Cryptocurrency has been making waves in the world over the past decade, and Canada is no exception. The country is among the top cryptocurrency hotspot destinations with a thriving market that offers an array of investment opportunities.
However, despite the growing acceptance of digital currencies to purchase goods, pay for services online, and for investment purposes, selling cryptocurrency in Canada can be a daunting task for the uninitiated.
But don't worry, this blog post is here to guide you on the steps you can take to sell bitcoin and cryptocurrency in Canada effortlessly.
Cryptocurrencies have taken the world by storm, and there's no turning back from their popularity. With their rise in acceptance, it's important to understand why selling bitcoin and other cryptocurrencies makes sense, especially if you're a Canadian investor. There are several advantages to selling your cryptocurrencies in Canada – let’s take a closer look:
The cryptocurrency market can be a highly volatile one, and the prices can witness massive fluctuations. Selling cryptocurrency when the time is right for you can help maximize your profits. If you hold cryptocurrency for too long, the value of it could decrease, resulting in a net loss. With Bitbuy, you can conveniently sell your cryptocurrency and get the money back in your bank account within minutes, and you can take advantage of the market fluctuations to increase your profits.
When you sell bitcoin and other cryptocurrencies, you need to report your gains or losses to the Canada Revenue Agency (CRA). Selling cryptocurrencies through a Canadian exchange like Bitbuy means that all your transactions are recorded and reported, making it easier for you to remain compliant with CRA regulations. You can also benefit from tax deductions, especially if you have losses to offset.
Diversification is a fundamental principle in investing, and selling your cryptocurrency is one way to diversify your investment portfolio. By selling, you can free up capital and invest in other assets, thereby reducing risks and increasing your chances of profit.
Holding on to cryptocurrency for an extended period can be an investor risk where there is an opportunity cost for not using those funds to invest in other instruments. By selling your cryptocurrency, you are free to explore other investments that are in line with your overall investment strategy.
Safety is important when it comes to selling cryptocurrencies. Unlike exchanges based out of Europe or Asia, selling your cryptocurrencies in Canada gives you a sense of security. Bitbuy has several security measures in place to ensure that your transactions are safe. The platform is highly secured using SSL and AES encryption, making it a reliable and trusted platform. Plus, Bitbuy provides two-factor authentication (2FA), ensuring that only you have access to your account.
Selling bitcoin through Bitbuy ensures a faster settlement time. Once sold, your fiat withdrawal transactions are processed and settled within a minutes, depending on the withdrawal method you choose. This means you can sell your cryptocurrencies and receive the proceeds in your bank account within a short period, so you can reinvest your money faster.
Bitbuy is a Canadian-based exchange, which means that it follows Canadian laws, regulations, and standards. The company is registered with FINTRAC (Financial Transactions and Reports Analysis Centre of Canada) as a Money Service Business and as a crypto trading platform with the Ontario Securities Commission and the Canadian Securities Administration, which are responsible for regulating cryptocurrency exchanges. As a Canadian-based exchange, Bitbuy is transparent, and it's easy to find information about the owners and management team, giving investors peace of mind when trading with them.
The first step in selling your cryptocurrency is to find an exchange that supports the sale of your digital assets. One of Canada's most reputable and user-friendly exchanges is Bitbuy. Bitbuy is known for its low fees, fast processing times for deposits, and the ability to connect directly to your bank account for fast withdrawals. Once you’ve created an account and verified your identity, you'll be able to sell your cryptocurrency using their trading platform.
The next step is to determine the type of cryptocurrency you want to sell. Bitbuy supports the sale of Bitcoin, Ethereum, Litecoin, XRP, and Bitcoin Cash. Most other exchanges in Canada also support these cryptocurrencies. Select the cryptocurrency you want to sell, and you'll be able to view your assets in your account’s portfolio.
With your account set up and the cryptocurrency selected, you now have the choice to sell if you wish to do so. Bitbuy supports instant sell orders and limit orders, making it easy for users to choose the method that works best for them. Instant sell orders are completed immediately, while limit orders allow you to set a price for your cryptocurrency and wait for the market to reach that price to sell.
Once you've sold your cryptocurrency, you'll be able to withdraw the funds from your account to your bank account. Bitbuy makes this process quick and easy, and you can expect the funds to be transferred to your bank account within 1-2 business days via a wire transfer or within 30 minutes via Interac e-Transfer. The withdrawal fee is generally low compared to other exchanges in Canada.
It is important to remember to report your cryptocurrency transactions to the Canada Revenue Agency. The CRA considers cryptocurrency trading as a taxable event and failing to report can lead to penalties. At the end of the year, you will receive a T5008 form from your exchange that you’ll need to report to the CRA when filing taxes.
Peer-to-peer (P2P) trading is one of the most popular methods to sell cryptocurrency for cash. This method allows you to trade Bitcoins or other cryptos directly with another person. With P2P trading, there is no need for an intermediary, meaning that the fees are significantly lower than other methods of exchanging cryptocurrency for cash. However, it is important to understand the risks behind this. The use trusted platforms that have a good reputation and high security measures in place mitigates most risks associated with P2P trading.
Cryptocurrency exchanges are one of the most common ways to sell your Bitcoin or other crypto for cash. Most exchanges accept bank transfers, credit cards and other payment methods, making it simple to cash out. Bitbuy is one of the most widely used Canadian exchanges for this purpose, allowing users to convert Bitcoin and other cryptocurrencies to CAD. You can then withdraw your CAD funds to your bank account. It is important to check which exchanges are regulated and approved to operate in your country before deciding on one.
Bitcoin ATMs are a relatively new way to sell Bitcoin for cash. These ATMs look like traditional ATMs, but instead of cash transactions, they allow you to buy and sell Bitcoin. This facility has grown, with its popularity increasing globally. While some countries have more Bitcoin ATMs than others, there are now over 11,500 Bitcoin ATMs worldwide. However, Bitcoin ATMs tend to have high transaction fees and lower exchange rates than traditional exchanges.
OTC trading is a well-known method used by investors in the traditional financial industry. It refers to the process of buying and selling assets between two parties, with the help of a broker. This transaction happens outside of an exchange. This method is useful for high-volume trading, since the fees are relatively low. OTC trading can also guarantee that the trade will settle quickly. Nevertheless, OTC trading requires a good understanding of the market and negotiating skills. Bitbuy's Over-The-Counter (OTC) service, Bitbuy Private Wealth, is designed for clients looking to invest $50,000 or more in cryptocurrencies. It offers personalized trading services with an experienced OTC trader, who walks the client through the quoting process, providing exact pricing. The service operates 7 days a week and provides competitive rates. In addition, Bitbuy has recently introduced OTC Desk supported staking, a first-of-its-kind service in Canada, allowing individuals and corporations to earn rewards through crypto staking
Selling cryptocurrency for gift cards is an alternative method to receive value in exchange for your crypto. There are platforms that offer the ability to sell your Bitcoin or other cryptos for gift cards, such as Amazon or Apple. This method is not as popular as other methods, but it is still a viable way to turn cryptocurrency into cash.
Bitbuy is a cryptocurrency exchange based in Canada that provides a secure and reliable platform for selling cryptocurrency. The platform operates using a multi-signature, cold storage system, and a comprehensive insurance policy to ensure that client assets are protected. Additionally, Bitbuy requires two-factor authentication when logging in and any other actions within the exchange. Bitbuy is also registered as a Money Services Business (MSB) with FINTRAC, as a crypto trading platform with the Ontario Securities Commission and the Canadian Securities Administration and adheres to the highest regulatory standards of AML/CTF and KYC.
Selling Bitcoin and other cryptocurrency on Bitbuy is a seamless process. The platform enables traders to sell any amount of their digital assets. Once you log in and go to the sell section of the exchange, you select the cryptocurrency you wish to sell and the amount you want to sell. Bitbuy will then provide the current market price and let you know the proceeds from your sale. Then, you will have the ability to withdraw the funds in CAD if you wish to do so. You will be asked to enter your withdrawal information for the fiat currency transferred to your bank account via bank wire transfer or via Interac e-Transfer.
Additionally, the Bitbuy OTC desk is available for traders looking to transact a minimum of CAD 25,000. The crypto OTC desk offers personalized services and allows the seller to receive a higher value of Bitcoin or other cryptocurrency prices than other exchanges. The OTC desk also caters to corporate accounts interested in selling a high amount of Bitcoin or any other cryptocurrency.
Bitbuy is the only Canadian cryptocurrency exchange that’s been audited for proof of reserves, solvency, and security practices. You can read the full audit reports:
Bitbuy also operates with a 95% cold storage reserve for all digital currencies in custody and executes daily encrypted and distributed backups for disaster recovery. Cold storage is a cryptocurrency best practice. Since Bitcoin can be withdrawn instantly, cold storage prevents intruders from taking advantage of a security breach to withdraw the entire reserve. 95% of Bitbuy’s cryptocurrency reserves are stored offline to mitigate any potential security breaches.
In conclusion, selling cryptocurrency in Canada is now an easy and straightforward process. By choosing a reputable exchange like Bitbuy, selecting the cryptocurrency, selling the cryptocurrency through the trading platform, withdrawing the funds, and reporting your transactions to the CRA, you can sell your digital assets without difficulty. The most important thing to remember is to ensure that you prioritize security when selling your cryptocurrency. Always opt for a platform that has SSL encryption to secure your information and assets throughout the process. Happy selling!