Canadians are known for a lot of things;
Cold weather, hockey, excessive apologies, and now...Crypto-Fever.
In the past month I have been bombarded by fellow Canadians with inquiries on how one can purchase Bitcoin and other Cryptocurrencies while still having the piece of mind knowing that the funds invested are onshore, liquid, and safe.
Thus, I put together this quick guide so you can safely and painlessly purchase Cryptocurrencies from the comfort of your insulated igloo.
NOTE: This guide does not concern itself with an explanation of "what" Bitcoin, Blockchain or Cryptocurrencies are, but is rather focused on "how" one can start investing. For those that still want to learn more about the "what" of Bitcoin, Blockchain and Crypto, I encourage you to visit these links:
Bitcoin.com Guides
Coinsquare Learn
CoinMastery YouTube Channel
Up-to-the minute prices in Canada & Canada Crypto News, visit the Canadian Bitcoin Index
*If you are ONLY interested in purchasing Bitcoin and/or Bitcoin Cash, skip this guide and go to Ntrust and use the code gar118 when signing up to get invited to their beta. It is hands down the best option if you are canadian and only intend to buy, hold, and sell when needed. *
Step One: Get your Verification Documents in order
All exchanges I mention will require verification. To make the process as quick as possible, make sure you have your banking information (A Void Cheque + Branch #) as well as a piece of Government Issued photo ID that is not expired. There are ways to get around this initially for your first buy-ins but in the long run you will want to have your identity linked to the account in the case of getting locked out, hacked, etc.
Step Two: Pick a way to buy-in
When it comes to Canadian exchanges that easily integrate with the Canadian banking system, there are three, each of them bringing their own pro's and con's:
1.
Ntrust is my go-to application due to its simplicity, liquidity and non-existent transaction fees. Ntrust makes it hilariously simple way to buy and sell Bitcoin and Bitcoin cash and its existence effectively discredits any people who claim that it is "complicated" to enter the Crypto space. Ntrust currently has no fees and sending any of their supported currencies to another Ntrust member is completely free. They also currently have a card in development & a "pay bills" feature which will make it even easier to spend your Ntrust funds.
| Currencies Supported | Cryptocurrencies Supported |
|---|---|
| CAD, USD | Bitcoin, Bitcoin Cash |
| Funding Options: | Processing Time | Fees |
|---|---|---|
| Interac Instant (only major Canadian Banks) | Instant | None (yet) |
| Add as a payee for Online banking | 1-2 Business Days | None |
| Bank Transfer | 5-7 Business Days | None |
| Withdrawal Options | Processing Time | Fee |
|---|---|---|
| Direct Deposit | 1-3 Business Days | None |
| Pro's | Cons |
|---|---|
| Zero Fees - still in Beta Mode | Limited Fiat/Crypto Options |
| No minimum deposit, buy/sell, withdrawals | Limited funding/withdrawal options |
| Simple UI and App - Perfect for beginners | Verification issues for some. However, customer service is easy to reach. |
| Fast Liquidity | Arbitrage can sometimes be to the buyers disadvantage due to lower trade volume |
| $2 Per Referral |
2.
Coinsquare is the most versatile out of the three platforms. Offering Several Different buy-in and cash out options, as well as the largest onshore selection of Cryptocurrencies, foreign currencies, and precious metals, so it can serve as a one stop shop to hedge your crypto investment risk. Coinsquare also has a News Section, Educational Section, Currency Conversion Tool, as well as premium "Concierge" and "Diamond" user Tiers for more affluent users.
| Fiat Currencies Supported | Cryptocurrencies Supported | Precious Metals Supported |
|---|---|---|
| CAD, USD, GBP, AUS, EUR | Bitcoin, Bitcoin Cash, Dogecoin, Dash, Litecoin, Ether | Silver Coins, Silver Bars, Gold Bars |
| Funding Options: | Min./Max Deposit ($CAD) | Processing Time | Fees |
|---|---|---|---|
| Interac Online | 100/3,000 | Instant | 2.5% |
| Interac E-Transfer | 100/3,000 | 1-5 Days | 5% |
| Flexepin Voucher | 20/500 | Instant | Included in Cost |
| Bank Draft | 1,000/9,000 | 1-3 Days | 0.25% |
| Money Order | 100/1,000 | 1-3 Days | 0.25% |
| Wire Transfer | 10,000/300,000 | 0-3 Days | 0.5% |
| Withdrawal Options: | Min./Max Withdraw ($CAD) | Processing Time | Fees |
|---|---|---|---|
| Interac e-Transfer | 100/2,000 | Currently Unavailable | 5% |
| Direct Deposit | 100/9,000 | 1-9 Days | 1% |
| Wire Transfer | 10,000/100,000 | 1-9 Days | 0.5% |
| Pros | Cons |
|---|---|
| Great Fiat/Crypto Selection | Long wait for verification |
| Nice UI Layout and features | High Fees for smaller Deposits/Withdrawals |
| Lots of Fiat/Crypto Pairs | Lower Trade Volume (Arbitrage) |
| High Referral Reward ($50) | Unresponsive Customer Service |
Although Coinsquare is rapidly developing I have since deserted it because customer service has not responded to my support tickets from 4 weeks ago to disable 2 factor authentication. Considering I am a fully verified user on the platform, I expect better than that. I have also defnitely referred two new users and have yet to receive my compensation for referring them. I assume these problems will eventually be fixed as they handle their scaling issues.
Quadriga is also going through a huge boom of users but they seem to be dealing with the growth better by remaining more minimal. As the largest Canadian exchange, they take up 61% of daily BTC/CAD trade volume. Their approach seems to be on security and stability, rather than trying to rapidly add new features. Although I am not currently a user of the platform I have heard good things from friends who do use it. Their interface is more exchange-like than Coinsquare or Ntrust and their fees are relatively low.
| Fiat Currencies Supported | Cryptocurrencies Supported |
|---|---|
| CAD, USD | Bitcoin, Bitcoin Cash, Bitcoin Gold, Litecoin, Ether |
| Funding Options: | Min/Max Deposit ($CAD) | Processing Time | Fees |
|---|---|---|---|
| Electronic Funds Transfer | 250/10,000 | 1-5 Days | 2.5% |
| Interac e-Transfer | 2,000/5,000 | 1-2 Days | 2% + $5 |
| Interac Online | 50/2,000 | Instant | 1.5%, min $5 CAD |
| Bank Wire | 100,000/500,000 | 1-5 Days | 1% |
| Crypto Capital | 500/500,000 | Next Business Day | Free |
| Voucher | 5/5,000 | Instant | Free |
| Pros | Cons |
|---|---|
| Highest Canadian Trade Volume (61%) | If you don't have Interac Online, you need minimum $250 Buy-In. |
| Positive Customer Reviews | Limited Currency Offerings |
| Strong Security Regime |
Quadriga seems to be the platform for the real traders amongst us and I look forward to seeing the platform grow. Although I am currently using other, offshore platforms for most of my trading, I do plan on repatriating my funds over to Quadriga when the volume is sufficient enough to avoid large price swings.
Although this article covered Canadian exchanges, two other credible options worth exploring for Buy-Ins are Coinbase (4% Credit Card Buy-Ins Only) and Kraken (Offshore, but fully insured).
Conclusion
Depending on what your priorities are, each of these three platforms offers a fairly different experience. Ntrust is for beginners, Coinsquare for people who want to get their feet wet with other exchanges, and QuadrigaCX for the more experienced trader who appreciates more technical analysis. No matter which way you decide to go, I always recommend diversifying your portfolio of currencies and exchanges. 2018 is poised to be a huge year for CryptoCurrencies, but as the Bitcoin VS Bitcoin Cash debacle continues, it is going to be interesting to see how things pan out. Like always, do your research & don't invest what you can't afford to lose. Also, always have an exit plan and stick to it, and do your best to avoid allowing you emotions into your decision-making. The Crypto markets are extremely volatile, and one must accept the crashes when they come (and they will).
When it comes to moving your funds, the process is quite simple, but if you are moving Bitcoin, the fees can add up. Thus, I recommend to keep your Bitcoin holdings on Ntrust so you can send and receive it for free within the Ntrust network. Right now Bitcoin Cash is by far the most economical way to move money and every exchange now supports it. Just make sure to always double check when sending money that the wallet address is for the right currency (dont confuse Bitcoin and Bitcoin Cash!) and that you dont miss any characters.
Now, in the spirit of transparency, I will disclose my buy-in/cash-out process:
- Buy In through Ntrust with bank account (as payee) (BTC/BCH) or Coinbase (for LTC/ETH) and then send to my portfolios to either Binance, Kraken, or Bittrex
- Hedge every buy-in with BTC reserves to hold on to on Ntrust (just in case)
- When cashing out, I convert all funds to BCH, send to my Ntrust, Sell the BCH and withdraw to my bank account. This Only takes one business day, two at the most.