How To Start Using Crypto In Canada

How To Start Using Crypto In Canada
Image by cryptostock from Pixabay

According to a global cryptocurrency index published in January 2023, the crypto adoption rate in Canada is 10%, sharing the last spot among the top 20 countries with Ireland and South Africa. However, the global crypto ownership average is 15%, meaning Canada’s digital asset adoption is deficient. Interestingly, the neighbouring United States is at 13%, also below the global average.

Although crypto adoption in Canada is still relatively low compared to countries like India or Nigeria – 1st and 2nd on the adoption list – adoption in the country has risen since 2020. In addition to retail or individual traders interested in digital assets, institutional players are also spending on crypto.

Institutional adoption in Canada was initially low because the early crypto adopters lacked the technical knowledge required to engage the industry. However, this is gradually changing. According to a KPMG survey, 31% of institutional investor respondents have allocated funds to cryptocurrencies. The most common methods of exposure include venture capital or hedge funds (29%), public equities (36%), and direct ownership (29%).


How Canadian Citizens Can Enjoy Exposure to Crypto

There are many different ways Canadians can use crypto. As adoption increases, use cases for these digital currencies are also expanding. Some of the most popular options for Canadians looking for crypto exposure include the following:

  • Investments: Many people consider cryptocurrency one of the best stores of value because of its speculative nature. Although this speculative and highly volatile nature is also one of the biggest criticisms against cryptocurrency, people still buy digital assets and hold them with the hope that they will eventually turn a profit.

According to figures by Bankrate, Bitcoin returned 60% in 2021, 94% in 2019, and a whopping 302% in 2020. Between January and June of 2023, BTC investors already made 57% of their investments. These figures are very attractive to the average investor and influence investment decisions where buyers simply purchase the king coin and hold it until further notice. However, regardless of the potential for a positive spike, users should note that Bitcoin’s volatility could swing either way, causing investors to lose their deposits.

Gambling: Canada has a very vibrant gambling scene that can benefit considerably from crypto. According to recent statistics, at least six out of ten Canadians have placed a bet at some point, with 63% of men and 57% of women gambling every month. Online gambling is also widespread, with more than 19.3 million active online players in Canada. In 2021, Canada made $1.2 billion from online gambling alone.

Slot Machine
Image by OpenClipart-Vectors from Pixabay

Canadians are already placing more than $4 billion worth of bets on offshore gambling sites every year. With increasing crypto adoption, exposure to cryptocurrencies can significantly expand the gambling industry, attract more players, and possibly influence favourable legislation. Currently, more than a few casinos already allow users to place crypto and fiat wagers.

Players looking to enjoy slots, blackjack, baccarat, and other classic and more recent casino games should always do their research to ensure they can play safely. Reviewing the 10 best Bitcoin casinos in Canada before placing a deposit will ensure you understand the pros and cons of crypto gambling and find a trustworthy platform to do so.

Many of these sites offer attractive bonuses to all players, support altcoins, provide freebies like weekly free spins, and also use technology like provably fair gaming so players can make the most of their gaming time.

  • Online Shopping: Forbes expects the global e-commerce market to hit $6.3 trillion, growing 10.4% this year alone. The same report also estimates that 20.8% of all retail purchases in 2023 will happen online—we’re increasingly willing to handle most of our purchases for goods and services online.
    purchases in 2023 will happen online—we’re increasingly willing to handle most of our purchases for goods and services online. Using the Internet to satisfy trading needs is attractive because of the shopping experience. Unlike visiting a brick-and-mortar store, anyone can easily view pictures or videos of desired items and then place an online order from the comfort of their home.

The ease of payment also contributes to online shopping since no one has to carry cash, and transactions are instant. While there are many viable payment methods, like eWallets and traditional bank cards, crypto presents a simple option for buyers interested in online shopping.

Through digital assets, merchants are exposed to a broader market than is usually accessible via limited traditional means. Since anyone can easily send and receive cryptocurrencies with minimal fees, unaffected by geographical location, Canadians in the cryptocurrency community can enjoy a more dynamic shopping experience as crypto adoption increases.

  • Freelancing: Since the COVID-19 pandemic changed the global labour market, remote work has become more popular. Instead of sitting in an office, anyone can apply for a job online, start work, and get paid without physically meeting their bosses or other employees. This method also allows freelancers to quickly sell their skills abroad without travelling. Especially for Canadians working with organizations outside of Canada, crypto presents an easy way to quickly get paid for work done without the expensive constraints typical of traditional methods.
  • Remittances: Globally, this is one of the most popular uses of crypto. Digital assets make it easy for Canadians living abroad to complete cross-border payments whenever sending money home becomes necessary. While there may be fintechs using several different options to perform the same function, crypto cross-border payments are faster and much more cost-effective.
  • Decentralized Finance (DeFi): Canada’s DeFi market is recording impressive growth with very attractive projections for 2023 and beyond. DeFi revenue is expected to hit $597 million in 2023, with a compound annual growth rate (CAGR) of 21.29% between 2023 and 2027. With revenue expected at $1.291 billion by 2027, Canadians can gain Bitcoin and other crypto exposure by joining the DeFi market for its various uses.

For instance, several DeFi platforms allow users to earn interest on their crypto holdings via staking, lending, and borrowing. This could be an added source of income for the average person, with an increased chance of earnings since traditional intermediaries are unnecessary.

DeFi protocols create diverse solutions that are tailor-made for the financial needs of the average Canadian. Everyone from businesses and organizations to individuals can then access tools designed specifically for unique financial functions.