Bitbuy Vs. Coinbase: Which Crypto Exchange Should Canadians Use?

October 3, 2022
Reviews

Bitbuy or Coinbase? In this Bitbuy vs. Coinbase comparison, you'll learn that both platforms offer a wide range of digital currencies but Coinbase charges very high trading fees (3.99% buy fee and 0.60% trading fee). As Coinbase is US-based, many Canadian customers have complained about having difficulty depositing/withdrawing their funds to and from the platform. Bitbuy, a Canadian crypto exchange, is made for the Canadian financial market and allows you to buy/sell cryptocurrencies with low trading fees. Bitbuy supports nearly all international payment methods, including Interac e-transfer, wire transfer, and debit/credit card, while Coinbase only supports credit/debit cards and PayPal.

Also, Coinbase doesn't have advanced trading tools like live charting, and the platform is not nearly as secure as Bitbuy's, so I can't recommend Coinbase to most investors. I recommend Bitbuy to both beginners and experienced traders instead, because of its low trading fees, high security, and fantastic insurance policies.

Launched in 2012, Coinbase is one of the oldest crypto exchanges in the Canadian market, offering more than 200 cryptocurrencies. They are well-known for their easy-to-use interface, but their trading fees are higher than nearly all the other crypto exchanges in the market, including Bitbuy.

For this and other reasons, I recommend Canadians choose Bitbuy instead. Bitbuy's fees range from 0%-1.50% depending on your tier level, and they allow you to make free deposits using nearly all the well-known payment methods, such as Interac e-transfer and wire transfer. Coinbase, on the other hand, doesn't support the Canadian dollar and charges a 3.99% fee when purchasing crypto with a debit/credit card (trading fees come separately). Bitbuy is regulated under FINTRAC as a Money Service Business and is approved by the OSC, so they have to make regular financial and security audits to keep its status.

Bitbuy offers free advanced trading tools, including live charting, through which advanced traders can find volume and order book data. In Coinbase, if you want access to modern trading tools, you must upgrade to Coinbase Pro and handle two accounts, which can be challenging for most traders, especially beginners.

Coinbase Vs. Bitbuy: Pros And Cons

Pros Of Bitbuy

  • Free advanced trading tools
  • Covered with Knox insurance policy
  • Free deposits
  • Stores more than 95% of digital assets in offline wallets
  • Approved by OSC and CSA and regulated under FINTRAC
  • All international payment methods available, including Interac e- transfer
  • Availability of Express Trade and Pro Trade

Pros Of Coinbase

  • Simple and sleek interface
  • Over 200 cryptocurrencies available
  • Automatic buying option
  • Helpful crypto articles for learning
  • 2FA and KYC for security
  • Quick signup process

Cons Of Bitbuy

  • Slow deposits
  • 0%-1.50% trading fees
  • 1.5% withdrawal fees
  • Pro Trade mode can confuse beginners
  • Limited cryptocurrency options
  • $50 minimum deposit

Cons Of Coinbase

  • Extremely high trading fees (3.99% buying fee and 0.60% trading fee)
  • Can only make deposits with credit/debit card and PayPal
  • Can't trade cryptos
  • Bad customer support
  • Not regulated under Canadian authorities
  • Can't withdraw crypto from the platform
  • No advanced trading tools available

Bitbuy Vs. Coinbase: Pricing

Bitbuy is transparent about its fee structure, while Coinbase's fees are complicated and some of the highest in the market. Also, Coinbase doesn't allow you to fund your account with Canadian dollars, and you have to pay a 3.99% buy fee when purchasing crypto with your debit/credit card. On top of that, you'll be paying a 0.60% trading fee and a spread of 0.50%, which can significantly hurt your profits. Canadians can only fund their Coinbase account with credit/debit cards.

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On the other hand, Bitbuy is a Canadian platform that supports CAD and allows you to buy/sell cryptocurrencies directly with your native fiat currency. On Bitbuy, the trading commission is between 0%-1.50% and it has a low spread of 0.46%. You don't have to pay anything when funding your Bitbuy account and only have to pay a 1.50% fee when making a withdrawal.

So. It's safe to say that Canadian investors can save a lot of money when trading on Bitbuy as compared to Coinbase.

PricingBitbuyCoinbase
Trading Fees0–1.50% (depending on your tier level)0.05–0.60%
Deposit FeeFree3.99%
Withdrawal Fee1.5%1%
Spread0.46%0.5% and varying
Interac e-TransferYesNot available
Wire TransferYesNot available
Supports CADYesNo
Debit/Credit CardYesYes

Bitbuy Vs. Coinbase: Detailed Breakdown

Security

When it comes to security, Bitbuy takes things to a new level. It not only keeps 95% of its digital assets in cold storage but they're also insured with a Knox insurance policy. It has regular security and financial audits to ensure that the platform is secure and that there's no fraudulent activity.

Bitbuy Vs. Coinbase

Bitbuy Security

Although both Coinbase and Bitbuy have 2FA and KYC processes, only Bitbuy has everything you need to have the peace of mind that your hard-earned investment is completely safe.

Bitbuy Vs. Coinbase

Coinbase Security

SecurityBitbuyCoinbase
2FAYesYes
Cold Storage95% of its digital assets are stored in offline wallets98% of its digital assets are in offline wallets
KYCYesYes
Codebase platformYesNo
AuditRegularlyNot stated
InsuranceYes, backed with Knox insurance policyYes, but it only protects a portion of digital assets held on the storage system

Regulatory Compliance

Bitbuy is one of the few Canadian crypto exchanges regulated under FINTRAC as a Money Service Business and approved by OSC and CSA. They must follow all the regulatory standards and legal conditions to maintain their status. Coinbase, a US-based crypto exchange, is also a regulated crypto exchange in Canada.

Bitbuy is an approved Virtual Asset Provider, and its leadership team is a member of the IIROC Crypto-Asset Working Group, which helps to set top-quality regulatory standards and strengthen Canadian markets. Since Bitbuy's foundation, it has never been hacked or been subject to cybercrime.

In the United States, Coinbase has faced some severe lawsuits over the years. Last year, they were sued by the SEC (U.S. Securities and Exchange Commission) after it proposed to launch a crypto lending platform. In August, a $5 million USD class action was filed against Coinbase in a federal court in Georgia for not securing their user's accounts against theft and hacks. More than 100 people made this lawsuit, and the attorney said there might be more victims.

Customer Support

These crypto exchanges offer live chat and email support, but Bitbuy's customer support is much better than Coinbase's. Several Canadian investors have complained about Coinbase's slow replies and unanswered tickets, which can be a problem for people facing severe issues with their accounts.

On Bitbuy, you can easily submit a complaint and get a guaranteed reply within 24 hours. They are well-known for their excellent customer support. For testing purposes, we sent an email to both Bitbuy and Coinbase. We got a reply from the Bitbuy support team in less than a day, while it took Coinbase nearly five days to reply.

Similarities Between Coinbase And Bitbuy

Bitbuy and Coinbase are well-known in the Canadian crypto market and have a huge customer base, although Coinbase's is much bigger. Let's see the similarities between these two crypto exchanges:

  • Offer Most Popular Cryptocurrencies: These two cryptocurrency exchanges offer six of the most popular digital currencies, including; Bitcoin and Ethereum.
  • Cold storage: both Bitbuy and Coinbase store most of their digital assets in cold storage.
  • Crypto wallet: You'll get your private crypto wallet in these cryptocurrency exchanges.
  • Ease of use: They are famous for their beginner-friendly interface and sleek design.
  • Mobile app: For traders on the go, both Bitbuy and Coinbase offer a mobile app for Android and iOS.
  • Helpful educational resources: For beginners who want to learn blockchain and all the aspects of cryptocurrencies, you'll find a wide range of articles on both these exchanges.
  • Referral Bonus: On Bitbuy, you'll get a $20 signup bonus, and Coinbase gives you a $25 referral bonus.
  • Email Support: You'll find email support in both these exchanges.
  • Credit/Debit Card Support: Using your credit/debit card, you can buy/sell cryptocurrencies on Bitbuy and Coinbase, though the latter charges a hefty fee for it.

Differences Between Bitbuy And Coinbase

Apart from these similarities, Bitbuy and Coinbase have plenty of differences, which I'll discuss below:

  • Transparency: Bitbuy is highly transparent about its fee structure, while Coinbase is not.
  • Fee Structure: Bitbuy's trading fees range from 0%-1.50%, while Coinbase charges from 0.05%-0.60%.
  • Customer Support: Many Canadian users have reported the lack of Coinbase's customer support and not resolving issues. On the other hand, Bitbuy customer support replies within a few hours and has the best rating among Canadian investors.
  • Number of Offered Cryptocurrencies: Coinbase offers more than 200 cryptocurrencies while Bitbuy offers 25 digital currencies, including all the popular ones.
  • Buying Methods: For Canadian users, Coinbase only offers credit/debit cards and PayPal, but on Bitbuy, you'll find all the international payment methods, such as Interac e-transfer and wire transfer.
  • Regulatory Compliance: Bitbuy is the industry leader in Canadian regulatory adherence and is registered with FINTRAC as Money Service Business. Coinbase is also registered but constantly faces legal action in the United States.
  • Canadian Dollar Support: Bitbuy allows users to deposit Canadian dollars directly in their account, while Coinbase doesn't.
  • Spread: Coinbase has a spread of 0.5% (and varying), and Bitbuy has a low spread value of 0.46%.
  • Deposit Fee: The most crucial difference between Bitbuy and Coinbase is that Bitbuy offers free deposits, while Coinbase charges an extremely high fee of 3.99% when purchasing cryptocurrencies with your debit/credit card (and Canadians don't have any other way to make a deposit).

Who Wins: Coinbase Or Bitbuy?

FeaturesBitbuyCoinbase
Top FeatureAdvanced trading tools and Bitbuy APIMore than 200 cryptocurrencies
ProLow feesSleek design
ConLess cryptocurrenciesHigh fees
Signup Bonus$20$25
SecurityHighMedium
Regulatory ComplianceRegulated with FINTRAC and approved by OSC and CSARegulated by authorities
Fees0%-1.50%0.05%-0.6%
User-FriendlinessYesYes
Payment MethodsAll international payment methods available, including Interac e-transferOnly supports credit/debit cards and PayPal
Best ForAll CategoriesBeginners
Supports CADYesNo
Deposit FeeFree3.99%

Why Bitbuy Is Better Than Coinbase

After stating all the facts, it's clear that Bitbuy is a better choice for all types of Canadian crypto investors (both beginners and experts) than Coinbase.

Although a huge and far-reaching platform, Coinbase doesn't support its Canadian users very well. Many Canadian investors face difficulties on the platform and have to pay extremely high fees to make trades. Over the years, there have been many lawsuits against Coinbase in the United States, which is not an ideal situation. They only allow Canadians to buy cryptocurrencies using credit/debit cards and PayPal, for which they have to pay high fees.

Bitbuy is one of the most well-known crypto exchanges in Canada. It's regulated under FINTRAC and was created specifically for the Canadian financial market. It has low trading fees, offers free advanced trading tools, and excellent customer support. Additionally, it supports the Canadian dollar and offers free deposits. These should be more than enough to convince most Canadians that Bitbuy is a better option for them.

Why You May Still Want to Choose Coinbase Over Bitbuy

Because of no advanced trading tools and a simple, easy-to-use interface, Coinbase can be a good option for newbies looking to dive into cryptocurrency investment for the first time. Although you have to pay high fees and can only buy digital currencies through credit/debit card, you get access to over 200 digital currencies and can play around without risking too much money while learning the ropes. That and a series of helpful educational resources like articles and videos can help new traders learn about blockchain and crypto investment in record time.

In Summary

I recommend Bitbuy to all Canadian investors because of free deposits, low trading fees, and high security. Coinbase is suitable for beginners, but Canadian crypto investors can get so much more out of Bitbuy that it would be unwise to choose a.

FAQs

Does Bitbuy have a wallet?

Yes, Bitbuy does have a crypto wallet. When you sign up on Bitbuy, you'll get your own private crypto wallet where all your cryptocurrencies will be stored and from where you can make crypto transactions.

Is Coinbase a Canadian company?

No, Coinbase is a US-based crypto exchange but is allowed to provide services in Canada.

What is safer than Coinbase?

Bitbuy is safer than Coinbase for Canadians as it has regular security audits and is regulated by some of the most important institutions like FINTRAC.

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