Best crypto exchange in Canada: Here are the top contenders

Highlights

• Cryptos are volatile, but at the same time they reward users that invest in them at the opportune time
• A few exchanges are headquartered in Canada, while others have global operations
• Not all crypto assets are listed on all exchanges, and users must exercise caution while picking one

Trading in cryptocurrencies gained traction across the world in 2021. Canadians have jumped onto the bandwagon in record numbers, and the TSX-listed stocks found a formidable competitor in crypto assets like Bitcoin and Dogecoin.

Though the traditional stock market gives options to passively invest in cryptocurrencies through ETFs, direct investing has its own charm -- and also a few underlying risks. Risks aside, here are the top three crypto exchanges in Canada that investors can use to bet on these volatile assets.

Also read: Next cryptocurrency likely to explode in 2022

1. Bitbuy

Bitbuy may not be as popular as the other two that feature in the list, but it brings its own advantages.

Pros

First, the Bitbuy exchange is headquartered in Toronto. This means that the entity must comply by local regulations and compliances.

Second, Bitbuy users can avail the security features provided by the Bitbuy exchange in the form of 95 per cent cold storage, which means holding the tokens in offline mode, and Bitcoin Insurance, which was achieved by partnering with Knox insurance to cover theft and loss risks that ail the crypto world.

Third, Bitbuy offers a choice to pick from two different accounts – Express and Pro – according to the preferences of the user.

Cons

As of now, Bitbuy offers trade in only a limited number of crypto assets. These eight assets include the popular Bitcoin, its nearest rival and second largest crypto Ether, AAVE, and LINK. Popular cryptos like Dogecoin, Shiba Inu, and Axie Infinity cannot be traded using Bitbuy crypto exchange.

Also read: Top cryptos by market cap that ruled in 2021

2. Coinbase Canada

Coinbase is a global crypto exchange, and one of the most popular with regular mentions in international media.

Pros

First, Coinbase is a global entity, listed on NASDAQ, which brings it under the regulatory oversight of the stock exchange.

Coinbase scale of operations makes it a leading exchange with regular updates of its user interface. It also has a feature where users can earn cryptocurrency rewards by watching the educational and informative videos uploaded on the platform.

Lastly, users can also participate in the staking process, which means being a validator in the network and earning more crypto tokens.

Cons

Regulatory crackdown on crypto exchanges anywhere in the world has a major impact on the operations of global exchanges. For example, the crackdown in China resulted in a fall in Coinbase bonds. 

Data provided by CoinMarketCap.com

Also read: Explained: Cryptocurrency categories – DeFi, NFT, Metaverse

3. Binance Canada

Another major global cryptocurrency exchange, Binance has the largest number of cryptos listed on its trading platform. The dominance of Binance is so high that any crypto that it lists undergoes a surge in the price levels.

Pros

Binance provides an opportunity to trade hundreds of crypto assets including meme currencies and games based on blockchain technology.

Binance allows users to take out crypto loans, besides allowing staking like it is available in Coinbase

Binance also has its own blockchain project with the native Binance Coin or BNB. Its blockchain network is used by many other blockchain projects, which adds to the credibility of the exchange.

Cons

Binance exchange had a rough ride in 2021. It halted its services in Ontario after a regulatory crackdown. However, it allowed users to exit the platform smoothly.

Apart from the above three, Coinberry Canada, another Canada-headquartered exchange, and Kraken are two other popular crypto exchanges in Canada.

Also read: Is Bitcoin better than gold as hedge against high inflation?

Popularity of cryptocurrencies

The total market cap of all cryptocurrencies is over US$2 trillion. The market cap of Bitcoin makes it one of the top ten assets in the list topped by Apple. Bitcoin, Ether, Dogecoin, Axie Infinity, and Solana are some of the major cryptos that have gained in 2021.

Bottom line

Just like picking any favorite cryptocurrency, picking the best crypto exchange in Canada is a matter of individual choice. Risks ail the volatile crypto market; however, returns of cryptos that provide a perfect hedge against inflation cannot be overlooked. This makes cryptos and exchanges that support their trade a close watch as we enter 2022.