In these uncertain financial times, investors are looking for alternative ways to protect their wealth. Bitcoin is one of them.
Bitcoin is the world’s first-ever cryptocurrency. It was created in 2009 as a digital currency that allows two parties to transact directly with one other without having to go through a financial institution.
Since then, Bitcoin has triggered the launch of other cryptocurrencies, called alternative coins (or “altcoins” for short). Today, there are over 5,000 different cryptocurrencies circulating. However, Bitcoin has become very popular among investors and is still the most widely-held cryptocurrency.
Bitcoin is often referred to as the digital version of gold because of its limited supply, and there are only 21 million bitcoins available. This scarcity and ability to hold value over the long term makes bitcoin an attractive hedge against inflation in uncertain financial times. Even though bitcoin prices have fluctuated over the short term, it has shown impressive long-term performance, with a 200 percent compound annual growth rate. It’s no wonder that the number of people who buy Bitcoin in Canada has increased over the years.
The simple, three-step process to trading in bitcoin
Netcoins.ca offers an easy, secure, and cost-effective way to enter the Bitcoin market. You simply create an online account, fund it with Canadian dollars (with 0% fees), and start trading right away.
To fund your account, you can send an Interac e-Transfer, online bill payment, bank wire transfer, or cryptocurrency deposit (if you already have some crypto). You can buy and sell as little as $10 or as much as $10 million worth of bitcoin or other cryptocurrencies like Ethereum, Litecoin.
When it comes to fees, remember there are no funding fees or cash withdrawal fees, making it really easy to dip your toes into the cryptocurrency market.
Investors can also take advantage of instant orders, (where you pre-set the prices you’d like your trades to execute at), and price alerts (so that you’re not staring at the price of bitcoin all day). Netcoins also offers incredible customer support via email, live chat, and phone.
Download the Netcoins mobile app today, available on iOS and Android, or access it via a web browser at netcoins.ca.
Investing strategies for bitcoin
Although there are no right or wrong ways to invest in bitcoin, a common rule of thumb is to go with strategies that make you feel safe and comfortable.
One way is to regularly invest a certain amount of money into bitcoin — weekly, monthly, or yearly — similar to a dollar-cost averaging technique people use when buying mutual funds. This is a good way to manage price fluctuations in the short term and to average out the price at which you enter bitcoin.
Another strategy is to allocate a percentage of your investment portfolio into bitcoin. Risk-averse investors might go with half a percent or less, while aggressive investors might go as high as five percent, 10 percent, or even more. It depends on every person, their financial situation, and their level of risk.
If you’re more of a hands-on investor and don’t mind watching the markets, you can choose to buy only when the price drops, called “buying the dip.”
Whatever strategy you use, it pays to heed two pieces of traditional investing wisdom: time in the market beats timing the market and never invest more than you’re ready to lose.
To start your Bitcoin journey, open an account with Netcoins today. And if you’re new to Bitcoin, Netcoins provides a comprehensive Crypto Academy for Beginners to help you learn about cryptocurrencies, how to keep your bitcoin safe and how to buy bitcoin in Canada.
For more information on Netcoins and how to buy bitcoin in Canada, check out netcoins.ca.
Netcoins is owned by publicly traded company BIGG Digital Assets (CSE: BIGG) (OTCQX: BBKCF).
