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Investing in Crypto in Canada is different from traditional investments. Crypto investments are more commonly invested online, but you do have to be certain that the brokerage is legitimate before you invest your money. When it comes to buying crypto in Canada, there are quite a few legitimate online brokerages that investors commonly use for their crypto investments.
Where to Buy Crypto
The first step to investing in crypto in Canada is finding a brokerage that you can use to invest. There are quite a few Ponzi scheme stories in Canada in relation to crypto, so it’s important to verify that your brokerage is legitimate. Here are a few of the most popular online crypto exchanges in Canada.
Wealthsimple
One of the most popular crypto exchanges is Wealthsimple. Currently, you can sell and purchase 62 different types of cryptocurrency; this includes buying and selling bitcoin. However, there are some conditions. You can’t purchase or sell cryptocurrency using a registered account, and the minimum amount that’s required to trade crypto is $1.00. However, unlike other investments, you can trade crypto 24 hours, 7 days per week. You can even trade on statutory holidays.
If you live in Alberta, BC, Manitoba, or Quebec, there are no maximum limits to how much crypto you can buy. In all other provinces and territories in Canada, there are crypto purchase limits.
Bitbuy
Another really popular Canadian-based crypto exchange is Bitbuy. With Bitbuy, you can buy bitcoin or other multiple types of crypto with a purchase minimum of $50. You can buy crypto using Interac e-transfer, bank wire transfer, as well as debit and credit cards.
Bitbuy is known for its good prices and transparent fee structure. They’re also approved by the Ontario Securities Commission and Canadian Securities Administrators. They’re also registered with FINTRAC as a money services business. They keep 90% of of the crypto in secure cold storage, and it’s covered by a comprehensive insurance policy.
The great thing about Bitbuy is it’s simple to use for beginners, but it also has advanced trading options. If you’re looking to trade $20,000 or more, you can get your own personal account manager that can give you access to the best rates. Plus, along with their personal trading options, they have corporate solutions for businesses as well.
Binance
Binance is another option for Canadian crypto investors. However, all transactions are done in USD instead of Canadian dollars. They also offer crypto loans, which is something that many other exchanges don’t offer. They currently have over 189,141,572 users who trade crypto, margin trading, and a wide variety of other digital assets.
Crypto trading and buying with Binance is very simple. All you need to do is sign up and verify your account. From there, you can start buying crypto. You can do so by using the website online as well as using the app.
Coinbase
As another Canadian cryptocurrency exchange, Coinbase offers a wider range of different cryptocurrencies that you can purchase, sell and trade whenever you’d like. You can top up your account for free whenever you like with an e-transfer. Plus, when you sign up for a membership, you can get priority support, earn more rewards and trade with zero fees.
Coinbase is a strictly Canadian crypto company. They offer support with reach support agents, have strict security features along with a secure platform, and are considered to be the largest publicly traded crypto company.
Coinberry
Coinberry is another top cryptocurrency and bitcoin exchange in Canada. With that said, though, all Coinberry accounts have been transferred to Bitbuy. They’ve just recently become part of the company, so if you’re looking to work with Coinberry, you can do so through Bitbuy.
Coinsmart
Coinsmart is a cryptocurrency company that’s built for both beginners and experienced traders. Whether you choose to use the mobile app or the desktop site, you can trade bitcoin and other things crypto easily and efficiently. They offer a wide range of different cryptocurrencies and are constantly adding more to their platform.
If you choose to work with Coinsmart, then the process is really simple. All you have to do is create an account and start the verification process. Verifications are usually processed the same day, sometimes even instantly. All deposits are made to your account the same day they’re received, and all Fiat currency withdrawals are processed within 5 business days.
Like many other crypto platforms, Coinsmart was built in Canada. They pride themselves on their trustworthiness and have all the appropriate licenses to operate in Canada. They have industry-leading security, offer live support, have an AI chatbot and have a comprehensive knowledge base to help answer any of your common questions. They even offer advanced trading tools and educational resources for experienced traders.
How to Purchase Crypto
Purchasing cryptocurrency in Canada is actually relatively easy, depending on the platform you intend to use. All you need to do is find the platform you’d like to use and then sign up online. Once you’ve done that and completed the verification process, you can then add funds to your account.
This can be done using wire transfer, debit card, credit card and Interac e-transfer. This will vary depending on the crypto platform you’re using.
Once you’ve added the funds to your account, then you can start purchasing crypto. From there, you can choose to sell or withdraw whenever you want. An online crypto wallet, also referred to as a cold wallet, allows you to access your funds from anywhere as long as you’re connected to the internet.
Purchasing Crypto via E-transfer
With e-transfer becoming a more common method for money transfer in Canada, you can now use it to add funds to many online crypto platform accounts. By using e-transfer, you often encounter no fees. This can be much cheaper than other payment options, such as credit or debit cards and wire transfers.
Crypto Fees in Canada
The fees that you pay on crypto assets in Canada are based on the platform that you use. These fees are usually charged based on a flat percentage fee. Let’s take a look at the fees on some of the most popular crypto platforms in Canada.
| Cryptocurrency Platforms | Cryptocurrency Trading Fees |
| Coinsmart | 0.20% for a single trade0.30% for a double trade |
| Bitbuy | 2% on buys and sells |
| Coinbase | Based on the type of crypto |
| Binance | Based on the type of crypto |
| Wealthsimple | Based on account type |
| NDAX | 0.2% |
| Kraken | 3% |
| VirgoCX | 0% |
| Crypto.com | 0% to 0.75% |
Most exchanges, including international exchanges as well as domestic exchanges, also charge withdrawal fees and other types of fees, depending on what type of crypto you’re exchanging.
Investing in Crypto with the Top 5 Banks
When it comes to crypto, it’s not just online platforms where you can invest in it anymore. You can invest in crypto using trading platforms through some of the top financial institutions in Canada. Let’s take a look at these banks and learn how you can invest in crypto with them.
TD
With TD, you might not be able to purchase cryptocurrency directly, but you can purchase cryptocurrency ETFs (exchange-traded funds). With crypto ETFs, you can gain exposure to the crypto market without having to invest in crypto directly. These funds track the prices of crypto and can be set up either individually or in a group. Like traditional ETFs, these funds are traded daily and have fluctuating prices.
If you’re looking to invest in crypto ETFs with TD, you can do so by speaking to an advisor or by using TD direct investing. You can choose to invest in either a cash account, TFSA, or an RRSP, as you would with mutual funds. The bank charges fees based on the type of trader that you are.
As a standard trader, stocks are $9.99 per trade, options are the same plus $1.25 per contract, and there’s the standard commission rate. Active traders who have high trading volumes pay $7.00 for stocks and $7.00 plus $1.25 for options. They also have different options for new investors, experienced investors and active traders. Essentially, though, those with higher trading volumes have low fees, and those with lower trading columns have higher fees.
RBC
With RBC, you’re unable to invest in cryptocurrency directly. That said, you may be able to purchase crypto ETFs using your online RBC investment account or with an advisor. If you still want to invest in cryptocurrency directly, you can do so through an online platform using your RBC chequing or savings account. However, RBC credit cards can no longer be used to purchase cryptocurrency. That said, many other credit card companies do allow you to.
BMO
Like with other large banks, you can’t purchase cryptocurrency directly from BMO. That said, you may be able to purchase ETFs using BMOs Investorline. The reason for this is that the ETFs can be more secure than purchasing crypto directly. These ETFs track crypto and allow you to earn money based on crypto's values. These can be invested in different accounts, including registered accounts, and are considered to be more secure than crypto.
When it comes to purchasing crypto, you can use your BMO accounts to make purchases directly from online platforms. In some cases, though, you may find that BMO doesn’t allow you to transfer the funds. This is because BMOs are using more protocols in order to protect the funds of their customers. If they see a merchant that is considered high-risk, they may block the transaction. This is common with crypto because there are a lot of risks involved.
CIBC
CIBC is one of the top 5 banks that is a little more open to crypto purchases. They actively advertise their cryptocurrency ETFs, and they allow you to hook up your CIBC debit card on many different cryptocurrency platforms.
You can purchase ETFs with CIBC online or by using an advisor. The cost of ETF trades with CIBC is $6.95 per trade.
Scotiabank
In Canada, cryptocurrency isn’t as regulated as other currencies. Because of this, many Canadian banks don’t support the direct purchase of cryptocurrency. One of these is Scotiabank.
While you can use your Scotiabank bank account to purchase cryptocurrency, you can’t purchase cryptocurrency directly. That said, you may be able to invest in crypto using ETFs if Scotiabank offers them. You would have to speak to an advisor or look at Scotiabank’s online trading platform to see what’s available.
Cryptocurrency ETFs
If you decide that you’d prefer to purchase ETFs, there are quite a few different ones to choose from. There are some that focus specifically on Bitcoin or Ethereum, and others that focus on variety. The most popular cryptocurrency ETS are the CI Galaxy Bitcoin ETF, Fidelity Advantage Bitcoin ETF and the Purpose Bitcoin ETF.
Best Platform to Purchase Bitcoin
Bitcoin was the first form of cryptocurrency that was founded in 2009. Also, it’s still the most commonly traded form of cryptocurrency out there. Because of that, almost all trading platforms in Canada facilitate the purchase, trade and sale of Bitcoin, and there are many Canadian platforms out there.
When it comes to the best platform in Canada to buy and sell bitcoin, the most commonly used among Canadian investors is Bitbuy. They’re one of the first Canadian crypto exchanges and one of the most used for all crypto purchases, especially when it comes to buying Bitcoin. There’s also no limit as to how much bitcoin you can purchase.
How Crypto is Accessed and Stored
In Canada, there are actually quite a few ways to access and store crypto. When you get your crypto purchases, they can be stored in something called crypto wallets, where you need private keys as well as public keys in order to access them. You can also sell this crypto at any time to gain access to its value. That said, you can also gain access to funds using Bitcoin ATMs.
Final Thoughts
If you’re looking to start your crypto journey in Canada, there are many different ways that you can enter the crypto market. In order to get the most out of your money, you should make sure that you’re using the right crypto platform for you. There are so many different ones out there that you have to be careful. This is why we mentioned some of the top-rated cryptocurrency platforms in Canada.
Even if you don’t choose to lose one of the crypto platforms that we listed, there are plenty of other legitimate ones out there. Before you start purchasing, though, it’s important to do your research. Because crypto isn’t a currency that’s strictly regulated, it can be easy for people to create Ponzi schemes and create fake platforms. It’s important to be careful where you invest your money.
If you want to invest in crypto but aren’t quite comfortable with purchasing it directly, then another great option is to purchase crypto ETFs. These investments allow you to track crypto without having to invest directly. They’re still volatile, but they’re a more secure form of investing.
That said, if you are still unsure of the best thing to do, you can always speak to a broker or financial advisor who can help you make decisions regarding your money. They can also help you consider other factors involved in your investments, including tax implications.
