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Bitcoin in Canadian Dollars 2022

Bitcoin in Canadian Dollars
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Bitcoin in Canadian Dollars 2022

In February 2018, the Canadian government announced that it would be giving $50 Bitcoin cash out of its digital currency stash. This is a gift to the Bitcoin community as a token of appreciation for its support and commitment to the country.

The adoption of Bitcoin in Canada contributed to the growth and spread of the crypto coin in North America. Poilievre says in an article that he wants Bitcoin to be the blockchain capital state of the world.

As a Canadian, I will be showing everything you need to know about Bitcoin and be able to get $50 Bitcoin cash out of Canada.

What is Bitcoin, and How It Works?

Bitcoin is an open-source, peer-to-peer cryptocurrency with no central authority or single administrator. It was created by Satoshi Nakamoto in 2009 and is designed to be transferred from person to person without using intermediaries such as banks or financial institutions.

The blockchain technology behind Bitcoin allows anyone with access to computers worldwide to join the network, which means that it can be used for secure transactions and is not susceptible to fraud or censorship.

The software used in Bitcoin runs on a decentralized computer network that is spread across the globe but connected through a global ledger. Bitcoin serves as a currency and an investment at the same time.

Unlike fiat currency, Bitcoin is a store of value that can grow your wealth. However, the volatile nature of the market requires you to read and understand its functioning, or you will lose money instead.

Bitcoin works in three ways:

  • Mining
  • Trading and
  • HOLDing, also called investment. It is usually a long time.

For the HOLDing, you don’t need much learning. If you are going into Bitcoin trading, you will first have to read and possibly urn a course online to understand the market mechanism and how to scale in it. For Bitcoin mining, you will need intensive trading, which requires high capital.

To get fundamental knowledge of Bitcoin, I will advise you to read the original paper that describes its design and the developer documentation or explore the Bitcoin wiki.

Bitcoin in Canadian Dollars
Bitcoin in Canadian Dollars

Bitcoin As An Investment Currency?

I hear many folks ask, can you make money using bitcoins? Yes, you can, for Bitcoin is the most valuable investment currency in the world.

Analysis of Bitcoin transaction data shows that bitcoins are mainly used as an investment, not an alternative currency.

One thing you should understand is that the volatility of Bitcoin is much more than that of stocks. As a result, Bitcoin is seen as a riskier asset to invest in than stocks. Still, its historical outperformance over the S&P 500 had encouraged many investors to be willing to take some additional risk in exchange for potentially higher returns. Also, Bitcoin is highly volatile.

This is not restricted to Bitcoin only. The whole cryptocurrency market is a volatile one. There are many reasons they are volatile. Unlike fiat currencies, Bitcoin prices can shoot up or down because of single news broadcast. Other factors that contribute to the volatile nature of Bitcoin include:

  • Market fundamental analysis
  • Technical analysis
  • External factors such as the currency’s adoption, increase in currency usage, and the news. 

Bitcoin is increasingly seen as a store of value, or an asset that holds value, just like Gold. It is now referred to as the “digital gold.”

Ron Levy, CEO and co-founder of The Crypto Company, stated that as the Bitcoin awareness continues to grow, financial industry experts and individuals are deciding to have Bitcoin as a part of their investment portfolios.

Bitcoin is increasingly seen as a store of value or an asset that maintains its value in the future. Gold has historically held that title and still does, but Bitcoin has been challenging, leading some observers to call it “digital gold.”

A digital currency that started with no value in 2019 is now averaging around C$45,000, with highs up to C$75,000 in recent times in Canada.

How to Buy a Bitcoin and How to Use it for Investing & Trading

There are simple steps you need to know to buy bitcoins online, and they are outlined below.

Step 1: Choose a crypto trading exchange or service

The first step in buying bitcoin for either trading or investing is to choose a verified crypto trading exchange or trading service. For those that don’t understand what crypto trading services are?

They are crypto brokerages that help you to manage your funds the same as stock brokerage does. The only difference here is that they are dealing with cryptocurrency.

I will recommend that you go for crypto exchanges as they offer various features that make trading fun and investing not cumbersome.

Step 2: Set up your crypto account

After choosing an exchange, the next step is to set up your crypto account. Here you will be required to upload your valid documents. It could be your social security card, driver’s license, or work ID, as the information required varies from exchange to exchange.

The information you may require usually depends on the region you live in and the laws guarding such policies.

Step 3: Place an order

After setting up your account and linking it to a payment option, the next step is placing an order and buying your Bitcoin or other cryptocurrencies. Due to the influx of persons in the crypto mainstream, cryptocurrency exchanges have become slower in recent times.  

Step 4: Store safely

Before purchasing your Bitcoin, ensure your wallet is set up already. Your Bitcoin wallet is synonymous with your bank account, where you keep your funds.

Most wallets come with unique 12 digital words, and you must keep them safely, for if anyone has their hands on them, they can steal all your funds. There are two types of wallets: hot wallets and cold wallets. The hot wallet is not very secure as compared to the cold wallet.

Hot wallets are wallets within a crypto exchange. For instance, a Binance BTC wallet is a hot wallet. The risk involved here is that when the exchange is attacked, there are chances that your funds will be at risk.

Cold wallets are the most secure storage for your funds. If you are into big-time Bitcoin investment, I will advise the cold wallet. However, it is expensive to get. Examples of cold wallets include a paper wallet, USB wallets, and CDs.

What are the Best Places to Buy Bitcoins in Canada?

Are you looking for the best places to buy Bitcoin in Canada? Below are the best exchanges you want to explore:

The Bitcoin network uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.

Bitcoin is open-source, decentralized, and free. It uses peer-to-peer technology to operate with no central authority or banks; managing transactions and the issuing of bitcoins is carried out collectively by the network.

The Bitcoin system allows anyone to send money from one person or business to another without involving a third party such as a bank or credit card company.

You can buy Bitcoin in Canada in various ways apart from exchanging. There are 140 Bitcoin ATMs and 6,000 Flexipin retailers in Canada where you can buy Bitcoin if you don’t want to go through an exchange.

8 Best Bitcoin Exchanges in Canada

  1.   Coinbase Pro

Coinbase Pro is one of the largest Bitcoin exchanges in North America. You can easily fund your account via SEPA, bank transfer, or bank wire. However, as a newbie, the user interface may be challenging to navigate.

Pros

  • It offers good prices and low fees,
  • It is possible to buy bitcoins for 0% fees/

Cons

  • The user interface is not convenient for newbies and may confuse first-timers.
  1. Bitbuy

Bitbuy is a remarkable Canadian-based crypto exchange for its excellent customer support service. You can buy your favorite crypto coins such as Bitcoins, Litecoin, Ethereum, and other currencies.

It allows you to choose the payment actions that suit you best. It can be via Interac, e-Transfer, or bank wire for as low as 0.1% fees. It charges fees of 0.5% – 1.5% for every deposit, and the minimum deposit is $50.

Bitcoin in Canadian Dollars
Bitcoin in Canadian Dollars

Pros

  • It is a fast way to buy Bitcoin
  • You can buy large bulks of Bitcoin through the OTC desk
  • It has very high buy and sells limits.

Cons

  • It does not longer support Flexepin
  • Low privacy 
  1. CoinSmart

CoinSmart is a Canadian exchange that allows you to buy and sell Bitcoin and other major cryptocurrencies in Canada using bank transfers, interact, e-transfers, SWIFT, and debit or credit cards.

The exciting part of this exchange is that as a new user, you receive CAD 50 in BTC once you deposit at least CAD 200. Also, you get to earn $50 for promotion. 

Pros

  • It is a Canadian-based crypto exchange
  • $20 CAD in free BTC upon $100 CAD+ deposit
  • It supports credit/debit, bank account, Interac, credit/debit
  • Fast verification
  • Supports large crypto coin base

Cons

  • It is a new company

4 Coinberry

Coinberry is a Canadian exchange that allows you to buy and sell bitcoin and other major cryptocurrencies using e-Transfers, bank transfers, Interac SWIFT, and credit/debit cards.

Pros

  • It offers several payment options
  • Large coins offered
  • Fast verification

Cons

  • It only supports Canadian clients
  1. Satstreet

Satstreet is a Canadian OTC crypto exchange that is the best for bulk purchases. It allows individuals to easily purchase larger amounts of Bitcoins from 25k CAD to over CAD 10M.

Because you are purchasing BTC or ETH in bulk, this exchange has one of the lowest fees in Canada.

Pros

  • Gives one of the lowest fees in Canada
  • You get to enjoy a private banking experience
  • Excellent customer service base
  • Regulated and compliant MSB under FINTRAC

Cons

  • It supports the purchase of a minimum of CAD 25k of Bitcoin. Anything less than this is not supported.
  1. Netcoins

Netcoins is one of the best Canadian exchanges based in Vancouver. You can easily purchase Bitcoin, Ethereum, and other major crypto coins via online bill payment, Interac e-Transfer, or wire transfer.

One major advantage of this exchange is that they support you with any difficulty via email, phone call, or live chat. .they charge 5% on trading and 0% for Fiat funding and withdrawal.

As a new user, you earn a CAD 10 bonus once you complete $100 cumulative transactions.

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Pros

  • Fast verification system.
  • Excellent customer support
  • It is regulated and compliant with MSB under FINTRAC
  • It has deep liquidity with no slippage.

Cons

  • It does not have o mobile app yet
  1.     Coinsquare

Coinsquare is Canada’s largest crypto and Bitcoin exchange. Where you can easily buy bitcoin and other crypto coins using SWIFT, Interac e-Transfers, and bank transfers

Pros

  • Large coins offered
  • Fast verification
  • It offers several payment options

Cons

  • Its Orderbook may be confusing for new buyers
  1.    

    MyBTC.ca

MyBTC.ca is one of the best Crypto exchanges in Canada that allows Canadians to buy between $20-$250,000 worth of bitcoin. However, it requires an ID verification that can be submitted in person at any Canada Post location nationwide or online.

It offers different payment options such as Credit cards, Debit cards, and Flexepin vouchers. Interac e-Transfer and bank wire.

Pros

  • Offers one of the easiest ways to buy bitcoins in Canada
  • It accepts numerous payment methods accepted

Cons

  • Requires ID, which may be time consuming
  • High fees
Bitcoin in Canadian Dollars
Bitcoin in Canadian Dollars

Frequently Asked Questions

Is Bitcoin taxed in Canada?

When you buy HODL Bitcoin, it is not taxed. However, similar to other capital investments, you only report gains or losses in the tax year when you cash out or trade your holdings.

Do Canadian banks allow Bitcoin?

Canada’s banks allow you to buy Bitcoin and other cryptocurrencies with debit and credit cards, as well as via bank transfer.

Buying Bitcoin legal in Canada?

Bitcoin is a legal investment in Canada, so it is legal to buy Bitcoin. Apart from exchanges, you can purchase Bitcoin through some crypto ATMs. The Canadian government has an official page that declares that you can use Bitcoin to buy goods and services.

Are bitcoins safe Investments?

Although bitcoin is a digital currency, you can safely store it in cold wallets. Cold wallets like paper wallets protect your investment from possible cyber attackers.

Conclusion

Bitcoin has come to stay. If you haven’t keyed into this life-changing investment, please do. However, before you do, ensure you have studied it enough. Although Bitcoin is a profitable investment, it is highly volatile.

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