What is cryptocurrency?

Where to buy, sell and store crypto in Canada

Investors can now choose from a number of established and feature-rich crypto exchanges. If you're just starting out, look for exchanges registered with the Financial Transactions and Reports Analysis Centre (FINTRAC) that offer Canadian dollar deposits with your preferred payment method.

Click the Go to Site button when you're ready to create an account with any of the providers.

• Crypto exchanges
• Crypto wallets

Is cryptocurrency safe?

There are a number of risks associated with buying, storing and using digital currencies. Before jumping in, do plenty of research and make sure you understand how to keep your crypto safe. Some key risks to be aware of include:

• Poor regulation. Cryptocurrency is still a largely unregulated market, which means you may not be protected if your funds are lost or stolen. Look for platforms that are registered with FINTRAC and provide an insurance fund.
• Volatile prices. Crypto is much more unpredictable than traditional markets and massive price fluctuations within a short window are not uncommon. Because of this, your investment can quickly lose its value.
• Vulnerable to hacking. Several million dollars have been lost to successful hacks of crypto exchanges, wallets and blockchains. It's important to understand that without appropriate security measures like using a hardware wallet, securing your private key and enabling 2-factor authentication, your funds could be stolen.
• Steep technical learning curve. Grasping the complex technical foundations of potential crypto investments can quickly become confusing. You'll also need to fully understand concepts like gas fees and wallet addresses before interacting with a blockchain, or else risk total loss of funds.
• Scams. As crypto has become popular, so too have crypto scams. Be extremely wary of deals that seem too good to be true, thoroughly research all platforms or projects before putting your money in, and never disclose your private key.

FAQs

• What is a simple explanation of cryptocurrency?

  Cryptocurrency is a type of digital asset secured by a database known as the blockchain. Blockchains are designed to ensure privacy and security using complex cryptographic algorithms.

  Cryptocurrencies have a huge number of potential uses. They can be spent like money, ensure contract transparency, manage supply chains and much more.

• How does cryptocurrency make money?

  Cryptocurrency prices rise and fall like any other speculative investment, and can be heavily influenced by public announcements and media sentiment. Some coins, like Bitcoin, have a small supply and high demand, which can also affect its value.

  You might be able to make money with crypto by buying from an exchange and holding it, trading it or earning it, but each method has unique risks attached.

• Can you turn cryptocurrency into cash?

  Yes, cryptocurrency can be sold via exchanges and brokers for a local currency like Canadian dollars. In some places, you can even use a crypto ATM to convert digital assets directly into cash, though this does attract high fees.

• Which cryptocurrency is best?

  Unfortunately for investors, there's no such thing. The best cryptocurrency will be whichever you believe has real utility and that suits your personal investment goals.

  Bitcoin and Ethereum are widely considered to be the "blue chips" of crypto because of their high market cap and proven use-cases. Check out our guide to which cryptos to buy now for a look at what's trending today.

• Is cryptocurrency a good investment?

  Cryptocurrency can be a good investment if you've conducted extensive research and understand fundamental trading strategies. Investing in a highly volatile asset comes with the potential to magnify your losses as well as your profits, so only invest what you can afford to lose.

• Where does money go when you buy crypto?

  Money spent on cryptocurrency goes to whoever sold the digital asset, similar to any other exchange of value. This is usually an exchange or broker service, but it can also be a stranger if you've used a decentralised finance or P2P platform.

Get started with crypto

If you're just starting out in the world of crypto, it can feel overwhelming. Use our simple guides to research and compare different coins or take a look at our curated list of the best crypto exchanges and wallets to buy and secure your chosen assets.

Learn how to buy Bitcoin, Ethereum and other cryptos

There are now well over 10,000 cryptocurrencies and tokens, with new coins launching all the time. We've cut through the noise and written guides on how to buy some of the most traded cryptos, like Bitcoin and Ethereum, as well as hundreds of others.

Compare crypto exchanges in Canada

Compare dozens of major exchanges on features, fees, selection of cryptos and more in our comprehensive platform reviews.

Find the best crypto wallets to store your cryptos

Hardware, mobile, hot, cold… it's tricky knowing where to start with crypto storage. Our guides explain what's in a wallet to help you find your best options for convenience and security.

Get familiar with crypto trading

For more advanced investors, crypto could be a way to diversify your portfolio. Read our range of trading guides to get your bearings first.

• How to trade cryptocurrency
• Compare crypto trading bots
• How to do technical analysis

Learn how to earn crypto returns

Crypto earning products are still in their infancy right now. Make sure you've got everything you need to make an informed decision.

• How to earn crypto
• Crypto staking

Dive deeper into DeFi

From staking to smart contracts, our guides demystify DeFi and help you get your head around the new frontier of finance.

• What is DeFi?
• What is yield farming?
• Liquidity pools explained

Cryptocurrency stats and predictions

Get expert insights and analysis across the crypto sector or use our forecasting tools to help predict where a coin's price might move.

Crypto research and tools

Crypto evolves at breakneck speeds, with new concepts, coins and technologies emerging all the time. Keep on top of the latest trends with our industry data, consumer research and handy tools.