10 Best Cryptocurrencies In Canada For February 2024

From Bitcoin and Ethereum to Dogecoin and Tether, there are thousands of different cryptocurrencies, making it overwhelming when you’re first getting started in the world of crypto. To help you get your bearings, these are the top 10 cryptocurrencies based on their market capitalization, or the total value of all of the coins currently in circulation.

What Are Cryptocurrencies?

A cryptocurrency is a digital asset that can circulate without the centralized authority of a bank or government.  To date, there are more than 19,000 cryptocurrency projects out there that represent the entire $1.6 trillion ($1.3 trillion USD) crypto market.

1. Bitcoin (BTC)

• Market cap: $1 trillion CAD ($759 billion USD)

Created in 2009 by Satoshi Nakamoto, Bitcoin (BTC) is the original cryptocurrency. As with most cryptocurrencies, BTC runs on a blockchain, or a ledger logging transactions distributed across a network of thousands of computers. Because additions to the distributed ledgers must be verified by solving a cryptographic puzzle, a process called proof of work, Bitcoin is kept secure and safe from fraudsters.

Bitcoin’s price has skyrocketed as it’s become a household name. In May 2016, you could buy one Bitcoin for about $500. As of Nov. 28, 2023, a single Bitcoin’s price was around $37,427. That’s a growth of 7,385%.

Related: How To Buy Bitcoin

2. Ethereum (ETH)

• Market cap: $340 billion CAD ($252 billion USD)

Both a cryptocurrency and a blockchain platform, Ethereum is a favorite of program developers because of its potential applications, like so-called smart contracts that automatically execute when conditions are met and like non-fungible tokens (NFTs).

Ethereum has also experienced tremendous growth. From April 2016 to the end of November 2023, its price went from about $11 to around $2,036, increasing 18,409%.

Related: How To Buy Ethereum

3. Tether (USDT)

• Market cap: $120 billion CAD ($89 billion USD)

Unlike some other forms of cryptocurrency, Tether (USDT) is a stablecoin, meaning it’s backed by fiat currencies like U.S. dollars and the Euro and hypothetically keeps a value equal to one of those denominations. In theory, this means Tether’s value is supposed to be more consistent than other cryptocurrencies, and it’s favored by investors who are wary of the extreme volatility of other coins. If you’re looking for a stablecoin pegged to the stability of the Canadian dollar instead, then QCAD is what you want.

4. Binance Coin (BNB)

• Market cap: $46 billion CAD ($34 billion USD)

Binance Coin (BNB) is a form of cryptocurrency that you can use to trade and pay fees on Binance, one of the largest crypto exchanges in the world. Since its launch in 2017, Binance Coin has expanded past merely facilitating trades on Binance’s exchange platform. Now, it can be used for trading, payment processing or even booking travel arrangements. It can also be traded or exchanged for other forms of cryptocurrency, such as Ethereum or Bitcoin.

BNB’s price in 2017 was just $0.10. By late November 2023, its price had risen to around $230, a gain of 229,847%.

5. XRP (XRP)

• Market cap: $44 billion CAD ($32 billion USD)

Created by some of the same founders as Ripple, a digital technology and payment processing company, XRP can be used on that network to facilitate exchanges of different currency types, including fiat currencies and other major cryptocurrencies.

At the beginning of 2017, the price of XRP was $0.006. As of Nov. 28, 2023, its price reached $0.61, equal to a rise of 10,058%.

Related: How To Buy Cryptocurrency

6. Solana (SOL)

• Market cap: $34 billion CAD ($25 billion USD)

Developed to help power decentralized finance (DeFi) uses, decentralized apps (DApps) and smart contracts, Solana runs on a unique hybrid proof-of-stake and proof-of-history mechanisms to process transactions quickly and securely. SOL, Solana’s native token, powers the platform.

When it launched in 2020, SOL’s price started at $0.77. By late November 2023, its price was around $56.29, a gain of 7,210%.

7. USD Coin (USDC)

• Market cap: $33 billion CAD ($24 billion USD)

Like Tether, USD Coin (USDC) is a stablecoin, meaning it’s backed by U.S. dollars and aims for a 1 USD to 1 USDC ratio. USDC is powered by Ethereum, and you can use USD Coin to complete global transactions. There is one stablecoin that’s pegged at a one to one ratio to the Canadian dollar called QCAD, but if you want to be transacting according to the current U.S. dollar value, USDC is certainly a main option.

8. Cardano (ADA)

• Market cap: $18 billion CAD ($13 billion USD)

Somewhat later to the crypto scene, Cardano (ADA) is notable for its early embrace of proof-of-stake validation. This method expedites transaction time and decreases energy usage and environmental impact by removing the competitive, problem-solving aspect of transaction verification present in platforms like Bitcoin. Cardano also works like Ethereum to enable smart contracts and decentralized applications, which ADA, its native coin, powers.

Cardano’s ADA token has had relatively modest growth compared to other major crypto coins. In 2017, ADA’s price was $0.02. As of Nov. 28, 2023, its price was at $0.38. This is an increase of 1,810%..

9. Dogecoin (DOGE)

• Market cap: $15 billion CAD ($11 billion USD)

Dogecoin was famously started as a joke in 2013 but rapidly evolved into a prominent cryptocurrency thanks to a dedicated community and creative memes. Unlike many other cryptos, there is no limit on the number of Dogecoins that can be created, which leaves the currency susceptible to devaluation as supply increases.

Dogecoin’s price in 2017 was $0.0002. By November 2023, its price was at $0.08, up 39,589%.

10. TRON (TRX)

• Market cap: $12 billion CAD ($9 billion USD)

Much like Solana, TRON is a blockchain designed to run smart contracts and other DeFi applications. TRX is the platform’s native cryptocurrency, which powers its proof-of-stake consensus algorithm.

TRON was founded in 2017, and TRX was initially valued at $0.0019 per token. At its peak in 2018, TRX spiked as high as $0.2245, for a gain of 11,715% in a matter of months. TRX is currently valued around $0.10.

What Are Cryptocurrencies?

Cryptocurrency is a form of currency that exists solely in digital form. Cryptocurrency can be used to pay for purchases online without going through an intermediary, such as a bank, or it can be held as an investment.

How Does Cryptocurrency Work?

Cryptocurrencies are various forms of digital money that are usually based on blockchain technology. Blockchain technology allows most cryptocurrencies to exist as “trustless” forms of transactions. This means there is no centralized authority overseeing the transactions on a cryptocurrency’s blockchain.

The world’s first cryptocurrency, Bitcoin, was created by pseudonymous computer programmer Satoshi Nakamoto in 2009.

Why Are There So Many Cryptocurrencies?

Cryptocurrency is an emerging area with more than 22,000 crypto projects in existence as of June 2023.

While some crypto function as currencies, others are used to develop infrastructure. For instance, in the case of Ethereum or Solana, developers are building other cryptos on top of these platform currencies, and that creates even more possibilities (and cryptos).

How To Invest in Cryptocurrency?

You can buy cryptocurrencies through crypto exchanges, such as Coinbase, Kraken or Gemini. In addition, some brokerages, such as Wealthsimple and Interactive Brokers, also allow consumers to buy cryptocurrencies.

How To Report Crypto on Taxes

If you buy and sell coins, it’s important to pay attention to cryptocurrency tax rules.

Cryptocurrency is treated as a capital asset, like stocks, rather than cash. That means if you sell cryptocurrency at a profit, you’ll have to pay capital gains taxes. This is the case even if you use your crypto to pay for a purchase. If you receive a greater value for it than you paid, you’ll owe taxes on the difference.

*Market caps and pricing sourced from coinmarketcap.com, current as of June 20, 2022.

Crypto FAQs

How does trading cryptocurrencies differ from trading stocks?

While you can invest in cryptocurrencies, they differ a great deal from traditional investments, like stocks. When you buy stock, you are buying a share of ownership of a company, which means you’re entitled to do things like vote on the direction of the company. If that company goes bankrupt, you also may receive some compensation once its creditors have been paid from its liquidated assets.

Buying cryptocurrency doesn’t grant you ownership over anything except the token itself; it’s more like exchanging one form of currency for another. If the crypto loses its value, you won’t receive anything after the fact.

There are several other key differences to keep in mind:

• Trading hours: Stocks are only traded during stock exchange hours, typically 9:30 am to 4:30 pm ET, Monday through Friday. Cryptocurrency markets never close, so you can trade 24 hours a day, seven days a week.
• Regulation: Stocks are regulated financial products, meaning a governing body verifies their credentials and their finances are matters of public record. By contrast, cryptocurrencies are not regulated investment vehicles, so you may not be aware of the inner dynamics of your crypto or the developers working on it.
• Volatility: Both stocks and cryptocurrency involve risk; the money you invest can lose value. However, stocks are directly linked to companies and generally rise and fall based on those companies’ performance. Cryptocurrency prices are more speculative—no one is quite sure of their value yet. That makes them much more volatile and affected by something as small as a celebrity’s tweet.

Are there cryptocurrency exchange-traded funds (ETFs)?

Given the thousands of cryptocurrencies in existence (and the high volatility associated with most of them), it’s understandable you might want to take a diversified approach to investing in crypto to minimize the risk you lose money.

There are several Cryptocurrency ETFs you can invest in, including the Purpose Bitcoin ETF, the Purpose Ether ETF and the Evolve Bitcoin ETF, among others.

What are altcoins?

When we first think of crypto, we usually think of Bitcoin. That’s because Bitcoin represents more than 45% of the total cryptocurrency market. So when we talk about any cryptos outside of Bitcoin, all of those cryptos are considered altcoins.

Ethereum,…