How to Sell Crypto in Canada in 2022

With Bitcoin coming leaps and bounds last year, many Canadians have been heavily investing in the cryptocurrency industry. Investors gain exposure by buying and holding crypto-assets such as Bitcoin, Ethereum, Ripple, etc. for future gains. Of course, when the price rises, it might be time to sell — how exactly is that done?

How to Sell Crypto in Canada

Today, we provide insights into how best to sell your cryptocurrencies, the level of expertise you require to trade cryptocurrencies and crypto investment, and how you may identify a suitable crypto exchange in Canada.

Do I Need to be an Expert to Use Crypto?

Absolutely not.

Several exchanges offer relevant trading guides to cryptocurrency users and some even offer a step-by-step guide on how you may purchase and sell your crypto assets using fiat currencies.

Although cryptocurrency trading requires a level of skill, many Canadian crypto investors hold crypto assets for the long term with the prospect of making huge returns.

Hence, the key thing is to identify a great exchange platform with a beginner-friendly interface and user experience you are comfortable with and be on your merry way to becoming an expert.

How to Sell a Large Amount of Crypto

Exchange withdrawal limits and unwanted scrutiny from crypto regulators are the biggest challenges to “cashing out” large amounts of digital assets.

Mostly used by corporate organizations, over-the-counter (OTCs) brokerage services such as Bitbuy and NDAX are best suited for larger transactions. OTCs are, technically speaking, advanced peer-to-peer crypto trading conducted by a brokerage service on behalf of two or more interested parties, offering more trade anonymity to minimize slippage, help bypass withdrawal limits imposed on crypto exchanges, negotiate bank policies to avoid freezing your account upon withdrawal and organize taxes for such huge crypto transactions.

Platforms with an OTC desk are your best way to sell huge amounts of crypto assets.

How to Choose the Best Way to Sell Crypto

This is dependent on some factors and your conditions for cryptocurrency trading.

Factors such as the type of cryptocurrency you want to sell, the cryptocurrency exchange transaction fee, the speed of the transaction, preferred payment option,  etc. are crucial to identifying your best method of sale. 

The supposed answers to these “crypto questions” would provide a solid guide in your decision to trade via either a brokerage service, a peer-to-peer platform, or withdrawal from a crypto machine(e.g a Bitcoin ATM) using a debit card.

The Best Exchanges to Sell Crypto in Canada

Having learned a little more about crypto investments, we have compiled a list of popular exchanges where you can trade your cryptocurrencies in Canada.

1 CryptoWallet

CryptoWallet Apps

CryptoWallet offers the ability to buy, sell and hold cryptos in a secure exchange wallet with a unique feature that supports spending your crypto on the go.

You can sell crypto and wire the money to your bank account or simply withdrawing crypto as cash from a Bitcoin ATM via a bank card in real-time. Earn passive income by signing up new users, open an IBAN and pay your bills in crypto, and much more!

To learn more and order your crypto debit card, download the app here.

  • Best for: Spending crypto as real money
  • Cryptocurrencies: BTC, ETH, LTC, XRP and USDT
  • Fees: Fees vary based on trading activity
  • Rating: 5 star
CryptoWallet Tablet Screenshot
CryptoWallet Mobile Screenshot
CryptoWallet Desktop Screenshot

2 Bitbuy

Arguably the most established Canada-based cryptocurrency exchange, Bitbuy offers two trading modes for basic and advanced traders respectively, alongside an OTC desk.

  • Best for: Beginners and professional traders alike
  • Cryptocurrencies: BTC, ETH, EOS, XLM, BCH, LTC, and XRP
  • Fees: Makers – 0.1%, Takers – 0.2%
  • Rating: 5 star

3 CoinSmart

With a presence in over 15+ countries worldwide, CoinSmart is a Canadian exchange with high trading volumes and a simplistic user interface

  • Best for: BTC/CAD transactions
  • Cryptocurrencies: 9 cryptos including Bitcoin
  • Fees: Makers – 0.1%, Takers – 0.6%
  • Rating: 4 star

4 Binance

Ranked the no 1 biggest exchange in the world according to CoinMarketCap, Binance is a leading exchange in the crypto market with low fees. A downside, however, is the lack of customer support which has led to multiple lawsuits and even protests by its users.

  • Best for: Low-fee trading for altcoins
  • Cryptocurrencies: Over 290 cryptocurrencies including BTC, ETH, XRP and USDT
  • Fees: Makers – 0.1%, Takers – 0.1%
  • Rating: 4 star

5 KuCoin

KuCoin offers a wide range of cryptocurrency trading pairs and advanced trading features. It is not available for use in the U.S. Users should be aware that KuCoin was hacked in 2020.

  • Best for: Less commonly-traded crypto pairs
  • Cryptocurrencies: 300+ cryptocurrencies including Bitcoin, Ethereum, LiteCoin and USDT
  • Fees: Makers – 0.1%, Takers – 0.1%
  • Rating: 4 star

6 Bitfinex

Operating out of the British Virgin Islands, Bitfinex offers a wide range of market/cryptocurrency pairs and offers a customizable interface.

  • Best for: Spot and margin trading activities
  • Cryptocurrencies: 120+ listed cryptocurrencies including Bitcoin, Ethereum and USDT
  • Fees: Makers: 0.1%, Takers: 0.2%
  • Rating: 4 star

7 Coinberry

Coinberry is another Canadian-based exchange offering 0% CAD deposits and withdrawal fees, making it popular among traders with tight profit margins.

  • Best for: Fast CAD withdrawals
  • Cryptocurrencies: BTC, ETH, LTC, XRP, BCH and XLM
  • Fees: 2.5% maker and taker fees, 0% fees on deposits and withdrawals,
  • Rating: 3 star

8 Crypto.com

Launched in 2019 after purchasing its iconic domain name for undisclosed fees, Crypto.com is one of the fastest rising crypto exchanges in the world. However, the exchange was criticized in a Fool.com review that cited poor customer service and a confusing user interface as two major flaws with the platform.

  • Best for: Altcoin trading
  • Cryptocurrencies: Bitcoin, Ethereum, Ripple and 90+ others
  • Fees: Makers – 0.4%, Takers – 0.4%
  • Rating: 3 star

9 NDAX

NDAX (National Digital Asset Exchange) is another Canada-based exchange only available to Canadian citizens with all client’s assets backed by a national bank.

  • Best for: Easy crypto purchases using CAD
  • Cryptocurrencies: Bitcoin, Ethereum, Ripple and 8 others
  • Fees: Makers – 0%, Takers – 0.2%
  • Rating: 3 star

10 Coinmama

Coinmama is a brokerage service that supports crypto purchases via credit card purchases, SEPA transfers and Apple pay.

  • Best for: Non-custodial crypto services
  • Cryptocurrrencies: Bitcoin, Ethereum, Cardano and 7 others
  • Fees: Makers – 5.5%, Takers – 5.5%
  • Rating: 3 star

11 Bittrex

Bittrex employs an elastic, multi-stage wallet strategy, bolstering security for the 200+ crypto listing offered on the platform.

  • Best for: Trading a wide selection of cryptos
  • Cryptocurrencies: Over 300 cryptos listed including Bitcoin, Ethereum, and USDT
  • Fees: Makers – 0.2%, Takers – 0.2%
  • Rating: 4 star

FAQ

Is crypto trading legal in Canada?

Cryptocurrency trading is legal in Canada.

Being one of the first countries to approve Anti-money Laundering (AML) regulations for crypto service providers, typically considering them as money services businesses (MSBs), the Canadian government has a more open-minded approach to crypto activities in the country.

Can you sell crypto on Coinbase in Canada?

Yes, you can sell your cryptocurrency for fiat currency on Coinbase. However, Paypal is the only supported withdrawal method available to Canadians

Is crypto taxable in Canada?

Yes.

The Canadian government does not recognize cryptos as a legal tender, hence it is not considered a “digital currency” (or virtual currency). Cryptocurrencies are recognized as digital assets and 50% of its capital gain is taxable

How do I cash out cryptocurrency?

Crypto transactions (such as selling Bitcoin for fiat currencies) is mostly done via many of the cryptocurrency exchanges available today.

However, peer-to-peer platforms, Bitcoin ATMs, and OTCs for larger transactions are alternative cash-out methods you may explore.

Is Coinbase good for Canada?

With support for 75+ altcoins and ranking 6th best exchange according to Coinranking, Coinbase has a strong reputation in the world’s crypto market.

Although the platform has some limitations with payment methods (only accepting debit/credit card purchases), it has high liquidity and it is a welcoming platform for new traders and investors exploring the crypto market.

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