In Canada today, Bitcoin is one of the many cryptocurrencies out there available for investment and is a common holding among tech-savvy Canadians, and for a good reason too as digital currencies have the potential to be safer and easier and also have better privacy when compared to traditional fiat currencies.
Due to how much resource it is required to get Bitcoin (Mining) some individuals have deemed it as an investment opportunity as well. However, with that being said, it is still important to note that Bitcoin is still a risky investment.
In order to move forward with Bitcoin, you are required to open a Bitcoin Wallet, before we suggest the top bitcoin wallets in Canada you could opt for, there are a few factors of the Bitcoin Wallet that you should look out for before you make your choice.
Criteria for a Great Canada Bitcoin Wallet
Cold storage or Hot Storage
In cryptocurrency terms, a cold storage means storing your Bitcoin offline such as a hard drive or USB disk. On the other hand, a hot storage would mean storing your Bitcoin online.
The perks of having a cold storage wallet would be that your investment will be immune from online hacking and will require physical contact to steal your Bitcoin. However, having said that, a cold storage wallet would be a little complex to set up and also not readily available for access – an option you need to consider due to the volatility of cryptocurrencies.
In contrast, having your bitcoin in a hot wallet means that they are easily accessible anytime on a PC or table as long as you are connected to the internet. This form of accessibility does not come without its risks as they are prone to online hacking.
Obviously, you will have to select the Bitcoin Wallet which offers the most reasonable fees. This does not mean cheaper is better though as some Wallets would just offer the traditional option of trading your Bitcoins while more expensive options could prove to provide more services such as trading between different cryptocurrencies and also be deemed more secure. It is up to you to find that balance or you could check out our guide on how to buy bitcoins in Canada.
Ease of Use
You will want to consider how easy it is to navigate certain interfaces of the Bitcoin Wallet and how many features they provide. If it is a cold storage, does it include Bluetooth connectivity for easier access? Is there an incorporated exchange that makes it easier to perform your trading needs?
It the Wallet supported on all type of platforms or only for mobile/PC etc?. Another thing to note is how reliable the wallet is, is having downtime a common occurrence in this wallet’s history?
Security and customer support.
The Bitcoin wallet you are choosing should ensure that your investments are safe. It is good to know if the wallet you are option for is practicing KYC (Know your customer) and have your investments with them insured and also have them approved by a regulatory body.
In case of any problems, the wallet’s support team should also be available on most hours to tend to any problems you may have. A good customer support factor to look out for will be how many ways you could contact the wallet.
The best way would be if they provided a direct online chat or a telephone line, as you would want your queries sorted out as soon as possible while the traditional email submission would take some time to get back to you.
Having said that, if you understand what factors to look out for and you are ready to move on to review some of the best bitcoin wallet’s out there in the market, the following list could serve as good options for storing your Bitcoin.
Best Bitcoin Wallets Canada – Evaluated
1. Coinbase (Online storage)
The first on our list is Coinbase as they prove to be one of the easiest wallets out there that allows investors to buy, sell and also hold their Bitcoin. Using Coinbase you are able to connect to your bank account and easily make any transfers in or out into your wallet. Using those newly deposited Canadian Dollars, you will be able to buy Bitcoin and any other currencies in Canada.
It is an online hot storage wallet.
One of the perks of using Coinbase is that it is a recognized cryptocurrency exchange in Canada and so is a great wallet provider for people who are new to the cryptocurrency scene. For those of you investors who are familiar with trading traditional shares, you will find Coinbase similar in that regard since it makes trading very similar to buying and selling stocks through a brokerage account.
Coinbase allows its investors to hold more than 20 different types of cryptocurrencies out there including the US Coin which is pegged to the dollar.
If you have some time to spare, another great feature that Coinbase provides is through its advertisement system where they reward you with free cryptocurrencies through watching videos and taking their quizzes. This feature is called Coinbase Earn.
Supported platforms of Coinbase are on both Mobile and the Web and it just takes a simple registration online to get started. There is also no initial purchase costs for using Coinbase.
Coinbase has a strong security track record with a good customer support base as they have a page dedicated to any security FAQ’s that you would help. Coinbase also supports two-factor authentication and SEPA deposits and withdrawals
One of the downsides of using Coinbase is that they have rather high fees and costs. Coinbase charges a flat transaction fee to its investors plus additional spread Coinbase charges if you are converting between different currencies.
It may not seem like much at first but if you are performing high volumes of trading it could add up quickly although you are not able to get away from high fee costs in the first place if you would be doing a lot of trading.
Another point to note is that Coinbase has experienced outages in the past which resulted in its users not being able to trade their cryptocurrencies, however it is not a common occurrence.
Coinbase also requires photo ID and some other form of personal information as a form of identification for verification so if you are uncomfortable with providing said information, consider other wallets for your use.
• Easy to start
• Best known cryptocurrency exchange wallet
• Strong security track record
• High transaction fees
• Past incidents of downtime
2. Sofi (Online Storage)
A financial company that offers services such as banking, investing, lending and also other products which includes trading cryptocurrency. Using Soft Invest, it allows you to trade and hold bitcoins as well as other cryptocurrency.
As of today, Sofi supports up to five different types of cryptocurrencies, which is not as impressive as some of the digital wallet providers out there who provides investors the option that offer hundreds or more. However, be assured that Sofi supports the more popular coins such as Bitcoin and four other cryptocurrencies.
One feature that stands out for Sofi is that they offer great beginner user experience and works very well for cryptocurrency traders who are novices. This wallet is really good for just trading cryptocurrencies but does not offer much options when transferring to other wallets
Sofi is available on both mobile appliances and PC (The web) and takes security very seriously, using tools to secure crypto against theft such as two-factor authentication, SSL encryption and partnering with Coinbase to secure transactions.
Due to Soft’s focus on making it easier for beginners to start crypto trading, more experienced users may find this platform limiting with average fees.
There is a $10 minimum to open an account – this would deter account spammers to open multiple accounts at once. The also charge a transaction fee of up to 1.25% as mark-up.
Sofi also does not allow transfers to external cryptocurrency wallets due to security.
• Easy to get started and great for beginners
• Simplicity of just using one account to manage crypto to and investments
• Sofi provides many additional free finance tools and features for customers
• No account fees charged and for withdrawals
• Great security for your investments
• Limited currencies available
• Does not offer more options to experienced traders
• Close system, does not allow transfer to an external wallet
3. Robinhood (Online Storage)
This crypto wallet started off at first as a free stock trading platform before expanding to include trading options for Bitcoin and other cryptocurrencies. It is both a Bitcoin wallet that allows you to store the cryptocurrency and also an exchange similar to Coinbase to allow you to trade crypto.
This feature means you can do everything in one place but Robinhood does not allow you to transfer cryptocurrency from this wallet to another wallet.
Other than being a simple platform that offers both storage and trading features, Robinhood is an online storage that offers a mobile-focused platform but also available on desktop too.
Traders would be happy to note that trading using Robinhood would incur no fees at all so this is a factor that sets it apart from the other wallets and as such there are no commissions when buying or selling Bitcoin.
Currently, Robinhood only supports up to 7 cryptocurrencies which of course includes Bitcoin.
Robinhood Crypto is registered with FinCEN as a money service business and thus is subject to compliance with requirements of the Bank Secrecy Act. In addition to that, further security measures are taken such as coin transfers requiring authorization from a select group of people who are consistently rotated which are not disclosed internally or externally.
Similar to Coinbase, Robinhood has a history of experiencing outages in the past which prevents its traders from buying or selling bitcoin so it may not be as reliable as other wallets.
There is not much security other than the usual password for your account, and two-factor authentication is not supported.
• No transaction fees or costs
• Quick to get started online
• Manageable on desktop or mobile
• One platform to store and trade crypto
• History of downtime
• Only limited types of currencies that are available
Edge is a Bitcoin wallet with priority on having its traders perform buy and sell transactions on mobile, both iOS and Android devises. Edge is easily accessible and installable through the Apple or Google Play store and will be up and running with just a few taps of the button.
Edge provides the usual features of a Bitcoin wallet which allows you to buy, sell and exchange fiat (“real” money) and cryptocurrency from your phone. All you need is to register with a username and password in order to secure your account.
Edge allows you to access to more than 30 different cryptocurrencies which include Bitcoin. Edge also features SSL encryption and auto-log out is performed to allow for maximum security. A spending limit is also put in place to prevent large amounts of unauthorized Bitcoin to b sent out. Finally once Edge is enabled on your device, it can only be logged onto that device unless you actively authorise additional devices.
Another feature is that Edge gives the investor a dynamic fee charging system based on the amount of Bitcoin the user wants to send.
Due to its focus on mobile app trading, Edge does not currently offer a desktop/webpage interface. Its fee system may also take some time getting used to, as it may be a bit complicated for beginners and inexperienced traders.
Frequently Asked Questions (FAQ)
Q: What is a Bitcoin Wallet exactly?
Generally, a Bitcoin wallet is a place to store your cryptocurrencies and keeps secret information, also known as a private key or seed which is individually used to validate transactions so the wallet is able to make purchases or be exchange for another asset. This prevents a third party user to alter your Bitcoin Wallet.
Q: How does a Bitcoin wallet work?
Bitcoin transactions are all conducted through a blockchain which is a shared public ledger. When a transaction occurs, there is value transferred from one Bitcoin wallet to another. When this occurs, the Bitcoin wallet will use secret data to “sign” and validate said transaction providing proof of it in the Blockchain and providing proof that the initiator of the transaction is owner of their Bitcoin Wallet
Q: How much does a Bitcoin Wallet Cost?
Bitcoin wallet’s typically do not charge fees to store Bitcoin but some wallets will charge you when you are conducting a transaction.
Q: How do you transfer cash out from your Bitcoin Wallet?
You are not able to instantly transfer your Bitcoin value to cash immediately but you are able to sell your Bitcoin on the blockchain in exchange for Fiat currencies but may take 1-3 days for completion.
With over 10 years of experience working as a financial analyst, Eric is highly aware of the potential of cryptocurrency, particularly Bitcoin, and the impact it will bring towards the global economy. He is committed to share everything he knows about crypto here at Crypto Digest News.