Bitcoin Investing in Canada carries more risk than investing in traditional assets, such as bonds or stocks. However, it’s a relatively new asset class with the potential to yield higher returns.

Bitcoin Investing in Canada: Strategies & Market Insights

Bitcoin and other cryptocurrencies are digital, peer-to-peer assets that aren’t issued by any central authority or financial institution. As a result, they aren’t subject to government control or manipulation. Some investors buy and sell crypto as an investment, while others use it to pay for items online or to transfer value to a friend or family member.

While there are many ways to purchase and sell Bitcoin, the easiest way is through a centralized cryptocurrency exchange. This is similar to a stock exchange and allows you to trade crypto at any time of the day. Exchanges typically charge transaction or trading fees. These fees can vary significantly.

Peer-to-peer transactions are another option, but they’re not as convenient as a centralized exchange and can be risky if you’re dealing with strangers. They also usually require you to pay credit card transaction fees, which can add up quickly.

For investors looking for a more diversified approach to cryptocurrency, exchange-traded funds (ETFs) offer the best solution. These funds are a grouping of securities that you can buy and sell like a stock, and they typically cost less than mutual funds. Additionally, ETFs can be held in registered accounts like your RRSP or tax-free savings account.