This is a comprehensive blog post on how to buy bitcoin in Canada. In this article, we will cover all the options for buying bitcoin and what the advantages and disadvantages are for each method. Check out our other article if you want to learn more about what bitcoin is first.
If you are looking to buy bitcoin but don’t want to take your chances with an unknown exchange, then keep reading!
Buying Crypto Currency and especially Bitcoin has become more popular over the last few years. Buying Crypto in Canada has always been harder for Canadians than for our US counterparts, but fortunately it’s become much easier in the last couple of years!
Below we give you our top recommendations to buy bitcoin or any cryptocurrency as a Canadian.
Bitbuy is our top choice to buy Bitcoin in Canada, because it allows you to buy crypto with Interac e-transfer.
In addition, you can send Bitcoin or any other crypto that you hold in Bitbuy to any wallet address. As far as we know, there aren’t any other companies in Canada that have this combination! For example, Coinsquare also allows you to deposit money via Interac E-Transfer, but it doesn’t let you send the Bitcoin you buy to an external wallet address.
Like our US counterparts, we Canadians have access to Coinbase which is probably the most popular and easiest way to buy Bitcoin.
You can fund your account using a Canadian Debit Card and withdraw funds to a PayPal account, or send the crypto to any other wallet – you just need to provide its address.
In the past it was also possible to buy Crypto using a Credit Card but unfortunately that is not possible for Canadian customers anymore, as Canadian credit cards have blocked all Crypto purchase transactions.
Wealthsimple is a modern and trustworthy financial startup. They are based out of Toronto and have over $10 billion in management and 1.5 million Canadians who use their services. They were founded as a robo-advisor, to help you manage investments and they recently launched a Crypto investing / trading product.
Buying Bitcoin with Wealthsimple is extremely simple and honestly the most enjoyable of any of the sites on this list. They also have great customer service, even as they’ve grown over the past few years.
If you’re an advanced Bitcoin enthusiast you won’t like that this is not a true wallet. You can’t send your Bitcoin to a wallet address, or receive Bitcoin.
This also means if you want to earn interest on your Bitcoin using a high-yield interest account, you aren’t able to. Essentially the only value of holding bitcoin becomes if the value of Bitcoin goes way up, you can sell your holding through Wealthsimple in exchange for Canadian dollars.
Celsius Network is a popular cryptocurrency lending platform founded in 2017. Celsius recently raised another $400M in venture funding in October 2021 and has processed over $8.20B in loans.It has innovative options for:
1. Earning Interest On Crypto / Stablecoins 2. Borrowing money
As Canadians we can use Celsius just like our US counterparts.
Earning Interest On Stablecoins
You can earn interest on Crypto that you keep in Celsius Network.
The highest interest rate of 17% APY is for holding Synthetix SNX and also receiving your earnings in the Celsius token (CEL).
If you are less risk averse or just want something you know is reliable you can hold stablecoins which are tied to the United States Dollar and still earn a whopping 8.88%! Given that savings accounts in Canada earn between .05% and .1% in 2021 8.88% is phenomenal.
Earnings from the interest on your stablecoins are paid out weekly!
Some of the stablecoins that earn 8.88% APY are:
TUSD – True USD US dollar stablecoin 1:1 launched in 2018 administered by TrustToken.
GUSD – Gemini Dollar Gemini dollars are eligible for FDIC insurance up to $250K USD per user and Gemini is regulated by the New York Department of Financial Services. Their USD reserves are also audited each month by an external accounting firm.
USDC – USD Coin Founded by the company Circle and is managed by a group called Centre.
BUSD – Binance USD This is another 1:1 USD backed stablecoin and was created by the company Binance. BUSD is regulated by the New York State Department of Financial Services (NYDFS).
Borrowing Money Against Crypto Assets
You can borrow stable coins or USD at phenomenally low rates – as low as 1% interest. For such a low interest rate you can only borrow 25% of the total amount of the collateral backing the loan (i.e. your own stablecoins). For example, to borrow $2,500 of USDC you’d need to back it with $10,000 USDC. Still 1%, is an amazing interest rate on a loan and you can extend the term up to 3 years with the same loan terms.
If you want to borrow more than 25% of the value of the collateral you provide, you can get loans from Celsius at 6.95% or 8.95% but this is far less appealing than the 1% interest rate loan option.
The stablecoins you use as collateral are essentially frozen until you’ve paid back the loan.
Celsius advertises the value of one of their loans is that is allows you to continue holding onto crypto. If you’re strapped for cash and you want to keep holding crypto but you have living expenses, they explain that one of their loans will allow you to have cash on hand in fiat (USD, CAD) but not sell your crypto! While this is one potential reason to get a loan from Celsius, 1% is also just such a low rate that if you could make use of the money elsewhere it makes sense to utilize.
To request a loan you have to use the Celsius mobile app, rather than the desktop / in browser app.
Withdrawing Money From Celsius
When you change or add a whitelisted address to send your crypto to you have to confirm via email as well as wait for 24 hours before you can send to that withdrawal address.
If you currently hold Ethereum and you want to convert it to Canadian Dollars or another cryptocurrency, this article will tell you everything you need to know.
First, you can send your Ethereum to a Canadian exchange. Then you can either convert the Ethereum into another Cryptocurrency or into Canadian dollars. Once you have Canadian dollars in your account with the crypto exchange you can then withdraw the money into your Canadian bank account.
Before you decide which Canadian crypto exchange you’ll use to sell your Ethereum you should think about the answer to three main questions.
Question 1: What are the fees for the exchange I want to use to convert my Ethereum?
Question 2: Are there any minimums to convert Ethereum on this exchange, or to withdraw Canadian dollars to my bank account?
Question 3: What withdrawal methods does this exchange have? Where can I withdraw my money to?
We’ll look at a few different options that you have to sell your Ethereum in Canada though the lens of these three questions.
Can You Sell Ethereum On Coinbase In Canada?
You can send your Ethereum to Coinbase, and then convert it to another form of Cryptocurrency. Coinbase has a long list of coins that they allow Canadians to hold and swap for. The one downside of using Coinbase in Canada to sell your Ethereum is that the withdrawal methods are somewhat limited. You can only withdraw money to a PayPal account. If you have a PayPal account in Canada this may not seem like such a big deal, and you’re right, it isn’t! Once the money hits your PayPal account you can simply request a withdrawal of your PayPal balance to your Canadian bank account so the money will end up in your bank account anyways. However, if you don’t have a PayPal account, the fact that PayPal is the only withdrawal method for Canadian users of Coinbase is a roadblock.
How To Withdraw Ethereum In Canada Using Coinbase
Desktop: Click the Buy / Sell blue button in the top right hand side of the page. Then click the “Sell” tab. Finally choose the crypto currency (in this case Ethereum) that you want to sell for Canadian Dollars. You can then click the “Sell all” button to see the max amount of Ethereum you can liquidate, or you enter the amount manually if you prefer!
Withdrawal Options: PayPal only
When you use the PayPal withdrawal option with Coinbase, the funds get credited to your PayPal account instantly.
You likely have a PayPal withdrawal limit of $30,000 CAD daily on your account, but we recommend not liquidating any amount remotely close to this via PayPal.There’s a possibility your PayPal account will get frozen with the funds you withdrew still in it, and it can take a long time to get it unfrozen. If you need to liquidate a lot of Ethereum you’re better off picking an exchange that allows you to withdraw with more options than PayPal.
Sell Ethereum In Canada Using BitBuy
We’ve written in other articles about how great BitBuy is for buying and selling crypto, and selling Ethereum is no exception. Once you are approved for a BitBuy account you can send your Ethereum to a wallet address BitBuy gives you. Once you receive the Ethereum at your BitBuy wallet address you simply convert the Ethereum into Canadian Dollars or another crypto currency of your choosing. If you convert your Ethereum into CAD you can then withdraw the money to your bank account via Interac E-Transfer. It’s super convenient and easy to do!
Convert Ethereum To CAD: 0.5%
Withdrawal: 1.5% to withdraw via Interac E-Transfer
Minimums: Minimum balance of $50 CAD to withdraw to bank account
Withdrawal Options: Interac E-Transfer, Wire Transfer
Conclusion: What’s The Best Way To Sell Ethereum In Canada?
If you only want to withdraw a few hundred dollars worth of Ethereum and you have a PayPal account, Coinbase is a great option to use. You can sell your Ethereum in exchange for Canadian dollars and then withdraw the cash to your PayPal account.
If however you don’t have a PayPal account or you want to withdraw anything over $1,000 CAD to your bank account, you’re probably better off going with BitBuy’s Interac E-Transfer or Wire (if over $25K) withdrawal method. If you withdraw $x,xxx Canadian Dollars to PayPal you risk getting your account frozen for no reason, so we can’t recommend that approach!
One of the most powerful as well as interesting concepts that emerged from blockchain technology are NFTs (Non-Fungible Tokens). They can encode conditional transactions, provide provenance, and secure digital content and all of it is embedded in the blockchain.
Over the course of the last 2 years, NFTs have exploded and from toilet paper and tacos to music and art, they’re being sold like exotic Dutch tulips of the 17th century. The reason for the popularity and craze of non-fungible tokens lie within their uniqueness.
If you want to know what NFTs actually are, then read this post till the very end. It’ll allow you to understand why many people seem to be obsessed with non-fungible tokens and whether or not they’re a good investment. So let’s get started.
What are NFTs (Non-Fungible Tokens)?
In a nutshell, an NFT or non-fungible token is a digital asset that represents ownership of different types of digital items such as videos, music, art, in-game items, etcetera. You can consider these tokens the collectibles of the digital world.
You can buy, sell, and trade NFTs online, and all the data related to them is securely stored on the blockchain. Not only does it ensure that the digital assets remain unique, but it also makes it almost impossible to counterfeit or alter them.
In order to grasp the concept of NFTs properly, it’s important to understand the economic concept of fungibility.
What are Fungible Items?
Any item that can be exchanged with another item easily without compromising its uniqueness is called a fungible item. For instance, if you have a $1 bill then you can exchange it with anyone for another $1 bill without compromising the value, even though you’ll have a new item with a different serial number.
What are Non-Fungible Items?
Unlike fungible items, non-fungibles are not interchangeable. Each non-fungible token comes with unique characteristics and values. You can’t exchange it with anyone to get another NFT that has the same characteristics and value.
What Are The Ways People Use NFTs?
Most NFTs that you can find in the crypto world are based on the ERC-721 standard. It’s an identifier that is compatible with the Ethereum blockchain. This identifier was created by CryptoKitties which is the company that hit the mainstream with NFTs back in 2017. Now it’s very common to find NFTs in digital art, collectibles, and games. Here are some of the most common uses of non-fungible tokens.
Gaming is one of the most common use cases for NFTs that’s because this medium has a huge demand for purchasable and tradable unique items. NFTs provide players with ownership of their items instead of developers. Not only can you purchase in-game items through NFT technology but you can also trade them with other players.
Gods Unchained, which is a turn-based card game, is a great example where players can buy certain NFT cards that represent certain powers, events, creatures, and characters. These NFTs can be used in one-on-one combat against other players.
Digital Art NFTs
One of the biggest challenges that digital collectors and artists face is the verification of digital art’s authenticity. NFTs solve this problem like a piece of cake as they’re based on blockchain technology.
Just like digital art (image file), it’s also possible to attack any music track (audio file) to NFTs. Getting a fair share is one of the biggest problems for musicians but blockchain royalty tracking and the blockchain-based streaming platform are great ways to address this problem.
NFTs also allow fans to own a music track of their favorite artist. The royalty of the track will still belong to the artist but owning something as property has a deeper meaning.
The demand for digital collectibles is massive whether it’s a Binance Anniversary NFT or PancakeSwap Bunny. It’s important to note that a digital art NFT can also be collectible depending upon its demand. One of the most popular examples of collectible NFTs is CryptoPunks that offers uniquely generated characters with collectability value.
Why Did NFTs Become So Popular in 2020?
The very first non-fungible token project was created back in 2015 on the Ethereum blockchain. It allowed people to realize that they can trade collectibles and assets other than Bitcoin as well. But the NFTs started emerging after CryptoKitties launched in 2017.
CryptoKitties is a game based on blockchain that allows players to adapt and trade digital cats (NFTs). It is a unique yet adorable concept and people started making as well as spending boatloads of money.
However, it went quiet until late 2020 when NFTs reemerged with explosive popularity. There are multiple reasons why this happened:
The fame and the growing number of digital collectibles
Who Benefits From NFTs?
NFTs allow people to own digital assets and buy, sell, and trade collectibles like never before.
Non-fungible tokens offer a whole new source of revenue and a safe place for artists to display their work. For investors, NFTs bring a new asset class to invest in and maximize their returns.
Real-world collectible items can be damaged but that’s not the case with NFTs because they can stay safe forever, thanks to their digital form. If a digital art or a music track becomes a hit, you can sell it even after 20 or 30 years.
So, Are NFTs A Good Investment?
Currently, NFTs are a hot topic and investors and traders around the world are spending a lot of money to buy them.
However, there are still no guidelines or any criteria to determine the price of a GIF, meme, Tweet, or any digital art which makes NFTs an extremely risky investment.
It’s difficult to value digital art and it totally depends upon how much someone is ready to pay.
The best strategy is to spend the money that you can afford to invest in NFTs and keep in mind all the time that they’re highly speculative.
In this article we’re going to compare two crypto companies you can use to buy and hold your crypto in Canada – Bitbuy and Coinbase. We’ll cover the pros and cons of each and by the end of the article you’ll be able to decide which you should use.
When comparing Bitbuy with Coinbase, you should keep in mind what you want to use the services for. Some possible considerations
What methods can I use to fund my account at Bitbuy and Coinbase?
What are my options for withdrawing crypto from each service?
What are the fees for each type of transaction for each service?
What types of crypto can I buy on Bitbuy and Coinbase?
Bitbuy is a Canadian company based in Toronto. On Bitbuy you can buy Bitcoin, Ethereum, and a long list of other currencies and tokens. What makes Bitbuy unique in Canada is that you can fund your account with Interac E-Transfer. It only takes a few minutes and your e-transfer will hit your Bitbuy account. Additionally, you can receive crypto to a wallet address as well as send crypto to another wallet address if you want to move your holdings out of Bitbuy at any point.
This makes Bitbuy our favourite crypto choice for Canadians. If you want to withdraw your crypto into CAD, you can also convert any cryptocurrency into Canadian dollars in Bitbuy and then receive an Interac e-transfer to your bank account.
Coinbase is a well known crypto company founded in the USA. It’s known to be very trustworthy and reliable. In Canada you can fund your Coinbase account using a debit card. In the past you could also buy bitcoin or any other cryptocurrency using a credit card, but in a past couple of years Canadian credit card companies block crypto purchases so you need to use a debit card now.
Overall, Coinbase is a solid choice to buy crypto with a Canadian debit card.
Both Bitbuy and Coinbase are reputable crypto companies and both are great options to use as a Canadian. Really the main difference is that Bitbuy allows Interac E-Transfer to fund your account, or to cash out / convert your crypto to Canadian dollars.
Coinbase currently only allows Canadians to fund their accounts with a debit card, and when you want to withdraw money you’d have to cash out to a PayPal account. This is more inconvenient than should be the case in our opinion, unfortunately. If you’re OK with this and just want to hold crypto, Coinbase could be a good option. They have a great learning library with videos and quizzes that teach you about different cryptocurrencies and also give you free rewards!
All things considered, while we love Coinbase for our friends across the border in the United States, our suggestion is to use Bitbuy as a Canadian.
Fun fact: Coinbase USA was an inspiration for Bitbuy’s smooth product experience!
In this article we’ll do a deep dive into the cryptocurrency exchange Bitbuy.
Recently, Bitbuy was named as the 12th fastest growing company in Canada in the The Globe and Mail’s 2021 ranking of the top growing Canadian companies. Bitbuy was founded in 2013 by a Canadian technologist named Adam Goldman as InstaBT, and then later rebranded in 2016 as Bitbuy.
Here is a list of the cryptocurrencies you can currently buy on Bitbuy:
You can buy crypto on Bitbuy using interac e-transfer or wire transfer. The option to use interac e-transfer makes it super convenient and we also really like that you can send your crypto from BitBuy to any wallet. This way if you want to send money to Coinbase, or a service like BlockFi or Celsius you can! When you fund your account via e-transfer you’ll see the money deposited within 30 minutes, and usually faster.
The name on your bank account that you send the e-transfer from must match the Bitbuy account you send the transfer to. Make sure you get the security question and answer correct as well!
If something is wrong in your e-transfer information Bitbuy’s system won’t accept the transfer and they will reach out to you.
However, if you want to save time, be sure to double check all the info to get it right the first time!
Withdrawing Crypto From Bitbuy
If you want to move your crypto out of Bitbuy you can!
Simply click on wallet from the top menu and then click the red withdraw button next to the cryptocurrency you want to withdraw. You’ll then be asked for the wallet address you want to withdraw the currency to.
Alternatively, you can withdraw Canadian Dollars via interac e-transfer to your Canadian bank account. First though you need to convert your crypto to CAD. To do this first click “Express trade” in the top nav menu and then choose the cryptocurrency you want to sell. You’ll see how much you’ll receive in CAD in exchange for your crypto. Once you click the sell button and confirm the sale, you can then submit a withdrawal request for the CAD you now have in your Bitbuy account as described above.
For a detailed list of fees for deposit, withdrawal, and sending crypto on Bitbuy see this page. https://bitbuy.ca/en/fees/
Keeping Your Crypto Safe
Bitbuy has the option to set up 2-factor authentication via SMS or an authentication app on your phone such as Authy or Google Authenticator. We recommend you use one of the apps as they are more secure than the SMS approach.
Other Interesting Notes
In June 2021 Bitbuy and the Canadian Elite Basketball League (CEBL) announced a partnership where the league will pay a portion of a player’s salary in Bitcoin through Bitbuy if they request it.
This reminds us of the deal Paris St. Germain contract that Lionel Messi recently signed which includes partial payment in crypto. Of course the world’s top soccer player is more prominent than the CEBL, but we think that this is an interesting marketing strategy for Bitbuy in Canada.
While Bitbuy doesn’t have a partnership with the NHL, we have seen them buy ads at hockey games!
In other articles on this site we’ve mentioned that you can buy Bitcoin or Ethereum through the Canadian company Wealthsimple, and in this article we’re going to do an in depth review of one of Wealthsimple’s products – Wealthsimple Crypto.
Wealthsimple was founded in 2014 in Toronto and is the most popular Canadian robo advisor. This concept already existed in the United States with companies like Wealthfront helping offering to manage money for normal people for a small fee. However, Wealthsimple was the first company to do something similar in Canada.
It currently has over $8.4B in assets under management, has raised over $750M and is known throughout Canada as both a reputable company and trendy startup. In the past we’ve used Wealthsimple for high interest savings accounts as well as managing our investment portfolios.
In 2020 Wealthsimple launched a Crypto product that allowed you to invest in Bitcoin and Ethereum. In 2021 they launched a ton of additional tokens you can buy, bringing the selection close to that of Coinbase.
It’s really simple to put money into any of these as an investment on Wealthsimple, but it’s worth noting that when you buy crypto on Wealthsimple you don’t actually get a wallet address. You’re buying these assets as if you were buying a stock. You don’t have a crypto wallet, but rather hold a certain amount under Wealthsimple’s management.
If the price of one of your coins / tokens goes up you can liquidate / sell it of course, but you can’t send any of your coins / tokens to another address. This may be fine if you just want to hold the asset if in case it appreciates, but if you want to use DeFi tokens for their actual purposes like lending, etc. you can’t do anything with them.
We really like how easy it is to fund your account, and to use Wealthsimple in general. You have between $250 CAD to $1000 CAD in an instant funding for your account and the app is really user friendly and well designed.
How To Buy Crypto With Wealthsimple
If you’ve already signed up for a Wealthsimple Crypto account complete the 2-factor verification process and login. If you’re on a computer, click on the Trade & Crypto option. Then click Add Funds twice. There’s an instant deposit limit that ranges from $250 CAD to $1000 CAD depending on our account history.
Wealthsimple is great for trading stocks and ETFs with low fees, and also for a hands off approach to investing with their managed services. However, holding crypto in Wealthsimple is really only the right move if you’re OK with not having an actual crypto wallet (you can’t send the crypto to another wallet address to use it).
If you’re here, you’re probably wondering, “what is Bitcoin?” In short, Bitcoin is a form of cryptocurrency (digital currency) that you can use to purchase goods and services without any centralized financial institution. But what else should you know about the digital currency? Let’s find out.
What is Cryptocurrency?
Cryptocurrency is a form of digital currency that allows users to send money without using a centralized financial institution such as a bank. This makes transactions cheaper (no need to pay transaction fees) and faster (instantaneous).
What is Bitcoin Specifically?
So, what is Bitcoin? Bitcoin is the first decentralized cryptocurrency released to the public in 2009 by a person (or persons) under the pseudonym Satoshi Nakamoto. With Bitcoin, your transactions and what you’re purchasing online remain private and secure.
For example, when using credit cards online, third parties often can track what you’re buying online (credit card companies, government monitors that need to “spy” on what citizens are doing).
Bitcoin makes it easy for you as the user to stay anonymous. And if there’s any disputes or problems with what you purchased or what your purchase amount should have been, it will still be completely private between users sending each other money.
You can use Bitcoin to pay for products or services online from your favorite retailers, just like regular money. Many different places accept Bitcoin as a form of payment. You can also cash out your Bitcoins at an exchange service for fiat currency.
Who Invented It, and When Was it Invented?
Bitcoin was invented in 2009 by a person or group of people operating under the pseudonym Satoshi Nakamoto. The first Bitcoin was “mined” in 2009, and its current market capitalization is over $9 billion.
What Makes Bitcoin Unique?
Bitcoin is what you could call a “peer-to-peer electronic cash system” – what this means is that Bitcoin doesn’t require a central point of authority or clearinghouse to manage the transactions. This makes transactions quicker because there’s no need to wait for your money to be cleared by a third party like with credit card companies (which can take days).
Why is Bitcoin Useful as a Cryptocurrency?
Bitcoin derives its security and usefulness from the fact that it is decentralized. No one person or organization controls Bitcoin, making it impossible to be altered by any central authority. In addition, since you are your bank, you do not have to worry about anyone else holding your money for you. This makes you more secure than you would be if you deposited your savings at a bank.
How Does Bitcoin Compare to Regular Currencies?
Bitcoin is not backed by gold or other precious metals, and it has no value per se. On the other hand, you can still use Bitcoin to buy goods and services as you would with any other currency. Depending on where you live, you can also trade in your Bitcoins for dollars, euro, rubles, yen, and several other currencies.
Keep in mind that the price you pay for something when paying with Bitcoins depends solely on how much demand there is from people selling their coins. If you are paying with Bitcoins, you can be sure you are paying the exact amount you want to pay. No extra random fees or taxes are included in your purchase.
What is the Current Value of Bitcoin in Canadian Dollars?
The value of Bitcoin can be volatile, but you have to remember that it is a very new currency and has a lot of potential. As of August 2021, one Bitcoin is equal to nearly $65,000 Canadian dollars.
What is a Bitcoin wallet?
A Bitcoin wallet is a software or application you can use to access your Bitcoins. You can create different wallets, such as a mobile app wallet or a local storage wallet on your computer.
What are Software Wallets?
Software wallets are applications you can install on your device or computer to access and get Bitcoin. Software wallets allow you to store any amount of Bitcoins you want; you are the sole authority over your money; you own it.
One big advantage software wallets have over hardware wallets is that you can install one on all of your devices (computer, mobile phone, etc.) which makes it easier for you to send and receive Bitcoin wherever you go.
What are Hardware Wallets?
Hardware wallets are physical devices you can connect to your computer or mobile phone to store Bitcoins offline. This means you are not vulnerable to hackers, and you don’t have to rely on a third-party provider service as you do with software wallets.
What are Bitcoin Exchanges?
A Bitcoin exchange is an online platform where you can buy and sell Bitcoins. If you have a software wallet, you will have to transfer your currency from that wallet to an exchange if you want to trade or invest in other cryptocurrencies such as Litecoin, Ethereum, etc.
You can think of it like the stock market: you need to go through an exchange/broker to buy/sell stocks. Then, they make you bid on them with your USD, which gives you Bitcoin. But be careful when trading cryptocurrency, as this is very new, and there is no guarantee that any specific cryptocurrency will succeed long-term.
What are the Environmental Arguments Against Bitcoin?
There has been a lot of discussion about how much energy (electricity) is consumed to keep this new decentralized digital currency going. Some people have estimated that Bitcoin’s energy consumption is equivalent to that of mid-sized economies such as Switzerland.
This raises questions regarding the environmental impact Bitcoin could have on our planet. As you probably know, the earth is becoming warmer every year due to the increasing amounts of greenhouse gases we produce (carbon footprint). These gases trap heat and make our planet warmer than it should be naturally.
Bitcoin is a new type of currency you can use online. You store your Bitcoins in a wallet that you can then use to buy products and services from the companies that accept Bitcoin as an official payment method.
What you need to know about Bitcoin:
You own it, and you are the sole authority over it (like cash).
There are different ways you can access your money online (software wallets, etc.) which makes it easier for you to use them when you want/need to.
The value of Bitcoins has always been volatile, therefore do your research before investing. There is no government bond guaranteeing you profit. Always do some research first before you invest.
Now that we’ve covered everything on the very basics of Bitcoin, what is your opinion on the digital currency? Let us know in the comments below.
Also, if you want to buy Bitcoin, we wrote a whole blog post on the topic which covers all the best options for buying Bitcoin in Canada.
ADA Cardano: Everything You Need To Know About The Third Largest Cryptocurrency
There’s a huge pool of cryptocurrencies that you can get your hands on right now. Be it Bitcoin, the classic digital avenue to store your money or Ethereum with its smart contract implementation, these coins have had their fair share of attention. Cardano is a relatively new name in the game.
It was launched in September 2017 after 2 years of meticulous development. It aims to solve the problems of interoperability, scalability, and sustainability that exist with first-gen coins.
If you are one of the individuals wondering about Cardano’s recent popularity hike, then you are in the right place.
In this article, we’ll discuss the latest information regarding this hot cryptocurrency and determine whether investing your big bucks in this coin is a risky bet or not.
What Is Ada Cardano?
Similar to Ethereum, Cardano is a smart contract platform that helps in the creation of peer-to-peer transactions. It is a layered platform with high-grade security, and it is also customised to be scalable. Launched in 2015 by Charles Hoskinson, who also co-founded Ethereum, this non-profit organisation rolled out their coin, ADA, in 2017.
Three separate organisations have joined hands to work on Cardano. They include:
The Cardano Foundation: This company is the main body behind the work, promotion, and protection of the Cardano technology protocol.
IOHK: This organisation aims to tackle new challenges and focuses on providing better financial inclusion.
EMURGO: This organisation supports and aids in the development of new software systems, and helps IOHK by taking inputs from startups and developers.
It is available on most of the major crypto exchanges like Coinbase, Kraken, FTX, and Kucoin.
About Smart Contracts
These contracts are self-executing functions that are verified on various nodes and allow its users to put conditions on their digital transactions. The two primary layers that distinguish the ledger of account values include:
Cardano Settlement Layer (CSL): This brings equilibrium to the ledger and acts as a currency structured using Ouroboros. Its proof-of-stake consensus algorithm contains various scripting languages and user-issued assets.
Cardano Computation Layer (CCL): This layer contains the preliminary information for every transaction and works without the interpolation of CSL.
The organisation is also looking forward to sanctioning DeFi capabilities in unbanked countries like Ethiopia.
Users can also earn rewards as high as 4.5% every year by staking their tokens in an existing pool. This also promotes decentralization and the creation of new blocks. Furthermore, every 6-8 months, they conduct a systemwide voting that allows holders to decide on fund resources.
Other Important Crypto Terminology
KMZ Sidechains: These protocols allow funds to be transferred from one blockchain to another. It also adheres to certain regulatory instructions and keeps the information behind CSL-ledger interactions private.
Daedalus Wallet: This is an open sourced wallet created by Cardano that can transfer the supported set of currencies without any interference. This wallet also lets you interact with the applications built by developers.
Cardano Fees: Much like Bitcoin, users incur a small fee when transferring ADA. This is calculated by the rule : a+b*size of the transaction.
What Is It Used For?
The inclusion of smart contracts will facilitate the working of decentralized applications, also known as DAapps. These apps will be used by participants to implement blockchain-based inputs on their contracts via an abstracted user interface. These DAapps also involve Haskell-based languages like Plutus and Marlowe.
Usage of blockchain in the financial space will allow users to assign any value/condition to the contract, which will automatically be exercised without their constant involvement.
As a result, the transaction speeds are significantly higher as compared to the likes of Bitcoin and Etheruem. During its testing, Cardano could process as much as 257 transactions per second.
Their roadmap is bifurcated into five sections, each of which focuses on a special functionality. This can be summed up as follows:
Foundation Era/Byron: This will enable the exchange of ADA on federated networks coupled with Ouroboros consensus protocol, which is a product of heavy and extensive academic research.
Decentralization Era: This will improve the current networking scenario by captivating more nodes under its control. This will help in the creation of a faster network with less uptime and more security.
Smarts Contracts Era: This stage will allow developers to create DAapps while also embedding a multi-asset blockchain plan. Wider interoperability and token locking are also some features that will be enabled with this update.
Scaling Era: This stage will improve scalability significantly by introducing sidechain accounting styles that will run parallel to their UTXO model.
Governance Era: This will mark the beginning of a fully-decentralized and self-sustaining network.
Click here to know more about their long term upgrades.
To sum up, the primary use of Cardano involves allowing transactions in its native currency and powering scalable applications through it.
What Makes It Different From Other Cryptocurrencies?
The two main differences are:
Ouroboros consensus reviewed by experts
Even though both Ethereum and Cardano revolve around contracts, Cardano differentiates itself by using a peer reviewed update system which it is the first of its kind. This blockchain protocol is based on a scientific and research-driven approach.
The main rival of Cardano is Ethereum. Apart from this, newer projects like EOS, Lisk, and NEM are also in the race as they are involved with smart contracts too. In comparison to these, the practices of Cardano organisation members are validated by peer-reviewed research and secure coding practices.
In terms of trades, Cardano stood between $2.44-2.86 in the latter half of August 2021. As per their listings, only 45 billion ADA can be mined, unlike Ethereum which has an unregulated supply.
Frequently Asked Questions
Is Cardano A Good Investment?
Although experts suggest that this currency will stay buoyant for some time, potential catalysts suggest that this currency is only worth it if you plan on going long-term. Its promising applications in the blockchain space make it a solid and future-proof investment.
Why Is It So Popular?
Its energy efficient process and clear roadmap are two points that have filled the investors with confidence, thus increasing the number of purchases and price. The community is also regularly updated, which puts the pedestal in the hands of the public.
Should I Buy Cardano?
Apart from being energy efficient, constant backing of experts and a wide array of applications in health and agricultural sectors portray this coin as a really lucrative investment venture. The limited supply can also help increase the price. Hence, buying Cardano during a dip and holding onto it for a long period of time isn’t a bad idea.
Ripple: A Complete Guide Including History, Uses, Comparisons, And More
You might be familiar with the standard cross-border/international payment avenues like SWIFT or RTGS.
Despite having a myriad of shortcomings, these gateways are still used by major financial institutions throughout the world.
They rely on moving money through an array of internal book transfers, which leaves them vulnerable to battling exchange rate margins, slow transaction speeds, and high fees for processing.
Cross-border payments could really use a modern upgrade, and Ripple claims to do just that!
Let’s look at how Ripple aims to provide the liquidity and speed that banks require, and how it can lay the foundation for a better financial ecosystem.
What Is Ripple?
Ripple is a California-based company that focuses on giving a platform to financial institutions (banks, payment processors, etc.) in order to facilitate real-time payment and cheaper currency exchange services.
Originally known as Opencoin, Ripple labs now use a digital currency called XRP which acts as a mediator between currencies.
Their main goal is to eliminate the need for conventional systems like SWIFT and bring in a faster method in its place.
What Is Ripple Used For?
Ripple has a network of payment providers spread across the globe who use Ripple products for asset exchange, currency trades at a lower cost, and remittance systems.
Payment latency, exorbitant transaction costs, and the increased risk of losses due to holding foreign currency are some of the problems that Ripple has tackled.
It is also used by many banks to hold domestic currency, thus reducing exposure to liquidity expenses and international inflation risk. More than 100 companies have now partnered with Ripple software to offer frictional transactions to consumers. Thanks to this robust financial sector adoption, Ripple’s cryptocurrency, XRP, is one of the largest crypto assets boasting a market cap of $55Bn+ as of August 2021.
Who Uses Ripple and Why?
Banks and payment providers are now implementing Ripple and utilizing their Ripple Network Payment System. To indicate transfer of payments, they use XRP tokens. It is crucial to note that this currency is notcreated for consumer use, but only to provide a greater degree of liquidity to banks during transactions. Ripple also uses fiat currencies like euros, pounds, yen, and dollars.
Why It’s Used: For a technology to become sustainable, it must solve its problems. The problem that Ripple aims to eradicate is to reduce the processing fee and time in global transactions. Trillions of dollars go down the drain every year due to poor coordination and slow fund settlement by banks. The absence of a streamlined international network results in this problem.
For instance, say you want to transfer some money from your account in Canada to a bank in the United States. To do this, your banks try to create a pathway of internal links. These intermediary banks then establish a path to transfer your money. Needless to say, each bank takes a processing fee along the line which results in high cost and time.
On the contrary, payments with XRP can be settled in less than 4 seconds. The transaction cost is also significantly lower (0.00001 XRP). Their network is currently capable of handling 1400+ transactions in a single second. They offer three products to banks which are as follows:
This software allows settlement of cross-border payments with end-to-end tracking. This also gives users a messaging option so that they can confirm the transactions in real time.
This is the feature that banks use when they want liquid assets. It uses XRP for financial payments.
This is the feature that banks use when they want liquid assets. It uses XRP for financial payments.
Three Ripple Products For Banks
Is Ripple A Good Investment?
More than $150 trillion is sent globally every year, and Ripple’s current ledger from this amount is less than 2%. If this company emerges as the standard cross-border payment platform, then the potential value could increase exponentially.
As risky as investing in a new technology is, if you believe in the future potential of Ripple, it could give you good returns in the long run.
This situation is similar to the tech boost of the 1990s, where only a few companies emerged victorious but gave huge returns. For instance, the share price of Amazon was around $1 in the early 2000s. This has now skyrocketed to over $3,300. Of course, lots of early 2000s Silicon Valley companies also went bust.
Here are some pros and cons of investing in Ripple that might make the decision easier for you:
This cryptocurrency is really affordable when compared to others, making it ideal if you are just starting out. Its mainstream appeal and low price make it a low-risk option.
The limited number of coins available in the market means that the demand could outgrow the supply, leading to increased prices.
Ripple is not just a simple cryptocurrency, but also has a company backing it which promotes its growth. It is not a part of blockchain, but a distributed ledger instead.
It is not decentralized and goes against the principles of economic autonomy. Moreover, Ripple owns a massive chunk of XRP (nearly ⅓) which might lead to over-inflation of the prices.
If Ripple wins the case against SEC, which seems probable, then its value will increase steadily.
It has to compete with SWIFT, which has been a prominent name in the banking sector for decades.
To sum up, the risk vs. reward factor of Ripple is definitely high due to the support of some major financial institutions and low price.
With that said, please always remember that these blog posts are not financial or investment advice, and investing in any cryptocurrency is extremely risky!
Ripple vs. Other Cryptocurrencies
The main goal of Ripple is not to compete with the existing cryptocurrencies, but to rival the likes of prevailing remittance systems. However, if you are an investor looking to diversify your horizon, then this information may be of good use to you:
How Is Ripple Different From Bitcoin?
Aside from the price, both of these coins have different methods of performing a transaction. Unlike BTC, Ripple uses a consensus mechanism which employs various nodes to verify the authenticity of a transaction.
XRP is also significantly faster as compared to the likes of Bitcoin and Ethereum. Another difference between these coins is that Bitcoin can be mined, whereas Ripple is already pre-distributed in the market. The supply for BTC is capped at 21 million.
Bonus:Here are some resources that might help you get started with mining.
What Makes Ripple Better?
Faster transactions and lower processing fees are what mainly drive the interest of investors to Ripple, whereas other coins focus more on censorship and centralization.
Frequently Asked Questions
How Big Is Ripple Compared To Other Coins?
XRP has a total market cap of $54.38 billion USD currently. Other coins that run on the ledger system include Ether, IOTA, and Litecoin. In comparison to its primary competitor Stellar, Ripple has the head start. In order to gain authority, it will have to maintain the lead and keep improving.
Who Founded Ripple and When?
Ripple was founded in 2012 with the help of Chris Larsen and Jed McCaleb.
Are Ripple and XRP Different?
XRP is a cryptocurrency managed by Ripple Inc. It started in 2012 at a price of $0.014. Many people often confuse both terms, but it is worth noting that Ripple is not a cryptocurrency.
How Much Is Ripple Worth Today In CAD?
As of 28 August, 2021, Ripple is available for 1.4523 CAD and is mostly in the range of 1.411-15.118 in 2021.
Ethereum is a cryptocurrency that is growing in popularity.
It has been steadily climbing the charts and making waves on the internet, but what exactly makes Ethereum so unique?
In this blog post, we will explore Ethereum’s history and how it fits into the cryptocurrency ecosystem to better understand why it’s gaining such traction.
What is Ethereum?
Ethereum is the second largest cryptocurrency in the world, just behind Bitcoin. Ethereum was founded in July of 2015 by Vitalik Buterin along with several other developers. Buterin had been working on Ethereum since 2013 and wrote a paper about it in November of that year.
The goal was to create something similar to Bitcoin but with extra features like the ability for more complex contracts and decentralized applications (DApps).
Bitcoin vs. Ethereum: The Key Ethereum vs. Bitcoin: The Key Differences
There are a few important differences between Ethereum and Bitcoin. At high level you can think of Bitcoin as a digital currency akin to digital gold. On the other hand Ethereum is more like a platform. There is a currency called Ether but that is just one of the applications built on Ethereum!
Additionally, Bitcoin has a fixed supply of 21 million tokens which will all be mined by approximately the year 2040.
Ethereum, on the other hand, has no fixed supply meaning that more and more Ethereum are created with every block.
More Energy Efficient
Ethereum also uses much less energy than Bitcoin. One of the main criticisms of Bitcoin is how much energy it uses, with one study estimating that Bitcoin mining consumed more electricity in a year than the entire country of Denmark.
Another study from TRG Datacenters – a company based in Houston, Texas ranked various cryptocurrencies by how much energy (Kilowatt Hours) is necessary to process a transaction. Bitcoin was the least energy efficient.
Bitcoin (BTC) 707 kWh – Least Energy Efficient Ethereum (ETH) kWh 62.56 Dogecoin 0.12 kWh Ripple (XRP) 0.0079 kWh
In conclusion, Ethereum has grown in popularity as the world’s second most popular cryptocurrency behind Bitcoin because:
1. Ethereum transactions are faster than Bitcoin transactions
2. Ethereum enables the Decentralized Finance and companies to build financial applications on it without the need for banks and other traditions institutions
3. Ethereum is much more energy efficient than Bitcoin
If you want to buy Ethereum, we wrote a whole blog post on the topic which covers all the best options for buying Ethereum in Canada.
PLEASE READ: With that said, please remember that any investment you make into crypto is highly speculative and the price could go up or down at any time. You should only invest money that you’re willing to lose so that you don’t end up feeling regretful later.