As humanity keeps going forward, so does technology in several industries and matters of finance and investment. People have learned much about stocks and investments and practiced them over the years. You have people who were able to turn their lives around by investing in the right places. But it’s a strategy that came with risks, hence they calculated it as much as they could.
Once you’ve learned the language and met your financial priorities, investing just requires you to understand the risks. After which, you can attempt the next step which is buying cryptocurrency. And there are thousands of them from Bitcoins to Ethereum, but experts believe most cryptos aren’t worth it. It’s better to invest in established cryptocurrencies, like Bitcoin and Binance.
The value of crypto fluctuates hourly and it’s more erratic for lesser-known currencies. Meanwhile, well-known cryptos have a better record of increasing over time in value. Bitcoins are a great example of this and you can buy Bitcoin online in the steps we’ll show you. It’s also the most valuable cryptocurrency on the market, so it’s a good choice to start with.
How Do You Define Cryptocurrency and What is Bitcoin?
Cryptocurrency has generally defined as virtual money that takes on the form of “coins”, sometimes tokens. Though some cryptocurrencies have made it into the physical world, most are still intangible. For example, you can buy Bitcoin with credit cards or debit cards depending on the platform.
Let’s attempt to dissect the term “cryptocurrency” for a better definition. “Crypto” refers to intricate cryptography that lets them create and process digital currencies. Their transactions are done across decentralized systems, a feature of “crypto” emphasizing decentralization. They’re usually developed as code by teams and they build in mechanisms for issuance.
A common design across all cryptocurrencies is that it’s supposedly free from government control. However, just as anything becomes more popular, that foundational aspect of crypto came under fire.
Future cryptocurrencies modeled themselves after Bitcoin but were collectively called “altcoins”. They tried to present themselves as modified or better versions of Bitcoin. Some of them have better features, but they have yet to show security that is a match for Bitcoin’s security.
How Do You Buy Bitcoin in Canada?
From 2018 to 2020, Canadians had a 5% share in Bitcoin but it rose to 13% in 2021. Some fintech companies started offering cryptocurrencies to invest in aside from traditional products. Hence, people buy Bitcoin in Canada to be a part of it and to grow their wealth by taking a chance. Here are some steps to help you do it too so you can make your purchase safely.
1. Choose Your Platform and Currency
The first thing you should know is that Bitcoin can’t be purchased through your bank or investment firm. However, it’s a possibility in the future that they will be offering it as an option. However, for now, you’ll have to use a cryptocurrency trading platform to exchange your money for Bitcoin.
There are several platforms for exchanges online, but the popular ones are Coinbase and Gemini. Here are a few factors that will help you narrow down your search for your platform:
Cryptocurrency investments are decentralized, hence they’re not backed by a central institution. If your account is compromised, you run the risk of losing everything you invested. But some crypto has solid security, like Bitcoin. They use offline, cold storage with strong protection against theft. Some platforms even have independent insurance policies for their investors.
Exchange fees vary from a flat fee upfront to a percentage of your trades. Fees depend on price volatility and are charged per transaction. The fees may be daunting, but you get what you pay for. And it’s better when sticking to bigger and more established exchange platforms. If it offers more protection and better security, it’s worth the higher fees you need to pay.
4. Load Up Your Account
Depending on the platform you choose, you’ll be required to provide private information for account creation. Examples of these are your Social Security number, source of income, and ID. That way, you can connect your bank account or a debit card to transfer money into your exchange account.
You’ll experience a difference in fees depending on your method of funding. Usually, bank transfers cost less than card options but it’s best to double-check.
But this is just a step in the right direction and loading up your account isn’t buying crypto. Think of it like traditional investing: you don’t want to leave uninvested money sitting idly. That’s why you proceed to the next step: exchange your dollars for Bitcoins!
5. Place Your Order
Now’s the time to place your order for Bitcoin and the process differs based on the exchange platform. For example, using Coinbase means you only need to enter the amount in dollars you want to trade for Bitcoin. And then, you buy it at the current rate so it’s best to decide fast before the rate fluctuates again.
With Bitcoin, you’ll more likely be purchasing a share of a coin and this is the equivalent. For example, one coin has traded for around $20,000 in the past weeks after a big crypto market crash. What amount you enter will be reflected in exchange as a fraction of that one total Bitcoin.
You must also analyze the market before buying or selling any cryptocurrency. One popular approach is analyzing using candlelight charts to track the movement and previous trading patterns.
Also Read: What is Margin Trading in Crypto?
Its trending popularity has slowly convinced many individuals to buy Bitcoin online. The pandemic may have even had a hand in it as people had more time to browse these trends online. Canada is an interesting case study of this situation because of the surge in crypto buyers from 2020 to 2021.
Presently, the rate of Bitcoin fluctuates erratically but it’s an established cryptocurrency so it can bounce back. Buying Bitcoin comes in three simple steps: choosing your platform, loading your account, and placing your order. There are several things to consider when purchasing Bitcoin, like security and fees. However, once you’ve figured all that out, it’ll be much easier the next time around.
Every exchange platform has different requirements as well so it’s best to double-check your details. But the steps are all similar so feel free to go buy Bitcoin online and invest!