Coinbase Canada Review (Jul 2022): Why We Don’t Like It

June 25, 2022
Reviews
coinbase canada review

Coinbase offers a wide variety of cryptocurrencies and has several unique features that have made it a popular crypto platform, especially in the United States. However, its trading fees are too high, making it very expensive to use as a Canadian.

Instead, I recommend Bitbuy, a Toronto-based exchange trusted by 400,000+ Canadians. With bank-level security, extremely low trading fees and a $50 signup bonus, I can’t recommend Bitbuy enough.

CLAIM MY $50 BONUS
Trusted by 400,000+ Canadians.

What Is Coinbase?

Coinbase is an American cryptocurrency exchange that was originally founded in 2012. It’s based in San Francisco and it’s one of the oldest cryptocurrency exchanges in the world. It’s also the second largest crypto exchange in the world, the first being Binance.

It was designed to be one of the easiest places to buy, sell, and trade cryptocurrency, and it serves retail investors, businesses, and institutions alike. Originally, it only supported Bitcoin, but it now supports a wider array of digital assets.

Coinbase Features

1. Coinbase Pro

Coinbase grants users access to Coinbase Pro, which basically acts as the platform’s premium service and advanced trading platform at the same time.

As a Coinbase Pro user, you’ll have access to advanced charting tools that the standard Coinbase service doesn’t have, and you’ll also have a reduction in the trading fee percentages across the board.

2. Coinbase Earn

Coinbase will also grant you access to its Coinbase Earn feature, which is a collection of educational resources that will be especially helpful for beginner crypto investors.

Coinbase Earn comes with video tutorials on individual cryptocurrencies. Once you’ve watched them all, you’ll be prompted to answer a quiz about the crypto in question to see how much you’ve learned. If you answer the quiz correctly, you’ll get a small reward in said crypto into your Coinbase account.

3. Coinbase Wallet

Coinbase will also grant you access to online storage wallets through its Coinbase Wallet app, allowing you to manage your private keys and crypto assets from the comfort of your mobile phone.

If you’re not completely convinced by a software wallet service like this, do know that your private keys remain protected on your own device with Secure Enclave, biometric authentication, and even cloud backups if you wanted to do so. You’ll also get a unique recovery phrase so no one but you can access your crypto wallet.

Cryptocurrencies on Coinbase

Coinbase supports over 100 digital assets. Here are some of the most popular cryptocurrencies that Coinbase currently supports:

Bitcoin (BTC)Yearn.Finance (YFI)
Ethereum (ETH)Tezos (XTZ)
Bitcoin Cash (BCH)Algorand (ALGO)
Litecoin (LTC) Compound (COMP)
Cardano (ADA)Polygon (MATIC)
Uniswap (UNI)Stellar (XLM)
Chainlink (LINK)Aave (AAVE)
Ethereum Classic (ETC)Wrapped Bitcoin (WBTC)
Maker (MKR)Internet Computer (ICP)
Cosmos (ATOM)Tether (USDT)

Coinbase Fees

For crypto purchases up to $200 USD, Coinbase charges between $0.99 to $2.99 in fees. Once you exceed $200, these percentages apply:

Payment methodFee percentage
Bank account1.49%
Debit or credit card3.99%
Coinbase USD Wallet1.49%
Credit transaction2%
Wire TransferBetween $10 to $25
ACH TransferFree

Coinbase also charges a spread starting at 0.5% and varying depending on how much crypto you’re buying and market fluctuations.

My Recommendation: Bitbuy

Even though Coinbase has some unique features and a solid reputation, there’s one major reason I can’t recommend it to Canadians: fees.

As you can see in the table above, nearly all methods of purchasing crypto using Coinbase carry a fee between 1.5% to 4%, which is extremely high. And when you add the spread on top of that, Coinbase becomes a very expensive option for Canadians, far more than using a Canadian crypto exchange would be.

Instead, I recommend using Bitbuy, a Toronto-based exchange trusted by 400,000+ Canadians. Here are some of the main reasons I recommend Bitbuy over Coinbase.

#1 Lowest Fees In The Industry

Bitbuy’s trading fees are just 0.2%, and even drop down to 0.1% on certain transactions made using their advanced trading platform. Those savings add up quickly: if you trade $100,000 worth of Bitcoin in a given year (buying and selling $25,000 worth twice), you’ll save $800 in trading fees compared to an exchange charging 1% ($200 vs. $1,000).

Perhaps more important than trading fees, though, are spreads: the difference between the Buy price and the Sell price. Bitbuy has razor-thin spreads, which makes day trading possible and keeps more money in your pocket.

#2 Bank-Level Security

Bitbuy maintains a 99% cold storage policy, which means at least 99% of its users’ crypto is always held offline, keeping it safe from any potential hackers. Bitbuy is also regulated by FINTRAC (the Financial Transactions and Report Analysis Centre of Canada) and the OSC (Ontario Securities Commission), which means it follows all Canadian regulations, too.

#3 Excellent Customer Support

Bitbuy offers excellent customer support, and their customer service reps are actually helpful rather than just following a script. The only time I ran into an issue with Bitbuy, they had it sorted out within a matter of minutes. Keep in mind that some support options are only available for registered users, so if you have a question for Bitbuy, the best way to get it answered is to open an account.

To get your $50 signup bonus with Bitbuy, sign up using this link today.

Best Overall

Trading fees: 0.1%
Security: 99% cold storage
Signup bonus: $50

Serving over 400,000 Canadians

★★★★★

Rated 4.9/5

In Summary

Coinbase offers a wide variety of cryptocurrencies and has several unique features that have made it a popular crypto platform, especially in the United States. However, its trading fees are too high, making it very expensive to use as a Canadian.

Instead, I recommend Bitbuy, a Toronto-based exchange trusted by 400,000+ Canadians. With bank-level security, extremely low trading fees and a $50 signup bonus, I can’t recommend Bitbuy enough.

CLAIM MY $50 BONUS
Trusted by 400,000+ Canadians.

Coinbase FAQs

How To Withdraw From Coinbase

To withdraw funds from your Coinbase account, all you need to do is follow these three simple steps:

  1. Sign in to your Coinbase Commerce account.
  2. Click on the Withdraw button in the Balances section.
  3. A window will pop up and ask how much do you want to withdraw and where will you send these funds to.

Is Coinbase Safe?

Yes, Coinbase is a safe crypto exchange to use. 98% of all of their crypto tokens are held offline in cold storage, and the remaining 2% of crypto assets that are held online are insured. If Coinbase were to be hacked at any point in time, their insurance policy would cover any funds lost in the process.

Is Coinbase Available In Canada?

Yes, Coinbase is available for Canadians, though with its spotty track record in Canada and high foreign exchange fees for using Canadian dollars, we can’t recommend it.

Is Coinbase Legal In Canada?

Yes, Coinbase is legal to use in Canada, and it’s a legitimate cryptocurrency exchange as well.

Coinbase Referral Code

Unfortunately, we do not have a Coinbase referral code to share right now. If you sign up with Bitbuy, though, you can get a $50 signup bonus by signing up with our referral link.

Does Coinbase Report To The CRA?

No, Coinbase is not obligated to report its users activities to the Canada Revenue Agency. Considering that Coinbase is originally based in the U.S., you’ll have to download your transaction history in order to report your transactions to the CRA. Coinbase does not provide tax forms for international customers, including Canadians.

The Best Crypto Exchanges In Canada

Best Overall

Trading fees: 0.1%
Security: 99% cold storage
Signup bonus: $50

Serving over 400,000 Canadians

★★★★★

Rated 4.9/5

$50 Signup Bonus

Trading fees: 0.2%
Security: 95% cold storage
Signup bonus: $50

Trusted by 200,000+ Canadians.

★★★★★

Rated 4.8/5

Best For Altcoins

Spreads: ~0.5%
Security: 95% cold storage
Signup bonus: $30

Low spreads, great platform.

★★★★

Rated 4.5/5