How To Profit From Bitcoin
Since bitcoin is a new groundbreaking technology, many people want to get on the ground floor to reap potentially great returns in the future. The interest in bitcoin in Canada has skyrocketed in recent times and it seems like Canadians are highly interested in making those bitcoin profits.
In this article, we will be talking about ways you can buy and sell bitcoin and also secure profits from your bitcoin investment. Before starting, you must be wanting to ask “Is Bitcoin legal in Canada”? The answer is yes. The Canadian Securities Administrators have been publishing guidelines about how crypto transactions should be viewed. They want to assure consumer safety, and rightly so.
Moving along, for a bitcoin investment, the first thing you have to decide upon is the capacity of your involvement. There are many ways you can profit from the king of crypto. You could be a trader, a miner or a passive investor.
Below, we are going to discuss 6 different ways to profit from bitcoin.
Buying and Holding
The best, easiest and most common way to start off is to simply buy bitcoin on an online exchange. Canadian exchanges raked in huge volumes during the last bull market and during mid-2019. As the next bull market has started, they are expected to easily surpass those numbers.
How to buy bitcoin:
- Create an account in one of the exchanges of your choice.
- Complete the KYC by providing your ID or other documents.
- Fund your account from the options available (debit card, wire transfer, etc)
- Buy bitcoin!
When you’re done, you can simply wait for prices to rise and exit the markets when the timing is right for you. In this method, you are actually indulging in bitcoin investment as you have a longer time span between entry and exit. As always, you should do your own research and decide when you want to buy and when you want to sell bitcoin.
This is another popular method to earn bitcoin profit. The Canadian crypto markets have seen a resurgence since the past year and trading volumes have begun to rise. Many people choose to buy bitcoin at a lower price and then sell their holdings at a higher price to earn a profit. In trading, however, the time span between entry and exit is usually very short.
This is similar to how stocks are traded in the traditional financial market, except, the trading happens on an online exchange in the world of crypto. Many Canadians also prefer to trade over-the-counter (OTC) and through peer to peer channels. Whatever the venue, the core principle is the same. They want to buy low and sell high to earn their bitcoin profit.
Bitcoin is generated by a process called mining. Miners all around the world run specialised mining machines to contribute to the bitcoin blockchain. For their contribution, they are awarded bitcoin. It’s important to note that, in this method, you don’t actually buy bitcoin. In the earlier days, mining bitcoin was really simple and was done on regular computers. These days, however, you require expensive machinery to mine bitcoins.
You could use this method to mine bitcoins but you would need access to the specialised mining equipment. You need to be aware of the costs involved before going this route. If electricity is cheap where you live, and you can easily access mining equipment, you can try mining to build up bitcoin profit in the long run.
While the above-mentioned ways require you to invest some money first before getting started, this method doesn’t require you to do so. You can get tiny amounts of free bitcoin by completing small tasks like watching an ad, answering surveys, writing reviews or any other small tasks.
There are many faucet websites that allow you to get free bitcoin. You need to keep in mind, however, that you will only get a very tiny amount and it could take you some time to complete the tasks. Also, there might be fake faucet websites where you won’t get anything even after completing the tasks.
Accepting Bitcoin As Payment
If you’re running a business or providing a service, you could choose to accept bitcoin as payment from users who are willing to pay with it. This would do away with the need to buy bitcoin with fiat because you will be directly paid with it. In recent times, Canadians have started to pay with bitcoin a lot more. Many services have sprung up that make the whole process easier. For bitcoin, Canada is really an important market if it wants to go mainstream.
Just as you can lend money in the traditional financial world to earn interest, you can also lend bitcoin to earn more bitcoin as interest. Many services have emerged that allow you to safely lend your bitcoin to other people online and you can get a healthy return yearly. Some of these platforms offer anywhere between 8-15% yearly returns.
If you don’t feel comfortable trading, where there can be a risk of losing what you already own and you also don’t want to keep your bitcoin idle for years waiting for the market to peak, this is a really great method to make your bitcoin work for you and earn a passive bitcoin profit. Over time, it builds up leading you to even greater profits. The concept is really simple and you don’t need to invest a lot of time and effort in understanding it.
With increasing clarity in regulations in Canada, it is no longer about “Is bitcoin legal in Canada”, it is about how you can easily get on the crypto train and earn profits in the new bull market phase that we are entering
You can Buy Bitcoin in Canada directly from PCCEX Cryptocurrency Exchange by signing up or registering. Buy, sell and trade Bitcoin on PCCEX, Canada’s best cryptocurrency exchange.
***Please ensure to declare any capital gains or reward income to your local taxation authorities to ensure you always remain compliant. Cryptocurrency purchased on illegitimate exchanges that do not run KYC may not be supported and have been listed/traded there without our permission. Investing in cryptocurrencies is a high-risk and volatile