It can work on canvas if you prepare the canvas for it. Look up tutorials for that. I used synthetic paper, though. It has to be a non-porous surface, so the ink doesn't instantly stain the paper.
No, it's bought premade in small bottles. I don't know how you can make alcohol ink yourself and make it also look good. You put some drops of alcohol ink down and then spread it with the help of isopropanol. But take care of yourself. The vapors are unhealthy and you need to either work in a well ventilated room or wear a mask.