Over the past few years, the popularity of cryptocurrency has soared worldwide, including in Canada. Popular blockchain-based currencies such as Bitcoin and Ethereum, as well as more obscure currencies, are popular among investors of all types looking to diversify their holdings.
Some people claim that the crypto bubble has burst, but it’s clear that this new form of currency is here to stay. People are still searching for the Canadian Bitcoin price, after all! Investing now can give you a leg up on your future plans.
Before delving into the world of cryptocurrency, here is what you need to know.
Trading Cryptocurrency Has an Important Canadian History
While lately news from other parts of the world tends to dominate the crypto sphere, Canada is home to some of the earliest adopters of this technology. The world’s first Bitcoin ATM opened in Vancouver in 2013, nearly a decade ago!
This fact isn’t just a fun historical tidbit, although it is interesting to learn about how influential Canadians have been in making cryptocurrency so popular. It shows that cryptocurrencies and Bitcoin trading have a strong, established tradition in Canada. Although there is limited regulation since the whole point of using the blockchain is to deregulate currency, this history means that there is the infrastructure in place to support cryptocurrency trading.
Canada is home to many large Canadian crypto exchanges and brokers (more on those later), both foreign companies that operate in Canada as well as Canadian-owned firms that work on helping their countrymen build wealth. Plus, the Canadian government is experienced with Bitcoin transactions. Bitcoin and other cryptocurrencies are classified as digital currencies and commodities, so trading them is perfectly legal, and you can even use them to purchase things at some online stores.
Cryptocurrencies Are Valuable Investments
Before you buy Bitcoin or other cryptocurrencies, you probably want to know what you are getting into when you spend your money. The good news is that cryptocurrencies are valuable investments, even in this volatile time for markets.
Cryptocurrencies are not like most traditional currencies because they function as speculative investments, meaning that the value goes up or down depending on the market. However, established cryptocurrencies such as Bitcoin are fairly stable right now, so investing in them is similar to investing in other speculative assets.
Cryptocurrencies also have the advantage of being highly liquid so you can trade your crypto assets for traditional currencies or precious metals whenever you get nervous about the state of the market.
You Need to Set Up an Account on an Exchange
Once you understand the value of investing in Bitcoin as a Canadian, it’s time to get into the nitty-gritty of how you can do so. You don’t get Bitcoin or other cryptocurrencies by going up to a traditional exchange office. Instead, you usually go through a digital cryptocurrency exchange.
Cryptocurrency exchanges are massive online platforms where people can buy or sell cryptocurrencies. To get started with an exchange, you need to create an account.
There are many exchanges out there and ensuring that you have a good experience trading cryptocurrency often starts with verifying the exchange. Make sure that you are signing up on reputable platforms that have a history of serving Canadian customers, such as BitBuy or Coinberry.
You can also look at the complexity level. Some exchanges are designed for advanced traders, while others are more beginner-friendly and walk you through the basics of trading. Always look at the fine print and check to see how high the trading fees are.
Buy Through a Broker
If you’re not up for trading yourself through an exchange, you can always hire a broker. A cryptocurrency broker is not a person like a traditional stockbroker but a trading platform that will go through exchanges on your behalf. While brokers tend to charge higher fees than exchanges, for many traders, the fees are worth it because brokers are much easier to use. One popular cryptocurrency broker is Wealthsimple Crypto.
However, read the fine print as always because some brokers won’t let you sell your crypto assets whenever you wish. For many investors, this restriction on freedom is not worth the convenience.
You Can Buy Bitcoin Using Canadian Dollars
Finally, getting into purchasing cryptocurrency requires some investment, but logistically it is fairly easy. You can purchase Bitcoin or other cryptocurrencies using regular currency, including Canadian dollars. If you look up the Canadian Bitcoin price, it will tell you how much Bitcoin you can purchase with your money right now.
Many exchanges, especially those that cater to beginners, allow you to deposit Canadian dollars through a bank transfer, credit, or debit card, and then use that to buy crypto on the exchange. However, check the fine print as some exchanges (those that cater to hardcore traders) only let you purchase using crypto you already own.
Getting into cryptocurrency in Canada is fairly easy and a worthwhile investment as long as you do the research.
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