In recent times, bitcoin has gone to the extent of defying the gravity trajectory and hitting an unimaginable mark in the market. It has reached a degree that is now compared with the Tulip bulb craze of the 17the century. Despite its rise, financial analysts still argue that it the risks are too much to invest in them. On the other hand, other investors prefer sizing the opportunity and instead make millions before the expected crush becomes a reality. As a Canadian, there is a list of things to understand before investing in bitcoin.
Where to buy it
quadrigaCX.com is one of the most renowned largest bitcoin exchange platforms in Canada. Also, there is Toronto’s Coinsquare.io which has also built its name for some time now. To trade bitcoin within these platforms, you need first to set up a user account. Their onboard procedure is similar to the ones required by all other traditional online investing platforms. The least documents needed to open a user account is an identification number and the user address. With either of the two accounts, the user can do electronic transactions and use bank wires for both withdrawals and funding.
Processing time and fee
Note the fact that any transaction involving bitcoin is automatically registered on a blockchain which is a ledger shared publicly. In fact, a blockchain is what allows the existence of bitcoin. To avoid duplication, blockchain keeps track on who did which transaction including who owns what if digital assets are exchanged. To process transactions, the latter takes at least 10 minutes of waiting. The bitcoin transaction is not free as the user is required to pay a small transaction fee. After miners have cracked the algorithm to obtain the bitcoin, they will be charged some transaction fee.
If you think that bitcoin is way out of CRA (Canadian Revenue Agency), you are wrong. The use of crypto-currency does not in any way exempt you from paying taxes to the tax collection agency. However, the manner in which you are taxed will largely depend on how you are using bitcoin or any other crypto-currency. If you pay for services and goods using virtual tokens, the rule of barter transaction applies to you.
With the growing number of retailers who accept bitcoin in Canada, you can now trade using digital currency easily. However, it may still be difficult to depend on bitcoins entirely.