Trading on Bitcoin in Canada is great especially because there are limited regulatory procedures to bitcoin transactions and there are many options to execute the transactions.
Challenges associated with Bitcoin investment in Canada include a rigorous KYC process and the foreign headquartered exchanges find it difficult to offer their services within Canada. Moreover, Canada has its local cryptocurrency exchanges that are compliant with the local regulatory measures.
3 Ways to Sell Bitcoin
There are majorly three options to buy and sell bitcoin in Canada, we will discuss the options with a focus on the options to sell Bitcoin in Canada.
1. Cryptocurrency Exchanges
The cryptocurrency exchange is a service for changing digital currencies to Fiat currency or other digital currencies. Canada had many trustworthy exchanges until the infamous QuadrigaCX scandal.
The embarrassing scandal smeared the country’s crypto industry reputation but there are still cryptocurrency exchange services that traders can patronize. The exchanges include, but to mention a few:
2. Crypto.com
This company is on a mission to accelerate the world’s transition to cryptocurrency. Their products include App, Exchange, and Defi.
A. App
The app accepts credit or debit cards and offers the following services:
- Buy and sell cryptocurrency
- Non-Fungible Token (NFT) – this is a one-of-a-kind trading card that can be traded for different cards. Most NFTs are part of the Ethereum Blockchain. NFT can be anything such as drawings, music, brain downloads turned into Artificial Intelligence; It is often used to sell digital art.
- Metal Visa Cards
- Cryto.com Pay
- Crypto Earn
- Crypto Credit
B. Exchange
This exchange is powered by Crypto.org Coin (CRO) which is the native token of the Crypto.org Chain. It has deep liquidity, low fees, and the best prices.
It is an exchange platform that lists several cryptocurrencies and allows investors to trade on them via spot, margin, or derivatives trades. It also allows traders to get instant loans backed by cryptocurrencies. Traders can trade bitcoin and earn up to 100.1% taker fee from the exchange.
C. DeFi
Defi is a non-custodial wallet that gives you access to a full suite of DeFi services in one place. It provides keys to your wallets and allows you to send cryptocurrency at the preferred confirmation speed and the network fee. It also allows investors to earn interest on DeFi tokens and enables investors to swap DeFi.
2. Peer-to-Peer (P2P) Platforms
P2P platforms are decentralized exchanges that allow users to sell or buy cryptocurrency without the involvement of a third party or intermediaries.
It also offers various alternatives to sellers and buyers for making payments. The buyer and seller remain in total control of their wallet keys. Typical examples of P2P platforms are Paxful, Localbitcoins, HODL HODL, Binance P2P, Remitano, Localcoinswap.
- Steps to trade on Peer-to-Peer (P2P) Platforms
- Register on a preferred platform.
- Search for a person or organization who wants to buy or sell bitcoin directly using your preferred exchange method (PayPal, bank transfer, face-to-face meeting, etc.)
- Check their reputation on the platform.
- Choose the person or organization, text or chat with each other, and agree on the method of the exchange.
- Follow the agreement and finalize the deal.
- In-person
The process of buying or selling bitcoin in a face-to-face meeting is like the process of using peer-to-peer platforms. The same P2P platforms like LocalBitcoins or Paxful can be used to find someone who wants to deal.
The only difference is that instead of making a wire transfer or paying in some other way, you’re arranging a meeting where you exchange bitcoins for cash or otherwise agreed.
3. Bitcoin ATMs
Traders can also use a local Bitcoin ATM but they charge high fees – (5 – 10) percent of the transaction. Traders can find the closest Bitcoin ATM at websites such as CoinATMRadar.com. Canada has the second-largest number of Bitcoin ATMs worldwide, trailing only behind the United States.
Selling Bitcoin in Canada
Any cryptocurrency trader in Canada can liquidate his or her bitcoin holdings by using any of the following media.
1. Bitbuy
BitBuy is a Canadian cryptocurrency exchange based in Toronto; it was founded in 2013. For Canadians, it is one of the fastest mediums to sell BTC, it also has a high limit and allows bank transfer and card payments.
It supports Interac e-Transfer facility that costs a mere 1.75% fee on withdrawals. Traders can directly withdraw funds into Canadian dollars and avoid exchange rate risk. Apart from BTC, it supports Bitcoin Cash, Ethereum, Litecoin, Ripple, EOS, and a couple more cryptocurrencies.
However, conventional bank transfers are costly on Bitbuy, with almost 3-5% charges. It also supports limited cryptocurrency transactions.
2. Coinmama
Coinmama was founded in 2013 with the mission of simplifying the way the world buys cryptocurrencies. allows traders to exchange fiat currencies for Cryptocurrencies and vice versa.
Coinmama accepts bank card (credit and debit) payments and bank transfers. Coinmama charges 5.5% transaction fees and (0.9 – 1.9)% sell fee depending on whether you are classified as Curious (1.9%), Enthusiast(1.4%), or Believer(0.9%).
3. Coinbase
Coinbase was founded in 2012 and it is regarded as the largest cryptocurrency exchange. It has a mission to build a more fair, accessible, efficient, and transparent financial system enabled by Bitcoin and other cryptocurrencies.
Coinbase has a minimum trade requirement of CA$2; trading and transaction fees of 0.5 – 4.5% depending on payment methods, cryptocurrency type, transaction size, and platform; It accepts credit/debit card payments, bank wire transfers; about 56 cryptocurrencies are traded on the platform; it offers two mobile apps for IOS and Android support.
4. Ndax.io
National Digital Asset Exchange is a Canada-based exchange for cryptocurrency trading. It supports various methods of withdrawal and purchase and fully integrated with bank support.
It supports several popular cryptocurrencies such as BTC, Ripple, ETH, Stellar, EOS, and others. The withdrawal fees vary from coin to coin usually based on its popularity.
BTC transaction fee is CA$25 for withdrawal into the bank while the transaction fees for transfer is a CA$50 flat, for any amount ranging from CA$100 to CA$1,000,000. Hence, it is a favorable option for high-volume selling and purchasing.
However, bank transfers take up to 2 days to process. It must also be noted that fees on lower volumes are high hence it is not suitable for small traders.
5. Kraken
Established in 2011, Kraken is among the largest Euro-denominated cryptocurrency exchange that’s based off in the US. It offers very high liquidity to users given its extensive user base. It is suitable for both beginner traders as well as advanced traders.
It supports a variety of popular Cryptos such as BTC, ETH, Bitcoin Cash, EOS, Litecoin, Dash, and many more. The fees for withdrawals and cashing out your coins are very low and it supports Canadian dollars, making it easier for Canadian residents to cash out their cryptos to their banks. The user interface is often confusing for beginners and it requires ID verification hence not quite private.
6. BitAccess
BitAccess is a Canadian Bitcoin broker and ATM operator. Funded by the Canadian government itself, through BitAccess you can sell bitcoins and withdraw almost instantly. You can process a request for selling through their website and redeem cash for your BTC through the closest BTC ATM. There’s a delay of up to 30 minutes.
This is the best option to cash for your BTC for small traders. It’s also very secure and offers relatively good privacy compared to other options for selling BTC especially because it doesn’t require KYC for small transactions.
Though it requires KYC for larger transactions usually through ID verification. It should also be noted that it requires very high fees for transactions starting at 10%.
7. LocalBitcoins
LocalBitcoins is a P2P marketplace for buying and selling cryptocurrencies. Based in Finland, it was established in 2012.
The Unique Selling Point (USP) for LocalBitcoins is the fact that it connects you to local sellers in your region to save you from the trouble of currency exchange rate fluctuations as well as offer local payment options to cash out cryptos.
LocalBitcoins supports almost all local payment methods to receive payment through. The sales and purchase transaction turn-around-time is reasonably fast.
However, it requires KYC verifications for frequent and high-volume traders. Prices on LocalBitcoins can be significantly higher than other exchanges.
It is important to note that the customer support on LocalBitcoins is not very responsive. Issues may take a couple of days to get resolved. The transaction fee is also quite high.
8. Quebex Canadian Bitcoin Exchange
Quebex is a Canada-based cryptocurrency exchange. It is a P2P platform where you can buy and sell bitcoins from local sellers. It is easy to set up and get started.
To redeem payments from Quebex, you can see available trade advertisements from buyers and choose a suitable option to sell. The exchange also shows available prices from other P2P marketplaces.
Once the seller selects a trader to buy the BTC, the seller’s BTC is held in escrow until the buyer sends you fiat to your designated bank account through Interac e-transfer. Once you receive your payment, your BTC is released to the buyer and the trade is closed.
It is fast, secure, and supports Canadian Dollars. The withdrawal fees are flat at 0.001-0.005 BTC based on the size of the transaction.
However, sellers on this platform must watch out for scammers especially buyers with low ratings and a history of failed transactions.
Other notable mentions are Coinsquare, Coinberry, CoinSmart, Netcoins, Satstreet, Shakepay, Paxful, MyBTC.ca, and Canadian Bitcoins.
Conclusion
There are many options open to Canadians for the sale of Bitcoin and payment methods to sell Bitcoin. Hopefully, this article has provided traders with some great options for selling Bitcoin in Canada.
