How to Buy Cryptocurrency in Canada

Buying cryptocurrency in Canada

Buying cryptocurrency in CanadaCanada grants the use of cryptocurrencies, but there's a catch. Cryptocurrencies aren't considered as legal tender, meaning that Canada's tax laws and rules, with the Income Tax Act, can also be applied to cryptocurrency transactions. Furthermore, the Canada Revenue Agency defined cryptocurrency as more of a commodity and claimed that its use to purchase goods or service needs to be regarded as a barter transaction. Additionally, Canadian taxpayers are also responsible to pay a certain amount of tax on crypto. It can be taxed as capital gains or as income tax, which is dependent on whether or not the activity involving cryptocurrency is regarded as a business or not. Only 3.89 percent of Canadians had used Bitcoin in 2019, and the percentage of those who used Ethereum or Ether during the same year is even lower. This could be a result of these tax regulations regarding cryptocurrencies
As of 20/03/2021

Exchanges Info

These exchanges all accept customers from Canada. While they broadly offer the same services and you can buy cryptocurrency at all of them, there can be differences in transaction fees, security, verification requirements, deposit methods and features, as shown below

CoinCorner

Based in Isle of Man. Over 200,000 customers with min deposit as little as £5. Simple site for getting into Bitcoin.

Pros
  • Simple user interface
  • Autobuy feature for regular crypto saving / DCA
  • You can earn Bitcoin on your shopping with their browser extension
Cons
  • Limited range of coins
  • No e-wallet feature
  • No live chat support

Bitfinex

Operating since 2012, Bitfinex has a huge range of coins and trading pairs, a good user interface and low trading fees.

Pros
  • Very low trading fees
  • Large range of coins and trading pairs
  • High liquidity
Cons
  • Slow account verification
  • Two major hacks
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OKEx

OKEx is the second-largest cryptocurrency exchange in the world by volume. It posts over $2 billion in trades daily and has over 400 trading pairs.

Pros
  • Good range of coins
  • DEX trading
  • No hacking history
Cons
  • Not available in US
  • KYC required
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Kucoin

Founded in 2017, KuCoin has already managed to establish itself as “The People’s Exchange.” With 200+ cryptocurrencies and more than 400 markets, it has become one of the hubs for cryptocurrency trading.

Pros
  • Vast selection of altcoins
  • Ability to stake & earn crypto yields
  • Robust security features
  • No forced KYC checks
Cons
  • No fiat currency deposits
  • Trading volume is low

Changelly

Changelly allows you to trade cryptocurrency without registration or verifying the identity through KYC. Being a non-custodial exchange, Changelly doesn’t require you to keep any deposits. The platform also works as a fiat-to-crypto gateway.

Pros
  • Non-custodial exchange
  • Great way to switch altcoins
  • Doesn’t require extensive KYC
  • 2FA security and high exchange limit
Cons
  • A high transaction fee of 0.5%
  • Unclear owners
  • Sometimes their service is quite slow
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Kraken

Kraken has a good reputation for security and protection of your funds and operates across the USA (except NY), Canada, the EU and Japan

Pros
  • It can be used to trade against fiat options
  • Robust security measures
  • Free SEPA deposits in Europe
Cons
  • Not a very beginner-friendly interface.
  • No card deposit options
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Swyftx

Swyftx is an AUSTRAC registered trading platform exclusively designed for Australians. Based in Queensland, the platform works like a broker to find the best Bitcoin price both in USD and AUD

Pros
  • Hybrid exchange
  • Instant user verification
  • AUSTRAC registered
  • Real-time price feed
Cons
  • For Aus and NZ residents only
  • No option for margin trading