If you’re an avid internet user, you will have no doubt seen many articles regarding cryptocurrency. It’s one thing to see an article on cryptocurrency, and it’s another entirely to understand what it is, and how it could benefit your life in one way or another. Therefore, we’ve put together this cryptocurrency guide to help you understand Bitcoin, Litecoin, Ethereum, Ripple, and other forms of digital payment.
Firstly, we’ll start with information on how it all began to give you an idea of where cryptocurrency is heading.
What is Bitcoin?
‘What is Bitcoin?’ is a common question asked on internet forums. While it’s not the only form of cryptocurrency, it is the primaryform and is what started this cryptocurrency phenomenon that turned everyday burger flippers into overnight millionaires.
In 2009, an unknown person or group invented a digital payment system called Bitcoin. It was released as open-source software and became known as the very first decentralized digital currency. Unlike standard dollars and cents that are governed by an intermediary such as a bank, Bitcoin works without a central repository or a person in control. Transactions of this global digital currency take place between users directly and are verified within a public ledger.
Essentially, it’s money that cannot be seen or touched, and exists solely online, but is a valid form of payment for goods and services accepted by over 100,000 merchants worldwide. However, Bitcoin has to come from somewhere. If it’s just created out of thin air, it willhold no value. Therefore, Bitcoins are created as a reward for a process commonly known as mining. Mining is a form of record-keeping completed through computer processing power. These miners help to keep the blockchain for Bitcoins consistent and help collect new transactions to form a block. All the blocks created with new transactions become a blockchain. It’s a complicatedsystem and not one everyday cryptocurrency investors understand or need to understand.
What is the value of Bitcoin?
Knowing that Bitcoin is money, and that money holds value, it’s going to be useful for you to understand what is the value of Bitcoin before you decide to invest in it. At this current point in time, the BTC to CAD rate is $10,013.54. This means that one Bitcoin is worth over 10,000 Canadian Dollars. This solely explains how people have become millionaires through investing in it. Initially, as little as a $1 could buy you three Bitcoins. Now, that same amount would cost you over $30,000.
However, the value of Bitcoin is volatile. In one day, it can rise as much as $1,000, or drop as much as $3,000. It’s important to note this before you decide to invest in cryptocurrency asit’s a long game, rather than a ‘get rich quick’ scheme.
Since Bitcoin’s inception, over 1,100 cryptocurrencies have been created to hopefully someday match the success that Bitcoin has achieved. With such a vast array to choose from, you’re going to need a ‘wallet’ to put them all in. Of course, cryptocurrency is entirely digital, but you’re able to store the records of your cryptocurrency within a hardware or software wallet to keep track of it all. To date, there are almost six million individual investors with a cryptocurrency wallet. Most of them use it to house Bitcoins.
Essentially, a wallet can be considered a form of bank account. It can be a software wallet that you put on your smartphone or computer, a hardwallet which is often a metal tag of sorts with your Bitcoin information etched in, or a web or hosted wallet which a trusted provider can host for you. Once you’ve set up your cryptocurrency wallet, you can purchase cryptocurrency to your heart’s content.
When you’re looking to buy cryptocurrencies in Canada for the first time, it’s essential that you choose a safe and trusted platform. Unfortunately, the digital world is full of scammers who are looking to take advantage of your lack of knowledge. To help you on your way to a successful cryptocurrency purchase, we’ve included some trusted platforms based in Canada below:
CoinSquare is the leading cryptocurrency platform in Canada. Not only can you choose to purchase Bitcoin, Litecoin or Ethereum, but you can even buy precious metals such as silver or gold. It’s safe, secure, has exceptionally low transactional fees and is backed by a knowledgeable team who can answer any questions you may have.
Visiting QuadrigaCX is a mustIf you like the thought of being able to purchase cryptocurrency from local businesses. Based in Vancouver, BC, it enables Canadians to buy Bitcoin on an easy-to-use platform with a simplistic approach. Whether you’re buying, selling, or trading, you can do so with ease on QuadrigaCX.
While not strictly Canadian, Coinbase is popular with Canadian investors due to its security, safety, speed and low fees. It supports transactions between 32 countries, has helped over 12.6 million people invest, buy, sell or trade, and has exchanged over 40 billion dollars in currency. It’s a market leader and enables you to invest in Bitcoin, Litecoin, and Ethereum, just to name a few.
Cryptocurrency is taking the world by storm. People who never thought they would be investors are now deeply entrenched in the happenings of cryptocurrency. They follow the ups and downs, invest and withdraw when it counts, and help others to become a part of this growing phenomenon as well. What’s next for you is entirely up to you. Do you want to be a part of something that could potentially profit you in more ways than one? Or do you want to stick to traditional forms of currency that may end up not being as lucrative? It’s your decision and your decision alone.