Trading Crypto:
A Quick Start Guide

October 3, 2020

Looking to learn more about crypto but not sure where to start? In this quick start guide, we give you a basic high level overview of what they are, why people invest in them and how you can get started. 

We’ve kept things super simple so that this is beginner friendly!

 

What on earth are cryptocurrencies?

Cryptocurrencies are digital money. They allow a person to make a payment directly to another person without going through a bank. Today there are thousands of cryptocurrencies available just like there are thousands of currencies available (Euro, Canadian Dollar, etc.).

 

 

 

What is Bitcoin? 

Bitcoin is the most popular cryptocurrency. It doesn’t have bills or coins but you can use them to buy things where merchants accept them and you can use it as an investment. What makes Bitcoin special is that it’s money that cannot be manipulated by governments or banks – which means no one can seize, freeze, censor, hyper-inflate or control your money.  

For another beginning friendly explanation of Bitcoin, read WTF is Bitcoin.

 

Why do people buy Bitcoin? 

Because they think: 

a) It’s a high-profit investment. When we look at the historic data, the price of Bitcoin has only grown year-over-year.

b) It’s a way to diversify their investment portfolio.

c) It’s a great way to send money cheaply, unanimously and securely.

d) It will replace the dollar and form the basis of all future economic structures.

e) It’s time to experiment with Bitcoin. A bitcoin can be divided down to 8 decimal places so you can buy 0.00000001 Bitcoin (0.00014 cents) or an entire Bitcoin ($14,116).

How do I buy Bitcoin?

 

You can buy Bitcoin through a cryptocurrency exchange which is like an online marketplace to buy or sell cryptocurrencies, and even trade cryptocurrencies for other cryptocurrencies. Exchanges like Netcoins offer a great way to buy Bitcoin instantly, 24/7, from the comfort of your home. You can also buy Bitcoin via peer-to-peer (from someone you know), a brick-and-mortar store, or through a brokerage. 

 

Why do cryptocurrency exchanges have to verify my identity?

When you first open a bank account, you have to provide ID to prove that you are who you say you are. Know-Your-Customer (KYC) is a mandatory process that banks and registered Money Service Businesses (like Netcoins) in Canada have to include as part of their onboarding process.

 

What do I do after I buy it?

You can use it to pay for goods or services where merchants accept them. You can sell it, either trading Bitcoin for Canadian dollars (cashing out) or trading Bitcoin for other cryptocurrencies. Or you can hold them (remember, history shows us the price eventually goes up). 

 

FAQs 

Is Bitcoin legal? 

It is legal in Canada and other countries. It’s no longer a question about being legal, instead it’s about deciding whether it should be considered a currency, a commodity, a security, or a property.  

Is Bitcoin safe?

It is safe. The Bitcoin blockchain is the most secure network in the world. To date, it has never been hacked. But, like traditional money, Bitcoin can be stolen if you are not careful with how you manage it. 

Have more questions about Bitcoin or other cryptocurrencies? Chat with us at [email protected], over live chat, or find us on our social media channels. You can also explore our blog to learn more!

We’re here to help make crypto easy to understand, easy to buy and easy to sell.