As the value of cryptocurrencies continues to soar, investors are turning to crypto stocks as a way to capitalize on the explosive gains offered by Bitcoin and other digital assets. In this guide, break down the best crypto stocks, examine the top performers, provide key considerations for investors, and give away strategies for navigating this exciting yet volatile asset class.
Key Highlights:
- Crypto stocks appear undervalued after the price of Bitcoin bounced back in 2023
- Bitcoin is up over 60% in the past 6 months & 120% over the past year
- Coinbase and Hut 8 Mining are among the best crypto stocks to buy right now
Are Crypto Stocks A Buy Right Now?
Crypto stocks appear to be undervalued at the moment, which makes them an attractive opportunity for Canadian investors. With Bitcoin soaring over 60% in the past six months and an impressive 120% over the past year, the bullish momentum is hard to ignore.
These substantial gains not only underscore the resilience of the cryptocurrency market but also shed light on the potential profitability of companies deeply entrenched in this new and burgeoning sector. As cryptocurrencies continue to gain mainstream acceptance and adoption, companies involved in mining, trading, and providing infrastructure for digital assets are poised for significant growth.
Read on to discover the best crypto stocks to buy to capitalize on the remarkable performance of Bitcoin, Ethereum, and other digital assets.
Comparing The Best Crypto Stocks In Canada
| Rank | Crypto Stock | Rating | Avg. Volume | Market Cap |
|---|---|---|---|---|
| 1 | Coinbase Global, Inc. (COIN) | ⭐⭐⭐⭐⭐ | 13,302,200 | 33.971B |
| 2 | Marathon Digital Holdings, Inc. (MARA) | ⭐⭐⭐⭐ | 76,550,057 | 5.319B |
| 3 | Riot Platforms Inc. (RIOT) | ⭐⭐⭐⭐ | 29,283,922 | 3.005B |
| 4 | Microstrategy Incorporated (MSTR) | ⭐⭐⭐⭐⭐ | 1,241,486 | 9.915B |
| 5 | Hut 8 Mining Corp (HUT.TO) | ⭐⭐⭐⭐ | 1,390,319 | 1.003B |
| 6 | Bitfarms Ltd (BITF.TO) | ⭐⭐⭐⭐ | 4,046,319 | 876.188M |
| 7 | DMG Blockchain Solutions Inc (DMGI.V) | ⭐⭐⭐ | 1,000,414 | 102.598M |
| 8 | HIVE Blockchain Technologies Ltd (HIVE.V) | ⭐⭐⭐ | 869,467 | 427.564M |
| 9 | Digihost Technology Inc. (DGHI.V) | ⭐⭐⭐ | 35,795 | 80.957M |
| 10 | Banxa Holdings Inc. (BNXA.V) | ⭐⭐⭐ | 28,085 | 29.16M |
How To Buy The Best Canadian Crypto Stocks
In 2024, the best investing apps make it easy to buy crypto stocks and ETFs in Canada.
In just four easy steps, Canadians can receive free cash to invest in the best Canadian crypto stocks right away.
At Questrade, new users can simply sign up, add funds, make a trade, and receive a $50 trade commission rebate to buy the best crypto stocks in Canada.
Check out our step-by-step guide on how to buy crypto stocks in Canada.
- Click here to sign up for a Questrade account
- Fill out the required documents with accurate personal information
- Add funds to your Questrade account
- Receive a $50 trade commission rebate to invest in the best Canadian bank stocks
Ranking The Best Crypto Stocks To Buy in Canada
Buying and selling cryptocurrency can be confusing, even for experienced investors. Instead, crypto stocks and ETFs allow investors to capitalize on the recent Bitcoin boom without owning any digital assets. But, which companies should you buy in this volatile industry?
To help you navigate the cryptocurrency market, we’ve compiled a list of the top 10 crypto stocks to buy in Canada. From established industry giants to promising up-and-comers, these stocks offer investors a diverse range of opportunities to capitalize on the growing adoption of cryptocurrencies.
Here is a list of our top crypto stocks in 2024. Click on a company to learn more.
- Coinbase Global, Inc. (COIN)
- Marathon Digital Holdings, Inc. (MARA)
- Riot Platforms Inc. (RIOT)
- Microstrategy Incorporated (MSTR)
- Hut 8 Mining Corp (HUT.TO)
- Bitfarms Ltd (BITF.TO)
- DMG Blockchain Solutions Inc (DMGI.V)
- HIVE Blockchain Technologies Ltd (HIVE.V)
- Digihost Technology Inc. (DGHI.V)
- Banxa Holdings Inc. (BNXA.V)
Reviewing The Best Crypto Stocks To Buy In February 2024
Next, we’ll examine some of the best crypto stocks to buy in 2024. From established players to emerging contenders, we’ll uncover insights to help you make informed decisions when navigating the dynamic cryptocurrency market. Scroll down to learn more about the best crypto stocks and what makes them stand out for investors.
1. Coinbase Global, Inc. (COIN) — Leading the Charge in Cryptocurrency Adoption
- Rating: ⭐⭐⭐⭐⭐
- 52 Week Range: 46.43 – 187.39
- Avg. Volume: 13,302,200
- Market Cap: 33.971B
- PE Ratio (TTM): N/A
- EPS (TTM): -3.19
- Earnings Date: Feb 15, 2024
One of the best crypto stocks to gain exposure to Bitcoin, Ethereum, and other digital assets, Coinbase (COIN) stands out above the competition. Coinbase offers users a safe, secure, and user-friendly gateway to buy, sell, and store various digital assets.
As the largest cryptocurrency exchange in the United States, Coinbase has earned a reputation for reliability, thanks to its compliance with regulatory standards. The company’s business model primarily relies on transaction fees, which generate substantial revenue during periods of heightened cryptocurrency trading activity. Coinbase also boasts diversified revenue streams, including institutional trading, custody services, and its own stablecoin, USDC, provide resilience against market fluctuations and contribute to revenue growth.
With the increasing mainstream acceptance of cryptocurrencies and the growing interest from institutional investors, Coinbase is well-positioned to benefit from the continued expansion of the digital asset market. While some regulatory challenges remain, Coinbase’s strong brand recognition, robust platform infrastructure, and strategic partnerships make it an attractive long-term investment opportunity for those seeking exposure to crypto stocks.
2. Marathon Digital Holdings, Inc. (MARA) — Powering the Future of Bitcoin Mining
- Rating: ⭐⭐⭐⭐
- 52 Week Range: 5.13 – 31.30
- Avg. Volume: 76,550,057
- Market Cap: 5.319B
- PE Ratio (TTM): N/A
- EPS (TTM): -3.08
- Earnings Date: Mar 14, 2024
Focused on generating new Bitcoins by solving complex mathematical puzzles, Marathon Digital Holdings Inc. (MARA) is a key player in the Bitcoin mining industry. Using advanced technology and environmentally friendly practices, Marathon aims to maximize its Bitcoin production while minimizing its environmental impact. By strategically expanding its mining operations and investing in renewable energy sources, such as hydroelectric and wind power, Marathon ensures efficient and sustainable operations. As the demand for Bitcoin grows, driven by institutional interest and mainstream adoption, Marathon is well-positioned to capitalize on this trend.
In January 2024, Marathon Digital Holdings, Inc. (NASDAQ: MARA) released unaudited updates on its bitcoin production and miner installations. The company reported a 7% rise in its energized hash rate, reaching 26.4 exahash. Additionally, it disclosed holdings of 15,741 BTC, with a combined value of $1.0 billion in cash and BTC as of January 31, 2024.
Overall, Marathon’s strong operational performance, strategic investments, and commitment to sustainability position it as a compelling investment opportunity for those seeking exposure to the lucrative world of cryptocurrency mining
3. Riot Platforms Inc. (RIOT) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐⭐
- 52 Week Range: 5.16 – 20.65
- Avg. Volume: 29,283,922
- Market Cap: 3.005B
- PE Ratio (TTM): N/A
- EPS (TTM): -1.80
- Earnings Date: Mar 04, 2024
One of the best crypto stocks to buy in 2024, Riot Blockchain, Inc. (RIOT) is a leading company in the blockchain technology and cryptocurrency mining sector.
With a focus on Bitcoin mining operations, Riot aims to secure and validate transactions on the Bitcoin network while generating revenue through the production of new Bitcoins. Leveraging advanced mining hardware and efficient operational practices, Riot has steadily increased its mining capacity, contributing to its growing hash rate and Bitcoin production.
As the adoption of cryptocurrencies continues to expand, Riot is well-positioned to benefit from the increasing demand for secure and efficient Bitcoin mining services.
4. Microstrategy Incorporated (MSTR) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐⭐⭐
- 52 Week Range: 188.30 – 727.77
- Avg. Volume: 1,241,486
- Market Cap: 9.915B
- PE Ratio (TTM): 323.16
- EPS (TTM): 2.00
- Earnings Date: May 03, 2024
A blue-chip stock, MicroStrategy Incorporated (MSTR) stands as a pioneer in the business intelligence and analytics industry but it also gives investors exposure to Bitcoin and other cryptocurrencies.
The company is renowned for its innovative software solutions that empower organizations to harness the power of data for informed decision-making. However, what sets MicroStrategy apart in the investment landscape is its strategic pivot towards Bitcoin as a treasury reserve asset.
Led by CEO Michael Saylor, MicroStrategy made headlines with its bold move to allocate a significant portion of its cash reserves into Bitcoin, viewing the cryptocurrency as a store of value and hedge against inflation. This strategic shift has transformed MicroStrategy into a unique hybrid entity, combining its core expertise in data analytics with a growing portfolio of Bitcoin holdings.
5. Hut 8 Mining Corp (HUT.TO) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐⭐
- 52 Week Range: 8.35 – 29.90
- Avg. Volume: 1,390,319
- Market Cap: 1.003B
- PE Ratio (TTM): N/A
- EPS (TTM): -1.05
- Earnings Date: Mar 11, 2024
One of the best Canadian stocks, Hut 8 Mining Corp (HUT.TO) is another enticing opportunity for investors seeking exposure to Bitcoin. As one of the largest publicly traded crypto stocks in North America, Hut 8 operates state-of-the-art Bitcoin mining facilities, leveraging cutting-edge technology to secure and validate transactions on the blockchain.
With a focus on operational efficiency and sustainable practices, Hut 8 has demonstrated a commitment to maximizing its Bitcoin production while minimizing its environmental impact, positioning itself as a leader in the industry. Furthermore, Hut 8 benefits from Canada’s abundant supply of low-cost renewable energy, which provides a competitive advantage in terms of mining profitability.
6. Bitfarms Ltd (BITF.TO) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐⭐
- 52 Week Range: 0.6800 – 3.5600
- Avg. Volume: 4,046,319
- Market Cap: 876.188M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.25
- Earnings Date: Mar 25, 2024
As a leading Bitcoin mining company headquartered in Canada, Bitfarms operates efficient and sustainable mining facilities, leveraging renewable energy sources to power its operations. With a focus on maximizing Bitcoin production while minimizing environmental impact, Bitfarms aligns with ESG (Environmental, Social, and Governance) principles, enhancing its appeal to socially conscious investors.
Like Hut 8 Mining Corp, Bitfarms benefits from Canada’s abundant supply of low-cost hydroelectric and wind energy, which gives it a competitive advantage in terms of mining profitability. Additionally, the company’s strategic partnerships and expanding mining capacity position it well to capitalize on the growing demand for Bitcoin, driven by institutional interest and mainstream adoption.
7. DMG Blockchain Solutions Inc (DMGI.V) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐
- 52 Week Range: 0.2300 – 0.7700
- Avg. Volume: 1,000,414
- Market Cap: 102.598M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.1000
- Earnings Date: Mar 04, 2024
One of the few Canadian penny stocks to make the list, DMG Blockchain Solutions Inc. (DMGI.V) is a pioneer in the blockchain industry which offers innovative solutions that extend beyond traditional cryptocurrency mining. Unlike many other companies in the sector, DMG focuses not only on mining cryptocurrencies but also on developing blockchain-based solutions for various industries, including finance, supply chain management, and digital identity verification.
DMG’s diversified approach to blockchain technology positions it uniquely in the market, allowing investors to benefit not only from the potential growth in cryptocurrency adoption but also from the broader applications of blockchain technology across different sectors. The company’s expertise in developing custom blockchain solutions tailored to specific business needs provides a competitive edge in an increasingly digitized world.
8. HIVE Blockchain Technologies Ltd (HIVE.V) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐
- 52 Week Range: 3.0500 – 8.9600
- Avg. Volume: 869,467
- Market Cap: 427.564M
- PE Ratio (TTM): N/A
- EPS (TTM): -2.0300
- Earnings Date: Feb 23, 2024
HIVE Blockchain Technologies Ltd. (HIVE.V) offers a distinctive investment opportunity by combining its core competency in blockchain mining with a forward-looking approach to digital asset management.
Unlike traditional crypto miners, HIVE has established itself as a pioneer in the development of decentralized finance (DeFi) solutions and blockchain-based financial products. Through strategic partnerships and investments in DeFi protocols, HIVE aims to unlock new revenue streams and create value beyond traditional mining activities.
Like other top Canadian crypto stocks, HIVE strategically operates its facilities in regions with abundant sources of renewable energy, such as Iceland, Sweden, and Canada.
As the cryptocurrency market evolves and new use cases for blockchain technology emerge, HIVE is well-positioned to adapt and capitalize on emerging trends.
9. Digihost Technology Inc. (DGHI.V) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐
- 52 Week Range: 1.1400 – 3.4000
- Avg. Volume: 35,795
- Market Cap: 80.957M
- PE Ratio (TTM): N/A
- EPS (TTM): -1.0600
- Earnings Date: Apr 02, 2024
Another crypto penny stock that warrants some consideration with the recent rise of Bitcoin, Digihost Technology Inc. (DGHI.V) presents a distinctive investment opportunity in the cryptocurrency mining landscape. Like some of the best crypto stocks in Canada, Digithost Technology is marked by its innovative approach to sustainability and growth.
Unlike many competitors, Digihost places a strong emphasis on harnessing renewable energy sources to power its mining operations, aligning its profitability with environmental responsibility. By strategically leveraging renewable energy, Digihost ensures cost-effective and eco-friendly operations, providing investors with a compelling proposition in the rapidly evolving digital asset space.
10. Banxa Holdings Inc. (BNXA.V) — History of Dividend Payments & Potential Growth
- Rating: ⭐⭐⭐
- 52 Week Range: 0.3800 – 1.3300
- Avg. Volume: 28,085
- Market Cap: 29.16M
- PE Ratio (TTM): N/A
- EPS (TTM): -0.20
- Earnings Date: Jan 16, 2024
Banxa Holdings Inc. stands at the forefront of the digital payments revolution, offering a unique investment opportunity within the cryptocurrency ecosystem. As a leading payment service provider, Banxa facilitates seamless fiat-to-cryptocurrency transactions, enabling individuals and businesses to easily convert traditional currencies into digital assets.
What sets Banxa apart is its focus on regulatory compliance and security, ensuring that transactions are conducted in accordance with the highest industry standards. With licenses and partnerships across multiple jurisdictions, including Europe, Australia, and Canada, Banxa demonstrates a commitment to transparency and legitimacy in the rapidly evolving cryptocurrency market, making it one of the best cryptocurrency stocks to own in Canada.
What Are Cryptocurrencies?
Cryptocurrencies are digital or virtual currencies that use cryptography for security and operate on decentralized networks based on blockchain technology.
One of the defining features of cryptocurrencies is decentralization, meaning that no single entity has control over the currency or its transactions. This decentralization, coupled with cryptographic security, makes cryptocurrencies resistant to censorship and fraud.
Cryptocurrencies can be used for various purposes, including online purchases, investment, remittances, and as a means of transferring value across borders. They offer potential benefits such as lower transaction fees, faster transaction times, increased privacy, and greater financial inclusion for unbanked populations.
What Is Bitcoin?
Bitcoin is a decentralized digital currency that operates on a peer-to-peer network known as the blockchain. Created by an anonymous person using the pseudonym Satoshi Nakamoto in 2009, Bitcoin was the first cryptocurrency and remains the most well-known crypto on the market. It revolutionized the concept of money by providing a secure, transparent, and censorship-resistant alternative to traditional currencies.
With a finite supply capped at 21 million coins, Bitcoin’s scarcity and deflationary nature have led to comparisons with gold as a store of value. People use Bitcoin for all sorts of things, like online purchases, investing, or sending money to friends.
What Is Ethereum?
Ethereum is a decentralized blockchain platform introduced in 2015 by Vitalik Buterin.
Unlike Bitcoin, Ethereum is not solely a digital currency but also a platform for decentralized applications (DApps) and smart contracts. It enables developers to build and deploy applications on its blockchain, using its native cryptocurrency, Ether (ETH), to power transactions and execute smart contracts.
Ethereum’s key innovation is its ability to execute smart contracts automatically, facilitating a wide range of applications beyond simple transactions, including decentralized finance (DeFi), non-fungible tokens (NFTs), and decentralized autonomous organizations (DAOs).
Most Popular Cryptocurrencies by Market Cap
Some popular cryptocurrencies include Bitcoin (BTC), Ethereum (ETH), Tether (USDT), Binance Coin (BNB), Solana (SOL), and Cardano (AD). Bitcoin leads the way with a market cap of $932.50 billion, followed by Ethereum with $300.07 billion. Tether, a stablecoin, has the highest average trading volume at $44.14 billion. Other cryptocurrencies like Solana, Cardano, and Binance Coin also have significant market capitalizations, indicating their popularity in the crypto market.
Here are the top 25 most popular cryptocurrencies, ranked by their total market cap, according to Yahoo Finance.
| Symbol | Cryptocurrency | Avg Vol (3 month) | Market Cap |
|---|---|---|---|
| BTC | Bitcoin | 23.24B | 932.50B |
| ETH | Ethereum | 11.04B | 300.07B |
| USDT | Tethert | 44.14B | 96.26B |
| BNB | BNB | 994.00M | 48.17B |
| SOL | Solana | 2.70B | 47.72B |
| XRP | XRP | 1.28B | 28.51B |
| USDC | USD Coin | 5.39B | 27.95B |
| STETH | Lido Staked ETH | 24.29M | 23.98B |
| ADA | Cardano | 582.10M | 19.21B |
| AVAX | Avalanche | 933.13M | 14.47B |
| DOGE | Dogecoin | 619.47M | 11.60B |
| TRX | TRON | 263.48M | 10.95B |
| LINK | Chainlink | 635.13M | 10.94B |
| WTRX | Wrapped TRON | 2.31M | 10.92B |
| DOT | Polkadot | 309.21M | 9.21B |
| MATIC | Polygon | 528.56M | 8.16B |
| WBTC | Wrapped Bitcoin | 178.24M | 7.49B |
| TON11419 | Toncoin | 46.27M | 7.20B |
| ICP | Internet Computer | 165.09M | 6.12B |
| SHIB | Shiba Inu | 195.82M | 5.55B |
| DAI | Dai | 242.45M | 5.35B |
| LTC-USD | Litecoin USD | 355.09M | 5.24B |
| BCH-USD | Bitcoin Cash USD | 233.37M | 4.85B |
| UNI7083-USD | Uniswap USD | 147.07M | 3.97B |
What Are Crypto Stocks In Canada?
Crypto stocks are publicly-traded companies that offer investors exposure to the cryptocurrency market without actually buying Bitcoin or other altcoins. These companies may be engaged in various activities related to cryptocurrencies, blockchain technology, and digital assets, including mining, investing, trading, providing financial services, developing blockchain-based solutions, and more.
Buying Canadian crypto stocks allows individuals to gain exposure to the growing cryptocurrency market through traditional stock exchanges. Investors can choose between individual crypto stocks or crypto ETFs, which offer exposure to a diversified portfolio of the top companies in the cryptocurrency industry.
Unlike the best Canadian bank stocks and dividend stocks, which offer stability, crypto stocks are volatile and can be subject to extreme price action, causing explosive gains and losses.
Crypto ETFs in Canada
Crypto ETFs typically hold a diversified portfolio of cryptocurrencies, which may include Bitcoin, Ethereum, and other prominent digital assets. Some Canadian ETFs may track the performance of a single cryptocurrency, while others may follow an index or basket of cryptocurrencies.
Canada approved the first Bitcoin exchange-traded fund (ETF) in February 2021. The Purpose Bitcoin ETF, launched by Purpose Investments, became the first ETF in North America to provide direct exposure to Bitcoin for investors through a traditional stock exchange, marking a significant milestone for the cryptocurrency industry
Best Canadian Crypto Stocks On The TSX
Coinbase, Marathon Holdings, and Riot Platforms are just a few of the top crypto stocks on the market. However, all of those stocks are U.S. stocks found on the NASDAQ. For Canadian investors who want to buy stocks on the TSX, there are a select few companies that stand out above the competition. Some examples of the best crypto stocks in Canada include Canadian mining companies like Hut 8 Mining Corp (HUT.TO), Bitfarms Ltd (BITF.TO), and HIVE Blockchain Ltd.
- Hut 8 Mining Corp (HUT.TO): Hut 8 is a cryptocurrency mining company based in Canada. They mine Bitcoin and other cryptocurrencies.
- Bitfarms Ltd (BITF.TO): Bitfarms is another Canadian cryptocurrency mining company, primarily focused on Bitcoin mining.
- HIVE Blockchain Technologies Ltd (HIVE.V): HIVE Blockchain is a cryptocurrency mining company that mines cryptocurrencies like Bitcoin and Ethereum.
Best Canadian Crypto ETFs
Investing in crypto ETFs provides several advantages, including diversification, liquidity, and ease of access. Instead of purchasing and storing individual cryptocurrencies, investors can buy shares of a crypto ETF through their brokerage accounts, similar to buying shares of traditional ETFs or stocks. This simplifies the investment process and reduces the associated risks and complexities.
Here are some of the best crypto ETFs in Canada.
- Purpose Bitcoin ETF (BTCC.TO): This was one of the first Bitcoin ETFs launched in North America. It provided exposure to the price of Bitcoin without requiring investors to directly hold the cryptocurrency.
- 3iQ CoinShares Bitcoin ETF (BTCQ.TO): This ETF also provided exposure to Bitcoin’s price movements and aimed to track the performance of Bitcoin.
- Purpose Ether ETF (ETHH.TO): Similar to the Purpose Bitcoin ETF, this ETF focused on providing exposure to the price of Ether, the native cryptocurrency of the Ethereum network.
- 3iQ CoinShares Ether ETF (ETHQ.TO): Another option for investors seeking exposure to Ether’s price movements.
- Best Crypto Penny Stocks in Canada
- CI Galaxy Bitcoin ETF (BTCX.TO): This ETF aims to provide exposure to the performance of Bitcoin by investing directly in Bitcoin or Bitcoin futures contracts.
- Evolve Bitcoin ETF (EBIT.TO): This ETF provides investors with exposure to the daily price movements of Bitcoin in Canadian dollars by investing directly in Bitcoin.
Best Crypto Penny Stocks in Canada
The best Canadian penny stocks can offer explosive gains for investors. With the cryptocurrency market booming, risk assets like penny stocks are set to follow the trend.
Below, we’ll uncover some of the top crypto penny stocks in Canada to buy right now. Each of these Canadian companies operates within the cryptocurrency sector and offers potential opportunities for investors seeking exposure to this rapidly evolving market.
- SATO Technologies Corp. (SATO.V): Specializes in blockchain solutions for finance, supply chain, and decentralized applications
- Neptune Digital Assets Corp. (NDA.V): Focuses on cryptocurrency mining and investment
- BlockchainK2 Corp. (BITK.V): Engages in cryptocurrency mining, trading, and investment activities
Which Canadian Investing Accounts Can Hold Crypto Stocks?
These are some of the common types of investment accounts in Canada that allow investors to hold crypto stocks alongside traditional investments. Each account type has its own tax advantages and restrictions, making them suitable for different investment goals and preferences.
TFSA
The Tax-Free Savings Account (TFSA) is a versatile investment vehicle in Canada that allows individuals to invest in a wide range of assets, including Canadian crypto stocks, without paying taxes on capital gains, dividends, or interest earned within the account. For investors looking to capitalize on the potential growth of the cryptocurrency market, the TFSA stocks offer a tax-efficient way to hold crypto stocks and potentially maximize returns over the long term. Additionally, withdrawals from a TFSA are tax-free, providing flexibility for investors to access their funds when needed.
RRSP
The Registered Retirement Savings Plan (RRSP) is another popular investment account in Canada that can hold crypto stocks. While contributions to an RRSP are made with pre-tax dollars, allowing investors to reduce their taxable income, withdrawals from the account are taxed as income upon retirement. For investors with a long-term investment horizon and a focus on retirement planning, holding crypto stocks in an RRSP can provide potential tax benefits, especially if they anticipate being in a lower tax bracket during retirement. The best RRSP stocks are those that you will buy and hold for years to come, which makes the crypto sector an interesting choice for long-term investors.
FHSA
The First Home Savings Account (FHSA) is a relatively new investment option in Canada designed to help first-time homebuyers save for a down payment on a home. Similar to the TFSA, contributions to an FHSA grow tax-free, and withdrawals are not subject to taxes. While the primary purpose of investing in FHSA stocks is to save for a home purchase, investors can still hold crypto stocks within the First Home Savings Account to potentially grow their savings faster. However, investors should be mindful of the contribution limits and eligibility requirements associated with the FHSA to ensure compliance with the program’s rules.
Best Stock Trading Apps To Buy Crypto Stocks In Canada
Here are some of the top stock trading apps in Canada for buying crypto stocks. Whether you’re a beginner or an experienced investor, these platforms offer user-friendly interfaces, robust features, and competitive fees to help you navigate the cryptocurrency market with ease.
- Questrade: Known for its low fees and comprehensive trading platform, Questrade offers a user-friendly interface and a wide range of investment options, including crypto stocks. With competitive pricing and a variety of account types, Questrade is a popular choice among Canadian investors.
- Wealthsimple Trade: Wealthsimple is a commission-free trading platform that allows users to buy and sell stocks, ETFs, and cryptocurrencies with no trading fees. With its intuitive mobile app and simplified trading experience, Wealthsimple Trade is an excellent option for beginners looking to invest in crypto stocks.
- QTrade: QTrade is a full-service online brokerage known for its advanced trading tools, research resources, and responsive customer service. While it may not offer commission-free trading like some other platforms, QTrade provides access to a wide range of investment options, including crypto stocks, and is well-suited for experienced investors seeking robust trading capabilities.
How To Invest In The Best Crypto Stocks Canada Has To Offer?
For beginner investors, buying crypto stocks can be confusing. Below, we’ll break down how to start investing in crypto stocks in Canada. By following these steps diligently and staying informed about market trends and developments, investors can make informed decisions and potentially maximize their returns in the rapidly evolving cryptocurrency market.
Step 1: Research and Due Diligence
Before diving into investing in crypto stocks, beginners should conduct thorough research and due diligence. This involves understanding the basics of cryptocurrency, such as how it works, different types of cryptocurrencies, and the factors that can affect their prices. Additionally, beginners should research the specific crypto stocks they’re interested in, including their business models, financial performance, and potential risks. By gathering information and educating themselves, beginners can make more informed investment decisions.
Step 2: Choose a Reputable Brokerage Platform
Selecting a reputable brokerage platform is crucial for beginners to invest in crypto stocks safely and securely. Beginners should look for platforms that offer a user-friendly interface, competitive fees, strong security measures, and a wide range of investment options, including crypto stocks. It’s important to research and compare different brokerage platforms to find the one that best suits their needs and preferences.
Step 3: Open an Investment Account
Once beginners have chosen a brokerage platform, they need to open an investment account. This typically involves providing personal information, such as their name, address, and social insurance number, and funding their account with an initial deposit. Beginners should follow the instructions provided by their chosen brokerage platform to complete the account opening process successfully.
Step 4: Develop a Diversified Investment Strategy
Developing a diversified investment strategy is essential for beginners to manage risk and optimize returns when investing in crypto stocks. Beginners should consider diversifying their portfolio by investing in a variety of crypto stocks across different sectors and industries. Additionally, they may want to allocate a portion of their portfolio to other asset classes, such as stocks, bonds, and mutual funds, to further diversify their investments.
Step 5: Monitor and Rebalance Your Portfolio Regularly
Finally, beginners should monitor their portfolio regularly and rebalance it as needed to ensure it remains aligned with their investment goals and risk tolerance. This involves regularly reviewing the performance of their investments, making adjustments to their portfolio allocation as necessary, and staying informed about market trends and developments. By staying proactive and disciplined, beginners can position themselves for long-term success in the crypto stock market.
Why Buy Crypto Stocks In Canada
Investing in crypto stocks in Canada offers numerous advantages for investors looking to capitalize on the growing cryptocurrency market. Here are several reasons why buying crypto stocks in Canada can be a lucrative investment opportunity:
Exposure to Cryptocurrency Market
Crypto stocks provide a way for investors to gain exposure to the rapidly growing cryptocurrency market without directly owning cryptocurrencies. This allows investors to participate in the potential upside of digital assets while leveraging the stability and familiarity of traditional stock markets.
Diversification
Adding crypto stocks to a diversified investment portfolio can help spread risk across different asset classes. Cryptocurrencies often have a low correlation with traditional financial assets like stocks and bonds, making them a valuable diversification tool.
Growth Potential
The cryptocurrency market has shown remarkable growth in recent years, with many digital assets experiencing significant price appreciation. Investing in crypto stocks allows investors to capitalize on this growth potential, especially as adoption of cryptocurrencies and blockchain technology continues to expand.
Exposure to Blockchain Technology
Many crypto stocks are tied to companies that are developing or utilizing blockchain technology. Blockchain has applications beyond cryptocurrencies, including supply chain management, healthcare, and finance. Investing in crypto stocks provides exposure to the potential transformative impact of blockchain across various industries.
Accessibility
Unlike direct cryptocurrency investment, which may require setting up a digital wallet and navigating cryptocurrency exchanges, buying crypto stocks can be done through traditional brokerage accounts, making it more accessible to a wider range of investors.
What Is The Best Crypto Stock in Canada?
Despite ranking No.4 on our list, Hut 8 Mining Corp (HUT.TO) is our pick for the best crypto stock in Canada. Over the past year, Hut 8 Mining Corp has emerged as a leading Canadian crypto stock due to its robust Bitcoin mining operations, efficient use of energy, and strong financial performance. With a commitment to sustainability and promising growth potential in the cryptocurrency market, it remains an attractive investment option for investors seeking exposure to digital assets.