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Education only · not financial, tax or legal adviceCanadian facts checked 2026-10-31 · a MITEY site
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Printable checklist · 10 items

Before your first DeFi transaction

A printable pre-flight checklist for your first DeFi transaction: wallet setup, official addresses, test amounts, approvals, fees, records and what to do if it goes wrong.

Mitey the yeti, blue-eyed with a blond tuft, holding out an open paw, with a compass
Mitey says: Go slow the first time. Everything after is easier once you have done it carefully once.

DeFi transactions are final. There is no support line that can reverse a mistaken send or a malicious approval, so the habits you set on the first transaction matter. Work through this list once, slowly, with an amount you can afford to lose entirely.

No Canadian safety net here

Using a DeFi protocol from your own wallet gives you none of the protections that apply to registered Canadian platforms, and crypto-assets are not CDIC-insured. See Canadian platform rules.

0/10

4 critical items still open. Stop until they are done.

Questions people ask

How much should I use for my first DeFi transaction?

Only an amount you could lose entirely without real harm. The aim of a first transaction is to learn the mechanics: wallet, network, approvals, fees and exit.

Why use a separate wallet for DeFi apps?

If a malicious approval or signature drains a wallet, a separate low-balance wallet limits the loss to what is in it and keeps long-term holdings out of reach.

Do I need to report DeFi transactions for tax?

Many crypto transactions are dispositions for tax purposes, and CRA asks you to keep detailed records. CRA has no DeFi-specific guidance as of 2026-10-30, so record everything and ask a tax professional.

Sources and dates

  • Ethereum security and scam prevention — ethereum.orgreference
    No date shown on page · checked 2026-10-31. Wallet security habits and common scams.
  • Keeping books and records of crypto-assets for tax filing — Canada Revenue Agencyin force
    Page date 2025-11-10 · checked 2026-10-30. What to record per transaction, wallet addresses, yearly balances; export platform history; keep records at least six years.
  • What's covered — Canada Deposit Insurance Corporationin force
    No date shown on page · checked 2026-10-30. Up to $100,000 per category per member institution; cryptocurrencies, including stablecoins, are not covered.

Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.