Buying Bitcoin in Canada can be a bit tricky. The market is new and still developing, so you have to do your research before making any decisions on how to buy cryptocurrency.
There are many exchanges out there but they all have different pros and cons, fees and interfaces. Some of them also require you to verify your identity which can take several days if not weeks!
We’ve done the hard work for you by testing out the top Canadian crypto exchanges to find which ones will work best for you based on a number of criteria.
In this blog post we’ll answer all of the most common questions about buying crypto on an exchange in Canada, including coins you can buy, fees, what it takes to get verified as well as step-by-step instructions on how to buy Bitcoin or Ethereum with CAD.
Let’s get started.
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Cryptocurrency exchanges Canada
What’s the fastest way to buy bitcoin in Canada?
The quickest option for buying bitcoin is with a credit card from one of the preferred crypto exchanges.
You can also use an online exchange with a bank account or wire transfer, but this will take several days.
What are the most popular coins you can buy in Canada?
Bitcoin is by far the most popular cryptocurrency that Canadians invest in and trade on local exchanges. Ethereum and Litecoin are two other bitcoin alternatives. Each person has their own preference as some of the top exchanges give you access to trade thousands of coins.
What’s the best bitcoin and cryptocurrency exchanges Canada?
There are many reputable cryptocurrency exchanges to choose from. It is important to do your research on fees, verification requirements and reviews before deciding which one you want to use. Some have better rates than others or offer more coins for trading such as more obscure coins.
Can the exchange run out of Bitcoin?
When transacting with consumers, it is rare for an exchange to run out Bitcoin as they are the middlemen between buyers and sellers. The only time a bitcoin exchange might run out of bitcoins is if there are not enough people who want to sell their bitcoin in order to buy other coins on the site.
What’s “HODL” mean?
The acronym HODL stands for Hold On For Dear Life which is used when someone has committed to keeping their coins during bear or bull markets.
How do exchanges make money?
Exchanges charge a small percentage on each transaction. This fee is usually between 0-0.25% of the total amount traded and it goes to pay for their running costs (rent, salaries etc.). Some larger bitcoin exchanges also offer margin trading which means they can lend you bitcoin with interest. Bitcoin lending has higher fees and interest rates than exchanges that just trade bitcoin.
How do I find a good exchange?
There are over 30 different cryptocurrency exchanges in Canada and each one has its own pros and cons, interface and fees so it’s best to research them before making any decisions on which one is the best for you.
Here are our favorite exchanges based out of Canada that you can buy and sell crypto with.
Coinsquare: Coinsquare is a fiat-crypto exchange with an easy to use interface. You can buy Bitcoin, Ethereum and Litecoin through your bank account or credit card for no fee. If you want to trade larger amounts of cryptocurrency, the fees will be higher but still lower than other exchanges who charge up to 0.25%.
Coinbase Pro: This is the exchange that most people use to buy bitcoin in Canada because it’s easy and accessible. Coinbase pro offers some of the lowest fees around at just 0.25% per trade, but you’ll have to verify your identity which can take several days if not weeks!
Binance: Binance is one of the leading cryptocurrency exchanges in the world so if you’re looking to buy bitcoin or any other type of crypto then this might be your best bet if you want a reliable and affordable exchange that focuses heavily on security. You can expect to find some rare coins on Binance that is hard to find on other exchanges.
MOGO Crypto: Focused on more than just crypto, MOGO helps you manage your money and your life with a variety of helpful features. Unlike many of the cryptocurrency exchanges online, Mogo is traded on a stock exchange. Pay a low trading fee with no annual costs when you invest directly in Bitcoin through MOGO.
Kraken: Kraken is one of the leading cryptocurrency exchanges in the world and arguably offers some of the most competitive rates around. You’ll also need to verify your identity before trading which can take time but it’s one of the few exchanges that insure your crypto.
Netcoins: A popular way to canadians to trade is with Netcoins, a publicly traded crypto exchange in the US and canadian market with 0% funding fees and free cash withdrawals. Buy and sell as little as $10. Be notified of price alerts via text or email so you never miss a price target. At the moment you can trade 7 major coins BTC, BCH, ETH, LTC, XRP, USDT
Quadriga CX: Quadriga CX is one of Canada’s longest running cryptocurrency exchanges, but it also has a reputation for high fees. If you’re looking for an exchange that can handle large transactions fast then this might be your best option.
Update: Gerald Cotten, the 30-year-old co-founder and CEO of Canadian exchange, QuadrigaCX, died suddenly on Jan. 24, 2019.
Cotten’s death is a tragic loss for the cryptocurrency community worldwide and hits Quadriga especially hard: he was not only their CEO but also their lead programmer and sole technical expert.
He was, inexplicably, the only person with access to $190 million of funds in cryptocurrencies and fiat money, the majority of funds stored on the exchange.
This is sad but unfortunately common in this space. People lose their life savings when they put all their trust in third party entities.
This is why it’s crucial if you are going to be buying and selling cryptocurrency, that you have a plan to secure and protect your money. We recommend a cryptocurrency hardware wallet as the best way to store your digital assets long-term. This way if an exchange gets hacked or something happens to the owner, your funds will be safe.
Wrapping up, there are many exchanges designed and built specifically for Canadian citizens but there are also many exchanges that offer trading services that allows for CAD deposits.
When deciding on what Canadian exchange to trade cryptocurrency you want to trade on, it ultimately comes down to coin pairs available, overall fees, convenience of deposit options and an easy-to-use trading environment.
Let us know if we missed any exchange or there is a Canadian cryptocurrency exchange you prefer over the other.