- Getting Started with Cryptocurrency in Canada in 20 Minutes.
I get asked this question more often and have compiled an email for my friends and colleagues. Here it is for anybody else who may be interested. It takes a total of about 20 minutes to register on the exchanges and send your first deposit. If you think Bitcoin and blockchain are stupid hype.. hey you may be right. We’ll see. But you can stop reading here. You’re only wasting time and your opinion isn’t being solicited.
Your best avenue for getting started with cryptocurrencies and blockchain tokens will be to transfer CAD (Canadian) funds from your bank to one of the three exchanges in Canada. The below steps 1 to 4 take 20 minutes. After this you will be able to buy major tokens like Bitcoin, Ethereum, Ripple, etc.. as well as diversify into other tokens and join the token economy. Cryptocurrency can be both an investment and insurance policy. It is difficult to pick winners and predict innovation in advance. Many bright minds thought the internet and companies like Amazon and Google would never make it. Only ever invest what you are comfortable losing. If you are really risk averse consider it like an insurance policy.. most of the time they don’t pay out and have opportunity cost.. but when the unexpected does happen they are worth every penny.
After step 4 I can teach you.. if I feel like writing another article, how to transfer these tokens into your own blockchain wallet that is yours and yours alone to access. You can also learn this with a bit of research. You will be able to trade, sell and withdraw funds as easily as using a debit card.
STEP 1. PICK AN EXCHANGE
All of the exchanges offer the ability to send funds from your Canadian bank account and to buy core CryptoCurrencies like Bitcoin & Ethereum which is all you need to be able to further diversify into other tokens. CryptoCurrencies are a type of blockchain token.
OPTION 1: COINSQUARE. https://coinsquare.io/
Coinsquare is a Toronto based exchange. They just raised over $40M in VC funding for expansion and are a very legitimate organization. They accept various deposits including eInteract and you can also verify your account to support additional deposits like a wire.
Coinsquare prices are at a market premium over spot price ranging from 2%-10% which is not so great for buying buy great for selling. The premium varies and is on average about 3% to 5%. They do offer an OTC service for high net worth clients. The regular order books are not very large so it is best for trades under $100K. If you are buying Bitcoin or Ethereum here and looking to diversify into other tokens, then the premium is not insignificant. According to the team Coinsquare is actively cooperating with the CRA and regulatory bodies which should allow for simplified returns in the future. Aside from the premium and thin books, another noticeable downside for any serious buyer or seller is that their order system is not intuitive as you are always buying and selling Canadian dollars and the book also does not show depth.
OPTION 2: QuadrigaCX https://www.quadrigacx.com/
QuadrigaCX is a Vancouver based exchange. They also offer the major trading pairs. They rumour is that they are not actively cooperating with CRA and regulatory bodies which makes them at greater risk of potential .. issues.. they offer cryptocurrency at market prices. Their customer service has not been great in the past. That said their order books are usually decent in volume and their spot price is usually only varies +/- 2% from market prices.
OPTION 3: Kraken www.kraken.com
Kraken is not a Canadian exchange, but a San Francisco exchange. That said, they have the most Canadian Dollar trading pairs and far more tokens than both Coinsquare and QuadrigaCX. They also accept deposits from Canadian Banks and gather appropriate Identification Credentials. They are a quality exchange and you will not need to send your funds across many exchanges to get most ‘core tokens’ if you use them.
STEP 1. SIGN UP
.: Use a unique username and a complex password. Eg. B0B\/\/a5lwaysFu110f1t56987. Don’t re-use your username or password across exchanges.
.: Bookmark the links. Never google the exchange names as the search results may show fake but convincing sites.
.: Use 2 Factor Authentication. You can set this up later but don’t forget to do so.
STEP 2. VERIFY YOUR ACCOUNT
In the account settings or verification section provide them with the required AML & KYC info; Anti Money Laundering and Know Your Customer. This will include address, drivers license photo, etc. This can take 2–3 weeks to get reviewed so definitely don’ typo or send fuzzy photos.
STEP 3. FUND YOUR ACCOUNT
In the account funding sections of the site, click on their ‘deposit’ option. You will see options ranging from e-interac to wire transfer. Some deposits carry a small deposit fee. You can wire them a small amount to test things for your mental sanity. Eg. $1,000. Wires can take a week to get deposited. E-Interac usually takes a day.
STEP 4. REGISTER ON A MAJOR EXCHANGE (Optional: only to diversify)
STEP 5. OPTIONAL ADDED SECURITY.
If you want to invest or trade over $10K get a dedicated device like a cheap phone or tablet from Costco for around $150-$200. You will use this as your 2 Factor Authentication device.. everytime you try to login to the exchange you will verify with a code on the device that expires every 30 to 60 seconds. If it doesn’t make sense it will once you do it once. It is super easy.
DONE! WHAT IS NEXT?
Jeeee wiiiiizz! You just joined the token economy. You can now take full ownership of your cryptocurrency assets and ‘be your own bank’, start trading or diversifying or even learn how to create your own tokens and buy and sell things for and with tokens. Wow wow weee!
BUY TOKENS FOR YOUR PORTFOLIO
Well you can now buy some cryptocurrencies like Bitcoin or Ethereum as either an investment or insurance policy (because who knows what the future holds). You can also send these tokens to other exchanges and trade them for other tokens to diversify your portfolio; eg. Ripple, Stellar, VeChain, Monero, etc.
GET A WALLET
It is also not recommended to keep any meaningful value of funds on any exchange to avoid losing funds if they are compromised. So you will want to send your Bitcoin and Ethereum to your own wallet. JAXX wallet by Decentral a Toronto based company is a decent wallet that allows you to store many tokens. It is a deskptop, android and iOS wallet; www.jaxx.io.
(Update.. I just tried Jaxx today since my last try with it a year ago. Still not a fan for non BTC holding. I recommend www.MyEtherWallet.com for Ethereum and related ERC20 tokens)
Well.. you got this far.. now go learn something.. If you want some thoughts on diversification and storage you can also contact me for a consulting estimate.. this article is free :) None of this is investment advice.
- Date of publication:
- Mon, 03/26/2018 - 14:26
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