Canada’s interest in Bitcoin is growing steadily. So, naturally, many consumers and novice armchair traders wonder how to invest in Bitcoin.
When investors first become interested in cryptocurrency, the initial digital currency they usually purchase or invest in is Bitcoin. While there are thousands of coins in the crypto ecosystem, traders, both new and advanced, often choose the premier coin that accounts for approximately 45 percent of the total global market cap.
If you’re new to crypto, you may be wondering: How do I invest in Bitcoin?
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The crypto industry has come a long way since its birth about a decade ago. You no longer need to use a supercomputer to solve complicated mathematical equations to obtain one Bitcoin.
From mining coins to buying units to investing in Bitcoin-related exchange-traded funds (ETFs), there are plenty of different ways to dip your toe in the Bitcoin market.
Remember, Bitcoin is more than an investment vehicle too!
Bitcoin can be considered to possess plenty of utility, such as low-cost money transfers, a method of remuneration, a store of wealth, and non-cash remittances.
So, where do you begin?
We have compiled a comprehensive guide to help you and your quest to understand how to invest in Bitcoin.
Key Takeaways
Here are four ways to invest in Bitcoin:
Today, many different brokerage firms, exchanges, and platforms allow you to purchase holdings of Bitcoin. In Canada, one of the most popular places to invest in Bitcoin is Bitbuy, a Canadian-owned and operated digital currency platform with a strong reputation for security. Moreover, Bitbuy offers a wide variety of features, benefits, and perks that can make investing in Bitcoin easy and affordable. What’s more, all these tools and functions are available through the Bitbuy mobile application!
Since the coronavirus pandemic, exchange-traded funds (ETFs) have surpassed mutual funds in terms of value and popularity. Investors are pouring trillions of dollars into ETFs, which are simply a pool of stocks, bonds, or commodities that can be traded throughout any trading session. In addition, with cryptocurrency going mainstream, Wall Street and Bay Street have embraced Bitcoin, meaning that you can invest in Bitcoin-related ETFs.
Here is a brief list of what is available in the open market:
Cash transfer services have allowed users to purchase Bitcoin utilizing their mobile apps. Some of these outlets include Cash App, PayPal, and Venmo. Some of these companies also let clients send and receive Bitcoin-denominated payments.
If you want to own Bitcoin directly without any middle management, you can also download wallet software, which allows the public to store Bitcoin and private keys. In addition, there are two types of wallets: hot and cold.
If you want to learn more about how to invest in Bitcoin, our website is full of helpful information!
A common question that many beginner investors have is if it is worth it to invest in Bitcoin.
Of course, there are many things that you need to be aware of before you make that crypto leap.
Many financial experts say that Bitcoin should account for five percent of your investment portfolio but this really depends on your risk tolerance. Remember to always do your own research and invest what you can afford to lose.
At the same time, it is essential to understand a few aspects of Bitcoin:
Generally, there are three different investment strategies you can employ when investing in Bitcoin:
You can purchase Bitcoin for a pre-determined amount and then hold your virtual currency for a specific length of time. Once this period is over, you can sell and enjoy your profits.
You can buy, let’s say, $1,000 worth of Bitcoin. Then, after a month or two, it gained 15 percent, so you sell, take the money, and run.
The cost of a whole Bitcoin has been more than $20,000 over the last 2 years (2021 and 2022). Not everyone has this kind of money. But this should not be a deterrent because you can buy as little as 1 satoshi or sat, which is the smallest divisible unit of Bitcoin (1 satoshi = 0.00000001 BTC).
So, do you just buy Bitcoin and stare at your digital wallet?
In the immortal words of William Shakespeare: No.
Because Bitcoin has gone mainstream, there are many uses for Bitcoin. In other words, you can engage in many day-to-day transactions, from buying a cup of coffee to --- wait for it --- purchasing real estate.
Here is a quick list of what you could buy with Bitcoin (just be sure to check with the company first!):
Of course, you can also purchase goods and services using a Bitcoin debit card. These consumption instruments are pre-loaded with Bitcoin rather than cash. So, if you visit a coffee shop or convenience store, your transactions are completed with money withdrawn from your card in crypto, which is then converted to fiat money for payments to the vendor.
One of the best features of Bitcoin is that you can experiment with the cryptocurrency by buying as little as $1. With this holding, you can then test out all of its advantages and tools and determine if there are any disadvantages for you and your money.
When setting up your Bitbuy account, you only need to provide basic personal information, including your telephone number and email address, and confirm your identity. Then, to deposit funds into your Bitbuy account, you can use Interac e-Transfer or send a bank wire. Once this is complete, you can easily start to buy, sell, and trade Bitcoin directly through your Bitbuy account..
Like every other investment vehicle in the global financial markets today, assets serve different purposes, which can also depend on the individual’s objectives, financial situation, and risk appetite.. Bitcoin can be considered to serve a broad array of aims, from acting as a store of value to providing capital gains. Be it stocks or commodities; all investment opportunities require research, due diligence, and risk assessments. Doing this will equip you with a good amount of knowledge to protect your net worth!
In Canada, cryptocurrency is regulated as a security. This means that the laws for securities will apply to cryptocurrencies. In addition, Bitbuy is one of the few Bitcoin platforms registered by the Canadian Securities Administrators (CSA) and the Ontario Securities Commission (OSC). This is critical because some entities make these claims, but many platforms in North America and around the world are not properly regulated at any level of government even if they allow you to create an account with them.
Bitcoin is not legal tender, so no party is mandated to accept this as a method of payment.
It should be interesting to note that El Salvador officially became the first nation worldwide to adopt Bitcoin as a legal tender in June 2021.
Here are some basic facts regarding day-to-day transactions about Bitcoin:
Bitcoin can be considered to be the way of the future.
The entire crypto market is worth over $1 trillion as of March 2023, and Bitcoin represents roughly half this value.
An October 2022 survey by the Ontario Securities Commission (OSC) found that nearly one-fifth of Canadians own crypto assets or crypto investment funds. In addition, about one-third of Canadians plan to purchase crypto assets over the next 12 months.
More Canadians are incorporating Bitcoin into their investment strategies, and many more intend to add to their holdings. Even a small amount may be worthwhile – the OSC survey discovered that 36 percent of crypto holders held less than $1,000 – showing that people are willing to try investing in Bitcoin and give it a chance.
Try Bitbuy today and gain exposure to one of the most exciting digital assets today!
