How to Buy Filecoin in Canada - Beginner's Guide (2024)
To buy Filecoin in Canada, you must choose a regulated broker that is secure, safe, and legally allowed to operate in the country. Several brokers meet these criteria, and we have listed them in this guide.
We also explain how to buy Filecoin in Canada, walking through a step-by-step process and discussing whether or not Filecoin is a good investment.
The Best Crypto Exchanges to Buy Filecoin - Our Top 3 Choices
Looking for a quick answer? Here are our top crypto platforms to use.
Top Crypto Platforms to Buy Filecoin - Key Metrics
The Best Crypto Platforms to Buy Filecoin - Why They Made the Cut
The Top Crypto Exchanges to Use Reviewed
How to Buy Filecoin in Canada
The easiest way to buy Filecoin in Canada is to purchase it online from a crypto exchange. Exchanges make buying and selling Filecoin and other cryptocurrencies easy from your smartphone, tablet or computer.
Check out our recommended platforms below and follow the steps to safely buy Filecoin in Canada.
1. Choose a Platform
The platform you pick should work specifically in Canada, operate within the financial services laws and ideally be regulated by a native government agency or by one recognised by local authorities. Our top picks below all fulfil these criteria.
2. Create and Fund Your Account
Input your name, contact information, and other details in the sign-up form usually displayed after clicking a Sign-Up button on the home page. To fund your account, you must pass KYC by submitting identity and address documents like an ID and a utility bill.
3. Buy Filecoin Canada
Navigate to your account explore or discover page and search for Filecoin. You may see tickers like FIL/CAD or FIL-USDT, depending on the platform. Purchase Filecoin directly using a funding method of your choice or with your account balance.
How to Buy Filecoin in Canada - Tutorial
Our guide focuses on OKX to buy Filecoin in Canada. However, these steps are applicable to other crypto exchanges in this guide.
1. Open an Account
Click on the Sign-up button on the top right side of the homepage to get started. Fill in your details on the form and create an account. You can also download the mobile app from the Play Store/App Store and do the same.
2. Verify Your Account
After creating your account, verify and register as an individual (if you plan to buy personally). Complete your profile by filling out your full name, date of birth, and residential address, and uploading ID documents and a utility bill.
3. Make a Deposit
Once your account is verified, you can deposit funds into it. Click on Funding Account on your profile to deposit. You can only deposit cryptos like BTC, USDT, USDC, LTC, and OKB into your account.
4. Buy Filecoin Canada
Search for Filecoin in the Markets tab. You can either use your account balance to buy Filecoin at your desired price using a trading terminal or buy Filecoin at market price with traditional payment methods like credit cards.
Is Filecoin a Good Investment?
We cannot outright say whether or not Filecoin is a good investment. However, we can give pointers to help you arrive at that decision yourself.
Decentralisation
Firstly, Filecoin is decentralised. It does not depend on governments to legitimise it or companies to run and maintain its blockchain infrastructure. Transactions are free from many of the controls and drawbacks of traditional finance networks like high fees for international transfers.
As the digital age progresses, more components of our lives will be moved to the digital space. Crypto technology mathematically safeguards digital assets and places ownership with users, making it crucial for a free digital future.
Liquidity
Cryptos are generally very liquid and portable assets. They can be bought on one crypto exchange, moved to another exchange in a different country and sold in a matter of minutes, creating a way to move wealth easily.
High Return Potential
Filecoin has a track record of delivering high returns on investment either due to its volatility or more fundamental reasons like growing adoption and institutional interest. Combine this with the fact that blockchain technology is still in its early stages, the growth (and profit) potential is significant.
Store of Value
Crypto can be used as a long-term store of value, especially those with deflationary mechanics, like Filecoin. Because supply is capped, the value of deflationary coins are projected to grow over time, provided demand remains constant. This makes digital currency a possible long-term alternative to gold.
Portfolio Diversification Option
Filecoin is a digital asset that can be used as an asset class when building a diversified portfolio. Its equity potential (the possibility to increase in value) makes it worthy of consideration for modern portfolios.
Risks of Buying Filecoin
There are downsides to buying Filecoin. The first is its volatility. Crypto is known to swing wildly, losing significant portions of its value within a few weeks and often leaving investors reeling from losses.
There is also a risk of rug-pulls, blockchain attacks, and wallet hacks. These are technological risks that involve an attacker hacking a crypto’s blockchain network or your wallet and usually end with funds getting stolen.
Finally, crypto at large is still the target of legal crackdowns and harsh regulatory policies that could stunt its growth and adoption rate.
What Payment Methods Can I Use to Buy Filecoin in Canada?
Credit/Debit cards
Credit or debit cards are the most widely accepted payment method across all platforms and are usually more expensive than their counterparts. OKX credit card purchase fees depend on the transaction volume, while Coinbase and YouHodler charge 2.49% and 4.5%, respectively.
Bank Transfers
Bank transfers and wires through Canadian banks are available for the platforms listed, aside from OKX and Coinbase. Transfers are free on native platforms like CoinSmart but can cost up to 25 USD per transfer on other platforms. Conversion fees may be charged on deposits where the platform account denominates in a foreign currency.
Interac
Interac is a Canadian payment network that allows residents to pay for products and services and send money with their phone, email, or debit card. While popular in Canada, Interac doesn’t work with most major platforms like OKX or Coinbase. However, it works with Canadian exchanges like CoinSmart.
Fees include 1.5%-1.6% for transactions below 2000 USD.
Ways to Invest in Filecoin in Canada
There are several ways to gain exposure to Filecoin and profit from its price movements in Canada. This section dives into them and how they relate to Filecoin.
Buy and Hold Filecoin
The buy-and-hold strategy involves buying Filecoin and holding it for a long time, usually as long as possible. This strategy is popular in the industry as it has proven effective over long periods, usually years.
Buy and Hold can be varied using a buying technique called dollar cost averaging (DCA) where you buy a set dollar amount of at fixed intervals, regardless of price.
Trade Filecoin
This strategy profits from Filecoin’s volatility. Trading FIL involves relatively short-term buying and selling, usually from as little as a day to as long as a year. Positions held for longer are often classified as investments.
Trading creates an opportunity to explore other financial derivatives like futures, options, and CFDs that give traders exposure to FIL’s price movement without the need to buy the coin. It also allows for leverage facilities that can magnify traders’ wins (or losses).
Choosing a Filecoin Wallet in Canada
Wallets are important because they store your valuable cryptos, so choosing the right one is crucial. Wallets are generally split into hardware and software wallets. Hardware wallets store cryptos offline on a device while software wallets store cryptos online and are always connected to the internet.
Software Wallets
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Web wallet: These wallets come as either browser extensions or web apps that store your private keys in your browser. Web app variants are accessible through any browser, however, the extension variant must be installed on a new browser and a seed phrase must be used to recover your wallet.
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Mobile wallet: This wallet is a mobile app downloadable from the Play/App stores or the internet. Binance’s mobile wallet is called Trust Wallet, and it supports Filecoin.
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Desktop wallet: This is an application that runs on your computer and stores your private keys on your hard drive. There are several desktop wallets available depending on the level of control you want and your familiarity with blockchain technology. However, a good option for beginners is the Electrum wallet available for Windows, Mac, and Linux PCs.
Physical and Hardware Wallets
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Hardware wallet: A hardware wallet is a physical device that stores private keys offline. They are much harder to hack and are currently the safest storage option. Hardware wallets that support Filecoin include Trezor and Ledger.
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Paper wallet: A paper wallet is a piece of paper with public and private keys printed on them. While they are a good way to keep your private key offline, they are not recommended as you may lose the paper or the ink could wear off with age. Paper wallets have gone out of fashion since the advent of hardware wallets.
Wallet Combinations
You can combine two or more wallets for added security or a better user experience. For example, you can use a hardware wallet like Ledger with a web wallet extension to buy
Should I Buy Filecoin Now? - Things to Consider Before Buying Filecoin in Canada
Whether or not you should buy Filecoin now depends on the state of the economy, your investment goals, your risk tolerance, and the cost of investments. Consider these factors when making a decision.
Filecoin Fees
The total cost of buying Filecoin is made up of network fees, exchange fees, and deposit fees across exchanges.
The network fee is the charge the blockchain takes for processing transactions. This fee usually goes to computers that help secure and run the network. It could rise and fall based on the volume of transactions for certain blockchains, however, newer networks are built to accommodate high volumes without significant changes to transaction fees.
Exchange fees are charged for conversion, trading, or other related services. Some platforms are cheaper than others in certain regards. For example, conversions on Binance are cheaper than eToro at 0.1% per trade compared to 1% charged by the latter.
However, eToro trumps Binance when it comes to deposits as it supports free deposits while Binance charges $1 for bank transfers and 1.8% for credit card payments.
Aggregate the costs of using various components of an exchange to obtain a holistic view of the cost of using that exchange, then compare it with others to find a cheap option.
Filecoin Price
Filecoin’s price is known to change rapidly and swing wide i.e. change quickly and by a considerable amount. For traders, this is good news as it presents opportunities to profit from this volatility.
Long-term investors, on the other hand, may not be too bothered by short-term fluctuations as price historicals show an overall uptrend with pocket downtrend periods. In the long-term investment case, a simple buy and hold strategy, or one combined with a DCA, may prove effective.
Buying Filecoin in Canada Safely
Security is of the utmost concern when dealing with cryptocurrencies and the exchanges that sell them. The first thing you should observe is the exchange’s regulatory status. The ideal situation is when the exchange is registered in its country of operation.
However, this is not always the case. Crypto exchanges sometimes offer services to users in certain geographical regions using entities registered in a nearby jurisdiction or in a jurisdiction where regulations allow them to onboard users from other countries.
In this case, ensure the regulatory agency is transparent and enforces industry-standard security and legal practices.
Buying Filecoin in Canada Anonymously
Buying Filecoin anonymously is not as easy as some may assume due to widespread regulation on all major exchanges and platforms. The key to remaining anonymous is to refrain from providing personally identifiable data. Platforms do this to varying degrees.
Crypto ATMs are a way to buy crypto anonymously. They only require the money with which you buy crypto and the wallet address you want to send it to. Currently, most ATMs are limited to Bitcoin, Ethereum, Litecoin, but more are popping up with support for more coins.
Another method is using prepaid cards to purchase cryptos on peer-to-peer markets. You send the code to the counterparty and they send your crypto. Visa offers prepaid cards, but you’ll need to ensure you won’t have to give up personal details to obtain it.
Is Buying Filecoin Legal in Canada?
Yes. Buying Filecoin is legal in Canada. According to the Financial Consumer Agency of Canada (FCAC), consumers can buy and sell crypto freely on exchanges that are registered with the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) as money service businesses.
Canada has one of the most progressive cryptocurrency laws as the world’s first Bitcoin-backed Bitcoin Exchange Traded Fund (ETF), Purpose Bitcoin ETF, was approved in February 2022. Cryptocurrency is also accepted as a form of payment in several online and local stores.
However, under the Bank of Canada Act, crypto is not legal tender and cannot be used to pay taxes and other governmental fees.
What Banks Let You Buy Filecoin?
If you’re looking for which banks support Filecoin, then you should consider those listed below.
KOHO
KOHO online bank lets you use your account to purchase crypto on exchanges like CoinSmart
Tangerine
Tangerine is an online bank under Scotiabank that allows crypto purchases through Interac e-transfers.
Toronto Dominion
Toronto Dominion bank is a popular bank that allows account holders to buy crypto using their credit cards or Interac e-transfers.
Is Filecoin Taxable in Canada?
Yes, Filecoin is taxable in Canada. The Canada Revenue Agency (CRA) administers tax laws in Canada for several provinces and views cryptos as commodities in relation to income and capital gains tax.
How much tax you pay on crypto depends on what you do with it and the situation around the entire transaction. For example, crypto mining is viewed as a business activity, so the value of the crypto mined in Canadian dollars (CAD) is considered income and is subject to tax.
Buying crypto is not a taxable event, however, the cost in CAD must be noted in the event that the crypto is disposed of in the future (“disposed of” meaning sold, exchanged for another crypto, gifted, or used to buy goods and services). The price at disposal determines whether or not it is taxable.
When calculating taxes, the Canadian government gives room for circumstances that do not conform to their laid-out rules, however, you must keep track of how you value the cryptos you buy and use the same method throughout your reporting.
Final Thoughts
Canadian citizens and residents have several options to buy Filecoin, and we believe that OKX is the best because of its holistic approach to providing a crypto experience. It also has the lowest conversion fees of all the exchanges on our list.
Furthermore, the platform allows users to buy Filecoin directly with their credit cards and through third-party services like Simplex. It also provides a P2P market with alternative payment methods like Wise, Skrill, and PayPal.
The exchange’s services span from quick conversions to spot trading, margin trading, bot trading, futures, and block trading for investors looking to buy Filecoin and trading looking to profit from its price movements.
To begin investing in crypto, visit OKX, sign up, and buy Filecoin cheaply.
More Cryptocurrency Guides in Canada
Check out more of our popular crypto guides for Canada below.
Methodology - How We Picked the Best Platforms to Buy Filecoin in Canada
We decided on the best platforms by first testing them individually. Our criteria for assessment include fees, deposit and withdrawal methods, reputation, credibility, security, ease of use, trading features, coin selection, and competitive edge.
The platforms listed on this page are ones that we found to be the best at the features we listed them under e.g. cheapest way to buy Filecoin. All platforms have a track record of providing value to users.
We also placed an onus on security and credibility. These platforms have millions of users and employ some of the highest security measures in the industry.
Finally, we considered fees and limits. These platforms have various fees and deposit/withdrawal limits, however, they are all within reasonable limits.
To learn more about how we test and choose platforms, visit our why trust us and how we test pages.