As a Vancouver resident, if you are looking to invest in bitcoin or cryptocurrency for the first time, one of the questions you are probably asking yourself is how and where to purchase it. Furthermore, as a beginner, you may be looking for some guidance and support along the way, since entering into the cryptosphere can feel intimidating, especially for those who are not tech savvy.
There are a number of avenues through which to buy cryptocurrency in Vancouver. This short guide will take you through the different options We will also list the pros and cons of each one. We’ve broken down your options into three categories: physical retail exchanges, Bitcoin ATMs, and peer-to-peer trades.
Physical Retail Exchanges
A popular option for many locals is to go to a brick-and-mortar exchange for their bitcoin and crypto purchases. At these locations there will be live tellers, like a bank or currency exchange, to help facilitate your transaction and accept cash as payment. Most business will also accept e-transfers and bank wires. These businesses are an excellent option for people who prefer to pay in cash rather than go through the banking system as well as those who require extra help and want a licensed and registered business they can trust. Trades done in this environment, where the client can receive one-on-one attention and support from a service agent, is also known as OTC (over-the-counter).
Pros
- In-person customer service and support
- Significantly lower fees than Bitcoin ATM machines
- Secure physical location
- Protect yourself from getting scammed
- Flexible payment options
- Accepts and pays out cash
- Meeting and getting to know those you are doing business with
Cons
- There may not be one close to where you live
- Do not operate 24/7
Crypto or Bitcoin ATMS
Bitcoin ATMs or BTMs are standalone kiosks that allow customers to buy bitcoin, ethereum and sometimes other cryptocurrencies by depositing cash into the machine. Some will also allow you to sell your crypto as well and pay you out in cash. Bitcoin ATMs are mostly found in convenience stores, shopping centers, bars, and other high-traffic urban locations. The easiest way to find one near you is on Coin ATM Radar, a longstanding website which lists almost every Bitcoin ATM (as well as many live tellers) in different parts of the world, including Canada and the United States. Bitcoin ATMs charge exorbitant fees and take advantage of new, inexperienced traders.
Pros
- Accept cash
- Operate longer hours (but not 24/7)
- Relatively easy to use
Cons
- Extremely high fees (up to 20%)
- Many do not allow for sales, only purchases
- Lack of privacy due to public location
- No onsite support and very limited, unreliable phone or online support.
- Transaction delays of are not uncommon
Peer-to-Peer (P2P)
A peer-to-peer (also known as P2P) transaction is when two parties meet privately to conduct a trade amongst themselves. For example, if I have 2 ETH I want to sell for cash, and a friend of mine wants to purchase 2 ETH for cash, then we can cut out the middleman and simply swap with one another. Unlike using online and brick-and-mortar exchanges or Bitcoin ATMs, which are licensed and regulated businesses, a P2P trade is simply a personal exchange between two parties. For those looking to conduct trades off the books, this may be ideal. On the other hand, you may run into risks that you would not when transacting in a more structured and predictable environment.
Pros
- For those seeking anonymity, transactions are “off-the-books”
- No fees from middleman
- You can make friends!
Cons
- Potentially dangerous, especially if you are meeting with a stranger and/or a lot of cash is involved.
- Much higher chance of getting scammed versus dealing with a reputable business
- Need to find someone wanting to take other side of the trade
- Need to find a date/time convenient for both parties, cannot transact at will.
Looking to trade cryptocurrency in-person in Canada? Don’t hesitate to contact us at here in Vancouver at VCX. We also have physical locations in Calgary and Victoria.