Getting Started with Bitcoin
Learn about cryptocurrencies, why people are investing in bitcoin, and how to invest in it yourself.
You've probably heard of bitcoin and wondered how to invest in it (and other cryptocurrencies too). Today we'll cover what cryptocurrencies are, why people are investing in bitcoin, and how to invest in bitcoin yourself.
To begin, cryptocurrencies are digital money like the dollar or the yen. However, they are not owned, managed or regulated by a government or bank (known as centralization). Instead, cryptocurrencies are sent between two parties or more instantaneously, across borders, with minimal fees and no intermediary (decentralization).
Although there are many cryptocurrencies, bitcoin is among the first and one of the most popular cryptocurrencies. It was launched in 2009 by its anonymous creator, Satoshi Nakamoto; and since then, its price has increased from a fraction of a cent to over $67,000 CAD (as of April 28, 2021. Please find up to date rates at Netcoins.ca). Its meteoric rise has been volatile, but when averaged out, bitcoin has seen an annual compound growth of 200% year over year [Cointelegraph.com, 2021].
Some have referred to bitcoin as "digital gold" or "gold 2.0." That's because they believe that they are both scarce assets, as they are difficult to produce, and consider them to act as great stores of value. Bitcoin's limited supply of 21 million means no institution or person can inflate its supply. As a result, it could be considered an asset that holds value over the long-term. This is different to traditional fiat currencies, which rely on a central bank to regulate the supply of the dollar - at times increasing the supply and consequently devaluing the worth of the dollar. It's for this reason that Canadian cryptocurrency trading platform, Netcoins.ca, and other investors believe bitcoin is an investment worth considering.
If you're looking to invest in bitcoin, one of the first steps is to open an online account with a cryptocurrency trading platform that allows you to deposit Canadian dollars to buy bitcoin. It's important to find a trading platform that is secure and trustworthy before investing your money. This is where Netcoins can help.
Netcoins believes in offering a safe, security-first, easy-to-use platform. Owned by BIGG Digital Assets, a publicly traded company on the CSE under BIGG, Netcoins offers transparency and insight into its operations. Netcoins' mission is to educate Canadians on cryptocurrencies and make it easy to buy and sell cryptocurrencies. They currently offer 7 cryptocurrencies: bitcoin, ethereum, litecoin, bitcoin cash, xrp, QCAD and tether. Users can get started with as little as $10, and make trades 24/7. For every trade, there is a .50% fee. However, there are no fees when depositing or withdrawing Canadian funds from the platform, making them one of the most affordable cryptocurrency trading platforms available in Canada.
Netcoins also offers a Cryptocurrency Academy for Beginners that covers a lot of the initial questions one might have when first starting out with cryptocurrencies. Through the Crypto Academy, Canadians can learn more about cryptocurrencies, blockchain technology, fees to consider when choosing a cryptocurrency trading platform, and how to keep your cryptocurrency safe.
Bitcoin is increasingly being recognized by financial analysts, portfolio managers and financial establishments across Canada. More and more institutional and retail investors alike are diversifying their investment portfolios to include alternative assets, like bitcoin. Fortune 500 company Tesla for instance, made headlines earlier this year after investing $1.5billion in bitcoin. As with all investments, please remember that it's important to do your own research and never invest more than you're ready or willing to lose.
If you're looking to learn more about Netcoins, visit Netcoins.ca
Follow Netcoins on Twitter
This is paid content produced on behalf of Netcoins. This is not CBC journalistic content. To learn more about Advertising and Paid Content on CBC click here.