If you’re new to crypto investing, this short guide is for you. Here we’ll talk about how to buy Bitcoin without the need to learn the technical details of cryptocurrencies and blockchains. Although it’s always good to learn about how they work, it’s not necessary if you simply want to start your crypto investing journey.
How to buy Bitcoin using a crypto trading platform
The easiest way to get started is by signing up to a trusted crypto platform. Choosing the best platform to buy Bitcoin & crypto in Canada is one way to gain peace of mind about your investments.
Starting with a crypto platform is like opening a new bank account where you just need your identity and some funds to get started. For example, through Coinberry you can quickly do the following:
- Sign up for an account and verify your identity (through a government-issued ID and video verification selfie)
- Fund your account through wire transfer or Interac e-Transfer
- Buy some Bitcoin through your smartphone or computer (anytime you can do this and you can start for as little as 50 CAD)
You can also find other crypto platforms where you can buy Bitcoin. What makes Coinberry stand out is that they’re insured, PIPEDA-compliant, and OSC and FINTRAC registered. This means they take the necessary steps to help secure their customers’ funds and their information and privacy. Perhaps this is one main reason more than 220,000 Canadians have already signed up to the platform.
Another main reason is that in Coinberry there’s zero CAD deposit and withdrawal fee. This means investors can save money and put their savings into buying more crypto. This is possible because Coinberry buys crypto on bulk from their network of liquidity providers and then sells that crypto at the listed prices. It’s like they buy on wholesale discounts and earn profits by selling them at retail. This happens behind the scenes (but you can still see the difference between the prices for transparency) because the fees are already taken cared of (zero CAD deposit and withdrawal fee). As a result, you save money which you can use on buying more crypto and growing your investment portfolio.
Should I buy Bitcoin today or wait?
Now that you know how easy it is to buy Bitcoin through a crypto trading platform, is this the right time or perfect day to buy some Bitcoin and perhaps earn some profits in the near future?
No one knows for sure. That’s because even right now, Bitcoin’s price is wildly fluctuating. After all, the crypto market is still rapidly evolving. Because it’s still far from maturity, crypto’s prices are also far from reaching stability. In other words, new all-time highs can happen anytime (as well as new all-time lows or huge price drops).
As a conclusion, it’s still impossible to predict whether today is a better time than tomorrow to buy some Bitcoin. Perhaps tomorrow Bitcoin’s price will drop further or that it may skyrocket and make millionaires overnight. No one knows for sure (even the big players because they don’t know the full downstream consequences of their huge buys and sells).
What you can do today is start small (instead of putting in a huge lump sum one time) and see how it goes. Once you feel comfortable, you can always increase your fund and investment anytime. You can also try a few investing strategies to limit your losses and reduce your risks. For instance, you can apply the dollar cost averaging strategy where you consistently buy small amounts of crypto. This way, you avoid the huge losses and you also take the emotion out of the equation. You prevent yourself from acting on impulse and let a systematic approach take over your investment. This will help you save time and energy and spare yourself from being emotional once Bitcoin’s price suddenly falls or skyrockets.
This systematic approach will also spare you from worrying about opportunity costs and fear of missing out. You ignore the news and trends and instead better focus on other opportunities that can possibly yield better returns. After some time, you would have accumulated a sizable amount of crypto. If the future of Bitcoin is bright, the crypto you have accumulated will have a significantly huge value. As a result, you’ve avoided the losses and potentially have taken advantage of some profits.
Where is Bitcoin headed?
For long-term investing strategies to work, the future of the market and economy should be bright and sustainable. It’s also the case with the future of Bitcoin especially if we think about its role in finance and society as well as how the government and other factors affect its price and adoption.
Although Bitcoin is still popular and entrenched (with billions of dollars of market capitalization), new strong competitors are always coming in with better scalability and greater energy efficiency. Also, one policy can drastically change whether Bitcoin will stay (such as what happened in China and some countries in the Middle East).
In other words, Bitcoin’s future is still highly uncertain given the several different factors that affect its price and adoption. Even if the overall crypto market matures and using Bitcoin has become as common as using conventional money, its future is still unpredictable. Remember, even huge empires fall suddenly if several things go wrong together all at once.
But because of Bitcoin’s lack of stability, some investors actually see it as an opportunity. After all, if things are constant, there’s no opportunity to profit. This dynamic creates new opportunities where there are constant gains and losses. There are always downsides in investing but investors also recognize that upsides are also there.
Today, what you can do is to start small (e.g. through Coinberry you can start for as little as 50 CAD), spread the risk (dollar cost averaging), and have more time and energy to pursue other opportunities. In investing (including buying Bitcoin), the key is to avoid losing money while saving time and energy so you can explore other opportunities and wait for a winner.