3 Ways To Aquire Bitcoin In Canada
Since the creation of Bitcoin in 2008, it has continued to prove its worth as an asset, as well as the value of strictly digital currencies, or cryptocurrencies. So, if you want to buy Bitcoin in Canada, or anywhere for that matter, you will need to acquire it digitally.
In order to start investing in Bitcoin, or other cryptocurrencies, you need to know the following:
- Which are the top cryptocurrencies on the market -aside from Bitcoin
- What a Centralized Exchange (CEX) is
- What a Decentralized Exchange (DEX) is
- Automated v. Manual Trading
Top Cryptocurrencies
If you head over to an exchange, like Coinsmart, you will see listed the top traded cryptocurrencies along with the many other cryptocurrencies available. Bitcoin has been at the top of these lists for as long as I can remember. And Ethereum, Tether, and Ripple usually follow in the top 3-5 traded cryptocurrencies.
Because Bitcoin is such a strong cryptocurrency, buying Bitcoin is pretty expensive. But you can purchase portions of Bitcoin or buy into pools of assets, which include Bitcoin holdings. So, there are several ways to buy Bitcoin in Canada.
Centralized Exchange (CEX)
The easiest way to buy Bitcoin is through an exchange. All you need to do is set up a digital wallet on the exchange, and you can purchase any amount you like. As I mentioned, you can also purchase fractions, which is great if you don’t have a lot of capital to invest. Or if you are new to crypto assets, and you want a way to buy Bitcoin without risking too much.
Which exchange you use really depends on you and your needs. One important factor is where you are located. For example, if you want to buy Bitcoin in Canada, it is often easiest to use a Canadian exchange. This is because you will be able to link your bank with the exchange, and it will meet the required KYC and AML regulations of your location.
Although cryptocurrencies began as totally decentralized, the products that now serve crypto-investors offer many helpful managed products and market analysis. Moreover, as the value of cryptocurrencies has increased, so have the regulations surrounding them.
There are plenty of quality and secure exchanges, you just need to do the research to find the one that suits your needs best.
Decentralized Exchange (DEX)
Another way to buy Bitcoin in Canada is through decentralized exchanges. These are peer-to-peer transactions. Essentially, decentralized exchanges function as a public forum to find peers to transact with.
DEX have far fewer regulatory limitations, and sometimes transactions will take place faster, as there are no delays as a result of registration or escrow.
My advice is to use decentralized exchanges until you feel more comfortable with buying and trading crypto-assets. There is a lot of know-how required if you are transacting peer-to-peer. Mind you, it is not necessarily a steep learning curve, so it is always the user’s call.
Automated v. Manual Trading
Finally, you can also buy Bitcoin with automated or manual transactions.
Here is an example of a manual transaction: You go to an exchange and buy Bitcoin for $500 Canadian, for example. That’s you being involved from step one to the end of the transaction with an exchange.
But you can also set up automated buys and sells. To do this, you can simply find an exchange that allows you to use buy limits and sell limits. In which case, you can decide that you want to buy Bitcoin when it reaches price X. Then, if or when your price is met, the purchase goes through automatically (or sell if you are selling).
You can also customize your own bot to buy and sell at specified prices. The benefit of bots is that they are much faster and more accurate than a human. Bots, however, are a bit more advanced. So, if you want to get into bot trading, then you will need to do a lot more research and also have a decent amount of programming knowledge.
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