What is a Canadian crypto exchange?
A Canadian crypto exchange is the platform where traders and investors can buy, sell, and trade a variety of cryptocurrencies. An exchange facilitates trading between buyers and sellers for a fee, which is their primary source of revenue.
Crypto exchanges in Canada are obliged to comply with regulations established by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Characteristics of the best crypto exchanges in Canada
- Compliance with FINTRAC regulations. We only list exchanges that are licensed or regulated by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
- Low fees. Not only should a good crypto exchange have competitive fees, but any fees should be transparent and easy to understand for traders of all levels.
- Choice. Not everyone wants to buy and sell Bitcoin alone. The best crypto exchanges list the top coins but also stablecoins such as USDT and USDC as well as upcoming altcoins like Dogecoin, XRP, Cardano, Solana, and Polygon, among others.
- Security built in. We are looking for robust security measures including cold storage and 2FA as standard. Some exchanges have depositors' insurance, which protects your assets in the event the exchange faces issues with liquidity or gets breached. Ideally, an exchange should have the option to store your crypto tokens on your own hardware wallet instead of the exchange's "hot" wallet.
- Proof of Reserves (PoR). A means of verifying that an exchange holds enough assets to cover their users' deposits.
- Customer support. Prompt and effective resolution of user queries and issues is a given.
- Convenient deposit and withdrawal options. Availability of multiple methods for CAD deposits and withdrawals, ideally with low fees for both.
- Excellent user experience. We list those with an intuitive interface that caters to both novice and experienced traders.
- Social or copy trading. Popular with beginners, this is a way to trade crypto automatically by following the trades of someone else.
- Available as a native app. Crypto exchanges are generally available as an app for iOS and Android, although some are implemented better than others.
- Transaction speed. Crypto moves fast. Exchanges should process orders, deposits, withdrawals, and trades efficiently to avoid slippage.
- Tax friendly. If the exchange itself doesn't produce tax reports for CRA (Canada Revenue Agency), then it should preferably integrate with a dedicated crypto tax service or generate statements that can be imported into one.
Types of crypto exchanges in Canada
There are three main types of exchange available.
- Centralised exchanges (CEXs). Known for their liquidity and extensive listing of cryptocurrencies. Binance and Coinbase are prominent examples. Typically more beginner-friendly.
- Decentralised exchanges (DEXs). Non-custodial platforms that facilitate direct, peer-to-peer transactions over the blockchain. Uniswap and PancakeSwap are two of the biggest. Considered less beginner-friendly.
- Hybrid exchanges. Combines the best of both centralized and decentralized platforms, offering both security and a wide range of services. KuCoin and Crypto.com are examples of exchanges with hybrid features. Generally less beginner-friendly.
Is Canada a crypto-friendly country?
Yes, Canada is considered a crypto-friendly jurisdiction in comparison with many other countries.
How can I cash out my cryptocurrency in Canada?
To cash out cryptocurrency in Canada, you can use a crypto exchange that offers fiat withdrawal options. Simply sell your cryptocurrency for CAD and then withdraw the funds to your bank account.
Is trading cryptocurrency legal in Canada?
Yes, it is legal to trade cryptocurrency in Canada, given the country's progressive approach to crypto regulations.
Can foreigners buy cryptocurrency in Canada?
Yes, both foreigners and residents can buy cryptocurrency in Canada.
What deposit methods are generally supported?
Bank transfers and credit/debit cards are the most widely accepted methods of depositing funds into an account on a crypto exchange in Canada.
What are the typical fees involved?
Fees can vary widely between exchanges but generally include trading fees, deposit fees, and withdrawal fees.