Before you decide to invest in crypto, it’s important to understand more than just the asset you’re investing in. You also need to understand yourself as an investor. Like any investment, it starts with knowing your goals, your values, and how much risk you’re comfortable taking.
Investing in crypto through a trading platform is a DIY experience. You’re in charge of the research and the decisions. That takes time, knowledge, and a good sense of your own habits and emotions. If that sounds overwhelming, but you’re still interested in crypto, consider working with a registered investment professional. They can help you evaluate options and make recommendations on crypto assets that fit your financial situation.
A crypto asset trading platform—often called a crypto exchange—is a website or app that lets you trade your dollars for crypto assets. These platforms allow you to buy, sell, hold, deposit, and withdraw crypto. Some deliver the crypto straight to your own wallet, where you control it. Others keep it in a wallet they manage, which means you’re trusting them to keep it safe.
Here’s the critical part: not all platforms follow Canadian rules. Some are registered and regulated. Others aren’t—and that puts your money at risk. Before you sign up, check if the platform is registered with a Canadian securities regulator. You can find a list of registered platforms at the Financial and Consumer Services Commission’s website.
If you are interested in signing up for a crypto asset trading platform, it’s important to also check if they have any alerts or warnings issued against them. The Canadian Securities Administrators has more information on Crypto Trading Platforms: Regulation and Enforcement Actions.
Crypto platforms often charge fees for trading, staking, custody, deposits, and withdrawals. These costs vary, so read the fine print before you commit. Understanding fees upfront helps you avoid surprises later.
When you sign up for an account, the platform should ask for details about your financial situation, investing experience, and risk tolerance. This isn’t just a formality—it’s a legal requirement. Platforms use this information to set appropriate loss limits and comply with anti-money laundering laws. They also have a legal obligation to keep your information private and secure.
If a platform doesn’t ask for this information, that’s a red flag that it may not be following the rules. Report it to the Financial and Consumer Services Commission and look for another platform.
A registered platform should also provide clear information about:
The crypto assets you can trade, including descriptions and associated risks
How the crypto assets are priced
The fees you’ll pay for using the platform’s services
Who holds your assets. In Canada, platforms must use a third-party custodian to hold at least 80% of client assets—they can’t keep everything in their own wallets.