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Cryptocurrency is a fast growing digital form of currency. Here is a detailed description on how do I buy cryptocurrency in Canada.
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Cryptocurrency is a fast growing digital form of currency. Here is a detailed description on how do I buy cryptocurrency in Canada.What are cryptocurrencies?Cryptocurrencies are digital coins or tokens that typically rely on distributed ledger technology. Cryptography is something that helps you permit the holding and transfer of the value or interest represented by the coin or token.
Although many are decentralized, some are operated by one or more parties with centralized control. Although they are commonly referred to as “cryptocurrencies”, this can be misleading, as to date, they have not been legal tender under the Currency Act (Canada). We generally call them “crypto-assets” to avoid this confusion. In many cases, crypto-assets are subject to securities law in Canada.
Crypto-assets may act as a store of value, perform a function or represent an interest in an asset or enterprise. Crypto-assets like Bitcoin and Litecoin have been offered to the public including through initial coin or token offerings and may be made available on a variety of trading platforms and in private transactions. Unfortunately, the parties making these crypto-assets available for sale may not be complying with securities law.
Background checks on the people who operate the trading platform.● Working capital and insurance requirement.● Minimum levels of proficiency and experience.● Keeping accurate records of client assets and reporting to clients.● Keeping client assets in safe custody and separate from the platform’s own assets.● Protection of personal information.● Addressing conflicts of interest and not taking advantage of clients.● Minimum amounts of capital and insurance.● Fair trading rules.● Prevention of market manipulation.● Ongoing regulatory oversight.
None of these protections may exist with an unregulated platform. As a result, the people running the platform may not have the necessary experience or financial resources and there may be no insurance or other protection to cover losses. Further, if the platform is located in a foreign jurisdiction, there may be significant limitations on commencing legal action or recovering assets.
There are many other risks associated with crypto-assets, including:Volatility: Trading in many cryptocurrencies has been extremely volatile. Investors may lose all their investment. The value of a cryptocurrency is often determined solely by the public’s interest in it and current levels of supply and demand. There is often no inherent value to it.
Liquidity: It may not be easy or cost-effective to trade your cryptocurrency for another cryptocurrency or for money that is legal tender. Cryptocurrency trading platforms may limit or suspend trading, or there may be limitations or suspensions imposed on funding and withdrawals from accounts.Loss through fraud, theft or hacking: Cryptocurrencies are represented digitally and as such are susceptible to loss through theft, hacking and the compromising or loss of digital wallets and keys. Cryptocurrencies are attractive to those intending to perpetrate scams and fraud.
Other ways to invest in cryptocurrencyYou can invest indirectly in certain cryptocurrencies, i.e Bitcoin and Ethereum, without having to directly acquire the digital coins. Here’s a way to buy bitcoin in Canada. Sign up at Netcoins now for best way to invest and trade with crypto-assets.SOURCE CREDIT: https://netcoinscanada.wordpress.com/2021/11/18/how-do-i-buy-cryptocurrency-in-canada-a-brief-note/
