Cryptocurrency is becoming more and more prevalent, yet this digital asset can be complex and difficult to understand.
An industry leader with over 10 years of industry experience, Netcoins is one of Canada’s most experienced and trusted cryptocurrency exchange companies. They are committed to improving financial literacy by making crypto easy to understand and accessible to Canadians everywhere.
To take the cryptic out of crypto, here are some of the most frequently asked questions about Bitcoin and cryptocurrencies, as answered by Netcoins!
What is cryptocurrency?
Cryptocurrency is digital money that only exists virtually. Unlike traditional money, crypto is not managed by central authorities, such as banks and governments, which means that accessing, withdrawing, or moving digital money is not reliant on financial institutions.
What is Bitcoin?
Bitcoin is the oldest and most well-known form of cryptocurrency.
With only 21 million BTC in circulation, the fixed scarcity of Bitcoin stands in stark contrast to the unlimited supply of the dollar. Because its supply is scarce, BTC will be protected from hyperinflation and devaluation in the long term. This is why it’s often considered a safe haven asset.
Okay, now what the heck is Ether and all of these other digital currencies I’ve heard about?
Many people think that “bitcoin” and “cryptocurrency” are synonymous, but there’s actually thousands of alternative coins (“or “altcoins”) out there.
Other popular altcoins are Ether (ETH) — a digital asset derived from the “Ethereum” blockchain - Tether (USDT), Litecoin, Bitcoin Cash (BCH), QCAD (Canada’s first stablecoin), and XRP.
Why is not being managed by banks and the traditional financial system so significant?
In a traditional centralized money system, only people and institutions of power get to control the supply and worth of money.
Through the decentralized peer-to-peer digital system, two parties can transact directly with each other instantly, securely, and with low fees. This means no single individual or entity controls the cryptocurrency network or the supply of money. In this way, cryptocurrency gives control back to the people.
For investors that are closely observing the economy and fearing their money will lose value in the long run, Bitcoin and other cryptocurrencies present alternative ways to safely store their wealth.
How does cryptocurrency add value to our investments?
Investors looking to diversify their investment portfolio can benefit from investing in traditional and non-traditional assets like Bitcoin and cryptocurrencies.
If you had purchased Bitcoin at the time of its launch, your ROI would now be over 6,000% by this year. Bitcoin has been the best performing asset over the last 10 years, outperforming gold and the S&P 500.
How much do I need to put down to invest in crypto assets?
You can start out really small by buying fractions of a Bitcoin — like 0.5 BTC, 0.1 BTC, 0.01 BTC. So even if you’re generally risk averse, you can still test out the crypto waters at just $10.
The fact that you can buy fractions of a Bitcoin offers a promising opportunity to build wealth in a way that’s affordable and accessible.
What are some tips for beginners looking to start investing in cryptocurrency?
With a trading platform that allows people to buy, sell, and trade cryptocurrencies 24/7, Netcoins makes investing in crypto super easy, safe and quick for investors of all levels.
Through their seamless onboarding process, new investors can create an online account in minutes, deposit Canadian dollars via email transfers, an online bill payment, or a bank wire, and then buy their cryptocurrency of choice.
Investors can get price alerts to stay in the loop on key trades and notable milestones, such as when a cryptocurrency hits a target price or moves by a certain percentage. You can also utilize limit orders to set your trades to execute a buy or sell when it reaches a certain price. Other helpful features Netcoins offers include 0% funding fees, competitive rates, free cash withdrawals, and instant trades 24/7.
As you begin your digital investing journey, continue to do your own research on cryptocurrency to stay informed. And remember to never invest more than you’re willing or ready to lose!
To learn more, visit netcoins.ca.
We’ve partnered with Netcoins to award one lucky winner with $500 CAD to buy Bitcoin or another cryptocurrency of their choice on Netcoins.ca!
You can enter via the contest entry form below. For additional chances to win, visit Netcoins at their website for 10 bonus entries, and follow them on Facebook and Instagram for another 25 bonus entries each.
This contest is open to British Columbia residents and closes on February 25, 2021. The contest winner will be contacted via email on this date.