👋🏾, Sanjay here. With Crypto become more and more popular in the past few years, purchasing cryptocurrency has become really easy. There are two ways to buy Bitcoin in Canada:
Whenever I write about Bitcoin, I like to include links to websites where people can buy Bitcoin right now for cash or used on websites where you need to verify your identity. While it might be difficult for people who haven't bought Bitcoin yet to figure out where to start, there are many helpful sites out there. The sites that write about this new technology are the ones that will be guiding people through the buying process.
Why should you invest in cryptocurrencies?
While there's still a lot of uncertainty around Bitcoin and other cryptocurrencies, there is potential for tremendous profit. The good news is that Bitcoin has been making steady headway toward gaining acceptance as an international form of payment. More and more Canadian retailers are accepting it as a form of payment, and new Bitcoin ATMs are popping up left and right. You can also buy Bitcoin using PayPal, credit card, Bitcoin directly on websites in Canada (and soon other countries) through Wealthsimple Trade.
The Bitcoin phenomenon began in 2009 when an unknown person or group began minting new Bitcoins at an ever-increasing rate. The price of Bitcoin reached USD 1,000 in late 2011 and has risen steadily ever since. Because of this, many people have invested heavily in Bitcoin — both for its price appreciation and its potential as a viable form of money. Some have made great profits; others have lost money, but both groups have gained a lot of awareness and respect for their investment choices.
There is no fixed price for Bitcoin, so how do you buy it?
You either get it from an exchange where you buy it from other people, or you send it to your wallet and wait for it to show up in your bank account. There is no middleman and no risk involved in buying Bitcoin, so it's ideal for anonymous transactions.
How many Bitcoin are you buy?
One of the most difficult parts of investing in Bitcoin is understanding how to properly value it. There are three basic approaches:
- Buying directly from an exchange
- Purchasing from an inter-bank Exchange (ICE)
- Renting Bitcoins through an online wallet
- Peer-to-Peer Trading
- Over the Counter (OTC)
To figure out how much Bitcoin you should buy, you have to divide your current worth (what you could get if you sold all your Bitcoins) by the number of days it takes to earn one Bitcoin, which is about eight hours. Multiply that by the cost of a Bitcoin to buy—currently around $600—and you have a rough estimate of how much you should be putting toward Bitcoin investments. It's worth noting that Bitcoin prices can go up significantly over time, which means the above calculation could easily be off by a factor of ten or more.
Bitcoin is an exciting new way of transferring money. You don't need a bank account to use it, and it's received widespread media attention for its potential to disrupt mainstream financial institutions. However, there are plenty of risks with Bitcoin, both from a technical and a financial standpoint. If you choose to gamble with your Bitcoin, understand the above to help you determine how much you should risk on Bitcoin.
LET'S GET SH*T DONE, TOGETHER!
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