The Best Cryptocurrency Exchanges in Canada

You might have first heard about Bitcoin or cryptocurrencies some years ago, as Bitcoin broke news worldwide throughout the year of 2017, peaking at $19,783.06 in December and making many early investors obscenely rich. Some people wrote off Bitcoin as a bubble that was bound to break (myself included, admittedly). Others realized the long-term potential of cryptocurrencies. Now in 2022, Bitcoin has hit a peak over four times as high as it was in 2017, and the second biggest cryptocurrency Ethereum, as of writing, is trading at new peaks every day. Many more people are looking into crypto as a new alternative to investing due to these recent successes, as it seems cryptocurrencies are becoming more and more mainstream.   

While this world of cryptocurrency may seem daunting, you are already taking the most important step: learning about the world of crypto is intrinsically important to invest, let alone making money, through trading cryptocurrency. The next step is finding a cryptocurrency exchange so you can start trading.  

Here are our favourite top-rated crypto exchanges in Canada:

• Bitbuy
• Shakepay
• Binance Exchange
• BitTrex Exchange
• Coinbase Exchange
• Coinsmart
• Coinsquare
• Crypto.com 
• Kraken
• NDAX Exchange
• MyBTC.ca
• Newton

Updates:

(March 2022) We updated Bitbuy’s number of cryptocurrencies from 9 to 15.

(August 2021) We added Crypto.com due to positive reviews that the site has garnered since we last updated this article, as well as removed two cryptocurrency exchanges due to negative reviews associated with those services. 

DISCLAIMER: The table above lists our picks for both the top exchanges and the best cryptocurrency brokers in Canada. Brands are not listed in any particular order.  

Cryptocurrency exchanges are where people buy, sell and trade cryptocurrencies. While some brick-and-mortar crypto exchanges exist, it is far more common for people to trade cryptocurrencies online. There are various kinds of crypto exchanges out there, but they can typically split into a few categories, but we will focus on the difference between two of the most common types of crypto exchanges we encountered in our research: cryptocurrency brokers and crypto trading platforms.  

A cryptocurrency broker enables customers to buy and sell crypto, where the broker can set the price and usually earns money through the spread, or a difference between the price they sell crypto for and the price they buy crypto at. Crypto brokers are great places for new users to acquire crypto, as they are simple to use and offer limited buying options.  

Other crypto exchanges allow for users to trade amongst themselves. Sometimes referred to as cryptocurrency trading platforms, or simply just “crypto exchanges,” these are the platforms where peer-to-peer trading happens, as users trade different cryptocurrencies among each other, or trade crypto for fiat currencies. Cryptocurrency exchanges are where seasoned investors try to make gains through price fluctuation and speculation, buying currencies if they think their value will go up and selling currencies if they think the value will go down.  Cryptocurrency exchanges that allow this kind of peer-to-peer trading often charge fees on trading cryptos, so understanding what type of fee schedule a cryptocurrency trading platform has in place is important if you are going to try to earn money trading crypto.  

There are many cryptocurrency exchanges available for Canadians, so picking the one that is right for you might take you a chunk of time. With so many cryptocurrency exchanges all looking for your business, there are several different things you should think about when choosing a crypto exchange. Here are some aspects of different crypto exchanges.  

• Cryptocurrencies Available: There are more cryptocurrencies than there are fiat currencies available. While all cryptocurrency exchanges should carry bitcoin, and almost all will carry Ethereum, only certain exchanges will have smaller currencies. Many people might not need obscure coins, but some like trading obscure coins in case one catches on.  
• Fees: Fees are essentially how the currency exchange is going to make its money, but that does not mean you should settle on high fees. Fees are typically paid on either withdrawal and deposit of fiat currencies, as well as purchases and exchanges of crypto as well. Understanding an exchange’s fee schedule is an important way to make the most out of your cryptocurrency. 
• Security: We recommend that you do not store your cryptocurrency with an exchange, and instead acquire an offline cold wallet that can keep your crypto safe from hackers. However, security should be a big proponent of picking a crypto exchange, as there are many horror stories of people getting hacked, phished or scammed out of their crypto from previously trusted crypto exchanges.  
• Speed: If you trade a lot or want to be able to cash in when you need to, you are going to want to have an expectation of when you can see your converted crypto. Knowing what processes of withdrawal are available and how long they can take is important when choosing a crypto exchange, as well as knowing how long it will be before your recent bitcoin will be in your possession.  
• Type of Exchange: As explained above, some exchanges are brokerage orientated, finding you crypto to buy, some sell their own crypto, and others still offer users the opportunity to trade with each other. Knowing what kind of service crypto exchanges offer will be important when choosing the right one for you. Some users might find a crypto broker to buy bitcoin cheaply and quickly, before moving that bitcoin to a trading platform to trade amongst other users.  

Cryptocurrencies are legal in Canada, but crypto not treated as money legally, but as a commodity and the use of cryptocurrency to buy goods is treated as a barter transaction. However, under Canadian Law, you must report any gains or losses from the selling or buying of digital currencies, and any resulting gains or losses could be taxable income or capital for the taxpayer.  

In Canada, companies that deal in virtual currencies are required to register with the Financial Transactions and Reports Analysis Centre of Canada, or also known as FINTRAC, as well as are required to report certain details, including identifying clients, maintaining records of all clients and transactions, and appointing a compliance officer. Since cryptocurrency has been of particular interest to criminal organizations, the Proceeds of Crime and Terrorist Financing Act (PCMLTFA) also has specific requirements to monitor activity regarding transactions and activity that are deemed suspicious. This applies to cryptocurrency exchanges based elsewhere that has its services available in Canada.  

What are cryptocurrencies?

A cryptocurrency is a digital currency issued by a decentralized institution and protected by cryptography. There is a lot to unpack here, so I will try to do this bit by bit.   

First, cryptocurrencies are digital, meaning there is no physical form of the cryptocurrency, and that bitcoin is only used online. However, cryptocurrency can be stored offline for security, as well as online. Cryptocurrencies are decentralized, as they are not operated or controlled by central authorities, as a national bank. Instead, their records are kept in a blockchain, a digital record that is impervious to alterations after they are made.  The blockchain is protected by cryptography, so only participants in the transaction can access the information, keeping you safe from cyber threats and making transactions for the most part anonymous. 

Some critics of cryptocurrencies have brought up issues regarding the anonymity, irreversibility and the decentralized nature of crypto, as they can be prone to cyber attacks, or used to fund crime. In Canada, there are laws for both trading crypto and crypto exchanges, to ensure crypto is not used for criminal purposes in Canada.   

How does cryptocurrency work? 

Cryptocurrencies work through the use of a blockchain, a list of records that are linked using cryptography, that is naturally resistant to modification of its data. When you use a cryptocurrency, like Bitcoin, for example, that transaction is recorded in Bitcoin’s blockchain and verifies the transaction. This prevents the double-spending of digital currencies while keeping cryptocurrencies decentralized.    

What is Bitcoin?

Bitcoin is the world’s first and most successful cryptocurrency, founded in 2008. Bitcoin can be credited as kicking off the trend of cryptocurrencies as we know them today, as many decentralized peer-to-peer networks have sprung up in the wake of Bitcoin. Bitcoin is today still the biggest cryptocurrency in the world, with the highest value, number of users and number of supported cryptocurrency exchanges.  

What is Ethereum?

Ethereum is an open-source platform of blockchain technology, aiming to create a decentralized suite of financial products and applications that anyone can use. Ethereum has its own cryptocurrency, officially called Ether but often called Etherium or Etherium itself as well. Ethereum is the second-largest cryptocurrency in the world, and in early 2021, hit its highest value to date, of $1,811 as of writing (although this could have easily increased further since published.)

What is the biggest crypto exchange? 

Binance is the largest crypto exchange worldwide, often garnering over $14 Billion in trade volume per day (as of writing). The next biggest Crypto exchanges worldwide are Coinbase Pro and Kraken.  

 Why are bitcoin fees so high? 

Bitcoins fees are prone to change, and that change is related to the demand for Bitcoin. Fees help support Bitcoin miners who need to spend large amounts of electricity in the mining process, and when many people are trading Bitcoin at one time, this increases the amount of computational power needed to process a block.  

When many people are interested in trading Bitcoin at one time, the fees generally increase to prioritize those that really need to process a Bitcoin transaction.  

 Is investing in bitcoin worth it?

Bitcoin and other cryptocurrencies have proven their staying power over the past few years. However, there are many critics and skeptics regarding cryptocurrencies.  

Cryptocurrencies are subject to intense price volatility as a result of their decentralized nature. While this means that Crypto prices can rise drastically in a good market, the opposite is true. However, due to a cap that Bitcoin has implemented that caps the maximum amount of Bitcoin that can possibly exist in the world, Bitcoin cannot be hyperinflated.  

While Bitcoin may be a solid investment opportunity, we recommend doing research into how Bitcoin works before investing, as knowledge may be the barrier between making and losing money in the Cryptocurrency market. However, markets, in general, can be unpredictable and anyone can lose money investing.   

What is an ICO?

ICO stands for initial coin offering. Similar to how an IPO allows investors to get in the ground level of a publicly traded business, and ICO allows investors to get in on a new cryptocurrency. However, due to the deregulated nature of cryptocurrencies, ICO’s are inherently risky, as they are prone to scammers or never getting off the ground. If you are considering investing in an ICO, we suggest you do in-depth research on both the cryptocurrency and the people behind the cryptocurrency, to help distinguish the legitimate from the fraudulent.  

 Are Crypto exchange websites safe?

There have been numerous cyber attacks against cryptocurrencies and crypto exchanges. These attacks have led to people losing their savings and businesses going under. The risk of hacks and cyber attacks has long been one of the biggest negatives of using a cryptocurrency, but many exchanges are taking this into account, offering highly protected services and having back up funds in case they are a target of a cyber-attack. However, many sources highly recommend not keeping your Crypto with an exchange, as there is way less risk if you have your own crypto wallet that you store your cryptocurrency in.   

What are the most popular crypto exchanges in Canada?

While we have covered many of the most popular crypto exchanges in Canada, the most popular of our list include BitBuy, Coinsmart and NDAX, however other platforms will be more popular worldwide.  

 Maker vs Taker:  What’s the difference? 

Trading crypto on some exchanges, you will see different fee schedules for what are called “Makers” and “Takers”. “Makers” make an order on the book of a commodity for trade (in this situation, a crypto currency) that does not match existing offers. This makes liquidity, or the monetary value of the cryptocurrency. “Takers” on the other hand match orders that are on the book, which reduces liquidity. Since crypto exchanges want high liquidity for their offered crypto, maker fees are slightly lower, to encourage more “makers”.   

What Crypto Exchange has the lowest rates in Canada?

Canadians are lucky, as there are several crypto exchanges that have minimal to no fees. Some of the best rates for crypto exchanges in Canada include BitBuy, NDAX.io and Binance, while inexpensive options for buying BitCoin from a broker include Shakepay and Newton.  

How can I buy Bitcoins? 

The easiest way to buy bitcoin or another cryptocurrency is from a crypto exchange or broker.   

Where do I store cryptocurrencies? 

Just like regular currencies, Cryptocurrencies have wallets as well. Only these wallets are digital.  You need a cryptocurrency wallet to manage your digital funds and keep them secure. 

There are two kinds of wallets. Hot wallets are connected to the internet for easy instant access, and include software and cloud wallets, as well as storage that are offered by crypto exchanges.  A cold wallet is typically either a hardware wallet or paper wallet that is not connected to the internet, so you can store and receive funds offline. 

 Hot wallets are best utilized for trading, while those looking to hold all their crypto assets long term use cold wallets, but it is most commonly among those invested in crypto to use both types. We recommend storing your crypto offline in a cold wallet, as this method provides the most protection for your crypto assets.   

Is Bitcoin taxable in Canada? 

Yes. Just like other investments, gains from investing in Bitcoin or other Cryptocurrencies is taxable.  Trading crypto can either be treated as a business, of which 100% of your business income is taxable, whereas if you are trading as a hobby, only 50% of your capital gains are taxable.    

Can I find bitcoin ATMs in Canada?  

If you live in or near a major city, there is a very good chance there will be a Bitcoin ATM near you. You will be able to find a Bitcoin ATM near you by looking at websites like Coin ATM Radar.

How much to invest in cryptocurrency?  

Unfortunately, I am not a financial advisor. If you have this question, you might need to discuss it with one. While cryptocurrencies have been responsible for many millionaires out there, due to the high volatility of Bitcoin and other cryptos, figuring how much to invest means weighing the risks against the reward, and careful financial planning to get the most from your investment.  

 What does cryptocurrency mining mean?  

Remember how I was talking about blockchains? Mining is an important part of maintaining the blockchain, as “miners” run computer programs that solve advanced mathematical equations to repeatedly group newly broadcasted transactions into a block, making the blockchain complete and unchangeable.  

This process is called Bitcoin mining and takes a lot of electricity and computational power. In exchange for the electricity and computational power involved in mining bitcoin, miners can earn bitcoin as a result, however, at this rate, you may mine bitcoin for extreme periods of time before seeing any bitcoin in return.  

 How can I avoid crypto scams? 

Cryptocurrencies like Bitcoin and Ethereum that feature a blockchain are next to impossible to hack themselves, but that does not mean crypto users are impervious to scams. In fact, more and more scammers are turning to crypto scams due to the fact use of crypto currencies can often be used anonymously. Scammers have been known to impersonate Crypto exchange staff, trying to get sensitive information about your account so they can access it. Other scammers may pose as Crypto exchange accounts to scam people in the guise of giveaways or big investment opportunities. Here are three pieces of advice we have for people to avoid crypto scams:  

• Keep your information safe. Do not give anyone remote access to your machine, any passwords or security codes, or any information by outbound calls. Scammers can impersonate staff of crypto exchanges, sometimes very well, so you should ensure that the person you are speaking to is legit if they ask anything of you that makes you feel less secure about the management of your cryptocurrencies. You can do this by contacting your exchange by verified methods, like their listed emails and phone numbers on their websites (just keep in mind that scammers can call you with a number that appears to belong to your exchange). 
• Double-check with legitimate representations of your exchange. Scammers will doctor fake social media posts and promotions all the time, but these often unravel if you talk to a representative of your crypto exchange.  
• The old credo of “if it seems too good to be true, then it probably is” rings very true when it comes to crypto investing.  

 Can you get rich off Bitcoin? 

Bitcoin first made waves for its huge rise in value in 2017, which made many early investors in Bitcoin multi-millionaires. While the potential for huge returns exists, since Bitcoin carries such a higher price tag these days, it is very hard for new investors to get their foot in the door. Just like any type of investing, there is no promise you will see returns on your investment.   

 What is Facebook Libra?  

Libra is a cryptocurrency led by the social media giant that is set to launch in 2021. While the cryptocurrency has been in the works for a while now, there has been many issues that have arisen during the crypto’s development, with many backers leaving and distancing themselves from the project in 2019. Ultimately, with Facebook’s questionable privacy policies and the issues the cryptocurrency has faced over its development, we do not have high hopes for Libra.  

 What determines the price of 1 Bitcoin?  

Simply put, supply and demand. As more people buy bitcoin, the price will go up, and if people stop buying bitcoin, the price will go down. Additionally, since there is a max amount of Bitcoin that can be in circulation and new bitcoins are being created at lower rates, if demand does not follow this level of inflation, the price of a bitcoin can be very volatile.

 What can you do with Bitcoin?  

While more and more businesses are accepting Bitcoin transactions, it is more common for people to invest in Bitcoin, trading it for fiat currencies or other cryptocurrencies or holding onto it until the price is right. Some online retailers currently accept bitcoin and other crypto currencies, and as crypto become mainstream, you can expect more retailers to accept Bitcoin in the near future.  

 Can I get cryptocurrency insurance in Canada? 

As Cryptocurrencies are becoming a more common investing tool, companies are offering insurance to protect you in case of a cyber attack. Some exchanges have partnered with insurance companies to protect their clients, while some insurance companies offer Canadian wide insurance to your cryptocurrency funds.