Education

From Pizza to Penthouses: Why is Bitcoin Worth So Much?

Written by admin17/04/2023

How Much is Bitcoin Worth?

If you’ve been keeping an eye on the digital asset scene, you know that Bitcoin has gone from being worth mere cents to over USD$30,000 and is now known as a powerhouse in the world of investments. So, how did we end up here? Sit back and let’s dive into the world of Bitcoin valuation.

Bitcoin: Digital Gold or a Mere Mirage?

First, let’s address the question: why is Bitcoin valuable at all? The answer lies in its unique combination of currency-like characteristics and people’s perception of its worth.

Bitcoin’s non-counterfeitability and easy transferability make it similar to traditional currencies, however, its limited supply is a key difference. Bitcoin’s value hinges on the demand that savvy investors and crypto enthusiasts place on it, much like other assets, like artwork, that derive value from their perceived worth.

A New Asset, Not Backed by Traditional Means

Unlike fiat currencies that have states backing them, Bitcoin does not enjoy the same support. Rather, Bitcoin is supported by its immense decentralized network of computers. Bitcoin’s value is often compared to gold, as both have limited supply and are considered valuable by investors. Gold has been a popular choice for centuries, and some believe that Bitcoin might take up a similar mantle in the digital age.

    The Rollercoaster Ride of Bitcoin Valuation

    Bitcoin’s value is driven by factors like mainstream and institutional adoption, regulations around transactions, and the safety of ownership. It is sensitive to news, both positive and negative, as well as regulatory developments. 

    For example, Bitcoin prices have been positively impacted by announcements from companies like Tesla and Square adopting the cryptocurrency as a means of payment and investment for their balance sheets. Meanwhile, events like the Mt.Gox hack, FTX bankruptcy, and China’s ban on cryptocurrency mining have had negative impacts.

    Navigating the Future of Bitcoin

    Predicting the future value of Bitcoin is like trying to predict the weather in Canada – it’s a tricky business. The cryptocurrency’s value depends entirely on public perception and a myriad of factors that can change quickly. However, as interest in Bitcoin continues to grow among both mainstream and institutional investors, it’s clear that this digital asset is carving out a place for itself in the world of investments.

    As the cryptocurrency landscape evolves, it will be fascinating to see where the future takes Bitcoin and how its value continues to develop. Who knows, maybe Bitcoin will finally rise above USD$100,000 before 2024.

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    who is on the bitcoin rich list?
    Education

    Who’s on the Bitcoin Rich List?

    Written by admin15/03/2023

    Bitcoin, the world’s first cryptocurrency, has been making headlines for years. Despite the volatility and controversy surrounding it, Bitcoin has attracted a lot of attention from investors and enthusiasts alike.

    As Bitcoin continues to gain more mainstream acceptance, it’s worth taking a look at who the biggest players in the Bitcoin world are. Or as some people call the biggest players, “whales.” Here is an overview of the richest people, countries, companies, and institutions in terms of the amount of bitcoin they own.

    The Bitcoin Rich List

    • Satoshi Nakamoto – The mysterious creator of Bitcoin, who has never been identified, is estimated to have around 1 million bitcoins. At today’s market value, that puts his net worth at over US$24.4 billion.
    • Barry Silbert – Founder and CEO of Digital Currency Group, Barry Silbert is a prominent figure in the world of cryptocurrency. It is unknown how much he personally owns, but his digital currency investing firm, Greyscale, holds plenty which we will get to later in this article.
    • The Winklevoss Twins – Famous for their legal battle with Mark Zuckerberg over the ownership of Facebook, the Winklevoss twins are also major players in the Bitcoin world, They are the founders of the cryptocurrency exchange, Gemini and reportedly own around 100,000 bitcoins, worth over $2.4 billion.

    • Michael Saylor – CEO of business intelligence firm MicroStrategy, Michael Saylor is known for his bullish outlook on Bitcoin. He has invested heavily in the cryptocurrency and reportedly owns 17,732 bitcoins, worth over $432 million.

    • Chamath Palihapitiya – A former Facebook executive and founder of Social Capital, Palihapitiya has been an outspoken advocate for Bitcoin. He reportedly owns around 26,000 bitcoins, worth over $630 million.

    Countries Bitcoin Rich List

    • El Salvador – In September 2021, El Salvador became the first country in the world to adopt Bitcoin as legal tender. The country has purchased over 2,381 bitcoins so far, worth over $58 million.

    • Bulgaria – The Bulgarian government seized over 200,000 bitcoins from a criminal organization in 2017. The bitcoins are currently worth over $4.8 billion.
    • The United States – The US government has seized a significant amount of bitcoins in various criminal investigations. It’s unclear exactly how much the government owns, but estimates range from tens of thousands to hundreds of thousands of bitcoins.

    Richest Companies in Bitcoin

    • Tesla – In February 2021, Tesla announced that it had purchased $1.5 billion worth of Bitcoin. The company also indicated that it may purchase additional bitcoins in the future.
    • MicroStrategy – As mentioned earlier, MicroStrategy CEO Michael Saylor is a major Bitcoin bull. The company has invested heavily in Bitcoin and currently owns over 130,000 bitcoins, worth over $3.1 billion.
    • Square – In October 2020, Square announced that it had purchased $50 million worth of Bitcoin. The company’s CEO, Jack Dorsey, is a well-known Bitcoin enthusiast.

    Richest Insitutions in Bitcoin

    • Grayscale Bitcoin Trust – Grayscale is a digital currency asset management firm that allows investors to gain exposure to Bitcoin through a trust. The Grayscale Bitcoin Trust currently holds over 630,000 bitcoins, worth over $15 billion.
    The Grayscale booth at the Exchange ETF Conference in Miami Beach, Florida, U.S., on Wednesday, April 13, 2022. Photographer: Eva Marie Uzcategui/Bloomberg
    • Binance – Binance is the largest cryptocurrency exchange in the world by trading volume. The company holds a significant amount of Bitcoin on behalf of its users, although the exact amount is not publicly known. As of November, Binance holds $74.7 billion worth of crypto in its reserves and approximately 40% are its own tokens.
    • Fidelity Investments – Fidelity is one of the largest asset managers in the world. The company has been exploring the potential of Bitcoin and blockchain technology and has reportedly invested in Bitcoin mining companies.

    *All prices are represented in US dollars.

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    Finance

    Are Bitcoin and the Stock Market Correlated?

    Written by admin06/02/2023

    Since bitcoin’s inception in 2009 to the late 2010s, it has shown a lack of correlation to the broader stock markets. Because of this, bitcoin proved to be an asset class for investors that remained largely independent of broader markets.

    However, with an increase in awareness from retail and institutional investors, beginning largely in 2017 when BTC pushed through the USD$10,000 threshold, its independence has waned.

    Increasing Interest Rates

    For most of the last twelve months, bitcoin has been fighting the same downward pressure that’s been impacting both the stock and bond markets. Major central banks around the globe have been on a quest to tighten monetary policy in a battle to tame inflation down to a target of two percent.

    Trailing twelve months comparison between bitcoin and the S&P 500 measured by percentage change. (Source: Yahoo!Finance).

    “The price of bitcoin is maintaining the $19,000 level, but with the FOMC’s minutes and CPI ahead this week, the market will likely refrain from taking risks, which in turn will likely put pressure on bitcoin,” said Yuya Hasegawa, crypto market analyst at Bitban.

    Macroeconomics

    Rolling 90-business-day return correlation between BTC and stock indexes. Image note: Returns of bitcoin are represented by the Fidelity Bitcoin Index, U.S. equities by the S&P 500 Index, and U.S. growth equities by the NASDAQ Composite Index. All returns are in base currency (US$) and gross of fees. (Source: Fidelity Investments).

    Macroeconomic factors continued to play an important role in driving the prices of cryptocurrencies, as well as other risk assets. Throughout the third quarter, the correlation of bitcoin with major stock indexes remained high, at over 60%.

    For added context, a correlation above 50% is considered moderately strong and above 70% is very strong, while correlations between 30% and -30% are very weak. A value of 100% or 1 means that movements between bitcoin and the broader markets are perfectly synchronized.

    With rising interest rates, investors wanting to de-risk their portfolios have weighed on bitcoin’s price as reflected in a rather underwhelming yearly performance of negative 37% as of January 31, 2023.

    Some examples provided by Fidelity Investments of bitcoin’s price following macroeconomic announcements in 2022:

    • July 27: BTC increased by over 8% following the announcement by the Federal Reserve that it was raising interest rates by 75 basis points.
    • August 10: July U.S. CPI inflation came in below expectations at 8.5% (compared with 8.7% expected). BTC climbed 4% in the hours following the release of the CPI before slowing later in the day.
    • August 19: BTC plunged nearly 10%, falling in sync with traditional markets amid renewed fears that the Fed and other central banks will have to get more aggressive in fighting inflation. The decline started with unexpectedly high inflation data in Germany.
    • August 26: BTC dropped after Fed Chair Jerome Powell doubled down on restrictive monetary policy at the Fed’s Jackson Hole economic symposium.
    • September 13: BTC fell on the release of August U.S. CPI data, which showed an unexpectedly high 8.3% increase in prices (compared to 8.1% expected).

    With its widespread adoption, it is clear that bitcoin is no longer on the fringe of the financial system. Tensions between Russia and the West over the Ukraine war could continue to roil markets, from energy prices to foreign exchange. Bitcoin’s tighter correlation with broad markets means it will not be immune.

    Conotoxia Senior Market Analyst Daniel Kostecki gave his opinion on this correlation to CoinDesk last year.

    “It is what is happening in the arena of international relations that seems to be the main driver of the markets for both stocks and cryptocurrencies,” he said.

    2023 Bump

    As of January 31, 2023, the YTD of bitcoin is up approximately 39%, while the S&P 500 and Nasdaq Composite are up 5.9% and up 10.8% respectively.

    Analysts say that there is a multitude of factors behind bitcoin’s new rise in 2023, including the probability that interest rates will be lowered in the coming months, easing of short-term inflation, as well as massive purchases by large buyers, otherwise known as “whales.”

    The U.S. dollar has also lowered, with the greenback down 8.5% in the last three months in terms of its strength against a basket of other notable currencies, such as the Euro, Pound and Yen.

    If this is the case, bitcoin continues to show a coupling with macroeconomic indicators, despite showing less correlation with stock markets.

    As bitcoin’s adoption continues to increase along with the development of applications built on top of the blockchain it is likely we would see a decoupling between the cryptocurrency and stock markets in the future.

    “We expect them to not be as highly correlated going forward,” Ben McMillan, CIO of IDX Digital Assets said. “But I do think a positive correlation between bitcoin and risk assets, in particular things like technology stocks, is here to stay.”

    That said, bitcoin is still a relatively new asset class when compared to its counterparts, like bonds, stocks and gold. Its relationship with them and macroeconomics will be closely watched.

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    Cryptocurrency and taxes in canada is a complicated subject
    Education

    Simplifying Cryptocurrency and Taxes in Canada

    Written by admin28/12/2022

    Is Crypto Taxed in Canada?

    The short answer, Yes. The Canada Revenue Agency (CRA) is quite transparent about the fact that crypto is subject to income tax.

    It is important to note here that crypto is considered a commodity by the CRA and not cash. Bitcoin and other cryptocurrencies are also not recognized by traditional banks and brokerages as legitimate currencies. This will be useful as you read through the guide.

    As crypto is a relatively new commodity, tax implications have and continue to evolve. The CRA has a full guide for cryptocurrency users and tax professionals. That being said, crypto and tax are complicated subjects and we would advise speaking to a tax professional for further questions and information.

    When Do You Owe Taxes on Crypto?

    From a high-level perspective, you owe taxes when disposing of your crypto. Examples can include:

    • Selling or trading it
    • Giving it as a gift
    • Converting it to government-issued currency, such as Canadian dollars
    • Using it to buy goods or services

    Other types of tax implications involving crypto include:

    • Mining cryptocurrency
    • Being paid by your employer in cryptocurrency
    • Staking crypto in Proof-of-Stake currencies

    Because cryptocurrency is considered a commodity, simply buying and storing the crypto in a wallet will not trigger a taxable offense.

    Most people will pay tax on cryptocurrency gains from the disposition of crypto assets. When filing your income tax return, you will need to know how to value your cryptocurrencies. Valuing the crypto depends on whether it was used as capital property or inventory. The CRA has more detailed information on the difference between the two.

    Transferring crypto is tax-free. (Source: Koinly.io).

    Types of Taxes That Apply

    • Business Income

    Generally, if disposing of cryptocurrency is part of a business, the profits you make on the disposition or sale are considered business income and not a capital gain. Buying a cryptocurrency with the intention of selling it for a profit may be treated as business income.

    • Capital Gains

    If the sale of a cryptocurrency is not for carrying on a business, and the amount it sells for is more than the original purchase price or its adjusted cost base, then the taxpayer has a capital gain.

    • Goods and Services

    Where a taxable property or service is exchanged for cryptocurrency, the GST/HST that applies to the property or service is calculated based on the fair market value of the cryptocurrency at the time of the exchange.

    Source: Canada.ca/en/revenue-agency

    How To Calculate and Report Crypto On Your Taxes?

    It is very important to keep track of all financial records of your activities relating to your cryptocurrency. This information is vitally important when filing your tax returns for the 2022 fiscal year.

    Keeping full records of all crypto-related activities is absolutely necessary when filing tax returns.

    First and foremost, you should figure out whether your cryptocurrency earnings are capital gains or business income.

    Making profits while trading cryptocurrencies, such as Bitcoin or Ethereum is considered a capital gain, much in the same respect of stocks and gold.

    What does this look like? We’ll outline an example scenario below:

    Johnny purchases 1 Bitcoin, which at the time was valued at $2,000. He then decides to hold onto it for two years, during which the value of 1 Bitcoin comes to $5,000. Johnny decides to convert his lone Bitcoin into Canadian dollars.

    The difference in value when Johnny bought and sold is:

    $5,000 – 2,000 = 3,000

    Johnny has earned $3,000 from his cryptocurrency trading activity. His earnings are due to capital gains and thus he is taxable on 50% of the value, or $1,500.

    If Johnny had earned his 1 Bitcoin by mining, it would be a different scenario and actually be considered as business income. The CRA considers 100% of the amount you make from mining crypto for tax purposes and must be reported on your returns using a T2125 form.

    Avoiding Tax on Crypto

    You cannot outright avoid all taxes, but there are ways to reduce your tax bill. This may seem obvious, but at the moment you cannot directly invest in cryptocurrency through a Registered Retirement Savings Plan (RRSP) or a Tax-Free Savings Account (TFSA).

    BUT, you can buy into an Exchange-Traded Fund (ETF) that invests in Bitcoin through a brokerage in these registered accounts.

    The gains on crypto ETFs in your RRSP are not taxed, provided you do not convert them to cash and withdraw the money. For TFSAs, your gains from crypto ETFs are not subject to tax on withdrawals.

    These crypto ETFs track certain coins and ultimately you would not own the actual coins, but shares in the ETF.

    Donating Crypto to Charity

    Donating crypto is rather interesting because it is viewed as a commodity, not as a currency, which complicates matters. An example of this is detailed below:

    You buy 1 BTC in December 2019 for $5,000. You then donate this BTC to a registered charity in December 2022 when the fair market value of BTC is $20,000.

    According to the CRA, the charity you donate to can only issue a $5,000 receipt for your donation and your donation is a disposition. You’ll need to pay Capital Gains Tax on the difference in value, so $15,000.

    Can The CRA Track My Crypto?

    Part of the essence of cryptocurrency is its anonymity. It’s almost 2023 and we still do not know the identity(s) of Satoshi Nakamoto, the founder and creator of Bitcoin. It is along these same lines that it may seem that the CRA will not find out if someone does not report their earnings or dispositions.

    The reality is, the CRA is very capable of tracking your income and finding out if you did not report all your income through audits and investigations.

    The consequence of failing to report any instance where crypto is taxable is the same with Canadian dollars: tax evasion. This should be avoided at all costs and it is wise to report your earnings as accurately and honestly as possible.

    Bitcoin Taxation in Canada Still Evolving

    It is important to understand that cryptocurrency is still a relatively new innovation for investors. The CRA does provide a detailed guide on the tax obligations associated with crypto.

    An area that could receive some attention is the possibility that a single Bitcoin transaction can include thousands of sub-transactions inside it. The idea of keeping track of thousands of transactions seems rather daunting for a single individual. Possibly there may be a solution to this in the future.

    Another example is the lack of consistency in accounting methods for Canadian crypto businesses, whether they use the First In First Out or Weighted Average methods.

    That said, the CRA is continuing to develop and correctly detail taxable instances for crypto.

    While much of the phrasing used by the CRA may not correctly correspond to the phrasing used in the cryptocurrency space, it is evolving and becoming easier to understand and apply than in prior years.

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    HoneyBadger Comment on FTX / Alameda

    Written by admin13/11/2022

    We are writing this post in regards to the recent news about Alameda / FTX. HoneyBadger assures its customers that we have no relation to FTX whatsoever. 

    This is because of HoneyBadger’s non-custodial business model. We do not store assets on behalf of our customers unless requested to do so. Any crypto you buy at our kiosks or online is sent and stored securely in our customers’ own wallets. They control their own assets and we have no access to it.

    This serves as an opportunity to highlight the benefits of buying cryptocurrency from us rather than through an exchange. You buy coins from us and we send them to you. Simple.

    All transactions completed with HoneyBadger are instant and we never leverage customer assets since we do not hold any. We assure you that any assets you buy from us will be readily available to you whenever you need them.

    HoneyBadger firmly believes in the saying, “not your wallet, not your coins”. The company started in 2016 with one mission, to make cryptocurrency accessible to all Canadians. Once our customers buy it, they own it. 

    If you have any questions or concerns, please feel free to contact us.

    FINTRAC Money Services Business registration: click here.

     

     

     

     

     

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    Best Way to Buy Bitcoin in Canada
    Buying Crypto, Education, Finance

    What is the Best Way to Buy Bitcoin in Canada?

    Written by admin26/08/2022

    There are a lot of options when it comes to investing in cryptocurrency, but what is the best way to buy Bitcoin in Canada?

    The good news is there are plenty of methods to choose from so there is something for everyone. Below we have outlined the pros and cons of 10 different ways to purchase crypto. We have also given each one a score out of five for the following categories: convenience, security, and value.

    Read on to find out the best way to buy Bitcoin in Canada for you.

    How can I buy Bitcoin in Canada?

    The good thing about living in a relatively crypto-friendly country like Canada is there are lots of options to exchange fiat currency for Bitcoin and other cryptocurrencies like Litecoin and Ethereum.

    The first decision you have to make is whether you want to trade online or in person at a physical location. That’s right, you can actually swap cold hard cash for cryptocurrency!

    The next step is to choose a payment method. In a short space of time, trading platforms have expanded their ways to pay exponentially. While it may seem intimidating at first, don’t fear! We have compiled some of the most popular options out there to help you make up your mind.

    Crypto gift cards

    Crypto gift cards just like any gift card you might buy at a normal retail store. The main difference is you can’t buy goods and services with it. Instead, you can send someone a digital gift card with crypto assets from your own wallet or by buying a certain amount with fiat currency.

    Pros:

    • Potential to increase in value: A crypto gift card is essentially a hot wallet, meaning it holds a certain amount of crypto on it. This means the value could increase if you hodl it.
    • Great gift idea: Whether you are looking for a present for a Bitcoin maximalist or someone who knows next to nothing about crypto, a gift card is a fun and easy gift idea. The recipient doesn’t even need a bank account. All they need is a crypto wallet.

    Cons:

    • Lack of flexibility: Once you buy a gift card using fiat, you lock in your chosen coin. If the recipient is more into altcoins, for example, you’d probably be better off just sending them some cash.
    • Not secure: If a gift card gets lost in the mail, there’s not much you can do to retrieve your coins. Similarly, if it gets stolen, someone could easily extract the value for themselves. This is a lot riskier than simply sending it from your wallet.

    Convenience: 3/5

    Security: 1/5

    Value: 3/5

    Bitcoin ATM

    Bitcoin ATMs, also known as Bitcoin kiosks or BTMs, enable you to exchange cash for BTC, Litecoin, Ethereum, or other cryptocurrencies in person. Although they are different from the machines you would find at a traditional bank, just like an ATM, you can deposit or withdraw cash. The main difference is you buy cryptocurrency when you deposit cash and you sell it when you make a withdrawal.

    Bitcoin ATMs are a great option because they save a lot of the hassle of going through lengthy online sign up processes and they are one of the easiest methods to use.

    Pros:

    • Simple to use: It doesn’t get much easier than inserting cash into a machine and instantly buying your cryptocurrency of choice. All you need is cash, a phone, and a digital wallet. This makes it a great way to explore the market without the hassle of creating an account with an online exchange.
    • Direct: There is no middleman at all if you buy from an ATM. It’s a direct transaction so there’s no waiting for funds to arrive from your bank or for an online exchange to approve your transaction.
    • Secure: Bitcoin ATM providers are regulated by FINTRAC. If you are unsure about whether the machine you are using is legit, you can search for the name of the company on FINTRAC’s registry for peace of mind your transaction will be secure.

    Cons:

    • Must have cash: If you don’t happen to have cash on you, there are not a lot of options out there to buy at a machine. Fortunately, there are ways you can still transact without cash, such as via Interac® e-transfer.
    • Fees: one of the drawbacks of machines is that trading fees are usually higher than online exchanges. Of course this all depends on your personal preference and plenty of people prefer to use Bitcoin ATMs for the convenience and ease of use.

    Convenience: 5/5

    Security: 5/5

    Value: 3/5

    OTC Desk Locations

    OTC, or over-the-counter, involves buying cryptocurrency via a broker, either in person or virtually. This option is ideal for investors looking for a personalized service.You speak directly to an account manager who provides advice and handles the trade for you.

    The downside is you usually have to spend a certain amount to qualify, however, using private exchange services makes sense for large volume trades. 

    Pros:

    • Personalized service: Having someone else place a trade on your behalf removes a lot of the stress involved in buying Bitcoin.
    • Expert advice: OTC brokers usually have experience when it comes to making trades. If you’re new to the world of cryptocurrency, expert advice can help maximize your investment.

    Cons:

    • Fees: At the end of the day, you are paying for a service with OTC, and this is reflected in the slightly higher fees you pay.
    • Large volume: OTC is designed for people with large sums to invest in Bitcoin, meaning it is not suitable for the average customer.

    Convenience: 5/5

    Security: 5/5

    Value: 3/5

    Purchase Bitcoin direct from a seller

    There are forums and posts on sites like Facebook Marketplace, Reddit, and Craigslist (That’s right! Remember Craigslist?) as well as niche sites where people will literally sell you Bitcoin. Of course, there are risks involved because you’re essentially buying from a stranger.

    It is possible to find cheaper rates, but this method is more labour intensive than other alternatives. When you buy from a reputable company, you do not need to scour multiple websites for a cheaper deal, customers know exactly what to expect every time.

    Pros:

    • Bargain deals: People who buy crypto this way are usually looking to squeeze every satoshi they can out of a deal. It is possible to find some great rates, especially if you find a motivated seller.

    Cons:

    • Risky: Buyers take on a lot of risk when they buy directly from a seller online. Often there is no way of knowing if the seller will deliver what they promise.
    • Time consuming: Searching through page after page to find the best deal consumes a lot of time and effort.

    Convenience: 1/5

    Security: 1/5

    Value: 3/5

    INTERAC® e-Transfer

    INTERAC® e-Transfer is arguably the best way to buy Bitcoin in Canada. It is as easy as sending money to a friend, it takes just a few minutes, and the fees are relatively low. Transactions are secure when you buy Bitcoin via e-Transfer from a reputable company and service is convenient and fast.

    The sign up process is much shorter for e-transfer than it is for online crypto exchanges like Newton or Shakepay, which can take hours or even days to go through. Similarly, you don’t have to wait what seems like an age for a bank wire transfer to fund your account.

    Pros:

    • Fast: Transactions are usually seamless and completed in a matter of minutes.
    • Secure: So long as you are buying from a trusted source, you can rely on the proven INTERAC® e-Transfer infrastructure, so you know your funds will be safe.
    • Simple: All you need to get started for transactions below $1,000 is a phone number and there are no extra hoops you have to jump through like there are for online exchanges.

    Cons:

    • Limited transaction size: A downside to using e-Transfer is your bank will usually limit the amount you can send in one day. So long as you only plan to purchase Bitcoin below a few thousand Canadian dollars in value, however, this option is perfectly suitable.

    Convenience: 5/5

    Security: 5/5

    Value: 3/5

    Debit

    Buying digital currencies with a debit card is a simple way to join the cryptocurrency world. It works just like making a standard purchase online. All you need to do is pick a trustworthy trading platform, sign up for an account and enter your card details.

    The downside of debit transactions is that not all banks allow it and some operators will flag crypto purchases as fraudulent. This can lead to long, frustrating delays.

    Pros:

    • Fast: Most exchanges can process transactions quickly.
    • Simple: The sign up process usually takes a few minutes, unlike online exchanges.

    Cons:

    • Bank restrictions: Banks can sometimes get involved and prevent purchases from going through

    Convenience: 3/5

    Security: 5/5

    Value: 3/5

    Credit

    You should tread carefully when buying crypto with a credit card. Customers should avoid making speculative purchases and only spend what they know they can pay back comfortably.

    One of the key drawbacks of using a credit card is the fees. Banks usually charge more for purchases of cryptocurrency on credit because of the inherent risk the borrower might not be able to pay it back.

    Having said that, if you’re responsible and know what you’re doing, buying Bitcoin with a credit card is as equally straightforward as using a debit card.

    Pros:

    • Convenient: Just like debit transactions, the process is usually fast and simple.

    Cons:

    • Fees: There are cheaper options out there that are just as fast and convenient.

    Convenience: 3/5

    Security: 5/5

    Value: 1/5

    Bank wire transfer

    If the fees involved with using a credit card put you off and you have some time on your hands, bank wire transfers are a cheaper alternative. There are usually no bank fees involved in transferring money to fund your crypto account, however, whether you run into problems with your bank is another question.

    Bank transfers can take days to go through, especially if you are a first time buyer. This can be annoying to say the least, especially if you miss out on an opportunity with a Bitcoin price fluctuation, for example.

    Pros:

    • Free: Bank transfers to fund your account usually cost nothing.

    Cons:

    • Time: Wires sometimes take a day or two to go through.

    Convenience: 1/5

    Security: 5/5

    Value: 3/5

    Apps

    Some mobile apps, such as Wealth Simple, offer Bitcoin investment options. The apps are usually user-friendly and if you are familiar with how they work, funding your account is simple enough.

    It is important to exercise caution when choosing which app to go with. Make sure the app allows you to send BTC to your crypto wallet. Some providers only allow you to keep funds in their custody wallet, meaning you do not have total control over your crypto asset.

    Pros:

    • User-friendly: If you’re new to crypto, the apps will help to guide you through the whole process.

    Cons:

    • Lack of control: Some apps only allow you to keep funds in their custody wallet.

    Convenience: 2/5

    Security: 3/5

    Value: 3/5

    Online exchanges

    If you have looked into buying cryptocurrency at all you are bound to have come across online exchanges like Binance, Coinbase, and Kraken. These trading platforms are usually good for beginners and offer a wide range of altcoins in addition to the more established cryptocurrencies.

    While they are a lot of people’s first step into the crypto universe, many people soon start looking for alternatives. Users are put off by lengthy sign up processes, privacy concerns, and poor customer service.

    Pros:

    • Guidance: Most sign-up processes, while lengthy, are well designed and walk the user through step-by-step.

    Cons:

    • Slow: If you are using an exchange for the first time, it can take a long time to get your account approved and funded.
    • Invasive: Some online exchanges require you to surrender a lot of information before you can start trading.

    Convenience: 3/5

    Security: 3/5

    Value: 3/5

    Conclusion

    There is no shortage of methods you can use to buy Bitcoin. INTERAC® e-Transfer is the best way to buy Bitcoin in Canada from an overall perspective. It scored highest in our ratings and is generally fast, secure, and good value.

    The ultimate deciding factor in what defines “best”, however, is you. That is the great thing about cryptocurrency today: with more ways to buy than ever before there is bound to be an option that fits your needs and level of knowledge.

    Click here to buy using INTERAC® e-Transfer

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