How to Trade Bitcoin in Canada
Crypto trading has become immensely popular during the last couple of years, primarily thanks to the numerous use cases of different digital currencies. However, Bitcoin (BTC), the first and most popular crypto in the world, is by far the leader in the crypto market.
BTC was mainly designed as a decentralized, digital cash currency, but over time, it has evolved into digital gold, used for trading, facilitating payments, and storing value. Even though there are currently numerous cryptos on the market that have much faster blockchain networks and more use cases up their sleeve, none of those altcoins can even remotely measure the market cap and value per coin that BTC has.
Let’s have a look at some of the key pros and cons of investing in Bitcoin and find out how you can start your Bitcoin trading in Canada.
Why Invest in Bitcoin?
When BTC was launched back in 2009, traditional financial experts, bankers and stock brokers were very skeptical of this totally new asset class. The security of Bitcoin was one of the key issues. Since BTC doesn’t exist physically, the coins can only change virtual blockchain locations. You can’t store Bitcoin in a bank or in a physical wallet.
However, soon enough, the BTC blockchain proved to be an impenetrable system thanks to the decentralized nature of the network, which relies on thousands of independent network nodes, and miners to validate and facilitate transactions. Every transaction is immutable and can’t be changed once added to the blockchain.
This makes BTC super secure, which is why it’s one of the few massive crypto blockchains that have never been hacked. When investing in BTC, you can rest assured that hackers can’t steal assets through a BTC blockchain security flaw.
Another key reason for investing in BTC is its price increase potential. Bitcoin has gone from a fraction of a Canadian dollar to a price of several tens of thousands of CAD per coin. Given the fact that the total crypto market cap is still just a small portion of the total global financial sector, BTC still has plenty of room to grow in value, which means that investing in BTC now is still a good idea since there’s no telling how much it will grow in the future.
Bitcoin is also a great solution for storing value because it’s the most well-established crypto on the market, and even if all other altcoins go down, the price of BTC will still maintain a relatively solid level and recover much quicker than small-cap altcoins.
Risks Associated With Bitcoin Investing
The key risk of Bitcoin investing is market volatility. Digital currencies are much more volatile than company stocks, with constant price swings of several percent within just a couple of hours. Although Bitcoin is much less volatile than less popular cryptos, traders need to consider these sudden price changes before investing in BTC.
Wallet hacks are another key risk associated with BTC and crypto investing. The Bitcoin blockchain itself is highly secure, and that’s why cyber attackers mainly target third-party crypto wallets in order to steal private keys or recovery phrases that can help them facilitate unauthorized transactions of BTC from a user’s wallet to their own public address.
Why Is MyBTC a Great Choice for Trading Bitcoin in Canada
In the early days of Bitcoin, investing in BTC was a logistical nightmare since there weren’t any exchanges around and traders had to manually find someone willing to sell them BTC online, on a crypto forum, or on social media.
Luckily, Bitcoin exchange platforms made investing in BTC a lot simpler and safer since these platforms guarantee their users that they won’t get scammed and that a trading deal will really go through once a user authorizes a payment.
MyBTC has been present on the Canadian market since 2016, allowing traders to purchase BTC through a multitude of popular payment methods. Traders can also sell their BTC for CAD, which is very convenient.
Security is a key aspect of MyBTC. The platform is designed to prevent any hacking attempts by operating in a non-custodial manner. Instead of storing Bitcoin on the platform or in company-owned crypto storage, MyBTC directly sends purchased BTC to the private crypto wallets of buyers.
How to Invest CAD in Bitcoin on MyBTC
Buying Bitcoin with CAD on MyBTC is very easy. The two key things you need to do is ensure you have a Bitcoin public address on a reliable crypto wallet and create a user account on MyBTC.
Once you’re done with this, you’re ready to buy some Bitcoin. MyBTC supports multiple popular payment methods.
- Interac e-Transfers allow users to buy BTC in less than 30 minutes. The service is supported by all Canadian banks, and it operates through online banking apps. With this payment method, you can buy anywhere between 30 and 25,000 CAD worth of BTC per day.
- If you’re looking to invest large amounts of CAD in Bitcoin, then a bank wire transfer might be a better option. All Canadian banks support this transfer type, and it also incurs the lowest fees. However, remember that a bank wire transfer takes a whole business day to settle. The minimum purchase amount is 10,000 CAD, while the daily maximum is 250,000 CAD.
- Credit cards and debit cards are another super fast and popular payment method on MyBTC. The transactions are processed instantly, and MyBTC supports most Canadian banks' cards. The service is available around the clock, and the daily limits go from 30 CAD to 25,000 CAD.
- Cash or Interac Debit funding is yet another option. All you need to do is fund your account at a local Canadian post office in person, and your cash will instantly get processed to MyBTC. However, the maximum daily limit is relatively low – only 2,500 CAD.
- Additionally, you can also fund your MyBTC account with Flexepin vouchers available at TopMeUp.ca and thousands of retail spots in Canada.
Trading BTC on a Multicurrency Exchange Like Binance
Once you buy Bitcoin on MyBTC and have your crypto delivered to your private wallet, you can either hold onto your BTC as a long-term investment or trade portions of your BTC for other cryptos on multicurrency crypto exchanges like Binance.
Binance supports hundreds of altcoins, while MyBTC is exclusively a Bitcoin exchange, but remember that, unlike Binance, MyBTC is fully regulated in Canada and doesn’t take custody over your coins once purchased.
Disclaimer: Binance isn’t available for users in the Canadian province of Ontario.
A Few Ending Words…
Investing in Bitcoin can be a really profitable activity, especially when the market is booming and cryptocurrencies are experiencing huge gains. However, remember that BTC is a highly volatile asset, and it’s impossible to accurately predict its price action. That’s why you should be very careful when investing in BTC and only invest portions of your finances that aren’t critical for everyday expenses.