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It is fair to say that few economic forces have become a greater socio-economic phenomenon in recent years than cryptocurrency. Proponents see crypto as a once-in-a-lifetime economic revolution that will totally change the way we do business, purchase things, and view economics as a whole. As with so many new technology or social trends, however, newcomers are faced with a litany of questions. On the one hand, the "Crypto FOMO" is real, but on the other hand, you don't want to get scammed, either. Thankfully, the answers to these four questions can reveal how to buy Bitcoin in a way that's safe and gives you the best chance for successful returns on your investment.
1. What Is Bitcoin?
For those not in the know, cryptocurrency is digitally decentralized money and data exchange. It seeks to bypass banks and traditional means of financial exchange by processing transfers digitally. Bitcoin is, by far, the most popular form of cryptocurrency used today. There were roughly 46.1 million Bitcoin wallets in existence in February 2020, with 10.6 million active users.
Among the advantages Bitcoin espouses of its services are:
2. How Can I Legally Purchase Crypto in Canada?
In terms of actually figuring out how to buy Bitcoin in Canada, five methods in particular stand out:
3. How Should I Approach Buying Bitcoin?
When buying crypto in Canada or anywhere else, you need to make sure the dealer is completely trustworthy. While there are many exciting crypto possibilities and honest dealers out there, as in any field, there are also those who would take advantage of these opportunities for shameless exploitation or illegal activity. As such, you should always make sure that whatever dealer you choose is completely transparent. This is especially important when using Peer-to-Peer methods, as you need to be sure that the "peer" in question really is on the up and up.
You may also want to hunt around on Canadian cryptocurrency websites for suggestions on legitimate websites and dealers. The crypto community in Canada is quite enthusiastic. They genuinely believe in all that crypto and Bitcoin symbolize and want them to succeed. Both Bitcoin itself and its energetic community thus have a vested interest in helping new users find legitimate peers for Peer-to-Peer trading, avoid scams, and ensure that their introduction to the world of crypto is a positive one.
4. What Canadian Bitcoin Regulations Should I be Aware of?
As of June 1, 2020, Bitcoin is now officially regulated in Canada. Bitcoin sellers are now officially recognized as Money Services Businesses (MSBs), which means they need to be in compliance with Canadian financial regulations and register with FINTRAC, Canada's financial intelligence regulatory organization.
This also means that Bitcoin is subject to taxation, and recent years have seen the Canadian Parliament pass anti-money laundering measures targeted at cutting down on digital monetary fraud.
By following these steps, you can buy Bitcoin in Canada with confidence and ease.