by Hodler Ash 
In recent years, cryptocurrency has become more and more popular, with Bitcoin leading the charge. If you’re thinking of investing in cryptocurrency, or have questions about the Canadian Bitcoin price, there are a few things you should know before you do. Here are eight things you need to know before buying cryptocurrency.
1. What Is Cryptocurrency?
Cryptocurrency is a digital asset that employs cryptography to legitimate transactions and regulates the generation of new units, Cryptocurrency also uses blockchain technology to verify transfers.
2. Cryptocurrency is Decentralized
Cryptocurrency is a unique form of currency that is not subject to a financial institution or government control. Unlike traditional fiat currencies, which are issued by central banks, cryptocurrency is generated through a process of “mining” that is open to anyone with a computer and an internet connection.
Cryptocurrency transactions are also typically carried out without involving a third-party intermediary, such as a bank or credit card company. This allows for near-instantaneous transfers of funds between parties, with low transaction fees.
The decentralized nature of cryptocurrency has made it popular with those who are looking for an alternative to traditional fiat currencies.
3. First Cryptocurrency
The most well-known and first cryptocurrency created in 2009 was Bitcoin. Since then, it has become increasingly popular as a means of investment and payment. Transactions are recorded on a decentralized public ledger called a blockchain.
Bitcoin can be bought, sold, or exchanged for goods and services. Because there is a limited supply of Bitcoins, their value can fluctuate wildly. Some people view cryptocurrencies as an investment, while others see them to avoid traditional financial systems.
4. Cryptocurrency Uses
Some merchants accept Bitcoin as payment, and there are even a few ATMs that dispense Bitcoin. Cryptocurrencies are volatile, meaning their prices can fluctuate dramatically.
This volatility can be a disadvantage if you’re looking to use cryptocurrencies as a form of investment, but it’s also part of what makes them so attractive to traders. The decentralized nature of cryptocurrencies means they’re not subject to government regulation or control, which has made them a target for criminality.
Despite these risks, the popularity of cryptocurrencies continues to grow, with more and more people looking to get involved in the market.
5. Fluctuating Prices
Their prices are volatile, meaning they can fluctuate rapidly in response to news events or changes in market sentiment. This volatility can make cryptocurrencies a risky investment, but it can also offer opportunities for investors to make quick profits.
In addition, some people believe that cryptocurrencies will eventually replace fiat currencies (such as the US dollar) as the global currency of choice. Whether or not this comes to pass remains to be seen, but cryptocurrencies have introduced a new era of finance.
6. Most Valuable
Bitcoin is the most valuable cryptocurrency, with a market capitalization of over $100 billion as of 2018. It was created in 2009 by Satoshi Nakamoto (an anonymous group or person).
Bitcoin is not backed by any government or central bank. Instead, it relies on a decentralized ledger system, known as a blockchain, to track and verify transactions. Bitcoin can be utilized to acquire services and goods online and is also being used as an investment asset.
While the Canadian Bitcoin price has been volatile in recent years, it has shown signs of long-term growth potential. As more people become aware of and interested in cryptocurrencies, Bitcoin is likely to continue to increase in value.
7. Second Most Valuable
Ethereum is a decentralized computing platform that allows you to create and run smart contracts, which are programs that execute exactly as intended without the possibility of fraud or third-party tampering. The Ethereum network is revolutionizing finance by allowing the creation of a decentralized internet.
These apps are based on a blockchain, which can manage value and confirm ownership of property.
Because of the benefits described above, smart contracts allow developers to build markets, registries of debts and promises, move funds in accordance with previously given instructions (such as a will or a future contract), and other things that haven’t been done yet.
8. How to Buy
Buying cryptocurrency can be a confusing and daunting task for many people. However, with a little research and planning, it can be relatively easy to get started.
The first step is to look into the best Canadian crypto exchanges that offers the type of currency you want to buy. Do your research and see what people think about the different types of cryptocurrencies available and make an educated decision. Once you have selected an exchange, you will need to create an account and deposit funds into it.
When your account is funded, you can then start buying and selling cryptocurrency. It is important to remember that the value of cryptocurrency can fluctuate rapidly, so it is important to monitor the market closely and sell when the time is right.
Provided By Tax Software Company, Sovos
