As a Canadian there are only a few sites where we can easily invest in the crypto-space. Fewer still where we can avoid exhorbitant fees of 2.5%-5% or higher.
As far as I am aware there are three sites Canadians can fund directly with CAD fiat currency and those are:
- Coinbase
- Coinsquare
- QuadrigaCX
I have accounts with all three, and have personally deposited CAD into the first two, but not QuadrigaCX. Since I have not invested through Quadriga I will only compare Coinbase and Coinsquare here today.
Introduction:
In this post I will attempt to provide some helpful advice about getting started in crypto, as a Canadian, through these three sites, and I will do my best to outline some of the pros and cons for each. And we will close with my final thoughts on which exchange is best and why.
Coinbase:
https://www.coinbase.com/join/59bbe24dd0e8a800f12e7b93
Coinbase is a bitcoin start-up that began in June 2012, with the intention of making it easy for non-technical people to acquire and utilise Bitcoin. Since then it has become the largest US exchange, and it reportedly registered 100,000 new users following the recent CME Bitcoin futures announcement, the article linked here has more info on that.
Coinbase has a lot of users for good reason, it is easy, quick and the user interface is wonderfully simplistic, particularly as compared to say to Bitfinex or even Bittrex. Having said that Coinbase has very high fees and annoyingly low weekly purchase limits.
Pros:
- easy
- quick
- secure
- small referral bonuses available
- Litecoin, Bitcoin, and Ethereum available here
Cons:
- small weekly limits
- annoying "know your customer" registration processes
- very high fees, 3.99%
(Follow link for detailed Fee information)
https://support.coinbase.com/customer/portal/articles/2109597-buy-sell-bank-transfer-fees
Coinsquare:
Coinsquare says of themselves: "We designed these services to make acquiring digital currencies easy, safe and secure for you. Servicing High Net Worth individuals, Family Offices and Institutions, we are here to help you understand the world of digital currency and the different coins available."
In my experience this site has been fast, cheap, and reliable. I recently used their Bank Draft fund account option, and I was pleased with the speedy availability of those funds as well as the minor 0.25% fee. I deposited $4,800 CAD and it was in my account within 4 business days of me mailing it to their PO box.
They do have multiple other funding options however the bank draft option is the lowest fees with a fairly large investment limit, you can use this option for investments over $1,000 CAD and up to $9,000 CAD.
https://coinsquare.io/fund/bank_draft
Once the funds are in your Coinsquare account you can buy many different coins including:
- Bitcoin
- Litecoin
- Ethereum
- Dash
- Bitcoin Cash
- Doge
- and a few others
The only drawback I can see with this exchange is that once the funds are in your account they hold them for 7 days. You can use them to buy coins on their exchange during that hold period, but you cannot withdraw yet, till the 7 days are up. After the 7 days are over you can withdraw easily to a wallet or another exchange.
Pros:
- very low fees with Bank Draft deposits
- fairly quick
- transactions on their exchange return a small dividend in the form of their SquareCoin (CSC), its not much but its free.
Cons:
- investments less than $1,000 CAD have higher fees
- 7 day hold period on new funding
Summary:
In summary I would say that the two best options for Canadians getting started in crypto-currency are either Coinbase or Coinsquare. Coinbase is safe, easy and quick, but the fees are very significant and the weekly limits are too small for me personally to use them more regularly. Coinsquare on the other hand is cheap, fast and effective, and while it is annoying to have to go to my bank and pay for a bank draft and wait for the mail to deliver that draft to Coinsquare, this pros for this option far out weighs cons.
Conclusion:
If I were just getting started in the crypto-space and I wanted to invest a couple hundred dollars in Bitcoin, Litecoin or Ethereum I might just eat the higher fees and buy through Coinbase because its instant, after you link your Visa/Debit bank card, but if you want to invest more than $1,000 CAD the 3.99% fees definitely make it worth your time to go through a bank draft and Coinsquare.
I use both exchanges. I use Coinbase for a monthly reinvestment of $100.00 in BTC, while I use Coinsquare for my more major investments. I would encourage anyone who is asking to do the same.
In passing I will mention that there are other options, Bitcoin ATMs, or QuadrigaCX, but the fees with the ATMs are really bad and QuadrigaCX is not something I have personally used so I have left it out of this conversation for now.
I hope this has been helpful, as always if you appreciate the content please up-vote, comment and I hope you have a blessed day.
There are some other exchanges I have a little familiarity with but none of which I have directly funded with CAD. QuadrigaCX is one worth considering if you are a Canadian funding with CAD, however I would still prefer Coinsquare all things considered.