An easy way to buy Bitcoin in Canada is through a cryptocurrency trading platform. You don’t have to acquire technical knowledge because you just have to sign up to a popular and trusted platform.
For example, more than 220,000 Canadians have already signed up for Coinberry. Many Canadians think of Coinberry as the best platform to buy Bitcoin because:
- The platform is trusted and secure (insured, OSC & FINTRAC registered, PIPEDA-compliant)
- Zero CAD deposit and withdrawal fees
- More than 35 supported assets (Bitcoin, Ethereum, Cardano, Algorand, Avalanche, THORChain, and more)
When Bitcoin’s price falls, investors can:
- Hold and wait for the Bitcoin’s price to increase or reach a target
- Sell and stop further losses
- Sell and buy other assets such as Ethereum, Cosmos, or Cardano
- Continue to buy more Bitcoin and/or other cryptocurrencies and tokens
It’s good that the platform supports several cryptos so you can easily switch among them or spread the risks.
Is Bitcoin A Good Investment?
Before you buy some Bitcoin, it helps to understand or review the basics:
- How Bitcoin works
- Why does Bitcoin have value
- Is it a good time to buy Bitcoin?
Understanding the fundamentals will also help you gain insights into how other cryptocurrencies work (and whether a particular one is promising).
How Bitcoin (BTC) Works
Bitcoin is digital money that you can store, exchange, and make payments with (e.g. buy a product and pay through Bitcoin). Also, Bitcoin is:
- Decentralized (peer-to-peer, no intermediaries)
- Opt-in model (you don’t need permission to use it, you can store value independently of any government or financial institution)
- Backed by blockchain technology (a decentralized way to facilitate and record transactions, no central governing authority because participants decide on the state and future of the blockchain network)
It’s important to understand those concepts if you plan to buy, sell and store Bitcoin through a hardware wallet.
But if you only want to buy Bitcoin as an investment, a quick way is to sign up to a crypto trading platform. Through a platform, you can do the following:
- Buy Bitcoin and start for as low as 50 CAD (Coinberry does this)
- Get started quickly without acquiring the technical knowledge about crypto and blockchain
- Know right away if crypto investing is right for you
Why Does Bitcoin Have Value?
Bitcoin has value because:
- It’s a useful way to store and exchange value
- Enough people agree that Bitcoin has value
An object or asset has value because of social consensus. If enough people agree that something has value, indeed that object or asset has value. This partly explains why luxury brands are expensive and why certain jobs are high paying.
Early on, Bitcoin gained attention because it’s a new way to pay for something (as a result of distrust of governments and financial institutions). But later on, people often buy Bitcoin because they expect its price to become higher (as a trading instrument or as a way to grow their money).
Because it might make our money grow, we perceive Bitcoin’s value to be high (promise of high future gains). However, if we think of Bitcoin as a huge risk, we might stay away from it, choose another cryptocurrency or avoid cryptocurrencies as a whole. It’s always up to us and our interpretations.
Is It A Good Time To Buy Bitcoin?
Every day since the early years of Bitcoin, people have been asking:
- Should I buy Bitcoin now?
- Do I have to wait for news and updates about Bitcoin?
- Will a major corporation or a government accept and adopt Bitcoin (this can make Bitcoin’s price suddenly rise)?
- Should I still hold or sell Bitcoin now?
Because of the uncertainty about Bitcoin and its price, it’s extremely difficult or impossible to answer those questions.
Should you buy Bitcoin now? While the price is still low or still far from an all-time high, it might be wise to buy some Bitcoin now. However, the price might still drop further which will result in financial losses. Every moment can mean a gain or loss of opportunity.
Do you have to wait for more updates about Bitcoin? Every day something big seems to happen in Bitcoin and other cryptocurrencies. What we know will never be complete because the market is complex and still rapidly evolving.
Will a major corporation or a government accept and adopt Bitcoin as payment or currency? Acceptance and adoption of Bitcoin by a major institution can make Bitcoin’s price rise or even skyrocket. However, a sudden ban on Bitcoin can make Bitcoin’s price fall. Even a rumor can influence Bitcoin’s price.
Should you still hold or sell Bitcoin now? Although experts and analysts always give advice, it’s still up to your judgment, goals, and present financial condition. Bitcoin’s price is impossible to predict and with its wild fluctuations, everyday gains and losses are possible.
Getting Smart About Bitcoin
Two ways to protect yourself from huge losses are:
- Only use a small percentage of your investment capital on buying Bitcoin (some recommend just 5% of your investment capital)
- Don’t time the market, but buy some Bitcoin consistently every month (this can help you avoid large swings because the cost averages out)
- Explore other cryptocurrencies
Those are just general recommendations because it’s still up to your judgment, goals, and risk appetite.
It also helps to read news and stories about Bitcoin and other cryptocurrencies. This is one way to get a “feel” of the market and somehow make your own judgment on where cryptocurrencies are headed. It’s also a way to immediately know if Bitcoin still has a future (e.g. a new policy might suddenly change the course of crypto).
It also helps to choose a trusted and secured crypto trading platform such as Coinberry. This way, you can better focus on analyzing the trends in cryptocurrencies. It’s also a practical way to quickly get started on crypto investing without much risk (you can start with as low as 50 CAD).