When choosing a Canadian cryptocurrency exchange, it’s important to consider a variety of factors like deposit methods, ease of use, coin selection, fees, app rating, security customer support, and reputation overall.
Deposits Methods
When picking a cryptocurrency exchange in Canada to buy digital assets, you want to make sure that they offer a few deposit methods and accept CAD.
Global popular crypto exchanges such as Coinbase and Binance may offer the ability to purchase crypto with your Canadian debit or credit card, however, this will often come with a hefty exchange rate fee. You can therefore bypass this and get your crypto as cheaply as possible by using a Canadian-based cryptocurrency exchange that allows Interac e-Transfers.
Ease of use
It’s important to find a cryptocurrency exchange that makes the process of trading crypto as easy and intuitive as possible. Some reputable exchanges have advanced interfaces with charts and order books that might be suitable for seasoned investors, but anybody new to crypto might find those tools overwhelming. A simple cryptocurrency exchange platform that is beginner-friendly will give you confidence that you’re making the right moves.
Coin selection
Perhaps you’re only interested in trading Bitcoin and Etheruem. After all, these two coins hit the headlines the most. However, if you’re looking to trade altcoins, perhaps for short-term profits and day trading, then you’ll need to find a Canadian crypto trading exchange that offers more than just Bitcoin and Ethereum. Consider the trading pairs that crypto exchanges offer for Canadians. For example, you might want to trade your XRP to Cardano, but that pair might not be available meaning you would need to first convert your XRP to Bitcoin, then buy Cardano with that Bitcoin. For simplicity and cost-effectiveness, find a cryptocurrency exchange platform that offers the trading pairs you think you’ll need.
Fees
There are several types of fees to consider when choosing a Canadian cryptocurrency exchange. Some popular crypto exchanges offer free fiat deposits and withdrawals and others don’t. On top of that, you’ll need to pay transaction fees when you buy crypto with fiat, buy crypto with another crypto, or sell crypto for fiat. You’ll also be charged a fee when you withdraw crypto off the exchange to a wallet. These fees cover the mining costs which include validating your transaction and adding it to the blockchain.
Popular cryptocurrency exchanges will also take a commission from trades, which means they will incentivize you with lower fees the more frequent and higher your trades are. Most top crypto exchanges in Canada will have a full list of their fees on their website.
App
A cryptocurrency exchange that has its own app may or may not be important to you. If it is, you’ll want to find one that has a simple interface that makes trading on the go a breeze. Be sure to read reviews of the app and make sure that the exchange has released multiple versions - it means they continuously fix bugs and keep it up to date. The last thing you want is an app that is at risk for a security breach. Watch out for crypto exchanges that only have an app for iPhones or Androids but not both. Make sure you sign up for an exchange that has an app compatible with your phone.
Customer support
Good customer service is imperative when it comes to the best cryptocurrency exchange platforms. Some Canadian exchanges will only offer email support, while other will offers support via phone, email, live chat and social media. Things can go wrong when trading crypto. You could be locked out of your account, or a deposit might not clear, or your verification process might have failed. Whatever happens, you’ll want peace of mind knowing you’re with an exchange that takes their customers’ technical issues seriously. Try to find a Canadian crypto exchange that offers 24/7 support in multiple forms.
Security
Security is one of the most important things to consider when choosing a cryptocurrency exchange. You’ll want to find a cryptocurrency exchange that utilizes a cold storage system, which means to store coins offline and therefore less likely to be stolen by hackers. Some of the best Canadian exchanges will be insured for losses. For example, Wealthsimple’s coins are held by Gemini Trust Conmpany LLC™ with $200M in insurance coverage. The safest exchanges for Canadians will require you to go through a Know Your Customer (KYC) verification process when signing up. If the exchange requires you to submit identity documents then you know they are fully compliant and take money laundering and fraud seriously. These verification steps ensure your privacy and security.
Reputation
If they’ve been around long enough, most cryptocurrency exchanges in Canada will have customer reviews. Read some reviews and get a feel for what these crypto trading platforms are good at and what their customers like and dislike about them. If an exchange has more bad reviews than good ones, then it’s probably best to stay away. Ask people in local communities on Facebook or Reddit.
What’s the best way to buy crypto in Canada?
There are a few different ways to buy crypto in Canada, and the best method for you will depend on your needs and preferences. If you're looking for the simplest and easiest way to get started with buying crypto, then using a Canadian crypto exchange like Coinsmart is probably your best bet. Ultimately, it's up to you to decide which method is best for you. If you want to know more ways, check our big article on how to buy bitcoin and other cryptocurrencies in Canada.
How Crypto Exchanges Are Regulated In Canada?
While cryptocurrency laws and regulations are still being ironed out, Canada has acknowledged its growing use and has published official guidance for clarity. For example, you must disclose certain cryptocurrency transactions in your tax returns. In Canada, cryptocurrencies are regulated under securities laws and they are not considered legal tender.
Which crypto exchange has the lowest fees in Canada?
There are a few different crypto exchanges that are popular in Canada, and each one has its own fee structure. Some exchanges charge higher fees for certain trades, while others have lower overall fees. You might think that Shakepay or Newton have the lowest trading fees in Canada because they are advertised as "no-fee exchanges". In fact, you pay high spreads on your crypto trading activities. After careful research, our team found out that Coinsmart is the lowest trading fee cryptocurrency app in Canada with only %0.2 trading fees and free deposits over $2000.
What’s the best altcoin exchange in Canada?
The most reputable exchanges with the biggest selection of altcoins for Canadians are Uphold (offering over 50 altcoins) and Newton (offering over 40 altcoins).
Conclusion
Not all cryptocurrency exchanges are perfect, but if you keep these factors in mind, you’ll be able to find one that suits your wants and needs.
