Bitcoins in Canada: An Overview

Bitcoin Canada

It’s clear as day that Bitcoin is taking over the world, one step at a time.

Bitcoin has been included in the financial statements of companies like Tesla, MicroStrategy, and Square. Payment companies such as Visa now accept cryptocurrency as a form of payment. Bitcoin, according to macro traders like Guggenheim, should be worth at least $450,000 USD. El Salvador, for example, has made bitcoin a legitimate payment method. Many casino visitors can now visit a Bitcoin casino. To top it off, bitcoin hit a new all-time high of $63,000 USD at the time of writing!

As a result of all the money production in response to the epidemic, Bitcoin continues to cause rifts in the financial landscape. Cash is entering the system due to billions of dollars in quantitative easing throughout the world, weakening the dollar we all use to save and invest.

Meanwhile, bitcoin is becoming increasingly scarce. It has a limited quantity of 21 million, which are being scooped up by big businesses and organizations. Bitcoin’s supply is set and not controlled by a single organization, unlike traditional currency. Bitcoin is a safe-haven asset in these uncertain times because it is rare, digital, and decentralized.

Is Bitcoin a wise investment?

As with any investment, you should do your homework first and make sure you know what you’re getting into. Make sure that any crypto investments you make do not interfere with other objectives, like filling your retirement accounts or paying off high-interest debt. Cryptocurrency investments should make up less than 5% of your whole portfolio, according to experts.

Bitcoin is an excellent place for new crypto investors to start. Bitcoin has the longest track record for investors to investigate as the first cryptocurrency. Bitcoin’s value has increased at an exponential rate since its rise in 2009. As a long-term store of value, several experts compare it to “digital gold.”

While the recent huge price fluctuations in Bitcoin show its volatility, many experts believe that a small cryptocurrency investment may be a good (this is speculative) diversifier in your overall investing plan.

How to make money from your Bitcoin investment

Making money depends on the price at which you buy and sell an item, just like any other investment. You will profit if you sell it for a higher price than you paid for it.

You will lose money if you sell for less than what you paid for it. And, in turn, you will gain money if you sell for more than what you paid for it.

Consider the following scenario:

If you bought bitcoin in January 2018 and sold it on December 31, 2018, you would have lost 73 percent of your investment.

You would have made a 300 percent profit if you had bought bitcoin in January 2020 and sold it on December 31, 2020.

Because Bitcoin is very volatile, the key is to avoid panicking and crystallizing your losses by selling when its value declines. This holds for all investments.

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