A lot of cryptocurrency enthusiasts rely on centralized exchanges to buy and sell Bitcoin or altcoins. In Canada, there are a fair few trading platforms to use, although they are all seemingly rather expensive. An interesting comparison put together by a Reddit user shows how Canadians are rather shafted when it comes to buying and selling cryptocurrency. Something will need to change in this regard to make cryptocurrencies more appealing in that country.
Canada’s Exchanges Remain Expensive
Although some people may not realize it, a fair few cryptocurrency exchanges serve clients in Canada. This list does not just include Canadian companies, but also platforms like LocalBitcoins and Coinbase. One thing they all have in common, however, is the rather high fees users are forced to pay when buying or selling cryptocurrencies.
In fact, it is seemingly impossible to buy Bitcoin in Canada without paying at least 2.3% in fees. That is not necessarily the highest fee in history, but when buying $500 worth of Bitcoin, $11.50 will be spent on fees. It makes for a somewhat unappealing experience, even though the popularity of cryptocurrencies has not waned in the slightest despite the rising cost of acquiring them.
On the other side of the spectrum, Canadian exchange fees can run as high as 11.6%. That is an absurd amount to pay when buying or selling Bitcoin through a third-party provider. It is even more expensive than using a Bitcoin ATM, even though that particular option is usually considered to be the most expensive method of buying or selling Bitcoin. These figures show that is not necessarily the case, at least where Canada is concerned.
As one would expect, LocalBitcoins sits right in the middle in terms of fees. It is the seventh cheapest option on the list, even though it may still be the most convenient solution for a lot of enthusiasts. CEX.io has the highest fees of them all, according to the Reddit post. That’s the case when using a Visa card to buy or sell Bitcoin, as a bank transfer is almost 3% cheaper.
All of this goes to show there is a growing need for either more exchanges or an ongoing price war between platforms. Since these fees heavily depend on which payment method is being used, it is safe to say credit and debit cards need to be avoided at all cost. It is also important to note this list includes platforms which only allow users to either buy or sell, rather than do both. Some more competition in this market would certainly be a good thing when taking all of this information into account.
Nevertheless, Canada is still a very popular country when it comes to cryptocurrency. That’s not just in terms of buying and selling, but also when it comes to mining Bitcoin. It will be pretty interesting to see how the country positions itself in the cryptocurrency ecosystem moving forward. There is plenty of room to make a positive impact, but these high fees will remain a pressing problem for quite some time to come.