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How to Buy Ethereum in 2023

Last updated 29th Jan 2023
Disclosure

Ethereum (ETH) is known as a “Blue-Chip” coin owing to its smart contract capability, disinflationary supply, competent performance in the cryptocurrency market, and more. It currently ranks in second place in terms of market cap and is the largest smart contract coin, making it the optimal investment for most crypto enthusiasts.

There are many different ways to buy Ethereum as well as payment methods, for example, buy Ethereum using PayPal and this guide will cover the top platforms for buying Ethereum in 2022 in Canada, the fees you’ll encounter, and more.

Best Exchanges to Buy Ethereum

1
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2
Opensea
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7
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NBA Topshot
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Rarible
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SuperRare
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6
NFT Art Marketplace

NDAX - The Overall Best Way to Buy ETH in Canada

NDAX offers investors the required tools and support options to help them quickly buy and sell Ethereum (ETH), among many other cryptocurrencies in Canada. This platform provides a learning section to educate investors on various cryptocurrencies. NDAX also offers additional features apart from trading, including staking, an OTC desk, recurring purchases, a referral program, and more. Most importantly, this platform has been designed and developed using high-quality security and compliance standards.

💰 Trade Values:Cryptocurrencies
📊 Software:Website and smartphone app.
🏆 Demo Account Available:No
📺 Ease of use:Excellent
⭐ Our rating:5/5
📱 App Available:iOS and Android
🧩 Regulation:FINTRAC and MSB
💰 Fees:$2
🔁 CFDs Available:No
⚽ Social Trading:No

Best Platforms to Buy and Trade Ethereum in Canada

This part of the guide uncovers the best platforms for trading, buying, and storing Ethereum.

Buy Ethereum Using Cryptocurrency Brokers in Canada - The Easiest Way

The most straightforward way to acquire Ethereum is via a cryptocurrency broker. These are platforms that facilitate trades between users for a fee. They have simple interfaces and often have an educational section for traders to help them level up their game.

ProviderFee (CAD 1000)
🥇 NDAX$2
🥈 Netcoins$5
🥉 Coinsquare$0.5 to $5

NDAX

NDAX is known for offering a simplistic user interface to make trading easy for beginners. In addition, the platform also offers learning resources, staking, referral program, and more.

Netcoins

Netcoins provide a premium user experience with an intuitive trading interface, multiple deposit options, learning resources, and swap pairs for ETH. This platform also offers rapid transaction times, fast verification, top-notch customer support, and the list goes on.

Coinsquare

Coinsquare is one of the most trusted platforms for buying, selling, and trading cryptocurrencies like Ethereum (ETH). This platform offers three core products, i.e. Coinsquare Trade (for trading cryptocurrency), Coinsquare Pro (for the advanced crypto trading platform), and Coinsquare Wealth (to avail personalized service from wealth experts).

Best Wallet to Buy and Store Ethereum in Canada - ETH Wallet Comparison

It is recommended to store your Ethereum in a cryptocurrency wallet, especially a cold wallet (hardware), rather than an exchange. This is important to shield your funds from different kinds of online attacks. Exchanges are often targeted by hackers, risking the security of your funds. Below you’ll find the best hardware and software wallets for storing ETH, short or long-term, in Canada.

ProviderWallet Type
🥇 Ledger Nano XHardware
🥈 Trezor Model THardware
🥉 Trust WalletSoftware

Buy Ethereum Using CFDs in Canada- Best for Trading

An alternative way to invest in Ethereum is with CFDs (Contract For Differences) issued by brokers. These are derivative products, so you won’t own the underlying asset while still investing in the coin. This also means you cannot withdraw, transfer, or spend your Ethereum. However, crypto brokers often have easy investing methods, perfect for beginners. Here you can find the top two options:

ProviderFee (CAD 1000)
🥇 FP MarketsZero commission
🥈 easyMarketsZero commission

FP Markets

FP Markets is on the top of the list because of its diverse range of features including but not limited to the customizable interface, one-click trading, MarketWatch, customizable alerts, and more. This platform also allows you to discover the benefits of powerful trading platforms like MetaTrader 4 and MetaTrader 5.

easyMarkets

Established in 2001, easyMarkets has been operating in the industry for two decades. This platform offers users an exclusive risk management tool for efficient trading, followed by exceptional customer support service, tight fixed spreads, zero slippage, and negative balance protection.

Best Apps to Buy Ethereum in Canada- Most Convenient

Smartphone apps designed by exchanges are considered the most convenient method to invest or trade in crypto if you can’t access a desktop device. These apps allow you to trade, stake, withdraw, and deposit coins as long as you have an internet connection. Take a look at the top three options:

ProviderFee (CAD 1000)
🥇 NDAX$2
🥈 Netcoins$5
🥉 Coinsquare$0.5 to $5

Buy Ethereum on NDAX: Step-By-Step Guide

Step 1: Complete the Registration
Step 2: Funding the Account
Step 3: Buy Ethereum (ETH)

Note: You can also buy Ethereum (ETH) using the Quick Trade option.

Buy Ethereum With Exchanges in Canada- The Cheapest Way

You can experience affordable trading with cryptocurrency exchanges because these platforms follow a low-fee structure. Also, having a high 30-day trading volume will place you in a different fee bracket with better terms regarding the trading fee. These options were selected for providing a premium service along with low platform costs.

ProviderFee (CAD 1000)
🥇 Binance$0.2 to $1
🥈 KuCoin$0.05 to $1
🥉 Kraken$0 to $0.5

Buy Ethereum on Binance: Step-by-Step Guide

Step 1: Open Binance and Register
Step 2: Deposit
Step 3: Open the Trading Interface
Step 4: Complete the Trade
Additional Step: Confirm the Transaction Using the Blockchain Explorer

Buy Ethereum On Binance

Buy Ethereum Using Decentralized Exchanges (DEX) in Canada- The New Way

DEXs (Decentralized exchanges) are dApps built on top of a blockchain network and facilitate trade orders using a liquidity pool system. You can start using a DEX by connecting your decentralized wallet like MetaMask to the Dapp. Also, DEXs are unregulated and allow you to purchase coins anonymously.

ProviderFee (CAD 1000)
🥇 UniswapVaries
🥈 SushiSwapVaries
🥉 CurveVaries

Can You Buy Ethereum Using P2P Services in Ethereum?

Here are some peer-to-peer platforms if you’re interested in buying Ethereum through an alternative method to exchanges and CFD brokers.

ProviderFee (CAD 1000)
🥇 Binance P2P$0 to $3.5
🥈 KuCoin P2P$0
🥉 Paxful$0 to $10

Can I Buy Ethereum Using Other Trading Platforms in Canada?

Since Ethereum is an established cryptocurrency, it’s available on the majority of crypto platforms in Canada. Below you can analyze the table to see if ETH is available on your desired exchange, along with the expected fees.

Cryptocurrency PlatformCan You Buy ETH?Fee (CAD 1000)Review
BinanceYes$0.2 to $1Binance review
BitstampYes$0 to $4.Bitstamp review
Bittrex GlobalYes$0 to $3.5Bittrex review
CoinbaseYes$0 to $6Coinbase review
NewtonYes$0N/A
NDAXYes$2N/A
Crypto.comYes$0 to $0.75N/A
NetcoinsYes$5N/A
Gate.ioNo$0.55 to $2N/A
HotbitYesUpto $2N/A
KrakenYes$0 to $0.5Kraken review
KuCoinYes$0.05 to $1KuCoin review
CoinberryYes$0 to $25N/A
VirgoCXYes$0 to $25N/A
CoinsquareYes$0.5 to $5N/A
CoinSmartYes$2 to $3N/A
BitbuyYes$0 to $15N/A
Bit2MeYes$9.5N/A
GeminiNo$1.49 to $4.99N/A

What Is the Difference Between Buying Ethereum and CFDs?

When buying Ethereum, you can spend, store, and trade it whenever you like. However, when using an Ethereum CFD broker, you purchase a derivative product instead. This means you’ll invest in Ethereum but not actually own any real assets.

Pros

No Liquidity issues.
Brokers issuing Ethereum CFDs offer easier buying processes.
No need to set up a crypto wallet and store coins.
Must verify your identity before using a broker to buy CFDs. This eliminates fraudulent activities on the platform.

Cons

CFDs are only investment assets, and you cannot use your ETH to buy products or services.
You have no ownership of the real coin.
Significantly more fees than buying the real asset.
You must leave your investments with the CFD issuer and cannot withdraw to a secure crypto wallet.

Best Ways to Buy Ethereum in Canada

Here are the top crypto platforms for buying Ethereum in Canada using different payment methods and what they’re best for.

Buy Ethereum Instantly With Online Banking in Canada- The Fastest Way

NDAX is one of the best platforms that accept online banking as a deposit method with a fast transfer. Also, the exchange will remember your information, making future deposits convenient.

Buy Ethereum With PayPal in Canada- The Safest Way

We couldn't find exchanges and brokers accepting PayPal as the deposit method in Canada to buy cryptocurrencies like Ethereum (ETH). However, you can use Paxful to buy Ethereum using PayPal in Canada.

Buy Ethereum Using a Debit Card in Canada - The Cheapest Way

Use your debit card to deposit funds on Coinbase and navigate to the spot trading tab to purchase Ethereum. You can also use Bit2Me to buy Ethereum using a debit card.

Buy Ethereum Using a Credit Card in Canada

Investors can top up their accounts on Bit2Me via credit card. This platform is brilliant for its educational resources, multiple Ethereum trading pairs, and low fees.

Best Platforms to Buy Ethereum in Other Countries

The best providers vary between nations due to licenses, laws, and crypto regulations. Below you can analyze the top cryptocurrency platforms in each country for buying Ethereum.

Country to Buy ETH inBest ProviderProvider TypeFee
UKCoinbaseExchange$0 to $6
BangladesheToroBroker$10
AustraliaKuCoinExchange$0.05 to $1
HawaiiCEX.ioExchange$0 to $2.5
IndiaWazirXExchange$2
JapanBitFlyerExchange$0.1 to $1.5
NepalKrakenExchange$0 to $0.5
New ZealandBinanceExchange$0.2 to $1
PakistanCoinbaseExchange$0 to $6
PhilippinesBinanceExchange$0.2 to $1
SingaporeCrypto.comExchange$0 to $0.75
South AfricaeToroExchange$10
UAEBinanceExchange$0.2 to $1

What Are the Fees When Buying Ethereum in Canada?

This table discloses the fees you’ll pay for buying 1000 CAD worth of Ethereum and holding 30-days.

PlatformNDAXNetcoinsCoinsquare
Deposit fees$0$0$0
Purchase fees$2$5$0.5 to $5
Holding fees$0$0$0
Selling Fees$2$5$0.5 to $5
Payout fees0.0099 ETH$0$0
Total fees$4$10$1 to $10

Cheapest Way to Buy ETH in Canada

Binance, KuCoin, and Kraken Pro have adopted a tier system for calculating fees. Based on your trading volume amount, you can potentially enter a different bracket with better fee rates. The listed options below observe a huge trading volume for ETH and offer the cheapest trading fee structure.

ProviderFee (CAD 1000)
🥇 Coinsquare$0.5 to $5
🥈 KuCoin$0.05 to $1
🥉 Kraken$0 to $0.5

Fastest Way to Buy ETH in Canada

These crypto platforms were selected for their quick sign-up processes and instant deposit methods. Also, they all offer excellent trading tools and order types for buying ETH.

ProviderFee (CAD 1000)
🥇 Netcoins$2
🥈 Crypto.com$0 to $0.75
🥉 Kraken$0 to $0.5

How to Buy Ethereum Anonymously in Canada?

The following section covers how to buy Ethereum without revealing your identity.

How to Buy Ethereum Without Registration or KYC in Canada?

You can avoid the registration and KYC process if you use a decentralized exchange. These applications require connecting to a crypto wallet, allowing you to remain anonymous.

How to Buy Ethereum Without Verification in Canada?

Most cryptocurrency exchanges (centralized) require the users to complete the KYC verification to start trading cryptocurrencies like Ethereum, depositing fiat currency, and executing withdrawals. However, some exchanges like Kucoin allow P2P crypto trading without KYC verification. Alternatively, you can use an Ethereum DEX.

Should You Buy or Sell Ethereum?

Ethereum is one of the best web 3.0 initiatives that go beyond the concept of digital currency. Innovations like smart contracts and decentralized applications, followed by a diverse development community, make Ethereum a promising cryptocurrency to invest in. If you’re undecided on the project, here are some pros & cons:

Pros

Ethereum is the largest smart contract cryptocurrency.
Ethereum is an established coin with the second largest market cap.
Decentralized.
Merge is live. Sharding is yet to go live, making the network faster and cheaper.
Large, diverse, and growing community.

Cons

Fees are ultra-high for making transfers.
Currently, Ethereum has scaling issues, which is evident with the high gas fees.
Although ETH is considered a blue chip coin, its price is volatile.

Do You Need to Pay Tax on Ethereum in Canada?

According to CRA (Canada Revenue Agency), earnings from cryptocurrency are treated as a taxable event in Canada. Any type of gains you make from commercial events involving crypto is taxed as a business income or capital gain, based on the circumstances.

The taxable event is triggered when you make gains or generate returns while gifting crypto, selling crypto, exchanging/trading crypto, conversion of crypto into CAD, crypto mining pursued commercially, and other events as listed by CRA on its official website.

You do not need to pay taxes for holding cryptocurrency in Canada. No need to pay the tax, even if you are just moving your crypto from one wallet address to another wallet address. Other non-taxable events include using CAD to buy cryptocurrencies and creating a DAO.

Ethereum Price Prediction: What Is the Future of ETH?

Ethereum’s future price is unpredictable but looks positive based on historical performances in bull runs. Here’s how ETH is performing now:

What Impacts Ethereum Price?

Several factors can impact Ethereum’s price and swing it in either direction. If you’d like to find out more, here are the main causes:

  • Demand: An increased demand can increase the price as more investors want to acquire ETH and fewer people are selling.

  • New Developments: Technical development in Ethereum, like EIP-1159, The Beacon Chain, Berlin Hard Fork, etc., cast a positive impact on price. Currently, ETH’s fees are too high, preventing common users from using the coin as a payment method, but the sharding will make transacting in ETH practical with a low gas fee.

  • Competition: Many smart contract projects like Cardano have been called the next “Ethereum killer” since they offer lower fees and faster transactions. This means similar projects are taking a slice of Ethereum’s market share and affecting its price.

  • Regulation: Cryptocurrency adoption must rise for coins to gain value since new investors enter the market.

  • Market status: Bull and bear run heavily dictate how the prices will ultimately shift. During bear runs, prices are likely to fall and not grow, while during bull runs, we can expect to see new all-time highs with significant market growth.

Historical Ethereum Course: Major Milestones in The History of Ethereum

Here is a historical chart of how Ethereum has performed since its creation.

Current Price Prediction News

If you’re interested in price prediction news, here’s what experts have to say:

Other Ways to Make Money With Ethereum in 2023

Ethereum is a dynamic coin, offering multiple ways to make money from it. The following section will expand on how you can earn money with Ethereum in 2023.

Stake Ethereum Using DeFi or CeFi in Canada

Staking is a way to earn rewards for helping the network by allocating your Ethereum to a pool. Your Ethereum can be in a lock or unlocked stake, which changes the reward amount. During this process, you cannot withdraw or spend your Ethereum. Binance is one of the best options for Ethereum staking as the platform features up to 5.20% APY.

Buy Ethereum Using ETPs (ETFs & ETNs) in Canada

Exchange-traded products (ETPs) are securities found on the stock exchange. The best platform for buying Ethereum ETPs in Canada is 3iQ. It is one of the first regulated fund managers in Canada to offer Bitcoin and Ether ETF. Other organizations like Purpose Investments, Evolve ETFs, and CI Global Asset Management also offers Ether ETFs.

Buy and Sell NFTs Using ETH?

Non-fungible tokens have become the trend since the 2021 bull run, with 28.6 million wallets storing or transferring NFTs across multiple blockchains. These unique tokens make them the ideal technology for making tickets, storing digital art, and more. OpenSea is the largest platform for selling and buying Ethereum NFTs.

Buy Stocks & Shares in Companies Owning Ethereum

Coinbase is the largest publicly traded company holding significant quantities of Ethereum. This is to provide liquidity to their platform and hold it as an investment asset for the long term. You can purchase Coinbase stock with a stock brokerage.

Ethereum Mining

Mining is an operation in which your computer solves complex mathematical problems to verify the transaction and earn block rewards. However, the Merge upgrade is live, and you cannot mine Ethereum anymore because it has been transitioned from the Proof-of-Work consensus mechanism to the Proof-of-Stake consensus mechanism. This means users will be rewarded based on the amount of Ethereum staked rather than computational power.

Use Ethereum Faucets

Cryptocurrency exchanges offer faucets, which are quizzes or courses you complete for a cryptocurrency reward. The most beginner-friendly option for doing this activity is with Coinbase, as they offer a variety of faucets.

What Cryptocurrencies Are Similar to Ethereum?

This table covers similar smart contract cryptocurrencies that you might like to research and potentially invest in:

CoinSymbolLearn how to buy
CardanoADABuy Cardano
TronTRXBuy Tron
AlgorandALGOBuy Algorand
CosmosATOMBuy Cosmos
TezosXTZBuy Tezos

Is It Still Worth Investing in Ethereum or Not?

Ethereum is definitely worth investing in right now as the coin is expected to experience some major technical developments in the upcoming months. This will result in a reduced fee and faster transactions, making the coin more cost-effective and practical to use on a daily basis. Also, like Bitcoin, Ethereum is the first of its kind in the smart contract market, giving it a first mover’s advantage. The coin is ideally a long-term HODL opportunity due to its promising potential in the developing web 3.0 market.

FAQs

What Is the Best Provider to Buy Ethereum in Canada?
What Is the Cheapest Provider to Buy Ethereum in Canada?
Is It Worth Investing in Ethereum Right Now?
Is There a Limit to How Much ETH I Can Buy in Canada?
Can You Buy Ethereum on the Blockchain?
What Can You Buy With Ethereum in Canada?

David Hany