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Canadian Crypto Stocks: How To Invest, Risks & Considerations

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Written by Timothy Sykes
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 10/6/2023 15 min read

Crypto stocks in Canada are shares of companies involved in the cryptocurrency and blockchain industry that are based or operating in Canada. These stocks offer a way to gain exposure to the crypto market without directly owning digital assets. They can be a lucrative but volatile addition to your investment portfolio.

Read this article because it’s your comprehensive guide to the best Canadian crypto stocks to buy right now, complete with factors to consider and top picks for 2023.

I’ll get into the following …

  • What Is the Best Crypto Stock to Buy Right Now in Canada?
  • What Factors Should You Consider When Choosing a Crypto Stock in Canada?
  • What Benefits and Potential Returns Can You Expect from Canadian Crypto Stocks?
  • What Are the Risks of Investing in Canadian Crypto Stocks?
  • What Are the Best Sectors of Canadian Crypto Stocks?
  • How Have Canadian Crypto Stocks Performed in Recent Years?

Let’s get to the picks!

What Are Crypto Stocks in Canada?

top 2 artificial intelligence stocks to watch in 2021

Crypto stocks in Canada are shares in companies that operate within the crypto and blockchain industries. These companies could be involved in mining operations, crypto exchanges, or blockchain technology services. From my years of trading and teaching, I can tell you that understanding the business model of these companies is crucial for making informed investment decisions.

These aren’t your run-of-the-mill stocks; they’re tied to a rapidly evolving industry. Companies like Hive Blockchain Technologies and Hut 8 are big names in the Canadian crypto stock market. They offer a variety of services, from mining Bitcoin and Ethereum to asset management.

Top Crypto Stocks to Consider in Canada

My top Canadian crypto stock picks are:

If you’re looking to diversify your portfolio with some crypto exposure, consider companies like Hive Blockchain Technologies or Hut 8. These companies have a solid revenue stream and a balanced sheet that can withstand market volatility.

But don’t just take my word for it; do your own research. Look into their mining facilities, the cryptocurrencies they focus on, like Bitcoin and Ethereum, and their overall market cap. I’ve made profitable trades by diving deep into a company’s operations and understanding their place in the market.

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

Hut 8 Mining Corp (NASDAQ: HUT / TSE: HUT)

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My first Canadian crypto stock pick is Hut 8 Mining Corp (NASDAQ: HUT / TSE: HUT).

Hut 8 is a big name in the mining sector, and its ticker is easily recognizable in both countries it trades in. The company mines Bitcoin and has data centers in strategic locations. If you’re considering adding some mining flair to your portfolio, Hut 8 is worth a look. Just remember to check the trading fees and consider it as part of your broader investment strategy, which could include ETFs or even RRSP and TFSA accounts.

Bitfarms Ltd (NASDAQ: BITF / TSE: BITF)

My second Canadian crypto stock pick is Bitfarms Ltd (NASDAQ: BITF / TSE: BITF).

Bitfarms operates in the mining sector, focusing on a range of cryptocurrencies, including Bitcoin and Litecoin. With its dual listing, it offers investors multiple options for entry. Keep in mind the trading platforms you’ll use and the associated fees. Bitfarms has a solid business model, but like all crypto investments, it comes with risks.

HIVE Blockchain Technologies (NASDAQ: HIVE / CVE: HIVE)

My third Canadian crypto stock pick is HIVE Blockchain Technologies (NASDAQ: HIVE / CVE: HIVE).

HIVE Blockchain Technologies is another mining company but with a twist. It’s not just about Bitcoin; they’re into Ethereum too. Their business model extends to different blockchain solutions, making them a diversified option for your portfolio. They’re listed on both the NASDAQ and the CVE, giving investors multiple trading platforms to choose from.

DMG Blockchain Solutions Inc (OTCPK: DMGGF / CVE: DMGI)

My fourth Canadian crypto stock pick is DMG Blockchain Solutions Inc (OTCPK: DMGGF / CVE: DMGI).

DMG Blockchain Solutions is a bit of a jack-of-all-trades. They’re involved in mining but also offer software solutions for crypto customers. Their diversified approach could be a bonus for investors looking for a little less risk. Just remember, the OTC markets can be a wild ride, so do your due diligence.

BIGG Digital Assets Inc (OTCPK: BBKCF / CNSX: BIGG)

My fifth Canadian crypto stock pick is BIGG Digital Assets Inc (OTCPK: BBKCF / CNSX: BIGG).

BIGG Digital Assets is another diversified player, involved in both crypto and blockchain technologies. They offer a range of products and services, from mining to asset management. If you’re looking to diversify your crypto holdings, BIGG offers a range of options. But remember, always read reviews and evaluations before diving in.

How To Invest in Canadian Crypto Stocks

Investing in Canadian crypto stocks isn’t much different from investing in any other type of stock. You’ll need a brokerage account; Questrade is a popular choice in Canada. Once you’re set up, you can start buying shares.

Remember, these are volatile assets. I’ve seen both incredible returns and significant losses in my trading career. Always do your due diligence and maybe even consider using risk mitigation strategies like stop-loss orders.

If you like volatile assets, check out electric vehicle (EV) stocks. They’re another hot sector, especially those priced under $5. These stocks can offer similar volatility and growth potential as crypto stocks. If you’re looking to diversify your high-risk, high-reward plays, give these a look. Learn more about EV stocks under $5 that you can consider.

Comparing Crypto Stocks and Cryptocurrencies

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When it comes to investing in the crypto world, you’ve got options. You can go the traditional route with brokers and investment banking, or you can dive into crypto assets directly. Crypto stocks, often listed on major exchanges like the Nasdaq or NYSE, offer a different flavor. They give you a stake in businesses like mining companies or blockchain stocks. These are the miners digging up Bitcoin, Litecoin, and even more exotic coins like Monero and Dash. On the flip side, buying cryptocurrencies like BTC or Ethereum Classic gives you direct exposure but often involves different trading platforms and fees. Both have their merits, so your choice should align with your investment strategy and risk tolerance.

A better question is — what’s hot right now? Artificial Intelligence is revolutionizing various sectors, including crypto. Companies that merge AI and blockchain technologies could offer a unique investment opportunity. Check out these AI penny stocks that are making waves in all sectors.

Crypto Stocks vs. Cryptocurrencies

Crypto stocks and cryptocurrencies serve different purposes in an investment portfolio. While cryptocurrencies like Bitcoin and Ethereum offer direct exposure to the crypto market, crypto stocks offer a more indirect exposure through companies involved in the industry.

In my experience, crypto stocks can be less volatile than owning cryptocurrencies directly. They offer a way to invest in the blockchain industry, which has applications far beyond just cryptocurrencies.

Are Crypto Stocks a Good Investment?

Crypto stocks can offer high returns, but they come with their own set of risks. These are not dividend stocks; they are growth-oriented and can be highly volatile.

From my years of trading, I’ve learned that understanding a company’s operations and the industry it operates in can provide valuable insights into its potential for returns. Always keep an eye on market trends and data to make informed decisions.

Risks and Considerations

Investing in crypto isn’t a walk in the park. Whether you’re looking at mining stocks or directly into coins like EOS, Stellar, or the DeFi space, risks abound. Volatility is the name of the game. You could see your investment in a mining company or an ETF skyrocket, but remember, what goes up can also come crashing down. Always read the disclaimer and seek advice before making any moves. Keep an eye on trading fees, and make sure you’re comfortable with the platform’s ecosystem. And don’t forget about the regulatory landscape; it’s as changeable as a Vancouver weather forecast.

You’re aware of the risks in the crypto world, but let’s talk about a specific one: the bull trap. It’s when the market falsely signals a reversal from a downtrend to an uptrend, tricking investors into buying. This is especially prevalent in volatile markets like crypto stocks. Learn how to identify and avoid bull traps in your trading journey.

Key Considerations When Investing in Crypto Stocks

Before jumping into the crypto stock market, consider the company’s business lines, the stability of its operations, and its growth potential. Also, look at the risks involved, which can range from market volatility to regulatory changes.

Risks of Investing in Crypto Stocks

Investing in crypto stocks is not without risks. Market volatility can significantly impact the stock price. Regulatory changes can also pose a risk, as the crypto industry is still relatively new and subject to evolving regulations.

Key Takeaways

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Investing in Canadian crypto stocks offers a way to gain exposure to the crypto and blockchain industries without owning cryptocurrencies directly. However, these investments come with their own set of risks and should be approached with caution.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

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Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

What Canadian crypto stocks are on your watchlist? Let me know in the comments — I love hearing from my readers!

Canadian Crypto Stock FAQs

How Are Crypto Stocks Regulated in Canada?

Crypto stocks in Canada are subject to the same regulations as other publicly traded companies. They are required to disclose financial information and are subject to audits.

What Impact Does Market Sentiment Have on Crypto Stocks?

Market sentiment can have a significant impact on the price of crypto stocks. Positive news can lead to price surges, while negative news can lead to declines.

Can You Pay Dividends with Crypto Stocks?

Most crypto stocks are growth-oriented and do not pay dividends. They reinvest profits back into the business to fuel further growth.

What Cryptocurrencies Are Popular in Canada?

In Canada, the popularity of cryptocurrencies varies, but some of the most traded are bitcoin cash, ripple, and iota. NEM and QTUM are also gaining traction among Canadian clients. Sites offering crypto content often discuss the market trends related to these cryptocurrencies.

What Financial Tools Should Canadian Investors Consider?

Investing in cryptocurrencies in Canada is closely tied to your financial health. Utilize tools like a credit score calculator to assess your standing. Additionally, consider debt consolidation options and check mortgage rates before diverting funds into crypto investments like neo or cardano.

What Online Platforms Can I Use to Trade Crypto in Canada?

You can find several browser-based platforms to trade cryptocurrencies in Canada. Coinbase and Binance are popular choices for both beginners and experienced users. Make sure to look for sites that have a variety of menu categories to aid your investment decisions.

What Is the Regulatory Environment for Crypto in Toronto?

Toronto, like other parts of Canada, follows national regulations regarding cryptocurrencies. However, the number of places accepting crypto payments is growing. Always check the legal guidelines for transactions, especially if you are interested in less common cryptocurrencies like lisk or waves.

How Should I Diversify My Crypto Investments?

When considering diversification, look at the total value of your portfolio and allocate a portion to different types of investments, such as real estate or traditional funds. For the crypto part, you could consider a mix of tether, icon, and other cryptocurrencies to balance your investment risk.

How Can I Assess the Risk in Investing in Canadian Crypto Stocks?

To fully understand the risks, look at a company’s balance sheet and the overall health of the glxy.to industry niche. Insurance against losses in the crypto market is also something to consider, alongside other risk assessment tools like the payment calculator for investment loans.

Is the Metaverse a Good Investment Opportunity in Canada?

The metaverse is emerging as a new investment opportunity in Canada. Beginners and seasoned investors are looking at it alongside cryptocurrencies like neo and tether. However, investing in the metaverse also requires objectivity in assessing its long-term viability.

How Can I Keep Track of My Canadian Crypto Investments?

You can keep track of your investments through various series of articles, content, and links provided on reputable sites. These help you make informed choices regarding cryptocurrencies like iota, bitcoin cash, and even more niche choices like glxy.to industry offerings.

How Do I Secure My Crypto Investments in Canada?

Ensuring the security of your crypto investments involves multiple steps. Ensure that the browser you use for transactions is secure and that you use student credit cards or other payment methods that offer insurance and additional layers of security.

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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”