The cryptocurrency market has become enormously popular in recent years and has undoubtedly been flooded by thousands of digital currencies (also called cryptocurrency). However, since its debut in 2009, Bitcoin has remained the most popular cryptocurrency in Canada and a favorite among users. But did you know that many more cryptocurrencies are gaining prominence in addition to Bitcoin? Find out some of the most popular cryptocurrencies in the Canadian market and Learn way more about crypto with this beginner guide made especially for you!
What are the cryptocurrencies available in Canada?
Did you know that there are 8,877 Cryptocurrencies available? However, in Canada, the most popular are:
- Bitcoin (BTC):
Market capitalization: $322.5 billion
Bitcoin remains the largest and most popular cryptocurrency because its accessibility is more extensive than any other crypto. Due to its reliability, Bitcoin is supported by every currency exchange, and in Canada, it is registered with The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). If you are considering starting a crypto investment, Bitcoin could be a great place to start.
- Ethereum (ETH):
Market capitalization: $162.8 billion
Ether is the cryptocurrency used in the Ethereum platform and is the second-most popular cryptocurrency in Canada's market capitalization after Bitcoin. The Ether is used to pay for the computational resources and the transaction fees for any transaction executed on the Ethereum network. For the Ethereum network to work, the crypto Ether is the fuel that runs it.
- Tether (USDT):
Market capitalization: $66.3 billion
The Tether (USDT) is a stablecoin since it is a type of cryptocurrency with a steady valuation. This means that tangible assets, such as real dollars, back it. This crypto is recommended for those investors who want to avoid the volatility typical of cryptocurrency. In Canada, most cryptocurrency exchanges or brokers offer Tether (USDT).
- Binance Coin (BNB):
Market capitalization: $44.0 billion
The Binance coin (BNB) could be a good choice if you want to invest in a significant crypto different from Bitcoin or Ethereum. Binance Coin (BNB) is the official token of Binance, the largest crypto platform in Canada. You can use BNB to pay for goods and services and trade and pay transaction fees on Binance Chain. Also, did you know that Binance coin is now ranked third in market capitalization?
- USD Coin (USDC):
Market capitalization: $43.9 billion
The USD Coin (USDC) is also a stable coin. Like the Tether (USDT), a stable price is always granted, as 1 USD Coin could be exchanged for one US dollar, for example. Each USD Coin (USDC) is backed by the value of a dollar or an asset with an equivalent target price held at regulated financial institutions. The USD Coin is also an Ethereum token, so that it can be stored in an Ethereum-compatible wallet.
In conclusion, it doesn't matter which crypto you would like to get. You must consider that investing in cryptocurrency is a risky investment with high volatility. This type of investment should only be considered if you have an increased risk tolerance and are in a solid financial position.
Are you afraid of facing legal issues related to crypto? Learn if cryptocurrency is legal in Canada.
What are the four leading cryptocurrencies?
Since there are more than 15,000 cryptocurrencies today, and more are yet to be added, we can classify cryptocurrencies into four types based on their utility. These four major types include:
- Utility tokens are cryptocurrencies that aren't designed to be a real-world medium of exchange. Instead, a utility token only has a use case within its smart contract protocol. These tokens include Binance Coin (BNB) and Uniswap (UNI).
- Payment tokens are digital assets that do not have a physical form and are maintained using blockchain technology. These types of tokens include Bitcoin and Ethereum.
- Security tokens are digital assets representing ownership and value from an asset to a token. They are the digital form of traditional investments like stocks, bonds, or other securitized assets. XRP and Cardano (ADA) are security tokens.
- Stablecoins attempt to create a cryptocurrency token with a stable price since they are pegged to an asset such as gold or fiat currency. For example, the Tether (USDT) is considered a Stablecoin.
However, we can also find:
- DeFi tokens are rewards for users who lock their crypto in liquidity pools. DeFi is focused on building decentralized applications that make it easier for users to use their money without relying on a third party.
- NFTs, also known as non-fungible tokens, are blockchain-based tokens representing a unique asset like a piece of art, digital content, media, or even a tweet. An NFT needs an irrevocable digital certificate of ownership and authenticity for a digital or physical asset.
- Asset-backed tokens derive their value from something not existing on the blockchain, but that represents ownership of a tangible asset (for example, gold or oil).
Where should I buy crypto in Canada?
Due to the widespread growth of cryptocurrencies, we are sure that your closest groups of friends have at least mentioned them in a conversation. The reality is that since we don't consider ourselves financial experts, we can get carried away by the latest news of celebrities convincing their followers to invest in a well-known cryptocurrency without really knowing how this new market behaves. To avoid complications, we recommend you find the best platforms to buy and transfer cryptocurrencies securely in Canada, where your data will also be backed up. So if you were wondering How do you get cryptocurrency in Canada, here are the most popular and safe cryptocurrency brokers or exchange platforms in Canada which are the most common way to buy Bitcoin, Ethereum, or any other crypto you are interested in:
- Binance: Binance is a popular exchange platform where you can trade cryptocurrencies. It supports the most commonly traded and popular cryptocurrencies. The platform provides its users with crypto wallets for traders to store their crypto funds. The platform also has supporting services for users to earn interest and knowledge in cryptocurrency.
- Coinbase: It is another crypto broker exchange platform where you can securely buy, sell, trade, store, and stake crypto. Coinbase has over 108 million users across more than 100 countries. In the platform, you can find the tokens of Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Cardano (ADA), Polygon (MATIC), Polkadot (DOT), Solana (SOL), Tether (USDT), among other hundreds.
- Kraken: It is another crypto trading platform where you can buy, sell, trade, and learn about crypto since here you will find great resources to become an expert investor. It has more than 9 million users, and its services are found in more than 190 countries. Kraken could be a great option if you are looking for a friendly-user platform.
- Crypto.com: It is another renowned crypto broker with more than 70 million customers worldwide with regulatory security certifications. On Crypto.com, you will find the most popular cryptos, such as Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Cardano (ADA), DogeCoin (DOGE), and Polkadot (DOT).
- BitBuy: This exchange platform, especially popular in Canada, has gained the trust of half a million Canadians. BitBuy could be a very safe option to take into consideration since it is regulated by the Ontario Securities Commission, the Canadians Securities Administrators, and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).
Remember that choosing an exchange platform is a delicate issue, as some must be regulated by the Government of Canada, avoiding low-security levels and backing up your investments against hacking. Discover if cryptocurrencies are safe investments in Canada!
Learn crypto with Superprof!
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Whether face-to-face, online or hybrid, individual or in groups, choose your favorite private tutor near you regardless of where you are in Canada with Superprof! Get to know the Pros and Cons of Cryptocurrency in Canada! And invest safely in crypto.
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