How to Sell Bitcoin in Canada - A Simple Guide
When you have Bitcoin in your cryptocurrency wallet, you’ll typically leave it there and let it grow as the value of bitcoin increases over time. However, from time to time, it might be necessary for you to sell all or some of your Bitcoin. Now, this could be for a variety of reasons from paying off some debt or making other investments.
Either way, if you find yourself in this position, you’ve probably wondered how you can sell bitcoin in Canada. Then you’ve come to the right place. In this post, we’ll show you how to sell bitcoin in Canada and withdraw your money. We’ll also look at some of the other ways you can use to cash out Bitcoin in Canada.
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Your Options To Sell Bitcoin in Canada
When it comes to selling Bitcoin in Canada, you, fortunately, have a lot of options. These methods all differ in the liquidity, the base currencies, and the fees you’ll need to pay to sell Bitcoin. This means you’ll have to do some research to find the best method for your specific need and requirements.
With that in mind, let’s look at some of the options you have:
Binance
Binance is not only one of the most popular cryptocurrency exchanges in the world, but also the largest. As such, it offers the best liquidity. It also offers support for the Canadian dollar and offers various ways for users to earn money on their cryptocurrencies as well as peer-to-peer (P2P) trading.
Is Binance save? Learn more about itCoinbase
Coinbase is currently the largest exchange in the United States by trading volume and offers its service to over 73 million users in more than 100 countries around the world. Users can open an account at Coinbase or at Coinbase Pro which offers more currencies and advanced trading options. Here, users can also participate in staking to earn a passive income and the platform offers excellent security features.
Binance or Coinbase, what’s better? Read more about itKraken
Kraken is an exchange, based in the US, that accepts users from Canada. Kraken offers some of the lowest fees in Canada, a wide range of charting tools, excellent security, and extensive customer support.
Gemini
Also based in the US, Gemini is an exchange that offers cryptocurrency enthusiasts a range of investment options. The platform also offers excellent security, support for about 45 cryptocurrencies, and the option of a credit card.
Paxful
Paxful is a P2P marketplace that offers users over 350 different payment methods to buy and sell Bitcoin. This means that, on the platform, you can sell Bitcoin at your chosen rate and withdraw your money to your chosen payment method quickly and easily.
LocalBitcoins
Based in Finland, LocalBitcoins is a P2P marketplace that also serves Canadian residents. One of the main benefits of the platform is its ability to connect sellers with local buyers. This means that, when selling your Bitcoin, you can get paid in Canadian dollars and you won’t lose any money due to the exchange rate.
eToro
eToro is one of the largest brokers in the world. Apart from offering trading stocks, ETFs, and CFDs, it also offers the ability to buy and sell Bitcoin. With the platform, users are able to buy and sell a variety of cryptocurrencies, including Bitcoin, and it also offers a wallet and staking service where users can earn money from their cryptocurrencies.
LocalCryptos
LocalCryptos is a P2P marketplace that allows users to sell their Bitcoin for the price they want using the payment method they prefer. One of the benefits of the platform is that it’s non-custodial, which means users hold and control their own wallets.
BitAccess
BitAccess is a Bitcoin ATM operator in Canada that allows users to sell Bitcoin almost instantly. Obviously, one of the benefits of this is the convenience it offers but, as is the case with most other Bitcoin ATMs, fees are typically higher compared to other options for selling Bitcoin like exchanges.
Keep in mind, though, these are just some of the options available and there are many others.
Best Options to Sell Bitcoin in Canada
Now that you’ve seen the different options available for selling Bitcoin, the question is: Which one should you use? Ultimately, the option you choose will depend on your specific preferences and requirements. What we can say, however, is that we always recommend selling Bitcoin through exchanges.
This is simply because they, typically, offer the best prices due to their liquidity, implement the necessary security measures to protect traders’ and their money, and they’re most reliable. With that in mind, let’s look at the top 4 exchanges to buy and sell Bitcoin in Canada.
Top 4 Exchanges to Buy And Sell Bitcoin in Canada
| Broker | Pros | Trading Fees | CAD Support | |
|---|---|---|---|---|
- Best liquidity |
0.015% to 0.10% per trade |
Yes (only for Canadian residents) |
||
- Highest levels of seurity |
0.5% per trade |
No |
||
- Many currency options |
0% to 0.26% |
Yes |
||
- Inutitive user interface |
$0.99 to $2.99 for trades under $200. 1.49% for trades over $200 |
Yes |
How to Sell Bitcoin in Canada?
Considering that we recommend selling Bitcoin by using exchanges, we’ll now show you the steps you’ll need to follow to do this. For these steps, we’ll use Binance as an example, so the process might differ slightly compared to other exchanges.
How to Use Binance For Trading And InvestingStep 1: Log in to your Binance Account
The first step is to go to the Binance home page and log in to your account by clicking on the Log In button.
Log in to your Binance Account
If you don’t have an account yet, you’ll first need to open one. Also, if your Bitcoin is not in your Binance wallet, you’ll first need to transfer the Bitcoin to your wallet before you’ll be able to sell it.
Step 2: Find the Bitcoin you want to sell
Once you’ve logged into your account, you’ll need to find the Bitcoin you want to sell. To do this, you’ll need to open your Binance Fiat and Spot wallet. On the page that opens, you’ll then find the Bitcoin you want to sell.
Fiat and Spot
Step 3: Sell Your Bitcoin
To sell your Bitcoin and convert it into fiat currency, you have two options. With the first, you’ll need to trade Bitcoin through the Spot Trading functionality. When you use this functionality, your Bitcoin will be sold on the exchange at the current price.
The other option is to use the Convert function to swap between Bitcoin and your chosen fiat currency, in this case, Canadian dollar, instantly.
Step 4: Receive Your Fiat Currency in Your Wallet
Once you’ve sold your Bitcoin using one of the methods above, you’ll receive the funds in your wallet. To get the money into your bank account, you’ll then need to withdraw it from the platform.
Step 5: Withdraw Your Money
To withdraw your fiat currency, you’ll go back to your Fiat and Spot wallet and then click Withdraw at the top of the page.
Withdraw your fiat currency
On the page that opens, you’ll need to go to the Fiat tab and then select the currency you want to withdraw and the withdrawal method you want to use. Here, Binance supports different withdrawal methods from debit and credit cards to Swift transfers. You’ll therefore need to select the right one based on your specific needs and requirements.
Fiat tab
You’ll also need to enter the amount you want to withdraw and fill in the rest of the withdrawal information. Once you’ve done this, you can click Continue.
Step 6: Confirm Your Withdrawal
Once you click on Continue, a popup will appear with the withdrawal information. If you’re satisfied that the information is correct, you can click on Confirm. You’ll then need to enter the confirmation code you receive through text, email, or both to complete the withdrawal.
Withdrawal confirmation
Other Options to Sell Bitcoin in Canada
As mentioned above, there are many other ways, platforms, and tools you can use to sell Bitcoin. Generally, most of these platforms, apart from the exchanges, fall into one of these categories:
P2P Selling
With peer-to-peer sales, you can sell your Bitcoin to another person. To do this, you’ll need to register on the P2P platform, and then you’ll be able to place a listing on the platform setting out how much Bitcoin you want to sell and how much you want for it. You’ll also have to state what payment method you prefer. Then, if someone is interested in buying your Bitcoin, they’ll react to your listing and you’ll negotiate with each other and finalize the deal. A drawback of P2P selling is that it could be open to fraud and scam artists. Fortunately, many of the platforms have an escrow functionality that safeguards both parties. In turn, a benefit of P2P selling is that you could find Bitcoin at good prices, and, often, you’ll be able to save on transaction fees.
Bitcoin ATMs
Bitcoin ATMs look like normal ATMs and you’re able to withdraw money from just like you can any other ATM. To sell your Bitcoin with a Bitcoin ATM, you’ll typically need to scan a wallet QR code and then sell your Bitcoin. Once you’ve sold your Bitcoin, you’ll then get your fiat currency from the machine. A major benefit of Bitcoin ATMs is that they offer instant withdrawals without much hassle. Another benefit is that they’re located all over the world and you can easily find their locations on the internet. A drawback of Bitcoin ATMs is that their fees are typically a lot higher when you compare them to other methods like exchanges.
Face-to-face selling
Another option is selling your Bitcoin in a face-to-face transaction. Now, this could be as simple as meeting with friends, family, or colleagues and selling your Bitcoin or could involve that you find a buyer for your Bitcoin and then meeting them in person. In some cases, you can even go to physical locations that exchange Bitcoin for cash, and some online platforms facilitate the meetings between buyers and sellers. A benefit of this approach is that it is often the cheapest. A major drawback is that it could pose serious safety risks. Another drawback is that it’s probably the most complicated way to sell Bitcoin.
How To Choose the Best Platform to Sell Bitcoin in Canada
Now that you’ve seen how to cash out Bitcoin in Canada and the different platforms available, it’s crucial that you know how to choose the best one. Generally, the platform you choose to sell your Bitcoin will depend on your specific needs and preferences
So you’ll consider things like:
-
Currencies. You’ll have to make sure the platform supports your currency of choice. As you’re from Canada, you’ll thus need to ensure that the platform supports withdrawals in Canadian dollars. This simple reason for this is that, if you withdraw in the right currency, you won’t lose money due to the exchange rate.
-
Convenience. Although not strictly a requirement, it is a bonus if the platform is convenient to use. For example, if the platform offers a mobile app, you’ll be able to sell Bitcoin quickly and easily, no matter where you are.
-
Security. It’s vital that the platform implements the necessary security measures to keep both your Bitcoin and your fiat currency safe.
-
Withdrawal methods. Ideally, you would want the platform to have as many withdrawal methods available as possible. This, ultimately, gives you more options when you want to withdraw funds and you’ll be able to use the method that’s most convenient to you at a specific time.
-
Fees. Finally, but not any less important is the fees that the platform will charge you when you sell Bitcoin and withdraw fiat currency. It’s important to remember here that the cheapest is not necessarily the best. So, you should look for a platform where you’ll get the most value for the price you’re paying.
Where Can I Spend Bitcoin in Canada?
In addition to selling your Bitcoin and withdrawing the money to your bank account or withdrawing money from a Bitcoin ATM, there are several other ways in which you can spend Bitcoin in Canada
Including:
-
Spending your Bitcoin at retailers that accept Bitcoin like Newegg, Birks Group, Park and Finch Eyewear, Best Sleep, Toronto Brewing, and more.
-
Loading your Bitcoin onto a prepaid card that you can use to make purchases.
-
Buying gift cards for retailers like Amazon, Starbucks, Uber, and the like from gift cards providers like Coincards.ca.
Top 10 Best Altcoins to Buy Instead of Bitcoin
Let’s face it, Bitcoin can be an excellent investment and you can make massive profits when you buy and sell at the right times. But, as you know, it can also be very volatile with huge variations in price over short periods. So, you can also lose a lot of money.
This means you could also consider other cryptocurrencies as possible investments. Fortunately, we can help. Our team of experts has compiled a table of the best altcoins you can invest in. Their recommendations are based on criteria like performance technology, and popularity among investors.
When you use this table, you'll be able to find alternative investments to Bitcoin or, if you want to, you can invest in Bitcoin and some of these altcoins to diversify your portfolio and limit your risk.
| Cryptocurrency | Industry | Current price | 1y return | 1m Return | Total score | |
|---|---|---|---|---|---|---|
Cryptocurrency exchange |
320.50$ |
-53.47% |
11.06% |
9.5 |
Invest | |
Blockchain platform |
0.39$ |
-133.91% |
-9.17% |
9.2 |
Invest | |
Payments |
0.45$ |
-86.07% |
-2.21% |
9 |
Invest | |
Payments |
0.13$ |
-70.72% |
73.73% |
8 |
Invest | |
Blockchain platform |
6.29$ |
-156.58% |
-1.26% |
8 |
Invest | |
Payments |
59.30$ |
-108.84% |
9.04% |
7.6 |
Invest | |
Payments |
0.11$ |
-112.05% |
-8.01% |
7.5 |
Invest | |
Decentralized exchange |
7.10$ |
-114.66% |
6.85% |
7.4 |
Invest | |
Blockchain platform/Media |
0.06$ |
-54.00% |
0.67% |
7 |
Invest | |
Internet of Things |
0.25$ |
-139.59% |
-11.06% |
6.9 |
Invest |
Summary
When you have Bitcoin in your wallet, you might need to sell some from time to time when you need access to cash. Hopefully, this post helped illustrate how you’ll be able to do this.
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FAQs
Apart from the information above, we’ve also compiled a list of frequently asked questions people often have when it comes to selling Bitcoin.
What fees do I need to pay when I sell Bitcoin?
The fees you’ll need to pay differs from platform to platform. So, you should always make sure of these fees before you sell your Bitcoin on the platform.
What withdrawal methods can I use when I sell Bitcoin?
The withdrawal methods depend on the specific platform. Here, you should always aim to make withdrawals in your own currency. In this way, you won't lose money as a result of the exchange rate.
What method is best to use when selling Bitcoin?
Ultimately, the method to use to sell Bitcoin depends on your specific needs and requirements. However, we advise that you use an exchange because they offer the most liquidity and they have the necessary security measures in place.
Should I sell my Bitcoin now?
This is a difficult question to answer as it depends on your specific set of circumstances and your risk appetite.
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Team that worked on the article
Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.
Olga Shendetskaya has been a part of the Traders Union team as an author, editor and proofreader since 2017. Since 2020, Shendetskaya has been the assistant chief editor of the website of Traders Union, an international association of traders. She has over 10 years of experience of working with economic and financial texts. In the period of 2017-2020, Olga has worked as a journalist and editor of laftNews news agency, economic and financial news sections. At the moment, Olga is a part of the team of top industry experts involved in creation of educational articles in finance and investment, overseeing their writing and publication on the Traders Union website.
Olga has extensive experience in writing and editing articles about the specifics of working in the Forex market, cryptocurrency market, stock exchanges and also in the segment of financial investment in general. This level of expertise allows Olga to create unique and comprehensive articles, describing complex investment mechanisms in a simple and accessible way for traders of any level.
Olga’s motto: Do well and you’ll be well!