Crypto basics for Canadians: Bitcoin, Ethereum, blockchain, and trading platforms explained

• Crypto assets are digital assets that can be bought, sold, transferred, or held through blockchain-based systems.
• A blockchain is a shared digital ledger used to record transactions and other network activity.
• Bitcoin and Ethereum are two of the most widely known crypto networks, but they were designed for different purposes.
• Stablecoins are designed to track another asset but are still crypto assets and are not risk-free.
• A crypto trading platform allows users to deposit funds, buy, sell, hold, withdraw, and in some cases stake supported crypto assets.
• Beginners can compare regulatory status, custody, fees, funding methods, withdrawals, account security, and risk disclosures. 
• On Ndax, a beginner can start by opening and verifying an account, funding it with CAD, and using Simple Trading to make a first market-order purchase before learning more advanced order types.
• Education can help users understand crypto, but it does not remove volatility, platform risk, custody risk, scams, or the possibility of loss.
• Crypto assets are not covered by deposit insurance, and CIPF coverage does not apply to crypto assets.

Crypto is a broad category of digital assets that use blockchain-based systems to record ownership, transfers, or other activity. Bitcoin, Ethereum, stablecoins, and other crypto assets serve different use cases and carry different risks. Beginners can start by understanding the asset, network, platform, fees, custody, and withdrawal process.

For Canadians who decide to buy crypto, the learning journey can be kept simple: understand the basics first, compare platforms, including their Canadian regulatory status, before deciding whether to open an account, fund the account in Canadian dollars, make a first purchase through a simple trading interface, and learn more advanced order types only if they become relevant later.

Someone considering a first crypto purchase may want to understand how a crypto trading platform works, how Canadian dollars move into and out of an account, how fees are charged, where purchased crypto is held, and what happens if crypto is withdrawn to an external wallet.

This guide connects those ideas so beginners can move from basic definitions to the practical steps involved in using a Canadian crypto trading platform. By the end of this guide, a beginner should have a clearer understanding of:

• What crypto is
• How blockchains work
• How Bitcoin and Ethereum differ
• What stablecoins are
• What a crypto trading platform does
• How wallets and custody work
• What fees may apply
• How to open and fund an account
• How a first crypto purchase works
• When more advanced trading tools may become relevant

Crypto is a broad term for digital assets that use blockchain or other distributed-ledger systems to record ownership, transfers, and network activity. The category includes very different types of assets.

Bitcoin was designed around peer-to-peer value transfer and a fixed supply schedule. Ethereum is a programmable blockchain that supports smart contracts and applications. Stablecoins are designed to track another asset, such as a fiat currency.

Other crypto assets may be connected to blockchain infrastructure, governance, payments, applications, gaming, decentralized finance, and other use cases. Not every crypto asset is designed to function as money, and not every blockchain operates in the same way.

The same idea applies in traditional markets. Saying someone “invests in stocks” can refer to different companies, sectors, business models, and risk profiles. A bank, mining company, technology firm, retailer, food and beverage maker, and utility are all specific sectors, but investors would not evaluate them using the same criteria.

Crypto works similarly. Bitcoin, Ethereum, stablecoins, and smaller protocol tokens all fall under the broad crypto category, but they can have different supply models, networks, governance structures, liquidity, uses, and risks.

1. What is a blockchain?

A blockchain is a type of digital ledger that records information in connected blocks. In crypto, blockchains are commonly used to record transactions, balances, transfers, and other changes on the network.

Different blockchains can be designed for different purposes. Bitcoin’s blockchain is primarily used to record BTC transactions and changes in Bitcoin ownership. Ethereum also records ETH transactions, but its network can support smart contracts, decentralized applications, token transfers, stablecoins, tokenized assets, blockchain-based games, and other activity.

A useful way to think about a blockchain is as a shared record system that participants verify. Once a valid transaction has been confirmed and added to the blockchain, changing that historical record is generally very difficult, because the network maintains and verifies the ledger collectively.

This does not make blockchain activity risk-free. Users can still experience market volatility, scams, technical problems, platform failures or outages, smart-contract vulnerabilities, or losses from sending crypto to an incorrect address.

2. What is Bitcoin?

Bitcoin is a decentralized blockchain network and BTC is the crypto asset used on that network. Bitcoin was introduced in 2009 and is often one of the first crypto assets beginners encounter.

At the most basic level, Bitcoin was designed for value to be transferred across a peer-to-peer network without requiring a bank or payment processor to maintain the network’s transaction ledger.

Bitcoin has a maximum supply of 21 million BTC. It is also commonly discussed as a store-of-value asset, although its price can move substantially in either direction.

Canadians can legally buy, sell, transfer, and hold Bitcoin. However, Bitcoin is not legal tender in Canada. Crypto assets also do not receive the same protections as bank deposits. CIPF coverage does not extend to virtual assets held in client accounts.

3. What is Ethereum?

Ethereum is a programmable blockchain network. Ether, or ETH, is the native crypto asset used to pay for transactions and network activity. The main difference between Bitcoin and Ethereum extends well beyond price, popularity, and market capitalization. The networks were designed for different use cases.

Ethereum supports smart contracts, which are programs that can operate on the blockchain when predefined conditions are met. That functionality allows developers to build applications and token systems directly on Ethereum.

Ethereum is therefore used for activity including decentralized applications, stablecoins, tokenized assets, lending protocols, NFTs, and other smart-contract-based services.

Like other crypto networks, Ethereum carries risks including volatility, technical risk, smart-contract vulnerabilities, custody risk, and variable network fees.

4. What are stablecoins?

Stablecoins, also known as Value-Referenced Crypto Assets (VRCAs) in Canada, are crypto assets designed to track the value of another asset. Many stablecoins are designed to track a fiat currency such as the U.S. dollar. Other structures may reference different currencies, commodities, or assets.

Stablecoins are commonly used for crypto transfers, settlement, trading, and blockchain applications. Still, a stablecoin should not be confused with cash.

A stablecoin is a crypto asset and can carry risks related to the issuer, reserves, redemption arrangements, custody, liquidity, blockchain infrastructure, and the possibility that its market value moves away from the asset it is intended to track.

5. What is a crypto trading platform?

A crypto trading platform is an online service that allows users to buy, sell, hold, deposit, stake, and withdraw supported crypto assets. Some platforms are built specifically for Canadian users, meaning they facilitate deposits in Canadian dollars, allow users to convert CAD into crypto, sell crypto back into CAD, and withdraw Canadian dollars to a bank account.

Some platforms are built around an order book where users can see bids and asks and place different types of orders. Others emphasize a simplified buy-and-sell interface where the user enters an amount and submits the transaction without interacting directly with an order book.

Some platforms provide both. Ndax does this through Simple Trading for straightforward purchases and Advanced Trading for users who later want order books, charts, and additional order types. Ndax describes Simple Trading as a streamlined interface for buying and selling crypto and currently supports market orders through that interface.

A crypto trading platform is not the same thing as an investment adviser. Ndax provides an Order Execution Only service, meaning Ndax executes clients' instructions. Ndax does not provide investment advice or recommendations. Users decide when and what to trade.
 

New users are encouraged to understand the terminology, which can be an early part of a crypto purchase journey. Before opening or funding an account, users should also understand how the platform itself works. Useful questions include:

• Is the platform registered to operate in Canada?
• What deposit methods are available?
• What fees apply to buying and selling?
• Are spreads or slippage relevant?
• How are client crypto assets held?
• Can supported crypto be withdrawn to an external wallet?
• Which blockchain networks are supported?
• What security tools are available?
• How does customer support work?
• What happens if account verification requires additional review?
• What happens if a crypto withdrawal requires additional review?

Once someone understands the basics and decides to use Ndax, the first-purchase process can be broken into a few practical stages.

1. Open and verify an account

The first step is to create an Ndax account and complete identity verification. Account verification is a required part of the onboarding process and must be completed before users can access the full funding and trading process.

2. Fund the account with Canadian dollars

Once the account is verified, users can fund their Ndax account with Canadian dollars. Ndax currently supports CAD deposits through Interac e-Transfer and wire transfer. Both methods are free from the Ndax side, although users should confirm fees on their bank’s side.

For Interac e-Transfer, deposits typically arrive within 0–30 minutes after being sent by the financial institution. Individual financial institutions may set their own Interac e-Transfer limits. Users should follow the Interac funding instructions and include the unique message code provided by Ndax so the transfer can be matched to the correct account.

Wire transfers provide another funding method and can accommodate larger deposits, subject to bank requirements and limits. They typically arrive within 0–1 business days, subject to bank processing time and business hours. Users should follow the wire instructions shown in their Ndax account and upload the transfer receipt after sending the wire.

Users should check the current Ndax fee schedule and funding pages before sending funds because limits, processing times, and fees can change. 

3. Making a first purchase with Simple Trading

A beginner user may consider using Ndax Simple Trading to make a first crypto purchase. Simple Trading is designed to provide a straightforward buy-and-sell experience without requiring the user to interact directly with an order book or configure an advanced order type.

The user selects the crypto asset, enters the amount they want to purchase, reviews the order details and applicable fee, and confirms the purchase.

Simple Trading only uses market orders. On Ndax, a market order is matched against orders displayed on the Ndax order book, which may include other users’ orders or orders placed by Ndax as a liquidity provider. Before you confirm, Ndax shows an indicative average price; the final price can differ depending on available liquidity. 

Ndax currently charges a flat 0.20% trading fee on buy and sell orders. The fee is displayed before the order is confirmed. Users can review the current Ndax fees before placing a trade. Once the order is filled, the purchased crypto appears in the user’s Ndax wallet.

4. Learn other order types for later

A beginner may not need to understand every available order type before making a first purchase. After becoming familiar with the basic buying process, users who want greater control over how an order is placed can explore Ndax’s Advanced Trading. 

That is where concepts such as limit orders, stop orders, stop-limit orders, trailing stops, order books, market depth, and slippage become important to understand.

5. Wallets, custody, and account responsibility

A crypto trading platform can hold assets on behalf of users through custodial arrangements. Some users prefer this because it can simplify account access, trading, and recordkeeping. Users should still understand how client crypto is held, whether it is segregated from corporate assets, which third parties are involved, and how withdrawals work.

Another option is self-custody, where the user controls the wallet keys required to access and transfer the crypto. Self-custody provides greater direct control but also places greater responsibility on the user. Losing a private key or recovery phrase, entering the wrong wallet address, or selecting an incompatible blockchain network can result in loss.

Neither approach is better by default. Users should understand the responsibilities and risks of both before deciding where to hold their crypto.

6. Understand fees, spreads, and total costs

Some beginner users make the mistake of focusing only on the headline trading fee. Buying, selling, and moving crypto can involve several different costs from different sources.

A trading fee is the commission charged by the platform when an order is executed. A spread is the difference between the highest current bid and lowest current ask, so it comes from the prices available in the market rather than being a separate platform fee. Slippage can occur when there is not enough liquidity available at the expected price, causing part of an order to execute at less favorable price levels.

Withdrawal fees may be charged by the platform when CAD or crypto is moved off-platform. Blockchain transactions can also involve network-level costs. How those costs are handled varies by network and platform; a crypto trading platform may charge its own disclosed withdrawal fee rather than passing through the live network fee directly.

Ndax currently charges a flat 0.20% trading fee on buy and sell orders, while CAD deposits are free. Current trading, deposit, withdrawal, and other applicable fees can be reviewed on the Ndax fee page.

What is crypto in simple terms?
Crypto is a broad category of digital assets that use blockchain-based systems to record ownership, transfers, or other network activity. Different crypto assets can have different purposes, risks, networks, supply structures, and uses.

Is crypto legal in Canada?
Yes. Canadians can legally buy, sell, transfer, and hold crypto assets. Crypto assets are not legal tender, however, and they can carry significant risks.

What is the difference between crypto and blockchain?
Blockchain refers to the underlying record-keeping technology. Crypto assets are digital assets that can operate on blockchain networks.

What is the difference between Bitcoin and Ethereum?
Bitcoin is primarily designed around peer-to-peer value transfer and a defined supply framework. Ethereum is a programmable blockchain designed to support smart contracts, applications, and token-based systems.

Are stablecoins the same as cash?
No. Stablecoins remain crypto assets. Even when designed to track a fiat currency, they can carry issuer, reserve, redemption, liquidity, custody, technical, and depegging risks.

What should I do before making a first purchase on Ndax?
Understand the asset and basic crypto risks, open and verify an account, fund the account, review the current fees.

Does using a regulated crypto platform remove risk?
No. Regulatory oversight does not remove crypto market risk, custody risk, operational risk, scams, technical failures, or user error.
 

Crypto education does not need to begin with advanced order types, complex charts, or understanding every feature a trading platform offers. Beginners can start by understanding what crypto is, how blockchains work, how major assets such as Bitcoin and Ethereum differ, what a crypto platform does, and what fees, custody arrangements, and risks should be reviewed.

For users who decide to use Ndax, the process is to open an account, complete verification and the appropriateness assessment, fund it with Canadian dollars, and, if they choose, place an order through Simple Trading, learning more advanced tools if they become relevant. 

Ndax is a regulated crypto trading platform. Ndax provides an Order Execution Only service. Ndax executes clients’ instructions but does not provide investment advice. Clients decide when and what to trade.