Best Ways To Cash Out Cryptocurrency in Canada in 2024

Cryptocurrency is currently at a significant high, and while many are holding and waiting for the next bull run, more and more Canadian crypto traders are asking me how to withdraw their crypto assets into their Canadian bank accounts in the most cost-effective way. Having tested over 50 different exchanges, which I shared on this website Ocryptocanada, I’ve created a list of the best crypto exchanges and methods for withdrawing your crypto funds in Canada. Let’s get started.

First, you need to decide which crypto asset you’d like to withdraw. If it’s Bitcoin, using Bull Bitcoin is the absolute cheapest way to convert your BTC to CAD.

1. Bull Bitcoin

Bull Bitcoin sends the BTC directly to your wallet, allowing you to avoid typical withdrawal and network fees that exchanges often have, which is a money saver. Bull Bitcoin allows direct transfers to Canadian bank accounts via Interac e-Transfer, making the process straightforward and efficient. The process is simple:

1. 1. Sell BTC for CAD.
   2. Select Withdrawal Method: Most choose Interac e-Transfer for quick and convenient transfers to your Canadian bank account.
   3. Ensure that your bank account details are correct to avoid any issues with the transfer.

Bull Bitcoin has a straightforward fee structure, but check their current fee schedule on their website for the most accurate information. Compared to many other exchanges, they don’t have hidden fees.

Additionally, what I really love about Bull Bitcoin is that if you don’t wish to withdraw your BTC to a Canadian bank account, you can pay any Canadian bill with Bitcoin or buy gift cards for popular retailers. Similar to Bull Bitcoin is Bitcoin Well but I prefer Bull Bitcoin more because of the extra options they got.

Check out my full review on Bull Bitcoin and use my referral link if you decide to sign up with them to get a $20 bonus. 

The major inconvenience with Bull Bitcoin is that you can only operate with BTC. Many people have different crypto assets and prefer to sell crypto to stablecoins first, like USDC, which is equivalent to the US dollar, and only after that withdraw to their Canadian bank account. In this case, you’ll need to use centralized crypto exchanges. I considered the best ones for trading in my previous video, but when it comes to withdrawal, the list is slightly different. Some exchanges, like Bitbuy, charge 1.5% for withdrawal, which is quite high, even though Bitbuy is the safest crypto exchange. Others, like Bitget, won’t allow you to withdraw directly to your bank account but through a P2P market, which requires some expertise and involves risks.

2. NDAX

Based on my tests, NDAX was the cheapest and yet very reliable crypto exchange to withdraw crypto to CAD and later to your bank account. While they charge a 0.2% fee, their spreads were the most minimal among other crypto exchanges in Canada. So always calculate the fee plus the spread, because most of the “free withdrawal” places will take advantage of the spread.

In case you don't know what a spread is, the spread in cryptocurrency trading is the difference between the price at which you can buy a cryptocurrency (buy price) and the price at which you can sell it (sell price) on an exchange. 

For example, if you can buy Bitcoin for $30,000 and sell it for $29,900, the spread is $100. This spread represents the exchange’s profit margin on each trade and can affect the overall cost of your transactions. It’s a sort of hidden fee you don’t see, and this is how exchanges make money. With NDAX, my average spread was only 0.36%, which is very low. The majority of Canadian exchanges usually charge over 1%. For example, Shakepay’s spread is between 1.2% to 2.5% and Wealthsimple’s is 1.5% to 2%. Keep in mind, NDAX will also charge $1.5 fee for withdrawal.

Sell Cryptocurrency On Ndax: Step-By-Step

1. Go to Quick Buy/Sell
2. Select the coin you wish to sell
3. Enter the crypto and amount you want to sell for CAD
4. Click on it, review, and confirm
5. Click “Confirm selling”

Check out my full review on NDAX and use my referral link if you decide to sign up with them to get a $10 bonus. 

3. Newton

Next is Newton, which is almost tied with NDAX. While they don’t charge for withdrawals, their spread is at a medium-high level in my experience, ranging from 0.5% to 0.8%. However, Newton covers network fees for transactions, which could be a money saver.

Check out my full review on Newton and use my referral link if you decide to sign up with them to get a $25 bonus. 

Still, I find NDAX better not only because withdrawals are slightly cheaper, but they also provide more features for crypto traders.

4. Bitget

Finally, you can cash out via the Bitget P2P marketplace, which is probably the cheapest but also the most inconvenient way to cash out crypto. While I use Bitget constantly for crypto trading, it’s easier for me to simply use Bull Bitcoin or NDAX to cash out crypto to my bank account.

Check out my full review on Bitget and use my referral link if you decide to sign up with them to get a $25 bonus. 

As mentioned, there are more ways and exchanges where you can cash out your crypto in Canada to your bank account in Canadian dollars, but I highlighted the cheapest options in this article.

If the article was helpful, please support my blog by using my referral links in the article.

Alternative Ways To Sell Bitcoin In Canada

In our previous article, we covered how to buy bitcoin in Canada. While many people want to hold bitcoin and other cryptocurrencies for the long term, it’s never a bad idea to take profits. There could be a million reasons why you might want to sell bitcoin, but it’s not always obvious how to do it. Depending on how you bought bitcoin in the first place, there are several ways you can sell bitcoins in Canada. There are exchanges, peer-to-peer websites, and other ways you can sell. If you’d like to know more, read on for our guide about how to sell cryptocurrency in Canada.  

Cash Out Crypto Via Gift Cards and Charity

There are other ways to cash out cryptocurrency in Canada without having to sell. Some people choose to gift their crypto away so it does not count as income for you or the receiver. The less income you have, the lower your taxes. However, you could still be liable for capital gains tax if the price of the crypto increased in the time you bought it the time you gifted it. When the receiver sells they will also be liable for any capital gains.

Other people cash out their cryptocurrency using gift cards. The most popular and reliable service for Canadians to do that is Bull Bitcoin but there are others. Keep in mind that buying a gift card with crypto counts as a taxable event in Canada and you could be liable for capital gains tax. However, buying gift cards for someone else with crypto can be considered a gift as well, so the receiver won’t incur income tax and it can lower your income tax overall. 

Some good gift card options that accept cryptocurrency payments include Coingate and Coincards.

You could also give some of your crypto to charity, which could lower your income tax for the year. However, charitable contributions with crypto are not exempt from capital gains tax.

Spend Crypto In E-Commerce Stores That Accept Crypto and Ship Items To Canada

Another way to cash out bitcoin in Canada is to spend it on websites such as Newegg or Overstock. These websites accept several cryptocurrencies as payment including bitcoin, Ethereum, Dogecoin and Litecoin. Remember that buying anything with crypto could incur capital gains tax. 

Use Bitcoin ATM to Sell Crypto In Canada

Another way to sell cryptocurrency in Canada is to use a bitcoin ATM. There are thousands of bitcoin ATMs all over the world, so finding one is not difficult. To sell cryptocurrency in Canada using a bitcoin ATM, simply use the touch screen and follow the instructions. Bear in mind that there are many different ATMs with different processes. For some, you may have to scan your ID, and others you won’t. The basic process goes like this:

1. On the ATM, select ‘withdraw’ or ‘sell’
2. Enter your phone number
3. Enter SMS verification code
4. Select your crypto
5. Enter amount or select ‘other’ and enter amount
6. Click ‘finish’
7. Open your wallet app on your phone
8. Select your crypto and go to transfer or send
9. Enter the exact amount of crypto as stated on ATM and withdraw
10. Scan the QR code on the ATM
11. Send the crypto from your wallet
12. Click confirm on the ATM
13. Take your receipt from the ATM
14. Wait for SMS notification that says your crypto is ready (could take minutes or hours)
15. Click ‘redeem’ on ATM
16. Enter phone number
17. Enter SMS verification code
18. Enter redemption code on receipt
19. Click ‘finish’
20. Take your cash and receipt from ATM

When you’re looking to cash out bitcoin in Canada, we recommend using a crypto exchange. They are safe, offer the lowest fees, and you can withdraw Canadian dollars straight to your bank account. If you choose to spend crypto or gift it, be mindful of taxes you will be liable for. You can find out more about crypto taxes in Canada in our tax guide.