Canada has an enormous amount of exchanges that support Bitcoin purchases. Below we will list and explain eaches pro’s and con’s to help find the best one for you.
When deciding which exchange to buy Bitcoin on, you will have to consider a number of factors such as supported payment methods, trading volume, fees, delivery speed, limits, and community reputation.
You came to the right place, as we will break this all down, allowing you to make an educated decision on which exchange to use!
Coinbase is probably one of the most popular and well-known exchanges in the world. It allows Canadian residents to buy Bitcoin using their debit card.
Unfortunately, Coinbase does not support Canadian bank transfers (EFT), and most credit card companies have been cracking down on credit card cryptocurrency purchases. This leaves debit cards as your only option.
If you are still interested in using Coinbase to buy Bitcoin with your debit card you will be charged 3.99% fees and have a $250 daily limit. Coinbase is a brokerage which functions slightly different than an exchange. On a brokerage, you are buying directly from Coinbase, as opposed to an exchange where another user sells their Bitcoin.
If a card is used to purchase Bitcoin on Coinbase, you will have instant delivery!
Coinmama is another great brokerage that allows Canadians to buy Bitcoin using their credit and debit cards. They charge around 5% on their purchases, and can sometimes be more when a credit card is used due to their payment processor. Coinmama has instant delivery on Bitcoin and cryptocurrency purchased.
Coinmama has a different way of selling cryptocurrency than most exchanges. They offer different packages, as well as allowing you to make your own.
Here’s an example of Coinmama packages.
One important thing to know about Coinmama is that upon purchasing Bitcoin, you will be prompted for an address to send the currency to. This shouldn’t be a problem, as you should be educated on Bitcoin wallets.
The most common payment method on Localbitcoins is cash deposits, making it one of the most convenient options for privacy. Localbitcoins requires you to meet a seller in person to facilitate the transaction.
In terms of fees, Localbitcoins charges 1% for the use of their escrow services.
MyBTC.ca is Canadian Bitcoin brokerage site that allows Canadians to buy Bitcoin with instant and same-day payment methods like Interac e-Transfer, Bank Wire, Instant Debit and Flexepin vouchers.
The exchanges buying limits range from $20 all the way to $100,000. The exchange requires ID verification that can be submitted online. This is usually approved within 1-hour. If you prefer to complete it yourself in-person you can, thanks to an agreement with Canada Post and their 4,000+ locations nationwide.
For support, the exchange is available through live chat, SMS text, phone or email. Lastly, in terms of fees, the exchange ranges from 4.75-7.75% depending on the payment method uses.
Coinbase Pro is Coinbase’s exchange, so both of these options are available in Canada. GDAX allows you to deposit balance using a debit card for those in Canada.
Coinbase Pro doesn’t have the most beginner friendly interface, but if learned might be one of the best exchanges to make your Bitcoin purchases on. GDAX is being relaunched as Coinbase Pro in the coming months, so don’t be surprised if you see a different name.
Coinbase Pro charges 0% fees on a limit order, and variable fees on market orders depending on your monthly trading volume. GDAX is the first exchange we’ve mentioned and has somewhat high volume providing good liquidity.
Kraken (review) is a popular exchange with a wide variety of trading pairs, including Bitcoin. Kraken has around .25% fees that can be decreased after having a lot of trading volume. The exchange also has decent limits that increase as your account’s verification tiers rank up.
Kraken like most exchanges requires your ID to be able to trade on the exchange. Their exchange doesn’t have the best user interface but can easily be gotten around after spending some time on the exchange.
Bitbuy.ca is a popular exchange in Canada that has been buying and selling digital currency since 2013.
After creating an account on Bitbuy you will need to fill out KYC. KYC stands for Know Your Customer and is a common practice that allows exchanges to operate within a countries regulations.
The standard fee for buying Bitcoin is 0.75% and the fee is 0.5% for selling. If you are doing a larger order, Bitbuy allows you to contact them to reduce the fee.
These fees are pretty low compared to other options, but where Bitbuy.ca makes their money is through deposits and withdrawals. Bank transfer deposits are typically .5%-2% fees while the fees for withdrawal are 1.75%-3%.
Changelly is an option too and is a shapeshifting service that allows users to select two currencies and have them swapped. They specialize in crypto to crypto transactions, but also allow users to use debit and credit cards to purchase cryptocurrency.
Changelly charges .5% fees on crypto to crypto transactions plus around 5% when fiat is used.
Bitcoin ATM’s are appearing more and more as Bitcoin’s adoption increases. Bitcoin ATM’s allow you to buy Bitcoin with cash. This is one of the more private options although there are typically 5% fees when used. Use this map to find Bitcoin ATM’s near you.
Virwox operates much differently than other cryptocurrency exchanges. Virwox is mainly used for the exchange of a video game currency Second Life Lindens. However, users can also trade Bitcoin, USD, EUR, and CAD for Bitcoin on the exchange.
Bitcoin Mining in Canada
Mining is another alternative to obtaining Bitcoin, but it is not recommended for most people.
However, if you are based in Canada, it may be profitable! Let’s find out why.
When mining cryptocurrency, you are using your computer’s power to solve cryptographic puzzles that are extremely difficult. In the event that your computer solves one, you are rewarded with Bitcoin!
Most people don’t mine because it is not profitable. You may be wondering, how is that possible?
This is because when mining, your device is using electricity that you are most likely paying for. So even if you earn Bitcoin for mining, the cost of electricity could cost you to go into the negatives!
Canada has some of the cheapest electricity in the world, meaning it may be profitable for you! Here is a useful tool which may help you decide if it is worth mining Bitcoin in Canada.
Frequently Asked Questions
What is the Best Bitcoin Wallet in Canada?
Unless for some reason you are unable to order a wallet to Canada, the best wallet in one country will be the same for the other. Similarly to buying Bitcoins, there is no best wallet, as there are several factors to decide on.
Luckily for you, we have a post comparing and contrasting the most common Bitcoin wallets the same way we did in this post!
What is the Best Exchange in Canada?
There is no exact answer, as depending on the payment method certain exchanges will be better than others. However, Coinbase and Kraken are two great options for buying Bitcoin in Canada.
When is the Best Time to Buy Bitcoin?
There isn’t necessarily the best time to purchase Bitcoin, as the price fluctuates often. Typically, it is best to buy when others are scared as you can get a great price.
Is Bitcoin illegal in Canada?
Nope! Bitcoin is owned by thousands of people in Canada. There are very few places where Bitcoin is illegal, and typically it has to do with certain types of transactions Bitcoin is used for.
The Canadian government has been relatively quiet on Bitcoin, which is a good sign. If they had any issues with it, they would have made it clear.
Can Bitcoin gains be taxed in Canada?
Yes, in most places Bitcoin is subject to capital gains and losses.