Welcome to the exciting world of cryptocurrency investing in Canada! With over 20,000 different cryptos to choose from, we understand that it can be challenging for beginners to determine where to start. That’s why we’re here to help you make the right decision.
Today, in the $1 trillion global cryptocurrency market, there are over 24 different tokens available on Bitbuy-- and this number ostensibly increases. Some of the most popular coins available include:
Choosing the right cryptocurrency for your investment portfolio is critical. With so many options available, it’s essential to assess various factors, including price movement, market experts’ opinions, and the project’s overall utility. We recommend selecting one or two established cryptocurrencies, like Bitcoin and Ethereum, or researching the market to determine which projects you support.
There are many ways to buy, sell, and hold cryptocurrency in Canada, including:
A simple rule for any investment is to invest only what you can afford to lose. Allocating too much of your money to highly speculative assets can lead to financial ruin.
Start with a small investment to get familiar with the primary investment rules in crypto, learn about the intricacies and employ investing techniques. This is especially beneficial for beginners since the bare minimum can afford you access to the crypto ecosystem without putting too much skin in the game. By taking the more conservative route, you can become familiar with the primary investment rules in crypto, learn about the intricacies, and employ investing techniques.
For any investment, be it stocks or crypto, studying current market conditions, such as interest rates and news events, is crucial. While the past can serve as a precursor for future trends, the present is essential to make the right decision for you and your money.
The best way to determine these market factors is to read the latest articles, watch business news networks covering crypto stories, and listen to the experts. A daily diet of a few minutes of news consumption is all it would take to ensure traders make the right investment decisions. We recommend checking out Bitbuy’s series of guides, which can help offer important crypto investing insights.
After studying broader crypto market conditions, the next step is to adopt investment strategies. Make sure you take into consideration the following:
It’s essential to understand the tax implications of investing in cryptocurrency. Cryptocurrency is taxable, and it’s necessary to know how it’s treated under the Income Tax Act. Crypto is taxable under the following conditions:
At Bitbuy, we’re here to help you navigate the world of cryptocurrency investing. Our experts can answer your questions and guide you in selecting suitable cryptocurrencies, investment strategies, and tax implications. Join us today and start your investment journey in crypto!
Here are some frequently asked questions related to cryptocurrency investing:
A cryptocurrency is a digital unit whereby transactions are recorded and confirmed relying on a decentralized system depending on cryptography.
A blockchain is a public ledger, a digital peer-to-peer record of transactions completed in cryptocurrency.
As of February 11, 2023, here are the most popular cryptocurrencies supported by Bitbuy; based on market capitalization:
A crypto wallet is a digital storage that keeps your public and private keys, which are passwords that provide users access to their cryptocurrencies and manage account balances and transactions.
Every investment can offer some level of risk. The most important thing is how this risk is managed and mitigated. So, for cryptocurrency, the best way to reduce risks is to rely on a reputable exchange platform, only invest what you can afford to lose, and install the best safeguards on your computer or mobile device to protect your assets and information.
In early 2022, cryptocurrency price movements are more in sync with stocks, showing a correlation between equities and crypto. Therefore, the spillover trend can mean that conventional factors influencing stocks – monetary and fiscal policy, geopolitics, and elections – will also impact crypto.