Bitcoin is the original cryptocurrency invented by Satoshi Nakamoto in 2008. No one knows who he is, and it actually might even be a name for a group of people. Since 2008, Bitcoin has grown into a global phenomenon.
Some people think that Bitcoin is the future of money, while others think that it’s another tulip frenzy. Regardless of public opinion, we do think it is important to understand it as a potential investment.
There are numerous ways to invest in Bitcoin in Canada. Keep in mind that you can buy fractions of a Bitcoin so your investment amount can be pretty low (even $10).
If you’re a techie, then you might want to have your own cryptocurrency wallet to hold the asset. If you’re a beginner, then you might want to be able to just click “buy Bitcoin” and have someone else take care of the details for you. If you’re a seasoned investor, then you might be more comfortable with investing in Bitcoin companies or funds.
Let’s go over the various ways you can invest in Bitcoin, and you can decide what’s best for you!
Investing in Bitcoin in Canada: The Easy Way
The absolutely simplest way to invest in Bitcoin is to open up a Wealthsimple Trade cryptocurrency account. You’ll be able to buy Bitcoins, and your investment amount will go up and down in accordance with Bitcoin prices.
With Wealthsimple, you don’t hold the Bitcoins directly. Instead, you buy the Bitcoin but it is held by a trusted third party company.
One of the best parts about Wealthsimple is that your assets are insured through large financial companies. This will give you much more peace of mind than holding the Bitcoin on your phone or on a sketchy exchange that is just waiting to get hacked.
To start trading Bitcoin on Wealthsimple, just visit: https://www.wealthsimple.com/en-ca/product/crypto/
Investing in Bitcoin in Canada: Cryptocurrency Stocks
Investing in cryptocurrency stocks can have some benefits such as leveraged exposure to Bitcoin prices.
If you’re the type of person who likes to invest in companies, then there are some good options available to you. All you need to do is buy them through your normal investment account (e.g. Questrade, Wealthsimple Trade, TD Direct Investing etc.).
Three of the most popular stocks in Canada are:
Hive Blockchain (Symbol: Hive). This company mines both Bitcoin and Ethereum. They then sell the coins to turn a profit. For additional information check out: https://www.hiveblockchain.com/
The Bitcoin Fund (Symbol: QBTC). This is an investment fund that buys Bitcoin. For additional information check out: https://3iq.ca/the-bitcoin-fund/
Bitfarms (Symbol: BITF). Like Hive Blockchain, Bitfarms is also a cryptocurrency mining company. For additional information check out: https://bitfarms.com
Investing in Bitcoin in Canada: Buying Bitcoin Directly
This method is for the technically savvy Bitcoin investor. You will need to buy actual Bitcoin through a Canadian exchange such as Newton (https://www.newton.co/) or Krakken (https://www.kraken.com/).
Once you have the Bitcoin, we would recommend that you transfer it out of the exchange into your own private wallet. We recommend downloading a Bitcoin wallet app on your phone, and then transferring your Bitcoin from the exchange to your wallet address.
Exchanges are notorious for getting hacked so we would only recommend having your Bitcoins on the exchange when you actually need to sell.