5 Things To Know Before Buying Cryptocurrencies In Canada

If you’ve been keeping tabs on the latest trends in fintech, cryptocurrency is one of the terms that you’ve probably read or heard a couple of times. The popularity and wide acceptance of this digital currency have been growing because of the promise of secure blockchain technology and the high market capitalization received by various players in the industry. 

Are you planning to buy cryptocurrencies in Canada but don’t know where to start? You’re in the right place. If you want to make the most out of your investment, here are five things you need to know before buying a cryptocurrency.

What to Consider Before Buying Crypto in Canada

• Choose a Reliable Trading Platform

If you want to buy cryptocurrencies conveniently and safely, be sure to buy from a reputable trading platform like Netcoins. Today, there are lots of platforms in Canada, and each of them has its own pros and cons. Knowing what these trading platforms have to offer will make your cryptocurrency experience smoother. 

Remember that you should not only consider the cryptocurrency’s price as additional fees may come in all sizes and shapes. Trading platforms will commonly ask for fees to deposit and withdraw a cryptocurrency, together with other trading expenses. You should know that there are two kinds of trading fees – taker fees and market fees. The taker fee is paid when you take away the liquidity from the order book, while the market fee is paid when you add liquidity. 

Note that some platforms offer a lower fee compared to others but this usually comes at the expense of insurance, privacy, and security. With that in mind, it’s crucial to learn more about trading platforms before you trade, or else, you may end up with a very bad deal. 

Furthermore, a reliable platform offers fund security. This is very important especially when you’re depositing a huge sum of money. With this, you can guarantee that your money is safe. Typically, this kind of information can be found on the website of the exchange platform. In addition, a platform that is easy to navigate is also a good option. Choose one that offers a free trial so that you will have an idea of how everything works, reducing your risk of making mistakes. 

• Know When Is the Best Time to Buy 

Cryptocurrencies are known for being so volatile. Similar to a stock, if a specific currency is deemed to have positive projections, its price would likely sky-rocket as its popularity will trigger big investors to move in quickly.

Typically, cryptocurrencies follow a certain price pattern. Often, Bitcoin will lead the way amongst other digital currencies that will follow the general trajectory. News of price manipulation, exchange hacks, or fraud may send shockwaves across the cryptocurrency sphere. With that in mind, you must keep an eye on what is happening in the industry broadly. 

Cryptocurrencies are highly risky investments. For every cryptocurrency millionaire, there are lots of investors who have invested money only to find out that their money has disappeared. Remember, it’s very risky. So, spend only the money you are not afraid to lose and know when the best time is to buy to obtain better results. 

For you to buy, trade, and sell cryptocurrencies, you have to have a wallet. Primarily, this would be like your bank account for cryptocurrency. This is essential for traders like you, as this is where you can safely secure crypto and protect and validate all information about your digital transactions. 

When choosing your wallet, be sure to take into account both security and backup features. There are two kinds of wallets – cold and hot wallets. Hot wallets are connected to the internet. If hackers gain control of your wallet using malicious code, they will definitely get your cryptocurrencies. However, this wallet can offer benefits too. For one, you can use it right away to make purchases and investments as the wallet is connected to the internet through web apps, mobile, or desktops.

Cold wallets, on the other hand, aren’t connected to the internet. They store cryptocurrencies as physical items like USB sticks that you can acquire from shops. Thus, hacking is less likely to happen and it can be a good long-term storage solution.

• Pay For Your Cryptocurrency Using Debit Cards or Credit Cards

When buying cryptocurrencies in Canada or even in other countries, there are lots of payment methods you can utilize. The most common way to pay for cryptocurrency in the country is through debit cards or credit cards. Some investors prefer this mode of payment because it is faster compared to wire or bank transfers, which usually take a couple of days. You can still try these payment methods if you find them more comfortable.  

Takeaway

Like with any other investment, new traders would have to know and learn the fundamentals of cryptocurrency. Despite its good potential for returns, its volatility will demand that you make an informed decision so your money won’t go to waste. 

Be sure to consider the above-mentioned information before you buy bitcoin or other cryptocurrencies in Canada. 

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