Post the 2017 boom, chances are that you’re accustomed to cryptocurrency and might be looking at the different ways to get started with your investments.
Sadly, you can’t just get started with cryptos by visiting any bank or financial institution; you’ll need a crypto wallet first! For beginner investors, this term might bring along a lot of confusion, and you might find yourself covered with questions like:
How to choose a crypto wallet?
What are the different options available?
Which is the best crypto wallet in Canada?
Relax, we understand your genuine concerns! Therefore, this blog discusses crypto wallets’ different aspects to help you get started with your crypto journey. We have walked you through the different wallets, available options, and a guide to choosing them in the following sections. Let’s get started!
Crypto Wallets: What Are They?
Once you’ve decided to start investing in cryptos, the most immediate step is to understand more about a crypto wallet! Now, since you can’t just store your crypto funds anywhere, there’s a specific platform called ‘crypto wallets’ to allow you to store your funds. These digital wallets are developed to initiate crypto transactions and are secured by public and private keys.
But, what are these keys? How does a wallet function? Let’s figure it out in the latter part of this section!
Now that you have a basic idea of a crypto wallet, we’ll move ahead with the public and private keys. A public key is similar to a bank account number present on the Blockchain to give you an insight. This alphanumeric string allows the Block servers to identify the two users involved in a transaction. In a nutshell, a public key can be connected to a private key.
On the other hand, a private key is a 24-word passphrase that allows the users to access their stored funds over the Blockchain network and transfer them to other users. Private keys are also known as a user’s digital signature since they can be used similarly to a physical signature to sign a cheque. Besides, it should be noted that a private key is a security measure to your funds and should never be shared with anyone.
But how do these crypto wallets work?
With the idea of private and public keys in mind, defining a crypto wallet is easy! Crypto wallets are a piece of hardware or software designed to store a given user’s public and private keys. In addition, these wallets don’t directly store a user’s crypto funds recorded over the public Blockchain. Rather, they serve as a medium for storing, receiving, viewing, and sending crypto assets.
But, Do I Need Crypto Wallet In Canada?
Yes. Anyone who wants to include an additional layer of safety net to their crypto funds would like to use crypto-wallets. While many investors think of storing their purchased crypto assets more safely over the exchange they initially brought their crypto funds from, the recent cyberattacks on renowned crypto exchanges have proven that no platform is safe.
Besides, while crypto exchanges allow you to store your Canadian Dollars or digital assets on their wallet’s exchange, it should be noted that these exchanges provide you with a custodial wallet. Since these wallet types are limited to the exchange, the downside of not having control over your private keys is a security concern for many.
Even though many reputable exchanges tend to store crypto assets over cold storage, backed by several insurances, many investors consider it to be a risky move. That’s why several Canadians choose to look for the best cryptocurrency wallet in Canada and invest their crypto assets safely.
Types of Crypto Wallets Accounts?
Having read about private keys, public keys, and crypto-wallets, you might think that’s all. However, it isn’t! Thanks to the innovation in the crypto sector, today, we have numerous crypto wallets based on their functionality and the type of security provided by the platform.
Therefore, when on your quest to find the best Canadian crypto wallet, you might want to look at the different available options in Canada. Continue reading as we explore the many other wallets available over the internet.
As the name suggests, a software wallet can be installed over your PC or smartphone and is readily available over a few clicks. When talking of software wallets, they’re primarily divided into three categories, namely:
- Mobile App
- Desktop Software
- Web-based Wallet via an exchange or broker
When it comes to settling with any of these software crypto wallets, your selection should be based on top priorities. If you plan to trade crypto, for example, online wallets are a reliable alternative since you won’t have to continue moving tokens from and to exchange.
On the other hand, mobile wallets provide users with an excellent balance of convenience and security, making it an option limited to active traders. Not to mention, these wallets will give you real-time access to the crypto markets as you have your smartphone with you.
Lastly, desktop wallets are an excellent option for users who want to interact with their Blockchain ledgers almost daily.
As the name suggests, hardware wallets are physical devices responsible for storing your cryptocurrencies. Thanks to their offline functionality, these wallets offer the maximum security of all wallet options available in the market.
Furthermore, as an added security measure, users of the hardware wallets must enter their chosen PIN onto the device itself to initiate the transfer of funds out of a hardware wallet. Some of these hardware wallets also come with their application, allowing the users to make the most of their everyday usage.
However, since users need access to a physical device to transfer their funds, it’s not a viable option for users who want to engage in active crypto trading, even after adding all the security to stored funds.
Third, we have the paper wallet, a reliable medium if you want to store your cryptos for a longer time. Here, your private keys come printed on paper (generally in the form of a QR code).
However, it should be noted that the users need to store their paper wallets in case they want to cash out their funds.
Pro Tip: You have the option to store your QR code over a software wallet and transfer the tokens to a crypto exchange at the time of transfer.
Hardware Vs. Software Wallet: What’s The Difference?
No matter the wallet chosen, it all comes down to the safety of your funds!
When it comes to their everyday use, software wallets can sometimes be more versatile than hardware variants. However, the fact that they’re connected to the internet makes them vulnerable to hacks, making them a less secure option.
On the other hand, hardware wallets function as additional hardware that may be connected to and disconnected from your computer.
Both the wallets have their advantages for different users. For instance, an everyday trader might opt for a software wallet, whereas investors going for the long term would settle for hardware wallets. In a nutshell, it’s all about their connectivity to the internet and the safety which they add to your funds.
Now that you have a basic understanding of everything around the crypto wallets, you’ll move ahead to signing up with a crypto wallet. However, once you get to the research part, you might get confused about the hundreds of service providers advertising themselves as the best cryptocurrency wallet in Canada.
This is where you might need recommendations around the top crypto wallets in Canada! To help you with the same, we have listed a few of our top suggestions for crypto wallets (both software & hardware) in the following section.
Best Cryptocurrency Wallets In Canada
When looking for the best crypto wallet in Canada, you cannot overlook the functionality that Binance adds to the table. The software wallet is home to a global crypto ecosystem that serves as a high-volume crypto exchange, allowing seamless liquidity to the users.
Besides, the platform is unique due to its multiple functionalities for both beginner and advanced traders alike. Users can access functions like multiple wallets, leveraged trading products, and crypto savings accounts to make the most of their crypto funds.
The exchange allows users to access over 600 different crypto assets available across thousands of markets. In terms of wallet, Binance offers you a software wallet, with the provision to choose between custodial or non-custodial wallets, present either on the main website or in a mobile app. Custodial wallets mean that users don’t need to worry about safeguarding their wallets, as the Binance platform is in charge of keeping the wallet funds safe and secure for every user.
Once you’ve selected the custodial wallet (Trust Wallet in Canada) under Binance, the platform links your wallet to the main account, giving you access to multiple trading tools and features. This list includes the functionality of users buying crypto at a commission of just 0.10% per slide.
Talking of the security provided to the wallet users, Binance uses several security measures to help users secure their funds. Some of these features include 2FA (two-factor authentication) and fingerprint and face unlocking. Adding to it, Binance stores most of its user’s funds in offline cold storage and Binance SAFU (Safe Asset Fund for Users) to help them recover their assets in case of losses related to hacking.
Lastly, it should be noted that the platform secures the users’ private keys (for users choosing custodial wallets), making it a potentially suitable option for beginners with little to no knowledge of cryptos.
On the flip side, the platform’s high trading & commission fee make it an option limited to very selected traders.
[maxbutton id=”1″ url=”https://coinrevolution.com/cryptocurrency-2/exchanges-3/binance-comprehensive-review-2022/” text=”Go to Binance Review” ]
Next on our best Canadian crypto wallet list, we have BitBuy, a reliable wallet and exchange platform that allows Canadians to trade cryptos with easy CAD deposits. This platform has earned its name by offering reliable crypto exchange services with a transparent, cost-effective fee structure. In addition, the slew of features like advanced charting tools, OTC service, and a comprehensive crypto-insurance make BitBuy a go-to option for both beginner and advanced traders alike.
Once you sign-up & install for BitBuy, the platform connects you directly to an in-built wallet, eliminating all the struggles of linking your wallet and transferring funds back and forth. Once ready, users can access over 15 leading crypto projects, including ETH, BTC, SOL, AAVE, and LTC, among other cryptos.
Besides, users signing up for the platform can even access several exchange services offered by the platform. For starters, users of the BitBuy platform can buy and sell cryptos at a competitive fee of 0.20% per slide, causing you a $1 fee for selling Bitcoin worth $500 on this platform.
Additionally, this Bitcoin wallet in Canada allows you to diversify your portfolio by paying for additional cryptos in the CAD (Canadian Dollars). Thanks to the Interac e-Transfer functionality present over the platform, users can easily deposit their funds in their fiat funds at a fee of 1.5% for a minimum deposit of $50. Regarding the withdrawal process over the platform, investors can also withdraw their funds using the Interac e-Transfer method.
However, the functionalities of the platform’s application make it one of the best mobile crypto wallets for users. Users can enjoy a seamless trading experience over both web and mobile applications of the platform. In addition, the 24/7 customer service also makes it easy to seek assistance around the clock.
In terms of the user’s safety and legitimacy, BitBuy assures it with numerous verification and authentication. In addition, the platform is backed by regulations from the Ontario Securities Commission and is also registered under FINTRAC as a business that provides money services.
On the flip side, the wallet can limit users to want to explore beyond the 17 available crypto projects and invest in new and upcoming projects.
Last on our list of the best software crypto wallets in Canada is Crypto.com. The platform is appealing to the users who want to diversify their portfolio over numerous options and explore beyond conventional crypto investments. In addition, the platform serves the liking of both beginner and advanced traders with its traditional trading of crypto and DeFi offerings.
Once signed up, users can trade over 250+ cryptos from multiple market capitalizations and underlying blockchain networks. In addition, the platform allows you to store all your crypto funds in a single place over its custodial storage, accessible via mobile application and web platform.
Besides, users can also opt for additional options to make money from the accumulated funds. For users who love exploring the crypto industry, Crypto.com allows them to either stake their funds or lend their cryptocurrencies for DeFi lending programs and generate income (an APY of up to 14.5%). Adding to it, users also have the option to invest in NFTs.
However, it should be noted that these APIs result from several factors. For instance, flexible accounts allow users to withdraw their crypto funds at the lowest interest rate. Most of the stakers will have to undergo a three-month lock-up period to attract sound APYs.
Talking of the wallet safety measures, Crypto.com stores provides complete control of the private keys to its users. In addition, the platform stores most of its funds over cold storage, ensuring maximum security against hackers. Further, the fiat currency deposited with Crypto.com is held in regulated bank accounts. In case of a successful hacking event, the company claims to have over $750 million in insurance to recover from the lost funds.
On the flip side, the wallet has a high deposit fee of 2.99% for Visa and MasterCard, limiting it to specific investors.
The exchanges mentioned above were some of our top recommendations for the best crypto wallet in Canada. However, you can’t simply call a crypto wallet-related blog complete if it only covers the aspects of a software wallet.
Therefore, to provide you with all the chances of ensuring the complete security of your crypto funds, we have listed a few hardware wallet recommendations in the section below.
Ledger Nano X
The Ledger Nano X is one of the most appealing crypto hardware wallets for 2022. This cold hardware wallet offers cold storage to your funds by ensuring no connectivity to the internet at all times. Therefore, this sleek device is a convenient storage option. In addition, it comes with a mobile application (Ledger Live) that allows you to integrate it with Bluetooth to use with your smartphone, adding to the users’ convenience.
Users of the Ledger Nano X can trade cryptos, swap one crypto for another, and even stake or lend their cryptos to make money. Access to the wallet is simple; you need to place a PIN to verify transactions, making it reliable and secure. Interestingly, users of the Ledger Nano X hardware wallet can also retrieve their stolen wallets by tracking them from other devices. In terms of fees, the wallet comes to an average charge of $200.
Cost: $199 CAD
Coins supported: Over 1,500 crypto tokens
Type of wallet: Hardware
Trezor Model T
Another reliable hardware crypto wallet in Canada is the Trezor Model T, a small, compact device that allows users to store their crypto funds and private keys. Designed and produced by SatoshiLabs, users of the Trezor Model T have the functionality to connect their wallets to a computer via USB. They also can interact with the minimalistic touch screen present on the device.
One of the most appealing features of the Trezor Model T is that it allows users to store unlimited private keys and access over 1400 different cryptos. Besides, the wallet is also compatible with the Exodus software wallet, allowing users to receive, track, send, and exchange funds over the platform. However, it should be noted that the wallet is only limited to Android users and has no functioning for iOS platforms.
Cost: $245 CAD
Coins Supported: 1000+
Type of wallet: Hardware
Last, we have the KeepKey physical wallet that manages the generation of private keys, stores them, and facilitates the users’ transactions. This slim, minimalist-designed hardware solution allows you to store Bitcoin and several other top cryptos and ERC20 tokens. Featuring one of the largest displays in a hardware wallet, this device is compatible with Mac, Linux, PC, and Android.
In terms of functionality features, the platform comes pre-installed with its integrated exchange (Exodus), allowing users to trade cryptos directly using the wallet. Furthermore, thanks to its development team, users can easily do crypto-to-crypto transactions using the ShapeShift integration available on this wallet. Lastly, users can initiate transactions using their PIN as the wallet screen displays a mnemonic recovery seed and highlights the transaction information for the users to confirm.
Cost: $49.99 CAD
Coins Supported: 40+
Type of wallet: Hardware
How to Choose the Best Cryptocurrency Wallet for You?
While this guide has covered recommendations for the best crypto wallets in Canada, we understand that there’s no one fit for all. Given the hundreds of crypto wallets available in the country, we also appreciate your thoughts on doing some research before finally settling with any one of these crypto exchanges.
Therefore, to help you better, this section will guide you through the different steps involved in finding out the best crypto wallet in Canada based on your requirements.
When looking for the best Bitcoin wallet in Canada, the first thing to look for are the coins accepted by the service.
Exodus, for instance, is one such wallet in Canada that is limited to Bitcoin, and does not support any other cryptocurrency. As a result, if you hold a variety of cryptocurrencies, you’ll need to install and manage different wallets.
Therefore, it is always a smart move to select a crypto wallet that supports all the coins you decide to invest in. This allows you to maintain your complete cryptocurrency holdings in one secure location.
Device Type and Custodianship
Now that you already know of the different types of available crypto wallets, it should be a primary pointer to consider. When choosing the best cryptocurrency wallet in Canada, you need to understand that the gadget type plays a significant role in your selection.
Besides, you’d also want to be clear between choosing a custodial and non-custodial wallet.
After you’ve confirmed that your selected provider supports all the crypto projects you want to invest in and your preferred device type, the next step is to look into the wallet’s security measures.
In most cases, the security of your wallet depends on whether you opt for custodial or non-custodial storage.
For instance, if you decide to settle with the BitBuy online wallet, you can rest assured knowing that the Ontario Securities Commission backs the exchange. Moreover, you’d also want to look at the exchange’s cold storage and insurance policies that act as a safety net in case of successful fraud.
Adding to the list of security measures in your ideal crypto exchange is 2FA (two-factor authentication) which usually requires you to authenticate a transaction via SMS or email.
The user experience of your chosen wallet is another essential metric to consider. Electrum, for example, is superb for experienced crypto investors that want direct access to the Bitcoin blockchain network.
However, beginners will likely find the Electrum interface intimidating. At the other end of the scale, BitBuy, Crypto.com, and Coinbase represent some of the best crypto wallets in Canada for beginners.
Fees for Transferring Crypto
Another factor to consider while looking for the best crypto wallet in Canada is the costs concerning your transactions when transferring tokens.
Since different crypto exchanges have other fee structures, you’d want to know more about them. Some crypto exchanges, for instance, cover you over the Blockchain mining fee while some don’t, adding a mark-up on this fee.
Besides, some cryptocurrency wallet services also demand a set fee, generally on the higher side. Therefore, before signing up with any wallet service, ensure that you are thorough with the fee structure and the transaction charges.
Now that you have an idea of all the different factors involved in selecting a crypto wallet, we hope you make the best of this information and sign-up for the best crypto wallet in Canada. However, before you sign-up with any wallet service, remember that it is always a wise move first to understand the volatility surrounding the crypto markets. All the best!
Q1. How safe are crypto wallets?
Depending on their functionality, different wallets have different levels of safety. However, to give you an idea, hardware wallets are the safest as your private keys are stored offline, avoiding any connection to the internet or hackers. On the contrary, software wallets are safer and more convenient, but they may be hacked because they have internet connectivity. Therefore, everything depends on the security with which you keep them.
Q2. How do I register myself with a crypto wallet in Canada?
Registering yourself with a crypto wallet in Canada is easy! First, you need to visit your desired exchange’s official website and click on the ‘sign-up’ button. Once done, you’ll have to provide the exchange with your ID and verification. Upon completion, it hardly takes hours before you can get started with the trading process.
Q3. Can I keep multiple wallets?
Yes, you can register yourself with multiple crypto wallets! However, this move is only suggested if you have huge crypto funds at your disposal. If not, you might be at a chance of forgetting your wallet’s private keys.
Shrey Jain is a Chartered Accountant who holds a forte in creating informative content on niches like Finance, Blockchain, crypto, and Taxation. He is a contributor on Hackernoon and Publish0x, where the audience has highly appreciated his articles. In addition, his knowledge in the finance field has helped both beginners and experts gain valuable insights into the domains of Blockchain and finance.