A guide for complete beginners, written for those who want to understand what they're doing before they do it. 43 short chapters, 33 diagrams, and one thread: knowing what you really own, how to protect it, and how to report it to the CRA.
Who is it for?
- You've never bought crypto and want to start without getting trapped.
- You already have a few dollars on an app, without knowing where your crypto really is.
- You sell occasionally and the CRA's adjusted cost base (ACB) rules give you cold sweats.
If you're looking for trading strategies or a list of cryptos to buy, this book isn't for you: it gives none.
What you will be able to do
01
Understand
Blockchain, Bitcoin, Ethereum, stablecoins: the ideas, without the jargon.
02
Buy
Choose a registered platform, make a first purchase, set up recurring buys.
03
Secure
Address, private key, seed: what you really own, and how to keep it.
04
Protect yourself
The scenario behind almost every scam, and the procedure if the worst happens.
05
Trade & sell
Sell, withdraw your Canadian dollars, understand the fees that pile up silently.
06
Report
The adjusted cost base (ACB) explained with the official CRA example, Schedule 3, and the T1135 for foreign platforms.
Included with the book
The tracking spreadsheet
Every reader gets access to a tracking spreadsheet: one line per operation, and it calculates your balances, your capital gains using the CRA's average cost method (ACB), and what to report on your tax return. The access code is printed in the book.
Go to the bonus pageFrequently asked questions
At what amount do I start paying tax on my crypto in Canada?
There is no exemption threshold for capital gains in Canada. Every disposition (sale for CAD, crypto-to-crypto trade, purchase with crypto, gift) is potentially taxable. Only 50 % of the capital gain is included in your income and taxed at your marginal rate. If you have no other income, the basic personal amount (~$15,000 federal) may shelter the taxable portion.
What is the tax rate on crypto gains in Canada?
There is no special crypto tax rate. Only half of your capital gain (taxable capital gain) is added to your income and taxed at your combined federal + provincial marginal rate. The 2024 federal budget proposed raising the inclusion rate to 66.67 % above $250,000 of annual gains, but the government confirmed on 31 January 2025 it would not proceed. The inclusion rate remains 50 % for all dispositions.
Is trading one crypto for another (or for a stablecoin) taxable in Canada?
Yes. Unlike France, Canada treats a crypto-to-crypto exchange (including to a stablecoin) as a taxable disposition. You realize a capital gain or loss at the time of the trade, calculated using the adjusted cost base (ACB) of the crypto you disposed of. No deferral exists.
Do I have to report anything if I haven't sold?
No disposition = no capital gain to report. However, if you hold crypto on a foreign platform (e.g., Kraken, Binance non-Canadian) and the total cost (ACB) of all your specified foreign property exceeds $100,000 CAD at any point in the year, you must file Form T1135 with your T1 return. Personal wallets (self-custody) likely fall outside this requirement, but the CRA has not clarified this point — consult a tax professional if you're near the threshold.
How much do I need to start?
Ten dollars is enough to learn the ropes. The right amount is one whose total loss wouldn't change your daily life, and it comes after your emergency savings.
Where should I keep my seed phrase (recovery phrase)?
Offline, never in a photo, never in the cloud, never shared with anyone. Paper is fine for learning with small amounts; beyond that, a metal plate resists fire and water.
The author
Léo Maraval explains crypto the way someone should have explained it to you on day one: clearly, calmly, with nothing to sell.
Next in the series
BOOK 2
The Other Cryptos
Families, use cases and narratives: how to read a project before putting in a dollar.
BOOK 3
Putting Your Crypto to Work
DeFi: lending, providing liquidity, earning yield, and the risks that come with it.