How & Where to Buy Stablecoins in Canada 2022

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If you’re looking for a comprehensive guide on how and where to buy stablecoins in Canada, you’ve come to the right place.

Stablecoins are cryptocurrencies that are pegged to another asset, typically fiat currencies like the US dollar, Euro, or Japanese Yen. The purpose of stablecoins is to provide a more stable alternative to other cryptocurrencies which are often subject to price volatility.

In this blog post, we’ll explain everything you need to know about stablecoins – what they are, why they’re important, and how to purchase them. We’ll also provide a list of reputable Canadian exchanges that offer stablecoin trading.

So whether you’re a beginner or an experienced trader, read on for all the information you on how and where to buy stablecoins in Canada!


What are Stablecoins?

Stablecoins are digital assets that are pegged to a stable asset, such as fiat currencies (e.g. US dollar and Euro) or gold. This means that they are less volatile than other cryptocurrencies, making them an ideal choice for investors who want to avoid price fluctuations.

With stablecoins, investors and traders can enjoy all the benefits of digital currency, like instant processing and the security of transactions, while also keeping their money stable during times of significant volatility.

There are many different types of stablecoins, each with its own advantages and disadvantages. For example, some stablecoins are backed by fiat currencies, while others are backed by commodities such as gold. Some stablecoins are even backed by other cryptocurrencies!

Below are some of the top stablecoins you can purchase today in Canada: 

  • Tether (USDT)
  • USD Coin (USDC)
  • QCAD
  • Dai (DAI)
  • Binance USD (BUSD)
  • TrueUSD (TUSD)
  • TerraUSD (UST)
  • Digix Gold Token (DGX)

Why Buy Stablecoins in Canada?

Stablecoins play an important role in the cryptocurrency ecosystem because they provide a way to store value that is not subject to the volatility of the crypto markets. This makes them ideal for use cases such as payments and remittances, where stable prices are essential.

Instead, they’re pegged to the value of something usually outside of crypto, like fiat or other commodities. 

This is important because many merchants that accept cryptocurrency payments only do so if the price of the currency is stable in order to avoid losses if the price of the crypto goes down.

Related: Buy USDC in Canada


How to Buy Stablecoins in Canada

There are different ways you can buy stablecoins in Canada. However, the simplest way is to use a cryptocurrency exchange. 

While each exchange has a different sign-up process, below are the common ways on how to open an account with a crypto exchange in Canada: 

  • Choose your crypto exchange platform
  • Sign up and register an account with your chosen platform
  • Go through verification to complete your account registration
  • Deposit fiat currency into your new trading account
  • Buy your stablecoins using the deposited funds

Where to Buy Stablecoins in Canada

There are several crypto exchanges in Canada where you can buy stablecoins, but none of them is created equal. Which ones are the best? 

We’ve done the homework for you and listed our top picks below. 

1. BitBuy

  • Founded in: 2016
  • Minimum deposit: $50
  • Trading fees: 0.1% to 0.2% 
  • Funding options: Crypto deposits, wire transfers and e-transfers
  • Sign-up bonus: Sign-up and deposit up to $250 into your new account and get a sign-up bonus of $40

Bitbuy is a platform that has been providing Canadians with a dependable and trustworthy platform to buy and sell their cryptocurrencies.

Funding your account with Bitbuy is straightforward; you can deposit funds using Interac e-transfers, wire transfers, and cryptocurrency deposits.

Bitbuy has always focused on transparency, security, and compliance in the digital asset space. 

They are committed to providing you with a safe and secure trading environment while also offering support through their highly-rated customer service team.

Additionally, Bitbuy is registered as a Money Service Business by FINTRAC. The Bitbuy platform is also governed by the Ontario Securities Commission (OSC) which provides an extra layer of security for your funds. 

How to buy Stablecoins on Bitbuy

  • Create a new Bitbuy using this link if you don’t have one
  • Verify your new account
  • Fund your new account
  • Buy your stablecoins

2. Wealthsimple Crypto

  • Founded in: 2020
  • Minimum investment: $1
  • Trading fees: There are no trading fees on the platform. But there it has an operational fee of 1.5%
  • Funding options: Crypto deposits and Bank account
  • Sign-up bonus: Get a sign-up bonus of $50 when you create a new account and trade up to $150

Wealthsimple Crypto is an exchange platform owned and operated by Wealthsimple Inc. 

It was launched in 2020 with the aim of making it easy for Canadians to buy, sell and hold cryptocurrencies. 

Wealthsimple Crypto provides an easy-to-use platform with transparent pricing and no trading fees, allowing you to quickly trade any amount of cryptocurrency at a time.

Wealthsimple Crypto is regulated by the Ontario Securities Commission (OSC). It is also registered by FINTRAC as a Money Services Business. This means the exchange follows strict money laundering and terrorism financing rules.

How to buy Stablecoins on Wealthsimple Crypto

  • Create a new account with Wealthsimple Crypto using this link if you don’t have one
  • Verify your new account
  • Add funds to your new 
  • Fund your new Wealthsimple Crypto account
  • Purchase your stablecoins

3. Newton

  • Founded in: 2018
  • Minimum investment: $0
  • Trading fees: Newton doesn’t charge trading fees. But it includes a small spread charge on quoted prices
  • Funding options: Crypto deposits, Interac e-transfers and wire transfers
  • Sign-up bonus: Sign-up and trade up to $100 to get a $25 sign-up bonus

Newton is a crypto exchange that allows you to buy and sell cryptocurrencies with no trading fees attached. 

The exchange has been around since 2018 and it has built up a reputation as being one of the best cryptocurrency exchanges in Canada for buying and selling cryptocurrencies. 

Newton is designed to be simple, easy to use and offer you a secure way to trade cryptocurrencies. It’s also fully licensed by FINTRAC, so you can trust that your money is safe. 

How to buy Stablecoins on Newton

  • Create an account with Newton using this link if you don’t have one
  • Verify your account
  • Add funds into your new account
  • Purchase your stablecoins

4. NDAX

  • Founded in: 2017
  • Minimum investment: $0
  • Trading fees: 0.20%
  • Funding options: Bank drafts, e-transfers and wire transfers
  • Sign-up bonus: create an account and deposit up to $100 to get a welcome bonus of $10. Also, refer your friends to NDAX and get $25 per referral

NDAX is a Canadian cryptocurrency which was founded in 2017. It offers Canadians easy access to trading digital currencies. 

Trading on NDAX is simple and straightforward. The platform features a user interface that’s intuitive and easy to use, making it an ideal platform for traders of all experience levels. 

Also, NDAX is one of the few exchanges that allows its customers to directly deposit their funds from their bank accounts into the exchange. 

Additionally, NDAX is registered as a Money Service Business by the Financial Transactions and Reports Analysis Centre (FINTRAC). This means your funds are secure on the platform.

How to buy Stablecoins on NDAX

  • Create an account with NDAX using this link if you don’t have one
  • Verify your new account
  • Add funds to your new NDAX account
  • Purchase your stablecoins

5. Coinberry

  • Founded in: 2017
  • Minimum investment: $50
  • Trading fees: $0
  • Funding options: Crypto deposits, e-transfers and wire transfers
  • Sign-up bonus: Sign-up and trade up to $50 to get a sign-up bonus of $10

Coinberry is an easy and secure Canadian exchange that offers trading in a variety of cryptocurrency pairs including stablecoins.

It is a Canadian cryptocurrency exchange that was founded in 2017 and has since then gained significant popularity within the Canadian crypto community. 

Coinberry is registered as an official Money Service Business (MSB) with FINTRAC. That means that Coinberry follows all federal and provincial regulations regarding anti-money laundering and counter-terrorism financing laws. 

How to buy Stablecoins on Coinberry

  • Create an account with Coinberry using this link if you don’t have one
  • Verify your new Coinberry account
  • Add funds into your new account
  • Buy your stablecoins

6. Binance

  • Founded in: 2017
  • Minimum investment: $10
  • Trading fees: Binance trading fees starts at 0.1%
  • Funding options: Crypto deposits and credit or debit cards
  • Sign-up bonus: Sign-up using this referral link to get a sign-up bonus of $100

Binance is the world’s largest cryptocurrency exchange. The platform offers many coin pairs for crypto investors to trade.

You can use your credit card or crypto deposit to buy any of the available coins on the Binance platform.

Binance has a very low trading fee of only 0.1%. However, Binance currently does not accept traders from Ontario, Canada. 

This is because some local regulations restrict the exchange from operating in the province. 

If you live in Ontario and are interested in buying stablecoin, you can use the other trustworthy exchanges on this list discussed.

How to buy Stablecoins on Binance

  • Create an account using this link if you don’t have one
  • Verify your account
  • Add funds into your new account
  • Buy your stablecoins

7. Crypto.com

  • Founded in: 2016
  • Minimum investment: $1
  • Trading fees: Crypto.com trading fees begins at 0.40%
  • Funding options: Paypal, credit card, Interac e-transfer and Transferwise
  • Bonus: Stake sufficient crypto and get a bonus of $25 and a free prepaid crypto card

Crypto.com is an exchange that allows Canadians to buy and sell stablecoins and other cryptocurrencies without any limits. 

The exchange was founded in 2016 and it is based in Singapore. It is one of the few reputable crypto exchanges that allow users to purchase cryptocurrencies with credit cards and Transferwise. 

Crypto.com has a wide variety of features that make it stand out from other cryptocurrency exchanges available today. 

Its interface is also very easy to use, so even beginners will feel at ease when they start trading on this platform.

How to buy Stablecoins on Crypto.com

  • Create an account using this link if you don’t have one
  • Verify your new account 
  • Fund your new Crypto.com account
  • Buy your stablecoins

8. CoinSmart

  • Founded in: 2018
  • Minimum investment: $100
  • Trading fees: 0.20%
  • Funding options: Crypto deposits, e-transfer, wire transfer, credit/debit cards, and bank draft
  • Sign-up bonus: Get a welcome bonus of $20 when you create and make a deposit of $100 or more

CoinSmart is a leading cryptocurrency exchange in Canada. The platform provides an easy-to-use user interface for trading cryptocurrencies.

It’s great for both new and experienced cryptocurrency traders, and its many features provide a lot of options to customize your trading experience.

CoinSmart is also registered as a Money Service Business (MSB) with FINTRAC. This means that your account is fully protected should something go wrong.

How to buy Stablecoins on CoinSmart

  • If you don’t have a CoinSmart account, create one using this link
  • Verify your account 
  • Fund your CoinSmart account
  • Purchase your stablecoins

How to Store Stablecoins in Canada

You can store your stablecoins on an exchange, but this isn’t ideal. If the exchange goes down or is hacked, your funds may be irretrievable. 

Additionally, exchanges can be shuttered by regulators without warning, which would necessarily make your account inaccessible for a while.

If you’re planning on holding onto your stablecoins for the long term, then storing them in a private wallet is the best option available. You can store your stablecoins in a hot or cold wallet.

Hot wallets are connected to the internet and are more vulnerable to hacks and scams. If you don’t plan on storing large amounts of cryptocurrencies in a hot wallet, then using one is fine. 

Cold wallets are not connected to the internet and are therefore less vulnerable to hacks and scams than hot wallets (since they’re not connected to the internet). 

Therefore, the most secure way to store your stablecoins is in cold storage (also called offline storage). Check here for the best Crypto Wallets in Canada.


Is Stablecoins a Good Investment?

Stablecoins are cryptocurrencies that are designed to minimize the price volatility of the coin in relation to the asset or currency that it is pegged to. 

They are more secure than most cryptocurrencies because they’re backed by real-world assets or fiat currencies. This makes them perfect for those looking to preserve their funds during times of market instability.

Stablecoins are often used by investors who want to keep their money in cryptocurrency form, without having to worry about the price fluctuations normally associated with digital assets.

They also have lower transaction fees and faster transaction times than traditional payment methods, such as credit cards and bank transfers. You can even use them to pay for goods and services from merchants that accept cryptocurrency payments.

Therefore, stable coins are good investments if you’re interested in investing with cryptocurrencies but don’t want to risk losing any of your hard-earned cash due to price fluctuations.


FAQs

Is there a CAD stablecoin?

Yes. There is a CAD stablecoin known as QCAD. Canada Stablecorp Inc. created QCAD based on the ERC-20 standard and the Ethereum network.

Are stablecoins taxable in Canada?

Yes. You have to record any stablecoin payments received as payment for your products or services as income. Also, coin-to-coin exchanges are typically considered taxable activities that must be reported using a crypto tax software.

What is the best stablecoin?

Tether, the world’s first stablecoin, is the most widely traded and volatile stablecoin in the cryptocurrency market, with over $80 billion in market capitalization at the time of writing.


Final Thoughts

Buying stablecoins can be confusing, especially if you’ve never done so before. 

The above is everything you need to know about buying stablecoins in Canada. As you can see, there are several options to choose from when it comes to purchasing stablecoins in Canada. 

But if you feel overwhelmed by your options, you should feel free to try a few out and see which one is best for you.

Please let us know your thoughts about our list. If you have anything to add please leave it in the comment section below, and don’t forget to share this guide with your friends who are interested in cryptocurrency as well.

Thanks for reading and see you next time!

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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