is Bitcoin?
It is basically impossible to read the news today or even check out a social media feed without seeing something about the world’s largest cryptocurrency. We’d bet that you’d be hard-pressed to find a friend that doesn’t own a cryptocurrency or thought of investing in bitcoin. Bitcoin is the world’s first cryptocurrency and to this day is still the largest digital asset available in Canada.
Created in 2009, bitcoin aimed to be a decentralised form of currency that would be free from government interference and facilitate lower transaction costs than through traditional online means. Bitcoin, like all other cryptocurrencies, leverage blockchain technology to transparently and permanently record transaction data. This data cannot be altered in any way and to conduct a serious cyber-attack on the blockchain is essentially impossible as a hacker would need more than half of the computing power of bitcoin to be successful.
Over the years bitcoin’s price has soared – and occasionally dived – and today it is widely argued to be a legitimate hedge against inflation. In 2021, bitcoin saw a remarkable bull run, climbing to a value in excess of $60,000 CAD before recent concerns over bitcoin mining, and its negative effect on climate issues halved the largest cryptocurrencies value. Nevertheless, bitcoin remains one of the most popular cryptocurrencies to buy in Canada.
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What is PayPal?
PayPal is a US company that facilitates online payments throughout the entire world. Arguably the grandfather to e-wallets, PayPal now operates in over 200 markets and 25 different currencies around the world. The digital service is incredibly popular in Canada – currently notching around 6.4 million active users and revenues over $15 billion CAD.
PayPal has been a favourite for online shoppers for years now, allowing customers to quickly make purchases without having to enter lengthy bank account or card numbers. Privacy-conscious shoppers relish the security of never having to hand over any personal banking information to merchants too.
The popular digital payments service can be used for both sending money and requesting money – perfect for brokerage and crypto exchange transactions. Considering how fast the crypto market moves and its intense volatility, traders certainly want to fund their account as quickly as possible to capitalise on trends instantly. So, it really is no wonder that PayPal is the perfect choice for crypto traders with fast payment processes, security features for discretion, and this can all be done completely fee-free.
Where to buy Bitcoin with PayPal in Canada?
While there are a few different ways to buy Bitcoin in Canada with PayPal, such as using PayPal for a P2P bitcoin buy, the best way is certainly through a licenced cryptocurrency exchange such as Coinbase. Alternatively, if you are not interested in owning bitcoin, but still want to trade, you could fund a broker account with PayPal and trade in bitcoin CFDs – where you trade on the price movement rather than buying the asset.
Everyone here at Crypto Parrot agrees that the best way to trade safely is with a cryptocurrency exchange. A crypto or bitcoin exchange is like a broker, but it has some extra features designed perfectly for cryptocurrency trading. For starters, bitcoin exchanges provide its users with a wallet to store their asset amount, and because of regulatory oversight, they are a safe and secure way to trade bitcoin in Canada.
P2P trading, meaning person-to-person, is a direct form of trading with no third party to facilitate the trade. You could use PayPal to buy cryptocurrency this way but please make sure it is with a person you trust. Unfortunately, P2P trading is an easy way to scam novice traders out of hard-earned money. If you choose to trade bitcoin CFDs instead, you’ll need to register with an online broker rather than a bitcoin exchange. There are plenty of licensed brokers in Canada that offer low fee CFD trading of bitcoin and other major cryptocurrencies such as Ethereum and Litecoin.
How to Buy Bitcoin with PayPal?
Of course, the reason you are here – how to buy bitcoin with PayPal in Canada. Well, you’ll be pleased to know it isn’t rocket science and to make sure you have every base covered. We have got an easy-to- follow guide to buy bitcoin in Canada using PayPal below.
To get started you’ll need to sort out a PayPal account. No need to panic though, creating and funding a PayPal account is an easy affair.
- Simply download the PayPal app or go PayPal.com/ca/. Click on sign up to begin registering an account.
- Enter your email address and create a password – make sure it’s a strong one as you may choose to withdraw your cryptocurrency earnings to your PayPal account.
- Next, you’ll be required to provide some personal details. Nothing new here – just your usual name, address, and phone number. PayPal makes sure to maintain the privacy of its users.
- Enter your credit or debit card details for quick deposits.
- Easy as pie! You’re one step closer to using PayPal to buy bitcoin in Canada.
In Canada, you can fund your PayPal account by linking your Canadian bank account to your PayPal account. Just choose Add Funds from the PayPal dashboard and enter your bank name, 5-digit bank transit number, and your 3-digit institution number. Follow this by entering your account number when requested.
Now you’ll just need to choose a cryptocurrency exchange in Canada that accepts PayPal as a payment method. Major crypto exchanges like Binance and Coinbase support PayPal for bitcoin transactions.
- Head to your chosen cryptocurrency exchange and register an account. The process is not too dissimilar from registering a PayPal account. Create an account and complete the Know Your Customer (KYC) procedure to verify your identity. The KYC procedure just requires you to provide copies of some personal documents like your passport and proof of address – this is just to comply with money laundering legislation and to protect you.
- Deposit Canadian dollars into your crypto account using PayPal – Just choose PayPal from the deposit options. Nominate the amount you wish to deposit and confirm the transaction. Bitcoin exchanges in Canada will have a minimum deposit amount that you’ll have to meet too.
- Navigate to the crypto exchanges marketplace and find bitcoin – it won’t be difficult to find and you can also use the exchanges search function. Buy bitcoin with PayPal and choose to store your bitcoin in either the exchanges wallet or your own crypto wallet.
Benefits of Buying Bitcoin with PayPal Canada
Why should you buy bitcoin with PayPal in Canada? Well, although there are several different payment methods to buy bitcoin with in Canada, there are certain benefits to buying bitcoin with PayPal in Canada. Read on to see why we, at Crypto Parrot, hold PayPal in such high regard for buying bitcoin in Canada.
No transaction fees – Several other payment methods will cost you money to deposit or withdraw your cryptocurrency to. PayPal, however, offers free deposits and withdrawals, making PayPal one of the cheapest ways to buy bitcoin in Canada.
Privacy first – Perhaps you don’t want your bank to know about all the bitcoin you just bought. It is a decentralised currency after all. PayPal is the perfect choice for those who want to keep things private. Your card details and bank details won’t be revealed to the cryptocurrency exchange, nor will the bank know why you funded a PayPal account. With your details not sprayed all over the internet, it is far more difficult for would-be cyber criminals to hack your private information.
Faster process – No long card numbers, account details, or multiple passwords are all things using PayPal to buy Bitcoin in Canada avoids. You’ll just need to login to PayPal when requested to confirm the payment.
Security features – The best cryptocurrency exchanges all benefit from great security features, like 256-bit SSL encryption. PayPal also features Two-Factor Authentication (2FA). That means every time you sign into your PayPal account you can set up a 2nd password that is sent to your mobile device to better protect your account.
Instant deposits – PayPal is a payment of choice for those in a hurry. If you are buying the dip and need to get in now, then it is ideal to buy bitcoin in Canada with PayPal. Payments are instant. So you don’t always need to keep your crypto account topped up.
Cons of using PayPal for buying Bitcoin in Canada
Exchange fees – Some exchanges will charge higher fees, on their end, than some of the more common methods like debit cards. It’s the price you pay for instant deposits in a hurry!
Acceptance – PayPal is surprisingly still a new edition to many bitcoin exchanges in Canada. Not all brokers and exchanges will accept PayPal as a payment method, so you’ll need to do a little research ahead of time. Thankfully, at Crypto Parrot, we have conducted plenty of in-depth reviews of bitcoin exchanges and brokers offering crypto CFDs.
Whether trading bitcoin in Canada as a CFD, through a trusted friend in P2P trading, or on any number of the best cryptocurrency exchanges, PayPal has become a popular payment option for those who need to buy bitcoin right now.
PayPal is one of the fastest ways to fund a bitcoin exchange account and also one of the cheapest too. Set up an account in minutes and head to a top bitcoin exchange to buy bitcoin with PayPal in Canada.
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PayPal bitcoin Canada FAQ
👛 Are there any legitimate alternatives to Bitcoin?
Bitcoin is the largest and most popular cryptocurrency in the world but that doesn’t mean there are plenty of other amazing options too. Head to any of the best cryptocurrency exchanges in Canada and the marketplace will be filled to the brim with many digital assets. Each available cryptocurrency has something legitimate to add to the crypto space and it’s your job to decide whether these alternatives are worth investing in.
💳 What other payment methods are available?
Bitcoin exchanges in Canada are not limited to only PayPal. In fact, there are quite a few different options to fund your bitcoin exchange account. The payment methods available will vary between the different exchanges and some may incur fees where others do not. We found that wire transfers and credit cards were among the most popular alternatives to PayPal.
📈 What is a CFD?
If you don’t want to own bitcoin but still really want to profit on its incredible volatility and intense bull runs, then CFDs offer a unique opportunity. A CFD is basically a bet on the price movement of an asset such as bitcoin. You can choose to take a position that the price of bitcoin will go up or down. CFD trading benefits from the use of leverage too.
✔ What is KYC for?
Know Your Customer has been around for quite some time now and you really shouldn’t be investing with a third-party that doesn’t have a KYC policy. KYC is there for your protection and to prevent major financial crimes such as money-laundering and terrorism financing. Exchanges and brokers need a KYC policy to comply with regulations and it’s very important to keep you safe when trading bitcoin online.
💰 What is a crypto wallet?
Crypto wallets are not like the leather one you keep in your bag or back pocket. No, a virtual currency requires a wallet that is capable of holding virtual assets. A crypto wallet may be entirely digital, allowing for fast bitcoin trading capabilities or it could be physical and disconnected – perfect for storing large amounts of bitcoin safely.