How Can I Buy Cryptocurrency In Canada?

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How Can I Buy Cryptocurrency In Canada?

• Kalkine Media

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Buying any cryptocurrency like bitcoin
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• Buying any cryptocurrency like bitcoin, ether or
  dogecoin is easy. One needs to create an account
  with any exchange like Coinbase or Binance. Money
  can be added digitally in this account, which is
  used to purchase cryptocurrencies. But before
  trading in cryptocurrencies, it is important to
  have some basic knowledge regarding this highly
  popular investment option.
• Not all trades in cryptocurrencies lead to
  profits. One can mint a lot of money, but losses
  also occur. Despite its volatile nature, many are
  trading cryptos to make quick bucks. Today, lets
  discuss frequently asked questions on
  cryptocurrencies.

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Question How can I get cryptocurrency?

• Answer There are multiple ways of investing. The
  most common way is to use the services of any
  crypto exchange. Not one or two, there are nearly
  a dozen exchanges where Canadians can trade
  digital currencies.
• Coinbase is by far the most popular crypto
  exchange. Based in the US, the company is listed
  on Nasdaq under symbol COIN. The
  cryptocurrency, Dogecoin, made popular by Elon
  Musk, surged nearly 20 per cent when
  Coinbase recently listed it on its exchange. This
  is popularly referred to as the Coinbase Effect.

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Question Are cryptocurrency wallets different
than exchanges?

• Answer One can either store the digital currency
  bought on the same exchange or withdraw and store
  it in a crypto wallet. A couple of months back,
  some crypto exchanges in Turkey suddenly went out
  of business. All crypto holdings of users got
  stuck. To mitigate such risks, one can choose to
  avail the services of any cryptocurrency wallet.
• Crypto wallets can be hot or cold depending on
  their features. Hot wallet is connected to the
  internet and can make the stored digital currency
  vulnerable to online hacks. By contrast, cold
  wallets are physical wallets like USB device.
  Cold wallets are comparatively safer but
  expensive than hot wallets. Trust wallet is a
  popular hot wallet, while Ledger Nano, Trezor,
  and Exodus are some popular cold wallets.

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Question Which is the best cryptocurrency to buy?

• Answer It depends. Bitcoin is the most popular,
  but it is not always the most profitable for
  investors. In April 2021, bitcoin surged to
  all-time high of US64,895. It has since lost
  nearly 40 per cent of its market cap.
• Recently, Samsung confirmed they will use Thetas
  blockchain to provide video streaming services to
  users of its smartphones. Wider endorsement of
  any blockchain tech can lift prices of its allied
  cryptocurrency.

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Question What are the rules surrounding
cryptocurrencies in Canada?

• Answer Neither bitcoin nor any other
  cryptocurrency is legal tender in Canada.
  However, trading digital currencies is not
  considered illegal. The Canada Revenue Agency
  (CRA) treats them as commodity. Any person who
  earns profit on their trade has to show it as
  business profit or capital gain. Disposition of
  any cryptocurrency holding attracts tax. Other
  than trade, even activities like crypto mining
  and operating crypto exchanges are also
  considered as cryptocurrency business for the
  purpose of income tax. Any profit or loss arising
  from these activities has to be reported to the
  CRA.
• The CRA also mandates that any person acquiring a
  digital currency or disposing it must maintain
  records. These records must be preserved for at
  least six years from the year when they attracted
  tax provisions.

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A Word of Caution

• Just like company shares or any other investment
  instrument, cryptocurrency trading can be risky.
  The value of holdings can swing any way depending
  on investors sentiments. One has to exercise
  extreme caution while trading in these highly
  speculative assets.