If you have been following the cryptocurrency news sincerely, you have probably noticed the meteoric rise of bitcoin throughout the pandemic, continuing in 2021. Even though the world seems to be shrouded in suspicion regarding cryptocurrency, the tides have started turning.
Every day new investors are entering the market and adding bitcoin and digital currency alternatives to their investment portfolios. The long-term value of the cryptocurrency has been predicted to be certain. Therefore, if you’re looking to buy and sell cryptocurrency, now is the best time.
Here is a complete guide on how to invest in cryptocurrency in Ontario, Canada. Read on!
What is cryptocurrency?
In layman’s terms, a cryptocurrency is one of the accepted digital currencies that can be used to make transactions between various parties. It is used as a way of exchange and is secured using cryptography.
Investors invest in cryptocurrency as a means of passive income. Cryptocurrencies operate on blockchain and are decentralized; they are not tied to any country’s national bank.
Presently, the most popular cryptocurrency is Bitcoin, followed by Ethereum. Several other alternative cryptocurrencies have followed in their wake, including Binance coin, Ripple (XRP), Tether (USDT), Litecoin (LTC), Cardano (ADA), and so on.
If you are wondering where you can use cryptocurrency, there are many options. One way to spend cryptocurrency is to connect it to your debit card. This way, you can spend it like cash to make transactions.
Another way you can spend cryptocurrency is through online casinos. These specific casinos allow participants to make payments through cryptocurrency, and you can then exchange your winnings for real money. Since crypto is a new mode of payment, only some Ontario online casinos exchange crypto. Before betting on online casinos, make sure it is valid and legal and has the necessary licenses.
At the moment, the hype for trading cryptocurrencies like Bitcoin and Ethereum is high. You need to be cautious and tread cleverly when it comes to cryptocurrency.
Keep in mind that cryptocurrency prices have no intrinsic value apart from the faith placed on them by the investors and traders. Besides, just like you could make a fortune investing in cryptocurrency, you can also lose it all.
Best Cryptocurrency Trading Platforms in Canada
To help you get started, we have compiled a list of Canada’s best cryptocurrency trading platforms.
Based out of Toronto, Coisnmart was initially founded in 2018. It offers investors access to more than 11 accepted cryptocurrencies. Coinsmart also provides multiple ways to fund your account, including the use of credit and debit cards.
If you are a beginner in the world of crypto trading, Coinsmart has a user-friendly interface, and your account will be officially verified within minutes of registering. You also get a $20 welcome bonus. The crypto exchanged through this app is kept in cold wallets, which use bank-level security to protect your money and account.
The coins offered are bitcoin, Litecoin, Ripple, Ethereum, EOS, NEO, Stellar, Cardano, etc. The fees are 0.20 percent to trade coins and 0.40 percent for double trades. Bank draft deposit and bank wire are free of fees.
National Digital Asset Exchange, commonly known as NDAX, is a Canadian cryptocurrency exchange that operates out of the Calgary region. NDAX offers a decent amount of CAD to crypto pairs and can be accessed through the computer or smartphone.
NDAX has instant verification and has the lowest fees you will find in Ontario, Canada. The coins offered are Bitcoin, Ethereum, XRP, Dogecoin, USDT, LINK, Stellar, Cardano, Matic, Compound, and many others. Funding options include bank draft, cheque, wire transfer, and Interac e-transfer.
The fee is 0.20 percent if you want to buy and sell crypto and $25 CAD if you withdraw using a direct bank deposit. Users also receive a $10 welcome bonus.
Presently, Binance is the biggest cryptocurrency exchange platform in the world. Apart from being one of the most trusted platforms, it offers trading options in more than one hundred cryptocurrencies and has millions of registered users across the globe.
Binance offers more than 300 crypto coins, and funding options include credit and debit cards, bank transfers, etc. The fees are 0.1 percent for crypto trades at the entry-level membership. Users also get a 25 percent discount on fees if they use BNB or Binance coin.
Binance keeps most of its coins in cold wallets; therefore you won’t have to worry about the safety of your funds.
Newton also supports more than 40 cryptocurrency coins and is verified for use in Canada. It was founded in 2018 and is known as one of the most beginner-friendly cryptocurrency exchange platforms.
The coins offered include Bitcoin, Ethereum, Solana, Ripple, Ox, Enjin Coin, Polygon, Balancer, Dai, etc. You can fund your account through bank transfer, wire transfer, Interac e-transfer, and crypto deposits.
You will have to pay a transaction fee of 0.70 percent every time you buy or sell coins. You also receive a promotional bonus of $25 when you trade $100 worth of crypto.
Last but not least, there is MogoCrypto. MogoCrypto is essentially a bitcoin trading app operated by Mogo, a financial technology company traded on the Toronto Stock Exchange.
MogoCrypto only offers Bitcoin transfer, and you can only fund your account through Interac e-transfer. There is a one percent fee on buy and sell, and it may also include other additional fees. Mogo is a FINTRAC regulated company, and they store about 95 percent of their Bitcoin in cold storage.
Cryptocurrency Regulations In Canada
Note that before you start trading cryptocurrency and enter the market, you must be familiar with all the rules and regulations set by the Canadian government.
Canada was the first country that approved AML-related regulations of cryptocurrency service providers. These exchanges are regulated in the same way as all money service businesses. But, they are regulated under several provincial security laws to protect Canadian citizens.
The Canada Revenue Agency has been taxing cryptocurrency exchanges since 2013, and many Canadian tax laws apply to crypto-based transactions.
Cryptocurrencies are not an acceptable legal tender in Canada. They can only be used to buy and sell goods and services online or in stores that expressly accept them.