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Cryptocurrency trading and investing are gaining traction worldwide. In Canada, many traders seek avenues to embark on this journey. Fear not, for armed with a deep comprehension of the cryptocurrency landscape and aligning with a reputable exchange, you can efficiently manoeuvre through its volatility and enhance your journey.
As seasoned cryptocurrency traders and researchers, we recognise the significance of choosing the right exchange. Thus, we have conducted market research to offer our top recommendations below. Our comprehensive guide also provides insights into selecting an appropriate exchange and the steps to commence your venture.
In a Nutshell
- Cryptocurrency trading entails buying, selling, or exchanging digital currencies to profit from market fluctuations.
- The cryptocurrency market is highly volatile. Therefore, Canadian traders must conduct thorough market research to develop solid strategies.
- At Invezty, we only recommend cryptocurrency exchanges that meet our specifications.
- The best crypto exchange in Canada must be highly encrypted to protect users’ data.
- For traders looking to buy cryptocurrencies via exchanges, ensure the platform you select integrates with reputable crypto wallets to secure your tokens once purchased.
- Canadian traders must always settle with cryptocurrency exchanges that suit their trading requirements for maximum experience.
- Always understand cryptocurrency trading regulations in Canada and the tax implications.
List of the Best Crypto Exchanges in Canada
- Kraken – Overall Best Cryptocurrency Exchange in Canada
- Coinbase – Beginner-Friendly Cryptocurrency Exchange in Canada
- Crypto.com – Best Cryptocurrency Exchange For Low-Budget Traders
- Gemini – Best Crypto Exchange For Professional Traders in Canada
In This Guide
Compare the Best Crypto Exchanges in Canada
Selecting the optimal cryptocurrency exchange demands thorough evaluation. Below, we present a comprehensive comparison table detailing supplementary features of our top recommended exchanges. Our objective is to empower you to make an informed decision that aligns precisely with your requirements.
| Best Crypto Exchange Canada | Exchange Type | Support Service | Price | Supported Coins | Digital Wallet |
|---|---|---|---|---|---|
| Kraken | Centralised | Email, phone, live chat | Free | 200+ | Yes |
| Coinbase | Centralised | Phone, Email, and Twitter | Free | 200+ | Yes |
| Crypto.com | Decentralised | Phone, Email, Live Chat | Free | 250+ | Yes |
| Gemini | Centralised | Phone, Email, Live Chat | Free | 70+ | Yes |
Brief Overview of the Fees and Assets Offered by Our Recommended Cryptocurrency Exchanges
Choosing the right Canada crypto exchange can feel overwhelming, considering the lengthy research process involved. The fees, supported assets, and other features vary greatly, which you must compare to find the best exchange. Fortunately, we help you identify your suitable exchange using the tables below. You will understand the exchanges’ fee structures and the diverse crypto worlds they unlock.
Fees
| Best Crypto Exchange Canada | Fees | Minimum Deposit Requirement |
|---|---|---|
| Kraken | From 0.16% | £10 |
| Coinbase | From $0.99 | From £1 |
| Crypto.com | From 0.04% | From £1 |
| Gemini | From 1.49% | From £1 |
Supported Assets
| Best Crypto Exchange Canada | Bitcoin | Ethereum | Litecoin | Ripple | Tether | Dogecoin | Solana |
|---|---|---|---|---|---|---|---|
| Kraken | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Coinbase | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Crypto.com | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
| Gemini | Yes | Yes | Yes | Yes | Yes | Yes | Yes |
Our Opinion & Overview of the Best Crypto Exchanges in Canada
As professional cryptocurrency traders and researchers, we have scoured the Canadian crypto landscape, diving into exchanges of all shapes and sizes. From beginner-friendly interfaces to advanced trading havens, we have put them to the test. Below, we share our hard-earned insights, dissecting the strengths and weaknesses of each platform for informed decisions.
1. Kraken – Overall Best Cryptocurrency Exchange in Canada
After extensive testing and research, we confidently declare Kraken as the overall best crypto exchange. With over 9 million users globally and a staggering trading volume exceeding $207 billion, Kraken stands out for its reliability and security measures. We explored its vast offering of 200+ cryptocurrencies with a mere C$10 minimum investment, experiencing its user-friendly interface and comprehensive trading app firsthand.
Kraken’s commitment to security through cold storage systems and robust encryption instilled confidence in our trading activities. The platform also offers enticing rewards of up to 24% annually through asset staking and allows for advanced order placements via the Kraken Pro app. With up to 5x leverage and round-the-clock customer support, Kraken emerges as a secure and accessible option for cryptocurrency enthusiasts, earning our 4.5-star rating.
Kraken
✔Over 200 cryptocurrencies
✔24/7 support service
Pros & Cons
Fees
Trading Assets
Pros
- Up to 24% rewards are offered annually for staking your assets with Kraken
- Low spreads on non-instant buys
- High liquidity across various markets
- Availability of popular cryptocurrencies
Cons
- No personal wallet service
- Many elements are featured, making it quite challenging for newbies to use
Based on our experience, Kraken is one of the most affordable cryptocurrency exchanges. We signed up for trading and investment accounts and incurred no registration fees. Plus, the exchange’s minimum deposit requirement is $10, which we believe is among the lowest in the financial investment industry.
When it comes to instant buy and sell services, Kraken imposes spreads, which are included in an asset’s price. The spreads may vary, depending on the payment method and platform you use. For instance, the exchange applies a 3% fee for converting balances less than the minimum order size using the “Convert small balances” feature.
For investors using the Kraken Pro platform, expect a maker-taker fee schedule. This comes with volume incentives based on investors’ activities in the past 30 days. On average, you will incur a 0.25% maker fee and a 0.40% taker fee for transactions between $0 and $10,000. Overall, Kraken Pro fees are charged on a per-trade basis.
When it comes to transactions, Kraken supports a variety of deposit methods. Most deposits are free, but expect to incur withdrawal charges, depending on the payment method you transat with. You may also pay a currency conversion fee. This of course will depend on the fiat currency you are converting to.
2. Coinbase – Beginner-Friendly Cryptocurrency Exchange in Canada
If you are a new cryptocurrency trader in Canada, we primarily recommend Coinbase for you. From our experience, the exchange has a user-friendly interface that is easy to navigate. Boasting over 98 million users globally, Coinbase offers a straightforward platform for buying, selling, and monitoring popular cryptocurrencies. We explored over 200 cryptocurrencies, including popular ones like Bitcoin, Ethereum, Litecoin, and more.
We noticed that Coinbase operates as a centralised exchange. It also prioritises transaction security and offers options for cold wallet storage. Testing its 24/7 support service, the response we got was impressive as we were able to quickly dive back into our trading activities. With an inbuilt wallet, asset management is simplified as users will store and manage all crypto assets and NFTs in one place. With its emphasis on simplicity, security, and accessibility, Coinbase earns a 5-star rating from us.
Coinbase
✔Available in 100+ countries
✔Zero staking and unstaking fees
Pros & Cons
Fees
Trading Assets
Pros
- User-friendly platform
- In-built centralised crypto wallet backed up by an insurance policy
- Wide array of crypto assets offered
- Opportunities to earn cryptocurrencies by buying and holding assets
- Low account minimum of £2
Cons
- High transaction charges on its primary platform
- You get to pay more for lower balances
Opening and maintaining a Coinbase account is free. You can fund your account and withdraw money using a variety of payment methods, including wire transfers, debit/credit cards, and digital wallets like Apple Pay.
While using FIAT, you may have to pay deposit and withdrawal fees depending on your chosen payment method. ACH transactions are free. But alternatives like wire transfers attract $10 and $25 deposit and withdrawal fees, respectively. That said, you can buy as little as $2 of crypto using a card or funds in your account.
Expect to pay specific fees when you purchase, convert, or sell crypto on Coinbase. Your charges will depend on numerous factors, including the order size, your preferred payment method, and market conditions. For instance, if you place an order at a stipulated market price and it is fulfilled immediately, this exchange will charge you anywhere from 0.05% to 0.60%.
If you place standard buy and sell orders on Coinbase, the platform will include a spread in the specified price. You will also encounter a spread when converting one crypto asset to another. To avoid spreads, join Coinbase Advanced, which is an advanced platform for seasoned traders.
Depending on your jurisdiction, you may stake crypto on Coinbase at no additional costs. However, the exchange will deduct a commission based on your accrued rewards and the involved asset. The standard commission for ADA, SOL, DOT, ATOM, XTZ, and MATIC is 35%. Eligible Coinbase One members can enjoy a commission of 26.3% for the same assets. On the other hand, ETH attracts a 25% commission.
Lastly, Coinbase charges asset recovery fees. If you send an unsupported asset to your Coinbase account, you may try to recover it. If it’s eligible for recovery, the exchange will charge a network fee. If the recovery is over $100, expect to pay a 5% fee. But if it’s less than $100, you won’t have to pay a dime.
3. Crypto.com – Best Cryptocurrency Exchange For Low-Budget Traders
Based on our thorough testing, we confidently assert Crypto.com as the best cryptocurrency exchange for low-budget traders in Canada. Offering access to over 250 cryptocurrencies, including popular options like Bitcoin and Ethereum, Crypto.com stands out for its inclusive approach. While testing it, we explored features like access to non-fungible tokens (NFTs) and a DeFi wallet for easy NFT marketplace access. This makes us believe that Crypto.com caters to diverse trading interests.
Another added perk of Crypto.com is its metal Visa cards, which provide up to 5% back on spending, thus adding user value. We also discovered that Crypto.com imposes no annual fees, transaction charges, or inactivity fees, allowing traders to plan and execute trades conveniently. Supporting over 20 fiat currencies and various payment options, including bank transfers and e-wallets, this exchange enhances accessibility. From our analysis, we believe Crypto.com deserves a 5-star rating for its affordability and comprehensive offerings.
Crypto.com
✔Available 350+ cryptos
✔In-built DeFi wallet
Pros & Cons
Fees
Trading Assets
Pros
- Low trading fees
- Compatible with desktop and mobile devices
- In-built DeFi wallet, giving you total control of your assets
- Offers over 14.5% annual rewards on your cryptocurrencies
- A wide range of cryptocurrencies offered
Cons
- You get to pay more for low trading volumes
- Withdrawing cryptos to external addresses attracts a fee
We were impressed by Crypto.com fees, which we believe are among the lowest in the industry. For instance, there are no deposit fees when transacting with cryptocurrencies. However, you will pay withdrawal charges, the amount of which depends on the token you are transferring.
Creating an investment account at this exchange is free, and there is no minimum deposit requirement. This means that users can start trading or investing in cryptos with as little as $1. We find Crypto.com a suitable option for low-budget traders.
When it comes to trading and investment costs, expect to incur maker and taker fees. For those venturing into spot and derivatives market, expect to incur trading fees from 0.075% and 0.034%, respectively. For CRO stakers, Crypto.com guarantees 0% maker fees if you stake at least 50,000 CROs. Those who stake at least 100,000 CRO will enjoy negative maker fees across all tiers.
Our exploration of this exchange revealed that trading fees are charged based on the cryptocurrency you trade or invest in. Therefore, we advise you to always confirm an asset’s fees and ensure they fit your budget before you open a position. Fortunately, Crypto.com is transparent with its charges. What you see is what you will incur.
Besides the charges above, expect to incur a $5 inactivity fees. This applies if your trading or investment account remains dormant for a period exceeding 12 months.
4. Gemini – Best Crypto Exchange For Professional Traders in Canada
When it comes to recommendations for professional cryptocurrency traders, Gemini stands out among numerous options we have tested. As a fully-reserved and highly-regulated exchange and custodian, Gemini prioritises security and reliability. Offering access to over 70 cryptocurrencies and serving clients in 70+ global countries, it is evident that this exchange provides a diverse range of trading options. The platform’s advanced features, including multiple charting types, watchlists, and price alerts, facilitate strategic decision-making for seasoned traders.
We also tested the exchange’s support service responsiveness, and the team answered all our questions promptly. Gemini’s mobile advanced trading mode and ActiveTrader platform hosting advanced charting and crypto derivatives trading deliver a professional-level trading environment. Its features, like the Gemini credit card with excellent rewards and an NFT marketplace, further enrich the user experience. While fees are fixed for trades under $200 or set at 1.49% for larger trades, Gemini offers competitive rates, earning it a commendable 4.7-star rating from us.
Pros & Cons
Pros
- A user-friendly and intuitive application interface
- Stored cryptocurrency can earn interest
- Insurance available for the Gemini Wallet
- Features an NFT marketplace for those willing to buy and sell digital art
Cons
- High cryptocurrency trading fees compared to its peers
- Fewer trading pairs supported
How to Start Trading with Crypto Exchange in Canada
Embarking on cryptocurrency trading might seem daunting, but fear not – the process is simpler than you think. By following a few straightforward steps, you can kickstart your trading journey with ease. Below, we outline the process in detail.
Step 1: Visit an exchange’s website
Step 2: Register for a trading account
Step 3: Secure your wallet
Step 4: Participate in the KYC procedure
Step 5: Make a deposit
Step 6: Start trading
Start by selecting a reputable cryptocurrency exchange from our recommendations list above. Research different platforms to find one that aligns with your trading goals, security requirements, and user experience preferences. Once chosen, visit the exchange’s website to begin the registration process.
On the exchange’s website, locate the option to create an account. Provide the necessary information, such as your email address, username, and password. Some exchanges may require additional details for security purposes.
Before trading, you will need a cryptocurrency wallet to store your assets securely. Many exchanges in Canada offer integrated wallets, but consider using a separate hardware wallet for added security. This will protect your investments from potential hacks or breaches.
Many cryptocurrency exchanges in Canada implement Know Your Customer (KYC) procedures to verify users’ identities. This typically involves submitting identification documents, such as a passport or driver’s licence. You may also be required to share a copy of your recent utility bill or bank statements as proof of location.
After completing the registration and KYC process, you will need to fund your trading account per an exchange’s minimum deposit requirement. Most exchanges offer various deposit methods, including bank transfers, credit/debit cards, and cryptocurrency deposits. Choose a method that suits you best and follow the instructions to make a deposit.
With funds in your trading account, you are now ready to start trading. Explore the exchange’s trading interface to familiarise yourself with the available features and markets. Decide on the cryptocurrency you want to trade, set your desired parameters, and execute your trades accordingly.
How to Choose the Right Crypto Exchange in Canada
When selecting a crypto Canada exchange, several key factors warrant close attention to ensure a seamless and secure trading experience. These include:
Security
Asset Availability
Platform
Charges
Crypto Wallet
User Recommendations
Prioritise exchanges with robust security measures, such as two-factor authentication (2FA), cold storage for funds, and regular security audits. Look for platforms with a proven track record of safeguarding user assets against cyber threats and breaches. For instance, if you are considering a Canadian-based exchange, ensure it is regulated by FINTRAC for maximum security.
Evaluate the range of cryptocurrencies offered by each exchange. Ensure the platform supports the coins you intend to trade or invest in. A diverse selection of assets enables you to capitalise on various market opportunities.
Assess the user interface and trading experience provided by each exchange. Opt for platforms with intuitive interfaces, advanced trading tools, and responsive customer support. A user-friendly platform enhances efficiency and ensures a smooth trading experience.
Review the fee structures of different exchanges, including trading fees, withdrawal fees, deposit fees, and more. Look for transparent fee schedules and consider the overall cost-effectiveness of each platform based on your trading volume and frequency. The last thing you want is to choose a platform with charges that do not align with your budget.
Consider whether an exchange provides an in-built crypto wallet for securing your digital assets once purchased. Assess the security features and accessibility of the wallet, such as multi-signature support and mobile compatibility. Some exchanges can also be integrated with external wallets. Simply ensure the wallet is secure and reputable.
Research online reviews and testimonials from other users to gauge the reputation and reliability of each exchange. Pay attention to factors such as uptime, customer support responsiveness, and overall user satisfaction. Recommendations from peers on platforms like Trustpilot, Google Play, and the App Store can provide valuable insights into the strengths and weaknesses of each platform.
Tax on Withdrawing Funds from Crypto Exchanges in Canada
When withdrawing funds from a cryptocurrency exchange, the transaction may trigger taxable events. This depends on various factors, such as the duration of holding the assets, the amount of profit generated, and the individual’s tax status. In Canada, cryptocurrency trading is considered a business activity by the Canada Revenue Agency (CRA), and transactions involving them are subject to taxation. Capital gains tax applies to profits earned from the sale or disposition of cryptocurrencies. The amount of tax owed is calculated based on the difference between the purchase price and the selling price of the digital assets.
As a cryptocurrency trader, it is crucial to maintain accurate records of cryptocurrency transactions, including withdrawals from exchanges. This is to ensure compliance with tax regulations in Canada and plan your activities accordingly. You should also consider consulting a tax professional or accountant knowledgeable in cryptocurrency taxation. Such professionals can provide valuable guidance on reporting requirements and minimising tax liabilities.
Conclusion
Before starting your cryptocurrency trading venture, remember to educate yourself and stay updated on market trends to never miss out on potentially profitable opportunities. It is also crucial to diversify your investments wisely to mitigate the risks that come with a single investment. For beginners, start with small amounts of money and gradually increase your involvement as you gain experience. Most importantly, prioritise security measures and choose a reputable crypto exchange in Canada like the ones we recommend above. With patience, research, and careful decision-making, cryptocurrency trading can be a rewarding journey.
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