One of Canada’s primary advantages is the low rates offered by many bitcoin exchanges operating there. Sure thing, when it comes to best crypto exchanges most options offered by platforms are similar. However, tight research helps to find differences between the best crypto exchanges 2020 and make the wisest possible choice. With that in mind, we are going to review Canadian trading platforms.
Crypto Exchange Tips for Canadian Snowbirds
- Set a Goal: A common mistake investors make is entering the market without a plan. Investing is a serious business that requires a lot of time and effort. All of a person’s efforts and time should be focused on achieving realistic and worthy goals. It will also take time to reach your goals, whatever they may be, so be patient. Do not expect to get rich overnight.
- Get a Cold Wallet: This valuable tip applies to people in any country: get a cold wallet. It is possible to get a cloud wallet, but it is not as secure as a wallet disconnected from the internet. Such wallets are harder to hack into than cloud wallets.
- Diversify: Bitcoin is the most prominent and valuable cryptocurrency available, but there are other coins out there, such as Litecoin and Ethereum. These currencies are also valuable, and they will lower trading risks significantly. Traders should also invest in stocks, commodities, etc.
- Research: Traders should constantly dedicate time to reading the news and speculating on how current events will influence coin prices. They should also regularly check coin prices and look for initial coin offerings (ICOs).
- Choose Something in Canada: Canadians are better off choosing a Canadian exchange or a foreign exchange with offices in Canada. Doing so will make it easy to follow all applicable laws and regulations. It also makes it easier to file or answer a lawsuit if there is ever a dispute.
Factors to Consider Before Choosing Any Crypto Exchange
- Security: Canada is notorious for the QuadrigaCX scandal, in which the founder Gerald William Cotton died under mysterious circumstances. When he died, the keys for his customers’ accounts could not be found, and investors lost millions. This is an example of why crypto investors should make sure an exchange allows customers to hold their keys. The exchange should also have two-step authentication and security protocols in place to protect users from hackers.
- Transparency: One of the signs of a fake exchange is a lack of contact details. A legitimate exchange has an address, phone number, and email address. Also, check the exchange’s social media accounts. Real exchanges regularly post on social media and interact with their customers. Check its accounts and see how often they post. Contact the company and gauge how responsive customer service is. The company’s customer service should be straightforward and not evasive.
- Coin Availability: Some exchanges provide only the most popular coins, but there are many more excellent investment opportunities. Choose a trading platform that has many coins, not just a few chosen.
- Ease of Use: An exchange should be easy to use and navigate. Poor user experience increases the chances of making a mistake.
- Trading Fees: Look at and compare the fees of different exchanges. A trader might as well choose a platform with the lowest possible fees.
The Best Crypto Exchanges for Canada
Even though Godex is not a Canadian trading platform, it is still worth considering as an option. They offer a secure and anonymous exchange that is fast and easy to use, taking five to 30 minutes for an order to be executed. Additionally, they have more than 200 coins available on their service. Canadian customers have a high opinion of them, too, which is clear from a 4.9 rating on TrustPilot.ca. This could soon become one of the best crypto exchanges for traders in the world. The only disadvantage of choosing this exchange is that they do not have an address or phone number listed, only an email. However, they respond to all inquiries and have a fast response time.
Coinberry is a Toronto-based trading platform that is one of the most innovative in the country. They have some of the lowest trading fees in the country, but they have some of the highest prices in Canada. One area in which they have stood out is community involvement. They have partnered with towns in the area to allow property owners to pay taxes in cryptocurrency. It can take some time to make deposits or withdrawals. Expect these processes to last two to three days.
Ndax has headquarters in Calgary, and they were recently founded. This platform is excellent for experienced traders because it provides enough information to deeply analyze the market and currency prices. They have low trading fees and live customer support available by phone. An email is also an option. However, they have high fees for withdrawing fiat currency.
Kraken is an American firm, but they have offices in Halifax and are FINTRAC registered. The advantage of choosing them is that they have small fees and are among the best crypto exchanges for margin trading in Canada. The only disadvantage is that funding options are limited.
Quebex stands out from other trading platforms because it is a peer-to-peer exchange. They facilitate transactions and make deposits directly to the wallets of their customers. Among their disadvantages, we can mention a limited number of coins on their platform, and a 24-hour trading limit set in place.
Bitvo is another Calgary-based exchange. They are a fast exchange capable of finalizing transactions within 24 hours. There are no trading or deposit fees, and there is only one percent fee for withdrawal.
Bitbuy is an easy and intuitive in use platform, which makes it a candidate to be the best BTC exchange Canada residents can assess. They have eight cryptocurrencies available, giving users a range of options. Users can use a credit card, wire transfers, and other types of transactions. Bitbuy offers low fees, and they do not charge customers for making withdrawals or deposits.
FAQ About the Best Crypto Exchanges for Canada
Which Is the Best Crypto Exchange?
There are many factors to consider when figuring out which is the best Bitcoin exchange in Canada. When it comes to fees, Bitbuy, Quebex, and Coinberry are excellent choices. In terms of the speed of transactions, Godex is a candidate to be the best. Godex takes up to 30 minutes to process a transaction, and there are not many trading platforms that can compete with those speeds.
Is Crypto Trading Legal in Canada?
Crypto trading is legal in Canada. Companies that use cryptocurrency are required to register with FINTRAC. They also have to maintain records and have compliance programs in place at all times. Additionally, they are required to report suspected criminal activity. Canadian banks refuse to have a relationship with businesses that use crypto if they are not registered with Fintrac.
Digital currency dealers are regulated as money services businesses. Businesses are classified as such if they deal in digital currencies and are located or have offices in Canada.
What Are the Safest Cryptocurrency Exchanges?
All exchanges mentioned here are secure. Bitbuy, for example, uses cloud providers and several disaster recovery servers together with two-factor identification for logging in and executing trades. Employees and users have to use this log-in process to enter the system. Another innovative security feature is Bitvo’s cold wallet system. The cold wallets are kept with a third-party, and they can only be accessed upon confirmation by several different people. Secondly, all cold wallets are backed in secondary facilities. The vast majority of customer funds are kept in cold wallets.
How Do I Trade Bitcoins in Canada?
Bitcoin and alt-currencies are traded in Canada in the same way as anywhere else. People go on exchanges and execute trades when they feel it is appropriate. Canadian traders only have to worry about local laws and regulations, as well as taxes. Cryptocurrencies are taxed in Canada and are treated as business income or capital gains, and losses are factored in when taxes are paid.
Final Thoughts About Best Bitcoin Exchange Canada
The best thing about trading cryptocurrencies in Canada is that there are so many options from which to choose. This gives Canadian crypto traders options and opportunities that are hard to find in other countries. What has helped the development of crypto exchanges in Canada is the existence of a clear regulatory framework in the form of FINTRAC. Secondly, many of these trading platforms have very low fees, allowing traders to make more money than they could on other platforms.