If you want to hop on the cryptocurrency train, NFT investing is quite popular.
In this guide, we will walk you through the process of purchasing NFTs from a Canadian exchange. We’ll cover everything from creating an account to making your first purchase.
So whether you’re a seasoned cryptocurrency investor or just starting, read on for step-by-step instructions on how to buy NFT in Canada!
What Are NFTs?
NFTs (Non-Fungible Tokens) are unique digital assets that can be stored and traded on blockchain platforms.
Each NFT is entirely different and cannot be replicated. Additionally, these digital assets can be worth millions — raising their price and value in a short time.
Though NFTs are huge right now, they can be traced back to 2012/13. They were supposed to be named ’coloured coins’; and be released as part of the Bitcoin blockchain. The idea behind NFTs was to create a method for managing Bitcoin assets.
A Brief History of NFTs
The first ever NFT was minted in May 2014 under the name Quantum. The people behind it were Kevin McCoy and Anil Dash. Interestingly, the Quantum was an art video clip by Kevin’s wife.
Later, in 2015, the first entirely developed NFT project –“Etheria,” was launched. It was displayed at the prestigious tech conference DEVCON in London. This ‘exhibition’ of digital assets happened three months after the release of the popular cryptocurrency Ethereum (July 2015).
This was the foundation of today’s Ethereum and non-fungible tokens concept.
So, what makes an NFT valuable?
The fact that NFTs are unique and can’t be copied makes them an attractive investment choice.
For instance, some people are interested in owning what you’re selling, i.e., the digital asset. Others want to invest in a particular NFT and wait for its value to start rising and sell it – this is when the NFT reaches its goal and converts into an actual investment. Some even see it as an opportunity to show support for an artist.
Today’s most expensive and popular NFT is called ‘The Merge’ – minted by digital artist Pak (2021). It was sold for an astounding $91.8 million.
How To Buy NFTs in Canada?
There are multiple marketplaces for buying NFT art in Canada. Plus, you can also trade NFTs on the majority of Canadian crypto exchanges.
Here are the basic steps to take if you’re planning to buy NFT in Canada:
Open a Crypto Account
The first step is to open an account in one of the crypto exchanges available in Canada. This is because NFTs can only be purchased with cryptocurrencies at the moment.
But the best advice is to open multiple accounts on different platforms to compare prices and upcoming trends.
Fund Your Account
To buy and sell cryptocurrency, you’ll need to fund your account. You can deposit funds into your crypto account by linking a bank account, authorizing a wire transfer, or paying with a debit/credit card on platforms that accept them.
Note: Some exchanges in Canada also allow you to use Interac e-Transfers.
Ethereum is the native token blockchain for NFTs, so buying this crypto asset is necessary to acquire an NFT. What’s more, around 1% of the entire Canadian population already owns Ethereum coins.
Connect Your Crypto Wallet To an NFT Marketplace
There are many options for crypto wallets in Canada – both hardware and software. Each wallet is specially designed for easy connection to any available exchange or marketplace.
Browse and Buy NFTs
NFTs aren’t stocks, but buying them requires similar tips and predictions of the market. Thus, following the latest news on the global market and comparing prices is necessary.
Where To Buy NFTs In Canada?
We compiled a brief list of NFT marketplaces that offer low fees, connect a vast range of crypto wallets to launch your NFT investment, and support famous artists.
- Transaction Fee: 2.5% per transaction/ no service fees
- Supported Currencies: ETH/ WETH, DAI, SOL, USDC
OpenSea was founded in 2017, and it’s the first and largest NFT marketplace on the Ethereum blockchain. It allows people to mint, sell, and buy NFTs.
Furthermore, it also caters to a wide range of individuals’ preferences, like NFTs and crypto-collectibles for trade, as well as minting.
However, don’t forget that connecting a Web3 ETH wallet (MetaMask, TrustWallet, Venly, etc.) is necessary to buy NFTs on the OpenSea platform.
And on the bright side, if you’re an artist or art collector looking to mint some NFTs, the platform has the necessary tools – so you can do it for free.
- Transaction Fee: 2.5% per transaction
- Supported Currencies: ETH, MATIC, MANA, XTZ, and the native token RARI
Rarible is a new platform launched in 2020, but still one of the best markets for buying NFT in Canada.
This platform supports numerous blockchains, such as Ethereum, Polygon, Solana, Tezos, and Flow.
With Rarible’s toolsets, users can mint their own NFT tokens, sell them in the marketplace, or purchase other user-generated NFTs.
You can also download their app via your App/ Google Play store, present your NFT collection, discover new ones, or create a multichannel profile.
Some of the top wallets supported by Rarible include
- Portis, etc.
Once connected, you can access multiple categories of NFT, like metaverse, art, domains, music, games, photograph, memes, NSFW (adult material), and other collectibles.
- Transaction Fee: 3% per transaction
- Supported currencies: ETH
If you decide to invest in NFT, SuperRare, a marketplace founded in 2018, is worth checking out.
Interestingly, aside from the standard transaction fee, there is a 15% commission for primary sales (creators receive 85%). Secondary sales generate passive revenue if an artwork sells on the secondary market, with creators receiving a 10% cut.
Additionally, you can trade and sell metaverse, sports, or music NFTs and NFTWs. Even better, you can mint your own remarkable NFT and collect your digital art.
Since SuperRare is much smaller than OpenSea, only a tiny portion of NFT crafters and artists are currently available on the marketplace. To that point, to mint artwork on this platform or join as an artist, you must get an invite first.
- Transaction Fee: 3.50% per transaction/ 15% service fees
- Supported currencies: ETH
Launched in 2020, Foundation is among the top NFT marketplaces that enable creators to mint NFTs. Users also come to the platform to trade and purchase digital art.
For the process of selling/buying, or trading NFT art, you need to connect your wallet (MetaMask) to the platform. Afterwards, you can also participate in auctions and place bids.
If you’re a creator, you can expect to receive 10% every time a piece of your NFT art is re-sold.
You can also make donations to digital artists and support their cause without buying NFTs. But keep in mind that these donations will be accounted for when reporting your yearly tax deduction.
Though famous names like Pak, *Chris* and Kevin Roose are on the platform, you’ll also find pieces from some smaller artists.
- Transaction Fee: 5% of the sale price + $0.3 per transaction
- Supported Currencies: ETH, fiat currency
Nifty Getaway is an NFT marketplace established in 2018 and run by Gemini.
The marketplace has a team responsible for carefully evaluating artists and brands before they mint and release an NFT on the network. This practice guarantees that only high-quality digital collectibles are available to collectors on Nifty.
Users can buy NFTs directly on the platform with fiat currency using a Nifty custodial wallet or their ETH pre-paid balance from an Ethereum-compatible wallet.
Once you fund your wallet, you can access the platform and purchase NFTs in several ways: auctions, drawings, open editions, and widespread global offers.
- Transaction Fee: 2.5% per regular transaction/ 10% per printable NFTs/ 5% for gasless NFTs
- Supported Currencies: ETH
Mintable is an NFT marketplace founded in 2018 and allows creators to issue NFTs at no cost. At the same time, collectors may browse, buy, or trade NFT art in different categories.
The platform offers 9.000+ NFTs organized in different categories, such as art, music, photography, and videos. Mintable is unique because it’s one of the few places where you can buy an NFT using a credit card.
Moreover, you can get up to 100 USD in rewards for purchasing NFTs on Mintable, which is a decent deal.
Finally, the platform has multiple pricing methods to account for the versatility of NFTs that can be sold/ minted on its network.
How To Choose an NFT Marketplace?
Choosing an NFT marketplace in Canada comes down to comparing several factors. Take a look at our main criteria for selecting the best marketplace:
A recent survey shows nearly half of every NFT collector has lost control over at least one of their NFTs. This is due to increased cyber attacks and global NFT scams on multiple platforms.
Before opening an account or making a purchase, ensure the platform offers advanced encryption of sensitive data, insurance of transactions against fraud, or identity verification.
Supported Payment Methods
NFTs are part of the Ethereum blockchain. So, you’ll need a marketplace that supports your crypto wallet and allows you to trade NFTs.
The ideal way is to find a platform allowing direct credit card purchases of NFTs (like Mintable does).
There are free markets where you can mint NFTs (like OpenSea and Rarible). Nevertheless, purchases usually start at 2.5% per transaction, covered by the buyer.
Additional costs, such as a transaction fee on each purchase or different prices depending on the type of NFT, may also apply.
Unique Properties of the NFT
Some markets sell unique categories of NFTs and collectibles, while some sell easier-to-find NFTs.
You shouldn’t confuse this with the non-fungible character of the NFTs – they are all unique, only some are more exclusive than others.
NFT Market Liquidity
An NFT’s liquidity represents the ease with which it may be purchased or sold for cash within that network. Keeping track of the liquidity is essential if you want to sell your NFTs in the future.
How To Create Your Own NFTs?
Now, let’s try to launch your first NFT by following these short steps:
Connect Your Crypto Wallet To an NFT Platform
You need to open an account with the desired platform to connect your crypto wallet to an NFT platform in Canada. Once you set up your account, you can view and manage your NFTs from within the platform’s interface.
Alternatively, you can choose a platform that allows buying NFTs with a credit card.
Go to The Minting Section of the Platform
Show Off your New NFT
These are the basics to getting started with NFT minting. Hopefully, we’ve sparked your interest in creating your art.
How To Prove You Own Your NFTs?
There’s no way to refute ownership claims of an NFT because each transaction is recorded on the blockchain. It allows you to see who created it, when it was minted, and every previous owner. And this is precisely how fake NFTs are discovered.
So, when you invest in an NFT, you’re just paying for the non-refundable evidence of providence. That means you’re purchasing blockchain code.
To conclude, accessing your wallet with your private key proves that you own an NFT.
Your private key manages the NFT, while the content producer’s public key acts as a certificate of authenticity for your specific digital asset.
The token is sent to your wallet using your public address when you purchase an NFT. That implies the creator’s public key will always be part of the history of your token, demonstrating its importance in the blockchain system.
Common NFT Scams
Cryptocurrencies and the electronic investments world are highly profitable but also constantly risky.
Multiple hacks, attacks, security scams and attempts to take over digital arts away from your possession are a constant struggle on NFT marketplaces.
These are some of the most common scams to recognize and stay away from when buying NFT art in Canada:
Fake NFT Giveaways
Airdropping is a legitimate marketing practice where developers and companies airdrop free coins and NFTs to promote a new service or product. Airdrops are always free, so it’s most likely a scam if someone asks you for a deposit before an airdrop.
Pump & Dump Scams
This scheme involves a person or a group that buys many NFTs and then sells them back to themselves.
The idea is to create the illusion that the item is in high demand, thus increasing selling profits.
Social Media Account Hijacks
Although it may seem tempting, beware of offers and giveaways from social media accounts — even if they appear to come from reliable sources.
Most of these posts are created by scammers attempting to promote fraudulent activity.
Also, beware of personal data theft. If someone gains access to your social media account or finds your passwords – all your other accounts are jeopardized.
Copying websites and applications of genuinely reputable brands is another popular approach.
Replicas of NFT marketplaces or phoney crypto wallets are distributed on Discord, Twitter, forums, and via email.
Since COVID started, digital ID theft has increased by 218%. This surge in web traffic and crime is overwhelming. Therefore, verifying links before clicking them it’s crucial, especially if personal information is required.
Fake Bidding Scams
One of the most famous frauds is when someone attempts to botch an NFT auction.
This occurs when a genuine vendor tries to sell an NFT. Namely, the seller states the cryptocurrency they want to be paid in, but a scammer might alter the currency of their offer to one with a lesser value.
Now you know more about these digital assets and how to buy NFT in Canada.
Some people think the worth of today’s NFT artwork will increase in the future, while others believe the cryptocurrency hype is dead. However, the NFT industry has just started gaining momentum and shows no sign of slowing down.
Would you invest in these one-of-a-kind art pieces?
NFTs are still not regulated within Canadian laws — at least not as a legal, financial asset. Moreover, they’re regarded as ’barter’ – goods which can be bought/ sold with cryptocurrency.
However, NFTs are taxable by the CRA. Therefore, if you’re doing your taxes electronically, you should see NFTs within your T4 since they’re considered taxation under “capital gains” or “business income.”
Special NFT marketplaces like OpenSea, Rarible, and Mintable are the most common and trusted places to buy NFTs.
Here’s how to buy your own NFT in Canada: first, register an account with a marketplace/ exchange. Then, open a digital wallet and connect it with your chosen marketplace. Finally, find your favourite NFT and add it to your collection.
Yes, you can. OpenSea is a decentralized market — anyone can use it, regardless of location.