Stablecoins have become an essential part of the cryptocurrency ecosystem, offering stability in an otherwise volatile market. If you’re in Canada and looking to buy stablecoins, this guide covers the best platforms, key considerations, and security practices.
What Are Stablecoins and Why Are They Useful?
Stablecoins are cryptocurrencies pegged 1:1 to fiat currencies, primarily the US dollar. Their value remains stable, making them ideal for:
- Preserving crypto holdings – Avoid market volatility by converting gains into stablecoins.
- Everyday transactions – Pay for goods/services without worrying about price fluctuations.
- Yield generation – Lend stablecoins on exchanges to earn passive income (similar to staking but without asset depreciation risks).
👉 Discover the best platforms to buy stablecoins in Canada
Popular Stablecoins in Canada
The most widely used stablecoins among Canadians include:
| Stablecoin | Pegged To | Key Feature |
|---|---|---|
| USDC | USD | Regularly audited, transparent reserves |
| USDT (Tether) | USD | Most liquid but lacks audits |
| DAI | USD (crypto-backed) | Decentralized, governed by MakerDAO |
| TrueCAD | CAD | Fully backed by Canadian dollars |
USDC vs. USDT vs. DAI: Key Differences
- USDC & USDT: Both claim USD backing, but USDC undergoes audits while USDT does not.
- DAI: Decentralized and collateralized by crypto (e.g., Ethereum).
- Algorithmic stablecoins: Higher risk—no collateral; relies on supply-demand algorithms.
Why Most Canadian Exchanges Prefer USDC Over USDT
In 2021, the Ontario Securities Commission banned USDT on regulated platforms like Coinberry and Wealthsimple due to Tether’s lack of transparency. USDC is the safer choice with verified reserves.
Best Exchanges to Buy Stablecoins in Canada
Here are the top platforms for Canadians:
1. CoinSmart
- Pros: Low 0.2% trading fee, Interac e-Transfer deposits (1.5% fee under $2,000).
- Best for: Beginners.
2. Bitbuy
- Pros: 0.1%/0.2% trading fees, Express/Advanced trading modes.
- Best for: Low-cost trading.
👉 Compare fees and features across exchanges
3. NDAX
- Pros: Fixed 0.2% fee, free Interac deposits.
- Best for: Customer support.
4. Crypto.com
- Pros: Offers TrueCAD, lending options.
- Cons: Higher fees (up to 0.7%).
5. KuCoin
- Pros: Low fees, wide coin selection.
- Cons: No direct CAD deposits.
Security Tips for Storing Stablecoins
- Use a private wallet (e.g., Ledger, Trezor) instead of keeping funds on exchanges.
- Secure your seed phrase offline.
How to Sell Stablecoins in Canada
- Transfer stablecoins back to your exchange.
- Click “Sell” to convert to CAD or another crypto.
- Withdraw CAD to your bank account.
FAQs
1. Can I buy stablecoins in Canada?
Yes! Most crypto exchanges support stablecoin purchases.
2. Which stablecoin is safest?
USDC and TrueCAD are audited and fully backed.
3. How do I earn yield on stablecoins?
Lend them on platforms like Crypto.com or Bitbuy.
4. Are stablecoins a good investment?
Yes—they provide stability and earning opportunities without volatility.
5. Can I use stablecoins for payments?
Absolutely! Many merchants accept USDC/USDT.
6. Is KuCoin legal in Canada?
Yes, unlike Binance, KuCoin operates in Ontario.
For more details, explore trusted exchanges and start investing wisely today!