How do I cash out crypto in Canada?

Sell your crypto on a Canadian exchange (Wealthsimple, Newton, Bitbuy, or Shakepay), then withdraw the Canadian dollars to your linked bank account via e-Transfer or EFT. The process typically takes 1–3 business days. Larger amounts may require wire transfer and additional identity verification.

Do I have to pay tax when I sell crypto in Canada?

Yes. Selling cryptocurrency is a taxable event in Canada. You must report the capital gain (or loss) on your tax return. The gain is calculated as the sale price minus your adjusted cost base. Capital gains have a 50% inclusion rate — meaning half the gain is added to your taxable income. Frequent traders may be taxed as business income (100%).

What is the cheapest way to sell crypto in Canada?

Using a Canadian exchange with low trading fees is the cheapest method. Exchanges like Newton (spread-based, no commission), Kraken (0.16–0.26% maker/taker), and NDAX (0.20%) have competitive rates. Avoid selling on peer-to-peer platforms unless you have experience, as scams are common.

How to Sell Crypto in Canada (Cash Out Guide)

If you are backing into this from the buy side, start with how to buy Bitcoin in Canada and before you invest in crypto in Canada.

Step-by-Step: How to Sell Crypto in Canada

Step 1: Choose Where to Sell

Platform	Trading Fee	Withdrawal Fee (CAD)	Withdrawal Method	Speed
Wealthsimple Crypto	1.5–2.0% spread	Free	EFT to bank	1–3 days
Newton	0.5–0.7% spread	Free	e-Transfer	Same day–1 day
Bitbuy	0.20%	Free (e-Transfer)	e-Transfer or wire	Same day–1 day
NDAX	0.20%	$4.99 (e-Transfer)	e-Transfer or wire	1–2 days
Shakepay	1.0–1.5% spread	Free	e-Transfer	Instant–1 day
Kraken	0.16–0.26%	$10 (EFT)	EFT or wire	1–5 days
Coinbase	1.49–3.99%	Varies	Bank transfer	3–5 days

Step 2: Sell Your Crypto

Log in to your exchange account
Navigate to the sell page or trading interface
Select the cryptocurrency to sell (BTC, ETH, etc.)
Choose to sell for CAD (not USD or another crypto — selling for another crypto is also a taxable event)
Review the price and fees
Confirm the sale

Step 3: Withdraw to Your Bank

Go to the withdrawal/funding section
Select CAD withdrawal
Choose your linked bank account
Enter the amount
Confirm and wait for the transfer

Withdrawal Method	Speed	Limits
e-Transfer	Instant–1 business day	$10,000–50,000/day (varies by platform)
EFT (electronic funds transfer)	1–3 business days	Higher limits
Wire transfer	1–3 business days	$10,000+ (best for large amounts)

Selling Large Amounts ($25,000+)

Consideration	Details
Verification	Exchange may require enhanced KYC (ID, proof of address, source of funds)
Withdrawal limits	Daily/monthly limits may require multiple withdrawals
OTC desk	For $100K+, use an OTC desk (Kraken OTC, Genesis) to avoid slippage
Wire transfer	Preferred for large amounts — faster and higher limits
Tax planning	Large gains may push you into a higher tax bracket — consider timing
Bank questions	Your bank may ask about the source of funds — keep exchange records

Tax Reporting When Selling Crypto

If you are using a TSX-listed fund instead of holding coins directly, best crypto ETFs in Canada is usually the simpler path for registered accounts.

Calculating Your Capital Gain

Step	Example
Purchase price (ACB)	Bought 1 BTC at $40,000
Selling price	Sold 1 BTC at $90,000
Capital gain	$90,000 – $40,000 = $50,000
Taxable amount (50% inclusion)	$25,000 added to income
Tax owed (at 30% marginal rate)	~$7,500

What Counts as a Taxable Event

Action	Taxable?	Type
Selling crypto for CAD	✅ Yes	Capital gain/loss
Trading crypto for crypto (e.g., BTC → ETH)	✅ Yes	Capital gain/loss (at FMV)
Using crypto to buy goods	✅ Yes	Capital gain/loss (at FMV)
Transferring between your own wallets	❌ No	Not a disposition
Receiving crypto as payment	✅ Yes	Income at FMV
Gifting crypto	✅ Yes	Deemed disposition at FMV
Holding crypto	❌ No	No event until disposition

Record-Keeping Requirements

What to Track	Why
Date of every buy/sell/trade	Determines holding period and tax year
Amount paid (including fees)	Part of your adjusted cost base
Amount received (including fees)	Determines proceeds of disposition
Wallet addresses	Proves ownership and transfers
Exchange statements	Support for CRA audit

Popular Crypto Tax Software for Canada

Software	Price	Features
Koinly	Free–$279/year	Supports Canadian exchanges, auto-calculates ACB, generates T1 report
CoinTracker	Free–$199/year	Portfolio tracking + tax reports
CryptoTaxCalculator	$49–$299/year	Supports DeFi, NFTs, advanced transactions
Wealthica	Free (basic)	Aggregates all Canadian investment accounts

Common Mistakes When Selling Crypto

Mistake	Better Approach
Not reporting trades to CRA	All dispositions must be reported — CRA tracks exchange data
Forgetting crypto-to-crypto trades are taxable	Each trade is a taxable event, even BTC → ETH
Not tracking ACB properly	Use crypto tax software or a spreadsheet from day one
Selling during a panic	Have a plan in advance — don’t sell emotionally
Selling everything at once	Consider selling in tranches across tax years to manage bracket
Ignoring foreign exchange	CAD value at time of each transaction is what matters

That plan should include an exit framework before you buy, which is one reason Bitcoin ETF vs buying Bitcoin directly in Canada matters for Canadian investors.