Best Canadian Crypto Investment Platforms And Exchanges

Cryptocurrency is a virtual asset that uses cryptography to secure transactions. It is independent of governments, central banks, or other authorities. In Canada, cryptocurrency trading is legal, and more than 30% of Canadians plan to buy crypto assets. There are two common ways to buy cryptocurrency in Canada: through a broker or directly through an exchange. Crypto brokers simplify the process but charge higher fees, while exchanges give account holders more control over their crypto. Popular crypto exchanges in Canada include Coinbase, Binance, Crypto.com, and Kraken. It is important to note that investing in cryptocurrency carries risks due to its volatile nature, and individuals should carefully consider their investment goals and financial situation before investing.

Crypto trading platforms

When choosing a crypto trading platform, it is important to consider the payment methods accepted, the range of cryptocurrencies offered, and the security features in place. Some popular crypto trading platforms in Canada include Wealthsimple Crypto, Bitbuy, and Netcoins. These platforms allow users to buy crypto with a credit card, debit card, or bank transfer, and they offer a variety of cryptocurrencies to choose from. It is worth noting that crypto trading platforms may have limitations on the number of cryptocurrencies available and may not support all the features that crypto exchanges provide.

Wealthsimple Crypto, for example, is a regulated crypto trading platform in Canada that offers a user-friendly interface and allows users to trade over 30 cryptocurrencies. It is perfect for beginners who want a simple and protected platform to start their crypto journey. On the other hand, Bitbuy is a secure and trusted platform in Canada for buying Bitcoin, Ethereum, and other cryptocurrencies. It offers fast funding and withdrawals in Canadian funds and provides transparent fee structures.

When using a crypto trading platform, it is essential to consider the risks associated with crypto investments. The value of cryptocurrencies is highly volatile and subject to frequent changes. Therefore, it is recommended to only invest an amount that you are comfortable losing. Additionally, it is important to research the platform and the cryptocurrencies you plan to invest in to make informed decisions.

Overall, crypto trading platforms offer a convenient and user-friendly option for Canadians looking to enter the world of crypto trading. With their simplicity, security features, and support for popular cryptocurrencies, these platforms provide an ideal starting point for beginners in the crypto space.

Crypto exchanges

Some of the most well-known cryptocurrency exchanges in Canada are Coinbase, Netcoins, Newton, Coinberry, Kraken, Crypto.com, KuKoin, Bitbuy, and Coinberry. These companies' standard trading interfaces may overwhelm beginners, but they also offer user-friendly easy purchase options.

The convenience of these exchanges comes at a cost, as the beginner-friendly options charge substantially more than it would cost to buy the same crypto via each platform’s standard trading interface. To save on costs, it is recommended to learn enough to utilize the standard trading platforms before making your first crypto purchase.

It is important to note that some exchanges only allow the purchase of crypto using another crypto. This means that you would have to find another exchange to buy the tokens your preferred exchange accepts before you could begin trading crypto on that platform.

When buying cryptocurrency through an exchange, it is important to consider the payment method. Exchanges in Canada allow the use of debit cards, Interac e-Transfers, bank wire transfers, and credit cards. While credit cards can be used, this option can be expensive due to higher interest rates and additional cash advance fees.

After purchasing cryptocurrency on an exchange, there are several options for storing it securely. One option is to leave the crypto on the exchange, which typically stores it in a "crypto wallet" attached to the exchange. Another option is to transfer the crypto to a hot or cold wallet for added security. Hot wallets are stored online and are convenient but carry a higher risk of theft due to their connection to the internet. Cold wallets, on the other hand, are not connected to the internet and are considered the most secure option for holding cryptocurrency.

In summary, crypto exchanges offer buyers and sellers a platform to trade cryptocurrencies, often with low fees. However, they can be complex and intimidating for new investors. When using an exchange, it is important to consider payment methods, additional costs, and secure storage options for your cryptocurrency.

Crypto brokers

Wealthsimple Crypto

Wealthsimple Crypto is a regulated cryptocurrency platform in Canada. It is owned by Wealthsimple, Canada's largest robo-advisor, and is available on iPhones, Android devices, and through a web interface. It is one of the best crypto apps for beginners. The platform offers Bitcoin, Ethereum, Chainlink, Polkadot, Uniswap, Dogecoin, Polygon, Litecoin, Filecoin, Fantom, and many others.

Coinsmart

Coinsmart is one of the cheapest crypto exchanges in Canada. It was founded in 2018 and is based in Toronto. It offers access to several popular cryptocurrencies and multiple ways to fund your account, including using credit cards. Coinsmart supports Bitcoin, Ethereum, Litecoin, Avalanche, Bitcoin Cash, EOS, NEO, Stellar, Cardano, Tether, Uniswap, Polygon, Solana, Chainlink, Shiba Inu, Polkadot, and more.

Bitbuy

Bitbuy is a top Canadian crypto trading platform operating out of Toronto. It was founded in 2016 and offers a wide array of 40 coins to choose from. It is available on iOS and Android and also has a nice-looking web interface. Bitbuy is the best crypto app in Canada overall.

Netcoins

Netcoins is a crypto brokerage platform owned by BIGG Digital Assets, a public company listed on the CSE. This crypto trading platform and app is registered with FINTRAC and offers several coins, including many metaverse coins, stablecoins, and more. Netcoins offers Bitcoin, Ethereum, Decentraland, SushiSwap, Yearn.Finance, Enjin Coin, Curve, Fantom, Aave, The Sandbox, and others.

Crypto wallets

There are two main types of crypto wallets: hot wallets and cold wallets. Hot wallets are connected to the internet and are often available as a standalone product or as an add-on through popular crypto exchanges. They make it easy to execute crypto transactions but are more vulnerable to hackers. Examples of hot wallets include Coinbase Wallet, MetaMask, Crypto.com DeFi Wallet, Exodus Crypto Wallet, and Gemini Crypto Wallet.

On the other hand, cold wallets are not connected to the internet and are considered more secure than hot wallets. They can be physical gadgets, such as USB sticks, or simply printing the keys on a piece of paper. Examples of cold wallets include Ledger Crypto Wallet, Ellipal Titan Crypto Wallet, and SafePal Crypto Wallet.

When choosing a crypto wallet, it is important to consider factors such as security, functionality, and cost. Additionally, it is crucial to only use reputable and regulated platforms to ensure the safety of your investments.

Crypto ATMs

The process of installing a crypto ATM typically involves a sales call from a bitcoin ATM operator to a business owner. The two most common reasons for installing an ATM are to increase store traffic and sales, and to receive financial compensation from the operator. The operator may offer a fixed monthly rent or a percentage of the transaction fees as compensation. It is worth noting that most business owners who install crypto ATMs are not enthusiasts or experts in cryptocurrencies.

While crypto ATMs provide an accessible way to purchase cryptocurrencies, there are some considerations to keep in mind. Crypto ATMs may charge high transaction fees, and there have been concerns about their potential use for money laundering and other illicit activities. Additionally, the volatile nature of cryptocurrency values can make it challenging for business owners to integrate them into their operations.

Overall, crypto ATMs can be a convenient option for individuals looking to invest in cryptocurrencies in Canada, but it is essential to research the associated fees, risks, and regulatory considerations before using them.

Frequently asked questions