Canadian Cryptocurrency Exchanges Plagued by High Fees
A lot of cryptocurrency traders depend on centralized exchanges to purchase or sell their crypto assets. Canada has a few trading platforms that crypto investors can use, but apparently, they are all rather expensive.
When it comes to crypto trading, Canadians seem to be rather unlucky as their local exchange platforms charge pretty high fees. A reddit user made a post comparing the prices of various providers to highlight the steepness of their prices. Some changes in this regard will have to be made in order to facilitate the adoption of cryptocurrencies in this country.
Canadian Exchanges Are Too Expensive
For the time being, only a handful of cryptocurrency exchanges serve users located in Canada. Aside from Canadian companies, the list also includes platforms such as LocalBitcoins and Coinbase. Not counting their location, the other thing they all have in common is the rather high fee rate users are required to pay when transacting with cryptocurrencies.
Its apparently impossible to purchase Bitcoin in Canada without paying fees at least 2.3% in. while it’s not the highest fee that ever existed on the market, when you buy $500 worth of Bitcoin, $11.50 will go on fees. Even if it’s kind of a discouraging experience, the popularity of cryptocurrencies has not diminished at all in spite of their rising acquisition cost.
Canadian exchange fees can go up as high as 11.6%. That a large amount to pay when you buy or sell Bitcoin via a third-party provider. It is even more expensive than withdrawing from a Bitcoin ATM, taking into consideration that this option is usually considered to be the most expensive method of purchasing or selling Bitcoin.
It seems that LocalBitcoins is situated halfway in between the aforementioned terms of fees. It is positioned on the list as the seventh cheapest option, although it may still represent the most suitable solution for a lot of traders. CEX.io has the costliest fees out of all of them, according to the Reddit post. That’s the example when you use a Visa card to buy or sell cryptos, as a bank transfer is nearly 3% cheaper.
All of this demonstrated that there is an increasing demand for either more exchanges or that prices are being competitively established. Since these fees depend on the used payment method, it can be concluded that credit and debit cards are the most expensive alternative.
It is also important to note this list includes platforms which only allow users to either buy or sell, rather than do both. Some more competition in this market would certainly be a good thing when taking all of this information into account.
Nonetheless, Canada is still a popular country for crypto enthusiasts. This popularity is not only limited to buying and selling cryptocurrencies, but also when it comes to mining them. It will be pretty interesting to see what role this country will play in the cryptocurrency environment in the near future. Even though there will be plenty of opportunities to make a positive impact, these high fees will continue to be a demanding problem for quite some time to come.