Summary
Cryptocurrency is legal in Canada, with a well-defined regulatory framework. The Canadian dollar (CAD) is widely supported for crypto transactions. Popular payment methods include Interac e-Transfer, bank transfers, and credit cards. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and provincial securities regulators oversee crypto activities. Key legislation includes the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA).Our recommended best crypto exchanges in Canada:
Best Crypto Exchanges in Canada
This comprehensive guide examines the top cryptocurrency exchanges available to Canadian investors. We’ll explore platforms that support Canadian dollar (CAD) transactions and offer preferred payment methods such as Interac e-Transfer and bank transfers. Our analysis covers key factors including supported cryptocurrencies, fee structures, deposit options, and KYC requirements to help you make an informed decision.
1. BYDFi
Users:
5m
Free Demo:
Mobile App:
Bonus:
$2,888
Cryptos:
600+
Leverage:
200x
Spot Fees:
0%/0.1%
Futures Fees:
0.02%/0.06%
Pros
- 0% Spot maker fees
- Very beginner friendly
- US and Canada supported
- 24/7 customer support
- 600+ cryptocurrencies
Cons
- No copy trading
- Lacks advanced features like hedge mode
Overview
BYDFi has become one of the most popular crypto exchanges due to its user-friendly design, low fees, and wide variety of 600 supported cryptos.
With a strong emphasis on accessibility, BYDFi offers its services to over 160 countries from all around the world. Some of these services include spot and futures trading, bot trading, and earning. For futures traders, BYDFi offers leverage of up to 200x, making it a great platform for seasoned professionals.
The intuitive interface, quick response time, and tons of advanced features make BYDFi a top-notch crypto exchange. If you are trading from the go, you can download the BYDFi mobile app from the iOS AppStore and Android PlayStore.
BYDFi charges the industry standard of 0.1% maker and taker fees on the spot market. If you want to enjoy lower fees, we recommend using the BYDFi futures market with fees of only 0.02% maker and 0.06% taker.
2. Coinbase
Users:
100m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
250+
Leverage:
5x
Spot Fees:
0.4%/0.6%
Futures Fees:
0.02%/0.05%
Pros
- Most beginner-friendly exchange
- Fully regulated and licensed
- Great customer support
- Reputable with over 100 million users
- Comprehensive fiat deposit methods
- Great wallet for on-chain access
Cons
- Lacks advanced features
- Very high spot trading fees
- Poor liquidity
Coinbase Overview
Coinbase is one of the largest and most well-known cryptocurrency exchanges for buying cryptos.The platform currently has a user community of over 100 million users worldwide. What makes Coinbase special is its user-friendly interface. The platform is designed to be easy to use, making it accessible for beginners. Coinbase offers a clean and intuitive interface for buying, selling, and managing cryptocurrencies.
Crypto traders have access to over 250 cryptos for active trading. One downside of Coinbase is the fee structure. When you place an order at the market price that gets filled immediately, you are considered a taker and will pay a fee of 0.60%, which is very expensive.
Another thing about Coinbase is that it offers a wide range of crypto services. These include wallets, NFT, crypto staking, Coinbase cards, and many more to help improve the overall trading experience on the platform. One of our favorite features is the Coinbase wallet.
It is suitable for beginners but also offers advanced trading tools including real-time charts, technical indicators, and many more for advanced traders.
3. Bitunix
Users:
2m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
200+
Leverage:
Not Supported
Spot Fees:
0.15%/0.25%
Futures Fees:
Not Supported
Pros
- 350+ assets
- Deep liquidity & Low Fees
- Up to 100x leverage
- No KYC required
- Advanced order types
Cons
- No staking products
- Relatively new platform
- No Demo trading offered
Bitunix Overview
Bitunix is an exchange that is recognized worldwide with 1+ million users around the globe. The exchange is also commended for its standard fees. It charges a minimal fee of 0.06% and 0.02% taker and maker for futures trading, and a 0.1% maker/taker fee for spot trading.
What makes Bitunix a great place for traders is its accessibility due to its no KYC policy. Users from all around the world can sign up on the platform without having to verify their identity.
With 300+ cryptocurrencies for users to select from, Bitunix provides a user-friendly platform with a good number of products and services available. The platform is also widely celebrated for its trading interface for both spot and futures traders, with up to 125x leverage on trades. It also offers USDT-margined perpetual futures as the major derivatives trading product.
The exchange offers several payment methods for customers, such as credit/debit cards, Fatpay, Coinify, Apple Pay, and bank transfers. Additionally, there are welcome bonuses available to new users on Butunix up to $5,500 based on trading activity.
4. Uphold
Users:
3m
Free Demo:
Mobile App:
Bonus:
None
Cryptos:
200+
Leverage:
Not Supported
Spot Fees:
1.4%
Futures Fees:
Not Supported
Pros
- Beginner-friendly exchange
- Fully regulated and licensed in the US
- Great customer support
- Comprehensive fiat deposit methods
- Passive income products
Cons
- Lacks advanced features
- Very high spot trading fees
- Poor liquidity
- No futures trading offered
Uphold Overview
Uphold is a versatile crypto trading platform that allows users to trade a wide range of assets, including cryptocurrencies, precious metals, fiat currencies, and U.S. equities. The platform provides access to over 250 digital currencies and allows users to trade in fiat currencies and precious metals.
What makes Uphold special is its Cross-Asset Trading feature. Users can trade directly between different asset classes (e.g., BTC to gold) without first converting to a fiat currency.
Trading fees vary depending on the type of asset that you are trading. However, Upholding fees are very high compared to industry standards.
Users have access to crypto staking, generating yields of up to 13% of your initial asset deposit.
Additionally, Uphold offers a trading interface appealing to beginners who want to buy and hold crypto assets. It doesn’t provide advanced trading tools and isn’t suitable for day trading, making it less ideal for experienced traders.
5. BTCC
Users:
5m
Free Demo:
Mobile App:
Bonus:
$11,000
Cryptos:
350+
Leverage:
500x
Spot Fees:
0.2%/0.3%
Futures Fees:
0.045%/0.045%
Pros
- Excellent futures trading
- Deep liquidity & Low futures fees
- 500x leverage for professionals
- Stocks, Forex, Commodities, Indices available
- 24/7 customer support
Cons
- Lacks spot assets
- Relatively high spot fees
- Not available in some countries
BTCC Overview
BTCC is a dedicated derivatives exchange offering cryptocurrencies, stocks, forex, commodities, and indices with up to 500x leverage. This makes BTCC an excellent choice for experienced day traders and crypto scalpers.
With deep liquidity and a wide variety of over 300 tradable assets, BTCC has one of the best futures trading platforms available. However, spot trading is a relatively new feature, meaning that BTCC only supports a low number of assets.
Fees at BTCC are highly competitive, starting at only 0.045% maker and 0.045% taker. VIP discounts are offered for users based on their 30-day trading volume, making BTCC a great crypto exchange for active traders.
BTCC also has a free demo trading account where users can practice trading without risking their money. This makes BTCC an attractive choice for beginners who are just starting out with crypto trading.
Is Crypto Legal and Regulated in Canada?
Cryptocurrency is legal in Canada, operating within a well-defined regulatory framework. The Canadian government has taken a proactive approach to crypto regulation, aiming to foster innovation while mitigating risks associated with digital assets.
The primary regulatory body overseeing cryptocurrency activities in Canada is the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). In June 2019, amendments to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) classified crypto exchanges and payment processors as Money Services Businesses (MSBs), subjecting them to AML/CFT regulations.
Provincial securities regulators, coordinated by the Canadian Securities Administrators (CSA), also play a crucial role in overseeing crypto-related securities. They have issued guidance on when crypto assets may be considered securities and have implemented a regulatory sandbox to support fintech innovation.
The Bank of Canada has been actively researching Central Bank Digital Currencies (CBDCs) and their potential implementation. While cryptocurrency is not considered legal tender in Canada, its use for goods and services is permitted, subject to applicable tax laws and regulatory requirements.
Is Crypto Taxable in Canada?
Yes, cryptocurrency is taxable in Canada. The Canada Revenue Agency (CRA) treats cryptocurrency as a commodity for tax purposes. This classification means that cryptocurrency transactions can result in either capital gains/losses or business income/expenses, depending on the nature of the activity.
For individuals, capital gains tax applies to 50% of the profit made from selling or trading cryptocurrency. The tax rate depends on your income bracket, ranging from 15% to 33% at the federal level. Provincial taxes are additional and vary by province.
Business income from cryptocurrency activities, such as mining or frequent trading, is taxed at your regular income tax rate. The CRA has specific guidelines for determining whether crypto activities constitute business income or capital gains.
Notably, crypto-to-crypto transactions are considered dispositions and may trigger tax events. The CRA requires detailed record-keeping of all cryptocurrency transactions, including dates, amounts, and fair market values in Canadian dollars at the time of transactions.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in Canada.
How to Buy Crypto in Canada
Purchasing cryptocurrency in Canada has become increasingly accessible. This guide will walk you through the process, focusing on our top recommended exchange, BYDFi, which offers a user-friendly platform for buying Bitcoin and other popular cryptocurrencies.
Follow these steps to acquire cryptocurrency in Canada:
- Choose a Crypto Exchange: Opt for a trusted platform that supports Canadian dollar (CAD) transactions and offers payment methods that suit your preferences. Ensure the exchange adheres to Canadian KYC (Know Your Customer) regulations for a compliant and secure experience.
- Sign Up and Verify Identity: Open an account on the chosen exchange and complete the identity verification process. You’ll need to submit valid identification, such as a government-issued ID and proof of your residential address.
- Fund Your Account: Deposit CAD into your account. Common options in Canada include Interac e-Transfer, bank transfers (EFT), and credit/debit cards. Wire transfers are available on some platforms for larger sums.
- Choose Your Cryptocurrency: Head to the trading section and pick the digital asset you’d like to buy. Popular choices include Bitcoin (BTC), Ethereum (ETH), and stablecoins like Tether (USDT) or USD Coin (USDC).
- Make a Purchase: Enter the amount of CAD you want to spend or the quantity of cryptocurrency you’d like to acquire. Double-check the transaction details, including any applicable fees, before finalizing the trade.
- Secure Your Assets: Once the purchase is complete, move your assets to a secure wallet. Hardware wallets offer high security for long-term storage, while software wallets provide flexibility for frequent use.
Stay updated on market trends and invest wisely. Cryptocurrency markets are often volatile, so it’s important to conduct thorough research and comprehend the assets you’re buying before making any investments.
Best Crypto Wallets in Canada
Selecting a secure and user-friendly crypto wallet is crucial for Canadian investors. Here’s an overview of top wallet options available:
Hardware Wallets:
- Ledger: Offers robust security features and supports a wide range of cryptocurrencies. The Ledger Nano X and Nano S models are popular choices among Canadian users.
- Trezor: Known for its user-friendly interface and strong security. The Trezor Model T provides a touchscreen for easier navigation.
Software Wallets:
- Trust Wallet: A versatile mobile wallet supporting numerous cryptocurrencies and DeFi applications. It’s user-friendly and offers built-in exchange features.
- Exodus: Available on desktop and mobile, Exodus provides a sleek interface and supports a vast array of cryptocurrencies. It also features a built-in exchange.
- MetaMask: Primarily used for Ethereum and ERC-20 tokens, MetaMask is essential for interacting with decentralized applications (dApps) and DeFi protocols.
When choosing a wallet, consider factors such as security features, supported cryptocurrencies, ease of use, and compatibility with Canadian exchanges. Hardware wallets are recommended for storing large amounts or long-term holdings, while software wallets offer convenience for frequent transactions. Always ensure you’re downloading wallets from official sources and keep your recovery phrases secure.
Bottom Line
For Canadian crypto enthusiasts seeking the best crypto exchanges in Canada, our top recommendations are BYDFi and Coinbase. BYDFi stands out with its competitive fee structure and extensive selection of cryptocurrencies, catering to both novice and experienced traders. Coinbase, known for its user-friendly interface and robust security measures, offers a seamless experience for Canadian users. Both platforms support CAD transactions and provide reliable customer support, making them excellent choices for navigating the dynamic crypto landscape in Canada.
