Few economic forces have become more of a socio-economic phenomenon in recent years than cryptocurrencies; it is fair to say. Crypto buy Canada supporters envision it as a once-in-a-generation economic revolution that will transform how we do business, buy things, and think about money.
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Do’s of buying Crypto in Canada
However, like with many new technologies or social movements, newbies are confronted with many questions. On the one hand, “crypto FOMO” is genuine, but you also don’t want to be duped.
Thankfully, the answers to these four questions can show you how to buy Crypto in a secure manner that gives you the best chance of making a profit. Therefore, these Do’s are questions you should ask yourself before diving into Cryptocurrency in Canada.
1. What is Crypto?
For those who are unfamiliar, Cryptocurrency is a digitally decentralized form of money and data exchange. It aims to avoid banks and traditional money exchange methods by processing transfers digitally. Cryptocurrency is by far the most widely utilized type of Cryptocurrency today. In February 2020, there were around 46.1 million Crypto wallets in use, with 10.6 million active users.
Among the advantages Crypto espouses of its services are:
- Increased freedom of payment
- Secure transfers
- ID protection
- Information transparency
2. How can I legally purchase Crypto in Canada?
In terms of actually figuring out how to buy Crypto in Canada, five methods, in particular, stand out:
Online exchanges
The most convenient way to purchase Cryptocurrency in Canada is most likely through an online exchange like Coinberry. Users may usually buy Crypto directly on these sites. You’ll need to decide on a method of money transfer initially. Bank wire transfers, Flexepin transfers, and credit card transfers are possible. To do so successfully, you’ll almost always need to:
- Create an account
- Put in a request to fund your account with Canadian dollars.
- Log into your bank and submit an electronic transfer request to the email provided by the service.
- Confirm the transfer
2. Crypto ATMs
This is an older method of purchasing Cryptocurrency, but it can still be effective. It’s also one of the most effective ways to keep your Crypto purchase private. However, an ATM transaction will typically cost 6% to 8% more than other methods. All you have to do now is find one of Canada’s many Crypto ATMs and complete your transaction.
3. Peer-to-Peer Transfers
This is an older method that essentially entails finding someone who sells Crypto and purchasing directly from them.
4. Over the Counter
This is similar to peer-to-peer (P2P) trade but a much greater scale. This is usually the ideal option if you want to acquire tens of thousands of dollars worth of Crypto. It typically protects you from “slippage,” which occurs when Crypto transactions exceed the advertised price, costing you more than you expected.
5. In-Person
Yes, you can buy Crypto in person, even though it portrays itself as an internet revolution. You’ll need to identify a qualified trader and go through the same steps as with any of the other methods outlined here.
3. How should I approach buying Crypto?
When purchasing Cryptocurrency in Canada or elsewhere, you must ensure that the seller is totally trustworthy. Unfortunately, while there are many fascinating crypto opportunities and honest traders out there, others would take advantage of these prospects for shameless exploitation or illegal behaviour, just as there are in any area.
As a result, you should always check if the dealer you choose is entirely transparent. This is especially critical when using Peer-to-Peer technologies, as you must be sure that the “peer” in question is genuine.
You could also look for recommendations from Canadian cryptocurrency websites on reliable businesses and dealers. The cryptocurrency community in Canada is thriving. They sincerely believe in Crypto and what it stands for and want it to succeed.
Both Crypto and its vibrant community have a vested interest in assisting new users in finding legitimate peers for peer-to-peer trading, avoiding frauds, and ensuring a good start to the crypto world.
Don’ts of buying Crypto in Canada
In buying Crypto and handling Crypto in Canada, one important thing you have to be vigilant about is cryptocurrency scams which are a bit common these days.
What’s a Cryptocurrency scam?
There are a variety of cryptocurrencies available, including some well-known ones like Crypto and Ethereum and new ones that are continually being developed. Unfortunately, scammers employ various techniques to trick you into buying and transferring cryptocurrencies as a form of payment or as an investment.
Warning signs of Cryptocurrency scams
- Promises of free money
- Vague details about where your investment funds are going
- Someone you don’t know shares a cryptocurrency investment opportunity that’s too good to be true.
- You’re advised that a cryptocurrency investment would have no risk and a guaranteed high return.
- A celebrity or social media influencer promotes a cryptocurrency investment opportunity.
- Misspelled words and grammatical errors in any communication you receive, such as an unsolicited email or social media post
How to protect yourself
Be careful when sending Cryptocurrency. Once the transaction is completed, it is unlikely to be reversed.
- As anti-money laundering and proceeds of crime regimes worldwide develop regulatory frameworks that regard enterprises dealing in cryptocurrencies as money service businesses, Canadians must conduct due diligence to verify they are using reputable and compliant services.
- Store your bitcoin on well-known and reliable exchanges, and buy any hardware wallets from the manufacturer directly.
- Understand the distinctions between cold and hot wallets. The difference between cold and hot wallets is that cold wallets are not connected to the internet, whereas hot wallets are. On the one hand, you have ownership over your virtual assets, but you may be exposing your bitcoin to theft and/or relying on a third-party exchange to manage your virtual assets.
- ·Create strong, one-of-a-kind passwords for each of your internet accounts. In the event of a data breach, hackers may attempt to gain access to your cryptocurrency wallet by utilizing credential stuffing techniques.
