In This Guide
- How to Buy Bitcoin Cash With Canadian Dollars (CAD)
- QuadrigaCX – EFT, e-Transfer
- Coinbase – Buy With a Credit or Debit Card
- How to Sell Bitcoin Cash for Canadian Dollars (CAD)
- Where to Buy and Trade in Canada
- What is Bitcoin Cash?
- Benefits of Bitcoin Cash vs. Bitcoin
- What’s the difference between BTC and BCH?
- What Factors Affect the Price of BCH?
A beginner’s guide to buying and trading Bitcoin Cash in Canada.
The following guide outlines the easiest ways to buy, sell and trade Bitcoin Cash for Canadian dollars and other cryptocurrencies.
How to Buy Bitcoin Cash With Canadian Dollars (CAD)
The easiest way to get Bitcoin Cash (BCH) is to buy it from cryptocurrency exchange that trades in BCH. Canadians have access to several exchanges that deal in cryptocurrencies, so which exchange you select to use is dependent upon the answers to the following:
- How much do you want to buy?
- Do you want to pay with a credit card, bank transfer, Paypal or other method?
- How much time you are willing to spend signing up and wait for the transaction to be completed?
Based on my experiences, these are the best options:
QuadrigaCX – If you want to buy and sell more than a few hundred dollars worth, pay via bank transfer/wire and/or don’t mind it taking a couple days between sign up and purchase.
Coinbase – If you only want to buy and hold a couple hundred dollars worth, want to use a credit or debit card and/or want it done today.
For a complete comparison of these exchanges and more, check out our guide to the best cryptocurrency exchanges available in Canada.
1) QuadrigaCX – EFT, e-Transfer
More steps, longer to verify, but more deposit options, lower fees and higher limits
QuadrigaCX is a broker for the trading of cryptocurrencies. Among Canadian cryptocurrency exchanges, it has the largest volume. QuadrigaCX offers a wide variety of transfer options to Canadians. Customers in other countries may have more limited options.
This exchange’s liquidity is high and it is able to handle high volume. Its security is excellent as compared to other sites in the industry. Some transfer methods may be slow and some options may be limited when compared to other sites.
Here’s how to do it:
Step 1) Register for QuadrigaCX
To get started, visit QuadrigaCX to create an account and fill in your name, email address, date of birth and country of residence:
Step 2) Verify Your Account
The next step is to verify your account using one or both of Quadriga’s options: verifying your identity through Equifax and providing your personal ID, bank/utility statement and selfie with a written note.
Step 3) Deposit CAD to QuadrigaCX
On the Member Dashboard, click the FUND button in the “Available Canadian Dollars (CAD)” box:
Once you’re account has been verified, you can use any of the following payment options to deposit Canadian dollars into your account. I use the INTERAC Online option through RBC that has the lowest fee of 1.5% and it works great. Unfortunately, this option is not available to CIBC/Simplii bank accounts or debit cards that double as a Visa or Mastercard.
Step 4) Buy Bitcoin Cash
Now for the fun part.
On the Dashboard page, select the BCH/CAD trading pair in the drop down at the top right of the page.
In the center box, click the Buy Bitcoin Cash tab and enter the amount of Bitcoin Cash you would like to buy in CAD.
Click the Buy button.
You’re done! For more info, you can read my full review of QuadrigaCX.
2) Coinbase – Buy With a Credit or Debit Card
Fewer steps, faster to verify, but higher fees and lower limits
Coinbase is a platform for the buying and selling of cryptocurrencies. Coinbase is based in the U.S. and supports the buying and selling of Bitcoin, Bitcoin Cash, Litecoin and Ethereum. It has established a high degree of trust among those who trade in cryptocurrency and is widely considered to be reliable. 98% of customer funds are kept in offline storage and the funds of their users are insured against hacking and security breaches.
Coinbase supports the buying and selling of cryptocurrencies in 32 countries of the world and was one of the first companies to offer trading in Bitcoin. They have the financial backing of established financial companies like the Bank of Tokyo and several venture capital groups. They place limits on buying and selling amounts, but they can be increased by providing more user information to provider more trust that you are who you claim to be.
Step 1) Register for Coinbase
To get started, visit Coinbase to create an account and fill in your name, email address and a strong password:
Step 2) Verify Your Account
You’ll be asked to upload a picture of a photo ID such as your driver’s license:
Step 3) Add a Debit or Credit Card
You will be prompted to enter your credit/debit card details:
Step 4) Buy Bitcoin Cash
On the Buy/Sell page, select Bitcoin Cash, your previously added payment method (or add another using the drop down), enter an amount of Bitcoin Cash you want to buy in CAD or BCH and click the Buy Instantly button.
How to Sell Bitcoin Cash for Canadian Dollars (CAD)
Selling Bitcoin Cash is just as straightforward as buying it. Here are the best options:
Sell on an Exchange: QuadrigaCX
In addition to buying Bitcoin Cash, you can also sell it on QuadrigaCX. They have high trade volumes (meaning you’ll get a good price in CAD for your Bitcoin Cash) and offer a variety of withdrawal options ranging from Interac e-transfer (2 business days for 2%+$5) to Electronic Funds Transfer (EFT) (7 business days for no fee).
Here are all of the options available to withdraw Canadian dollars as well as their limits, timeframes and fees:
Pay for Goods & Services
You can also use your Bitcoin Cash to pay for goods and services. This has the same effect as selling your Bitcoin Cash since you are giving it up in return for something of value to you. There aren’t currently as many retailers that accept Bitcoin Cash as there are for Bitcoin, but you can find a list of them on Reddit.
Where to Buy and Trade Bitcoin Cash in Canada
|Name||Description||Currencies||Deposit Methods & Frees||Trading Fees||Top Trading Pairs||Withdrawal Methods & Fees|
|Canada's largest digital currency exchange. Next day and free deposit and withdrawal options available.||BTC, LTC, ETH, BCH, BTG||CAD, USD free to 2.5%. Free for supported crypto.||0.2-0.5% on completed trades||Click Here||CAD, USD free to 2%. Free for supported crypto.|
|One of the most popular, trusted and secure cryptocurrency exchanges and wallet platforms.||BTC, LTC, ETH, BCH||CAD Debit/Credit 3.99%||Not Available||Not Available||Free crypto transfers to other exchanges/wallets only. Cannot withdraw CAD.|
|Largest Euro volume Bitcoin exchange founded in 2011.||BTC, BCH, DASH, EOS, GNO, ETH, ETC, ICN, LTC, MLN, REP, DOGE, XMR, XRP, ZEC||CAD, USD, EUR, GBP, JPY. Free CAD wire deposit. Free for crypto.||0.16% to 0.26% for less than $50,000 volume.||BTC/EUR, BTC/USD, ETH/EUR||CAD EFT $10 flat fee. 18 cryptos, fees vary|
|Crypto to crypto exchange based in the US founded in 2014. 14th largest by volume.||60+ cryptocurrencies including XRP, STR, XMR, ZEC, NEM, DOGE, LSK||Any of the 60+ supported digital currencies for free.||0.15% to 0.25% for less than 600 BTC volume.||BTC/USDT, XRP/BTC, ETC/BTC||Any of the 60+ supported digital currencies fees depend on coin (0.0001 for BTC)|
|Fastest growing crypto exchange in the world and second largest by volume.||100+ digital currencies including NEO, XRP, NANO, BNB||Any of the 100+ supported cryptocurrencies for free.||0.1% on completed trades.||Click Here||Any of the 100+ supported cryptocurrencies for free.|
|Canadian owned & operated based in Toronto. 72nd largest by volume.||BTC, ETH, LTC, BCH||2.5% for Interac online, e-transfer, bank draft, money order of CAD.||0.1% maker (providing liquidity) to 0.2% taker (removing liquidity).||BTC/CAD, ETH/BTC, LTC/BTC||1% for bank deposit, 0.5% for wire transfer (min. $10,000) of CAD.|
|Fast to list new cryptocurrencies. Founded in 2014 built and operated in the US. 10th largest by volume.||190+ digital currencies including OMG, BNT, POWR, ADA||Does not support CAD. Network transaction fee only (varies by coin)||0.25% on completed trades||ETC/BTC, BTC/USDT, ADA/BTC||Network transfer fee only (varies by coin).|
|Advanced trading features including margin trading. 5th largest by volume.||38 cryptocurrencies including IOTA, EOS, ZEC, TRX, ZRX, USDT||Does not support CAD. Fee varies by coin deposited (eg. 0.0027 ETH) Free for >$1000 USD worth.||0.1% maker (providing liquidity) to 0.2% taker (removing liquidity) for less than $500,000 per month.||BTC/USD, ETH/USD, XRP/USD||Does not support CAD. Fee varies by coin withdrawn (eg. 0.0008 BTC).|
|Robot that finds the best price on the largest exchanges including Bittrex and Poloniex founded in 2013.||USD, EUR & 90+ digital currencies including SALT, FUN, POT, STEEM, GAME||Does not accept deposits. Trades are between two wallet addresses directly.||0.5% on completed trades||N/A||Funds are not held on the platform.|
|Founded in 2017. 27th largest by volume.||100+ cryptos including REQ, NANO, DENT, FLIXX||Free to deposit any supported currency.||0.1% on completed trades||R/BTC, R/ETH, ETH/BTC||70+ supported digital currencies fees depend on coin (0.001 for BTC)|
|Peer to peer Bitcoin trading with 1 million users in 248 countries.||BTC||Cash, e-transfer, Moneygram, PayPal, Vanilla, etc.||Fees vary by user.||BTC with dozens of fiat currencies.||Cash, e-transfer, Gift Cards, Paypal, etc.|
|Top 10 exchange by volume founded in 2011.||BTC, ETH, XRP, BCH, LTC||USD, EUR 0.05% for international wire. (min. $7.5) Free for crypto.||0.25% for less than $20,000 trade volume per month||USD to BTC, XRP, ETH, LTC, BCH, EUR to BTC, LTC, XRP||USD, EUR 0.09% for international wire. (min. $15) Free for crypto.|
|Private & fast exchange - no account needed.||70+ digital currencies including DASH, FUN, MAID & BNT||45+ cryptocurrencies to trade between. No deposits/accounts.||~0.5% + network fees||45+ cryptocurrencies including BTC, ETH, LTC, EOS & XMR||45+ cryptocurrencies to trade between. No deposits/accounts.|
What is Bitcoin Cash?
Bitcoin Cash was introduced on August 1st, 2017 after Bitcoin Improvement Proposal 91 (BIP 91) was scheduled to activate. Some in the bitcoin community felt that this change favored those who saw bitcoin as a investment to the disadvantage of those who viewed it as a currency for transactions.
Bitcoin Cash works, to a large degree, exactly like original Bitcoin. However, the fork implemented a block size of 8 MB. Blocks are mined using a proof of work scheme just like in original Bitcoin. The desire to increase the block size and opposition to a change in the way bitcoin transactions were stored are believed to be major motivations for the hard fork.
This change to bitcoin transaction storage, known as a Segregated Witness, or SegWit, called for sender and receiver details to be offloaded to an extended block outside the 1 MB main block. Bitcoin Cash did not implement SegWit.
Benefits of Bitcoin Cash vs. Bitcoin
Bitcoin Cash provides features that aid transactability, or the ease with which the currency can be used as payment. It was created out of a rejection of features designed to aid the investment aspects of Bitcoin. For those interested in cryptocurrency as a method of payment and transfer, these are good things.
Significantly improved hash rate
Bitcoin Cash has made it easier to mine when it needs more miners and makes it harder to mine when there are too many miners. This is done via the emergency difficulty adjustment (EDA).
8 MB block size
The 8 MB block size makes transactions cheaper, faster and easier. This reduces block contention and addresses part of Bitcoin’s scalability issues.
Cons of Bitcoin Cash
Lack of acceptance
Enthusiasm for Bitcoin Cash is generally confined to cryptocurrency purists or technophiles who appreciate the technical differences. Some in the mainstream even regard Bitcoin Cash as a scam at worst and a money grab by a small group of miners at best.
Ease of mining increases supply, reduces price
Since Bitcoin Cash is so easy to mine, this creates a large supply of coins. This reduces the price and reduces the ability of BCH to maintain a high price. This makes sense though, as the changes to Bitcoin that led to the fork were generally seen as benefiting investors. While this would be a con for investors, those who value Bitcoin Cash as a payment system would consider it a plus.
What’s the difference between Bitcoin and Bitcoin Cash?
You don’t want to get the original Bitcoin (BTC or XBT) confused with Bitcoin Cash (BCH or BCC). You might think of BTC as being more collectible, but BCH as being more usable.
One primary difference is that Bitcoin Cash has an 8MB block size, while legacy Bitcoin continues to have a 1MB block size.
This makes BCH easier to mine, consequently decreasing its rarity. This might prevent its value from increasing as quickly as other cryptocurrencies.
This is similar to the effect a new gold mine discovery would have in lowering the price of gold because there is more of it available. You might also think of this as Bitcoin Cash having a higher inflation rate than other cryptocurrencies. It means that BCH may not accumulate value as quickly as cryptocurrencies that are harder to mine and thus have a lower supply, like the original Bitcoin.
Investors wanting a currency that appreciates more quickly might consider this a disadvantage.
The advantage of having a 8MB block size is that it means BCH transfers can take place with less overhead, making them faster, cheaper and less resource-intensive. This contributes to making BCH a more efficient way of buying, selling and sending funds than BTC. There are investors who think that the most “usable” cryptocurrency will win in a winner-take-all battle of Bitcoin alternatives, not just the one that’s worth the most at any point.
Mining Difficulty Scaling
The second main difference is that BCH can scale its mining difficulty based on how many miners are working at the time.
Miners contribute computing power to process the transactions and are paid with Bitcoin Cash. Bitcoin Cash’s capability to scale the mining difficulty affects the level of reward so that whenever there are more miners working, they get compensated less BCH for their work. When there are fewer miners working, they get compensated more BCH for their work.
This does two things:
Keeps the natural “inflation” of 8MB block sizes in check. When there are too many miners, some will stop mining because it’s not worth their time.
Keeps transaction fees cheaper and transfer times faster across the board. When the number of miners dips too low, the reward will go up and more miners will move over to start processing transactions.
What Factors Affect the Price of BCH?
BCH prices react to the same forces that affect other cryptocurrencies. These include public interest, technical functionality of the coin and platform and its popularity.
In November 2017, it is believed that many Bitcoin users switched to BCH, driving the price up to new levels.
This was most likely the result of the cancellation of the hard fork of Bitcoin relating to Segwit2X, which was proposed in order to give BTC some features like BCH, and improve its fitness for transactions while sacrificing some of its collectibility.
Opinion was divided over the move. So when the fork was canceled, a lot of users decided that, for the long-term, they wanted to support the more “transactable” BCH coin as opposed to the more “collectible” BTC.
For this reason, there were a significant number of people dropping Bitcoin and buying Bitcoin Cash. This caused a decline in Bitcoin’s price, and an increase in the price of Bitcoin Cash. After the initial move to around $2,000 USD, Bitcoin Cash prices corrected to around $1,100 USD.
If you want to learn more about Bitcoin Cash, we recommend the following resources:
Disclaimer: Investing in cryptocurrency is always a risk and there is no guarantee of returns. Nothing on this page should be taken as financial advice of any kind.
Over to You
How do you buy Bitcoin Cash? What do you think of the digital currency? Is it worth investing in?