Buy Crypto & Bitcoin in Canada
We examined several factors when determining which exchanges and wallets are best for Canadians. This criterion includes reputation, convenience, fees, security, and customer service.
Our scoring is entirely objective and aims to provide you with a list of reliable options to make an informed decision about which exchange best suits your needs.
Established in 2016, Bitbuy is Canada's most secure and trusted platform for BTC, ETH and other Cryptocurrencies.
Best Crypto Exchanges in Canada
Summary of Best Crypto Exchanges in Canada
Best for Beginners
Buy Bitcoin in Canada
The most common way for investors to buy and sell cryptocurrencies is through exchanges. In addition to fiat currencies, these platforms also offer various crypto pairs that allow investors to exchange one type of cryptocurrency for another.
Since its price has been steadily rising over time, it's no surprise that many Canadians are interested in investing their money into it. It is important to note that the cryptocurrency trade in Canada has several regulations.
There are also tax implications when you buy or sell Bitcoin.
Best Crypto Exchanges in Canada
This section reviews two of Canadians' most popular cryptocurrency exchanges and wallets.
Bitbuy - Best Overall
Bitbuy is a Canada-based bitcoin exchange platform that provides an easy way to buy and sell bitcoins. According to their website, founded in 2013 as Instabit, Bitbuy helps Canadians buy and sell bitcoin.
The platform has two funding and withdrawal methods: Interac and bank wire transfer. Customers can buy various crypto assets such as Bitcoin, Ethereum, Litecoin, Dogecoin, and Polygon Matic.
Bitbuy is transparent on competitive fees compared with other exchanges. They have a flat 0.20% fee on all trades and a 0.50% to 1.50% on CAD deposits and withdrawals.
The company emphasizes security, with about 99% of its customer funds stored in secure offline cold storage. They also offer a comprehensive insurance policy to protect against theft or loss.
CoinSmart - Best for Beginners
Their user-friendly website provides you with many ways to access cryptocurrency, whether you are looking to buy or sell. CoinSmart offers convenient payment methods to its users.
These include: Interac, SEPA, E-transfers, and all supported cryptocurrencies on the platform. You can also wire money directly to CoinSmart's bank account for funding.
The crypto exchange has a detailed guide on all of its fees. There are no hidden charges, and you know what you're paying for each trade. They charge a 1.5% Fee on Interac e-Transfer between $100 to $1999 and zero fees on payments of over $2000.
Funding your account via credit or debit card will set you back about 6% on costs. CoinSmart has extensive learning resources for anyone who wants to learn more about Bitcoin and digital currencies.
The platform also includes several articles on topics ranging from Blockchain technology to Decentralized Applications.
Best Crypto Wallets in Canada
Crypto wallets are like bank accounts, except they don't hold your currency. They store your private key, giving you access to the blockchain corresponding with the wallet.
Ledger Nano X
The Ledger Nano X is a multi-currency, Bluetooth-enabled hardware wallet that allows you to store Bitcoin securely, Ethereum, and many other supported coins. The device also supports Lightning Network payments for instant transactions between devices or friends without miner confirmation.
The Ledger Nano X costs $149 before tax, and you can buy it directly from the official website here. Supported Currencies: BTC, ETH, ETC, Dash DOGE, Zcash (ZEC), Ripple (XRP), and more.
Trezor Model T
The Trezor Wallet is a hardware cryptocurrency wallet designed to keep your currencies safe. The device also supports the technology of smart contracts, which allows you to create transactions on the Ethereum blockchain that are self-executing, self-enforcing, and impossible to rescind.
You can buy the Trezor Wallet for $215 directly from here. Supported Currencies: BTC, ETH, Litecoin (L.T.C.), E.T.C., B.C.H. (and all ERC20 tokens).
Crypto Laws & Rules in Canada
Canadian law requires exchanges and wallets to register with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). This organization monitors financial transactions to prevent money laundering practices for potential criminal activity.
FINTRAC gives financial intelligence to the CSIS. The CSIS, in turn, mitigates the risks and threats to Canada's security. FINTRAC achieves the given mandate via:
- Financial and transaction reports submitted voluntarily by residents and organizations as per PCMLTFA regulations.
- Keeping track of money service firms in Canada.
- Obtaining and interpreting relevant information from trusted sources.
- Raising public awareness and comprehension of the problem of money laundering.
Crypto Tax Laws in Canada
The CRA (Canada Revenue Agency) classifies cryptocurrencies as commodities rather than currency and hence subject to the Income Tax Act. This provision means you get taxed on any profit you make from selling them.
Canadian taxpayers have to determine whether a bitcoin transaction generates revenue as this determines how the CRA taxes the gains for income tax reasons.
Situations that may be subject to taxation include:
- Gifting a friend using crypto assets
- Buying and selling cryptocurrency on trading platforms
- Converting your digital assets to fiat currency such as CAD or USD
- Using cryptocurrencies to purchase products or services
Should You Invest in Bitcoin or Crypto in Canada?
Owning Bitcoin in Canada is a great way to diversify your investment portfolio. The crypto trade is an emerging market that has already seen impressive growth.
However, you should note that digital assets are volatile and not backed by any government or central bank in Canada. Like all investments, they carry the risk of loss.
The value of your investment may go up or down depending on various factors. Before investing, consider your investment objectives, charges, and expenses.
Canada Crypto FAQ's
Here are Canada's most frequently asked questions on crypto.
The best place to buy crypto in Canada is through a trusted exchange. These centralized exchanges are safe and easy to use, but they charge fees on trades.
Yes, you can buy crypto with a credit card or debit card. Confirm the fees associated with these options before buying any coins.
Several countries, including Egypt and China, ban crypto trade and mining.
You have to verify your identity before buying bitcoin on any exchange.
Yes, these exchanges allow you to sell your bitcoin whenever you want. However, we recommend that you only trade if you believe that the price of bitcoin will increase enough for you to break even.
It is possible to invest a small amount of money into crypto through your Thrift Savings Plan. The amount depends on your risk tolerance.