How to Cash Out Crypto in Canada: Here Are Your Options

Published: 20th May, 2024 | Last Updated: 30th May, 2024

Markos Koemtzopoulos

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

In this guide, I will show you where you can cash out your crypto, how much it will cost, and how to go about it.

Also, see How to Buy Bitcoins in Canada.

Where to cash out

money, cash, czech crowns

The most important thing is to find an exchange that does not charge for withdrawals.

There is no reason to pay 1.5% to cash out for example.

It is easy to find an online marketplace that does not charge a fee. Coinsquare, Newton, Shakepay, and VirgoCX are just some examples.

The table below lists the withdrawal fee per withdrawal method for the largest regulated exchanges in Canada.

Withdrawals Fees for Regulated Canadian Exchanges

Exchange Withdrawal Min Max Time
Coinsquare Interac 0% 20 10,000 Instant
Coinsquare Wire 1.5% 10000 no limit up to 2 business days
Kraken Interac CAD 10 15 no limit 0-1 business days or instant
Kraken wire n/a 1000 free 10 minutes
Krake EFT 0.35% 50 no limit 2-5 business days
Coinbase Interac 1% n/a n/a Instant
Coinbase EFT 1% n/a n/a EFT: 3-4 business days
Crypto.com Interac CAD 1.99 100 25000 Instant
NDAX Interac CAD 1.5 n/a 3000 at a time up to 10000 per day 30 minutes
NDAX EFT 4.99 n/a no limit 1 Business day
Newton Interac 0% 10000 Instant
Newton EFT na 50000 2 business days
ShakePay Interac 0% 5 10000 Instant
ShakePay Wire 0% 10000 no limit 1-2 working days
Coinsmart Interac 1% 50 10000 instant
Coinsmart Wire 1% 15000 5000000 Up to 5 business days
Coinsmart EFT 1% 50 15000 Up to 5 business days
Bitbuy Interac 1.5% 5000 instant
Btbuy Wire 1.5% no limit 1 to 2 days in most cases.
Netcoins Interac 0% na na instant
netcoins wire 20 na na 1 to 2 days in most cases.
VirgoCX Interac 0% 10 $10000 per transaction $25000/day up to 2 business days
VirgoCX Wire 0% 3000 no limit up to 3 business days
Coinberry Interac 1.5% 100 5000 instant
Coinberry 1.5% 10000 no limit 1-5 Business days

You will also see the minimum and maximum amount that you can withdraw and how long it will take

How much does it cost to cash out? 

fees to cash out

Crypto investors who wish to withdraw to fiat need to account for network fees, withdrawal fees, and trading fees. For example, say you want to cash out $DOT.

You need to first convert your DOT into USDC. Then, convert that USDC into Canadian dollars and withdraw it.

Example

Assume you are using a crypto trading platform where trading fees are 0.2% and withdrawal fees are 0%

Say you have $10,005 worth of DOT.

To send them from your mobile wallet to an exchange you will incur a network fee that you pay to the blockchain. Let’s assume this is 5$

So now you have $10,000 worth of DOT. To convert this into USDC costs 0.2% = $20.

next $9980 USDC converted to CAD costs $19.96.

The withdrawal incurs zero fees

Your total fees are $5+$20+$19.96=$44.96

To help you the table below lists the trading fees for the major online platforms in Canada

Trading fees per crypto exchange in Canada

Trading fees for Canadian Crypto Exchanges

Maker fee Taker fee
Coinsquare Pro 0.50% 0.50%
Kraken 0.25% 0.40%
Coinbase 0.40% 0.60%
Crypto.com 0.075% 0.075%
NDAX 0.20% 0.20%
Newton undisclosed spread -
ShakePay undisclosed spread -
Coinsmart 0.2% if you trade BTC and 0.3% otherwise -
Bitbuy 2% 2%
Netcoins 0.5%+spread
VirgoCX 0.5%-2.5% depending on trading pair
Coinberry 2% 2%

Withdrawal methods

money, cash, dollars

There are three main withdrawal methods that exchanges offer

  1. Interac e-transfers are usually the cheapest way to cash out and withdrawals are instant. However, there is often an upper limit on the amount you can transfer. Make sure you check the small print as sometimes you have to batch your transfers.
  2. Wire transfers usually have a higher minimum of 10,000 and no upper limit. They usually take 2-3 business days
  3. Many exchanges allow you to transfer to a Canadian bank account using an Electronic fund transfer. These two will have separate limits and fees which vary per exchange. Transaction can take a couple of working days to process.

How to Cash out your digital currencies

To cash out your crypto to a bank account follow these steps

  1. Open an account with one of the crypto exchanges above. If you are unsure of which one to pick check out my review of the best Canadian crypto exchanges for a more comprehensive deep dive.
  2. Canadian residents need to verify their ID and personal information. If you are using a VPN make sure you use a Canadian IP so that there is no confusion along the way.
  3. I am assuming you have a crypto wallet. Open your wallet, find your coin, and click on send
  4. On the exchange find the coin you want to receive, click on receive, and copy the wallet address.
  5. Paste the address into the send field in your wallet. You can also use the QR code instead of pasting to reduce the chance of a manual error.
  6. Make sure you have selected the same network on your wallet and exchange
  7. The transaction should go through within minutes for most digital assets. If you are sending BTC it can take up to an hour.
  8. Once you receive the crypto in your account you need to sell it for canadian dollars.
  9. Place a market order if you are happy to sell for the current market price. Alternatively, place a limit order if you only want to sell if the price reaches a limit that you set.
  10. Once your sale goes through click on your CAD and select withdraw.
  11. Choose your payment method (Interac, wire transfer, EFT, etc)
  12. Enter the amount you wish to withdraw, check the fees, and confirm the withdrawal.

Alternatives to cashing out. 

If you cash out on a Canadian exchange it will most likely report this activity to the CRA (Canada Revenue Agency) and you will need to pay capital gains tax. See Crypto Tax Canada for more details.

The alternative to cashing out would be to

  • Use your crypto to purchase stuff directly. For example, see 50 Businesses That Accept Dogecoin as Payment
  • Use Bitrefill to buy stuff like fuel, food, etc
  • Buy gift cards on Bitcoin Well
  • A popular option is to sell your crypto for USDC which is a stablecoin pegged to the US dollar. You can then invest this on a decentralized platform to earn a yield and hold your assets for the long term without being exposed to the volatility of crypto prices. Check out Yearn Finance for more.

If you do not want to cash out then check Where Is the Best Place to Hold Crypto in Canada?

money, coin, investment

Checklist for cashing out crypto in Canada

  • Check withdrawal fees. Different exchanges charge different fees.
  • Consider trading fees as you will need to make at least one conversion from crypto to canadian dollars
  • Take into account that you will incur some network fees to move the crypto from your digital wallet to the exchange. If you don’t have a wallet check my guide on Which Is the Best Crypto Wallet in Canada.
  • Make sure the exchange you plan to use offers the cryptocurrency you want to cash out.

FAQs

Can I withdraw cash to a credit card or debit card? 

Credit cards are not welcome by exchanges in Canada and most don’t allow cash withdrawals to debit cards. The easiest option is to withdraw to a bank account using Interac e-Transfers.

Does it make sense to use a Bitcoin ATM to cash out?

The benefit of using Bitcoin ATMs is that you can get physical cash in hand directly. However, bitcoin ATM transactions are not anonymous in Canada and here too you would need to verify your ID.

Also, see the 10 Best Platforms to Buy Bitcoin in Canada.

Do I need to pay crypto taxes when I cash out?

Canadian taxpayers need to account for capital gains on 50% of their profits from trading crypto. Selling crypto is a taxable event. You must do this regardless of whether you cash out to fiat currency or swap one crypto for another. The tax rate will differ if you are a professional trader and the number of crypto transactions you have made.

What is the cheapest way to cash out crypto in Canada?

The cheapest way to cash out your crypto in Canada is to move your coins to a regulated exchange ( see Which Crypto Platform Is Legal in Canada) with low trading fees and zero fees for bank transfers. NDAX, Coinsquare, and ShakePay are good options. See the table above to help you decide.

How do I legally cash out crypto?

Cryptocurrency transactions are legal in Canada. Send your crypto to a regulated crypto exchange and withdraw to your bank account. Make sure you disclose capital gains to tax authorities. You can use tax accounting software for this or consult with certified tax professionals.

How to withdraw crypto into CAD?

All regulated Canadian crypto exchanges allow you to sell crypto for CAD. You may first need to convert your crypto to USDC before selling for Canadian dollars.

Useful links

Markos Koemtzopoulos is the founder and main writer of ElementalCrypto. He has been a lecturer at the University of Nicosia on cryptocurrencies and DeFi and has taught two courses on crypto and blockchain technology.

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