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How to Buy Cardano In Canada: Top Crypto Exchanges that Support ADA

How to Buy Cardano In Canada: Top Crypto Exchanges that Support ADA

As cryptocurrency grows in popularity, more and more currencies are added, making it difficult to keep track of the available coins and how each one works. In this article, I’ll take a closer look at Cardano (ADA), the 4th most capitalized cryptocurrency with a market cap of over $73,000,000,000 at the time of writing. But how does Cardano work, and where can you buy it in Canada? Let’s find out!

What Is Cardano?

Cardano (ADA) is a decentralized, proof-of-stake blockchain platform, similar to Ethereum in how it’s maintained. It was founded in 2017 by Charles Hoskinson, one of the co-founders of Ethereum. Cardano is different from Ethereum in that it has a limited supply. Only 45,000,000,000 ADA will be circulated. Currently, there is just over 30,000,000 ADA in circulation or over two-thirds of the cap.

Proof-of-Work vs. Proof-of-Stake

Some cryptocurrencies, like Bitcoin, operate on a proof-of-work platform. This was and is the original way of mining cryptocurrency. Thousands of miners on computers solve complicated algorithms in exchange for cryptocurrency. As crypto has become more popular, however, the proof-of-work process consumes more and more energy, which puts a strain on the environment.

Poof-of-stake is a much newer method of mining cryptocurrencies, although it has the same goal; keep the cryptocurrency ledger secure and maintain consensus. With PoS, the miner stakes crypto they already own for the privilege of mining new crypto. By proving that you own it, and being willing to stake it, they’re putting their skin in the game.

Proof-of-stake has some downsides, but there’s less work involved, it consumes less energy, and it allows anyone to get involved. PoW has become exclusive, and large, well-financed organizations do most mining.

How to Buy Cardano: Step-By-Step

There are a few different platforms you can use to buy and store Cardano, but for this article, I will cover the easiest one: a cryptocurrency exchange. Crypto exchanges have become increasingly popular by making crypto trades as simple as buying or selling stocks through an online discount brokerage.

Several Canadian crypto exchanges support Cardano. Here at MapleMoney, our top-rated crypto exchange is Bitbuy. But while they support no fewer than nine different coins, ADA is not included at this time.

I’ll list the exchanges that do support ADA below, but first, here are the steps you need to take to buy Cardano:

1. Open an account with a cryptocurrency exchange. Once you choose a crypto exchange, it only takes a few minutes to sign up. The exchange will send you an email to confirm your account. Most exchanges employ a 2FA verification system for added security.

2. Verify your identity. At the time of account opening, the exchange will require you to verify your identity. If it can’t be done automatically, you’ll be required to send in pictures of your ID. Be prepared by having your driver’s license or passport available, as well as a bank or credit card statement, CRA document, or utility bill.

3. Fund your account. Once the account has been activated, you can deposit fiat currency (Canadian dollars), to be used to buy cryptocurrencies. Most exchanges give you a few ways to fund your account, including e-Transfer, or via a bank wire. The fees vary between exchanges, and some are free.

4. Buy Cardano (ADA). With funds in your account, you can proceed to purchase Cardano. Crypto exchanges are designed for ease of use, so placing a trade should be relatively straightforward. Some exchanges have separate trading platforms for beginners and advanced traders.

Without further ado, here is a list of Canadian crypto exchanges that support Cardano.

Canadian-Based Exchanges that Support Cardano (ADA)

Below is a list of four Canadian cryptocurrency exchanges that let you buy Cardano in Canada. A couple more (Binance, Crypto.com) are not Canadian-based, but Canadians can still open an account and trade Cardano. I’ll cover those a little later.

Wealthsimple Crypto

Canadian robo advisor giant, Wealthsimple recently launched its cryptocurrency trading platform. At first, you could only trade Bitcoin and Ethereum, but they’ve rapidly expanded to 25 available coins, including Cardano. Wealthsimple Crypto has the backing of a large, reputable Canadian financial institution, and it’s free to transfer funds in and out of your account. On the downside, the trading fees are high relative to competitors like Coinsmart.

What We Like:

  • Backed by Wealthsimple, Canada’s largest robo-advisor
  • Supports 25 coins, including Cardano
  • No minimum deposit amount
  • Free deposits and withdrawals
  • Easy-to-use mobile app
  • Store crypto without a digital wallet

What We Don’t:

  • High trading fees of 1.5%-2%
  • e-Transfer not available to fund account

Learn more about Wealthsimple Crypto.

Newton

Newton was founded in 2018 as a Toronto-based cryptocurrency exchange for Canadians. It’s quickly becoming one of the more popular exchanges in Canada, evidenced by its member base of over 200,000 users. They support more than 25 cryptocurrencies, including Cardano.

Newton boasts no-fee trading, but that doesn’t mean they’re not making money on trades. Instead, they build the fee into the spread by charging a slightly higher price for Cardano than the real market rate. The estimated cost per trade is between .50% and .70%, lower than Wealthsimple but higher than some other competition.

What We Like:

  • Free deposits and withdrawals
  • Over 25 cryptocurrencies are available, including Cardano
  • Easy-to-use trading platform
  • Ability to transfer crypto in/out
  • Store crypto without a digital wallet

What We Don’t:

  • Cost to trade is less transparent than other exchanges
  • The trading platform lacks advanced functionality, i.e., stop limit order

Learn more about Newton.

NDAX

NDAX stands for National Digital Asset Exchange. Founded in 2018, this Calgary-based cryptocurrency exchange supports more than 14 currencies, including Cardano. NDAX is known for its low fees: deposits are free, and trading fees are .20%, significantly lower than Wealthsimple and Newton (spread price).

You do, however, have to use caution when transferring money out of your NDAX account. Withdrawals are $25, regardless of the amount. Unless you’re withdrawing a large sum, NDAX might gouge you for taking money out.

What We Like:

  • Free deposits and withdrawals
  • Low trading fees
  • 14+ coins supported, including Cardano
  • Earn money with NDAX referral program
  • Store crypto without a digital wallet

What We Don’t:

  • Fiat withdrawal fee of $25 is high for small transfer amounts
  • Available for Canadian residents only

Learn more about NDAX.

Coinsmart

Coinsmart offers one of the best ways to buy Cardano in Canada. They combine low trading fees, the potential for free deposits, and a customer service guarantee to create a strong value proposition. Their 24/7 customer support is unique amongst Canadian crypto exchanges.

Deposits via e-Transfer are 1.5% for amounts under $2000; otherwise, they’re free. Wire transfer and bank draft deposits are also free. The standard trading fee is .20%, the same as NDAX, and lower than most competitors. On the downside, withdrawals can take up to 5 days to process, and the mobile app is iOS only – no Android capability for the time being.

What We Like:

  • Support for 11 cryptocurrencies, including Cardano
  • A low trading fee of .20%
  • Free deposits (except e-Transfers < $2000)
  • Excellent customer support, 24/7

What We Don’t:

  • Long processing time for withdrawals (up to 5 days)
  • 1% fee for withdrawals
  • The mobile app is iOS only

Learn more about Coinsmart.

Non-Canadian-based Exchanges that Support Cardano

In addition to the four Canadian-based exchanges I’ve covered above, the following cryptocurrency exchanges are based outside Canada but still permit Canadians to open an account and trade Cardano (ADA)

Binance

Binance is among the world’s largest trading platforms, with over 500 cryptocurrencies on offer, including – you guessed it – Cardano. The main advantage of Binance is the ultra-low trading fee of 0.1%. If you already own Cardano, you can deposit it into your Binance account for free. There is a major downside for residents of Canada’s most populous province. Due to regulatory action by the Ontario Securities Commission, Binance is no longer available to Ontario residents as of June 2021.

What We Like:

  • Ultra-low trading fees, starting at .10%
  • Free crypto deposits, including Cardano
  • Supports more than 500 coins, including ADA

What We Don’t:

  • No longer available to Ontario residents

Crypto.com

Like Binance, Crypto.com is based outside of Canada but is available to Canadian residents. Crypto.com boasts more than 10 million customers spread across more than 90 countries. Trading fees are higher than Binance, at .40%, but deposits are free.

What We Like:

What We Don’t:

  • Trading fees are steep for a non-Canadian platform.

Should I Add ADA to My Investment Portfolio?

Cryptocurrency of any kind is considered a high-risk, speculative investment. Crypto prices can swing wildly from one month to the next, so it’s not a short-term investment. As a result, you may be on the fence, wondering if you should add Cardano or any other cryptocurrency, for that matter.

I cannot recommend that anyone purchase crypto for the reasons listed above. It should never be considered a core holding in any investment portfolio, even if your time frame is long-term. It may be suitable as a fringe holding if you can tolerate the risk, making up a small percentage (up to 5%) of your overall portfolio.

This is especially true if you’re new to crypto investing, given the complex nature of crypto. Many experienced investors struggle to understand how it all works.

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