4 Frequently Asked Questions About Bitcoin
Bitcoin has been the top performing asset over the last 10 years and reached a new all time high in 2021.
Ask the Expert: Mitchell Demeter President of Netcoins.ca
Isn’t Bitcoin risky?
Cryptocurrencies are known to be volatile and the price fluctuates quite a bit on a day to day basis. As with most investing, it's important to zoom out and look at the bigger picture. For example, in 2010, 1 Bitcoin was worth less than $0.10. Fast forward 10 years, as of the end of 2020, 1 Bitcoin was worth over $30,000 CAD.
Bitcoin has been the performing asset over the last 10 years. According to JPMorgan Chase & Co, Bitcoin has the potential to reach $146,000 in the long term as it competes with gold as an asset class.
What exactly is Bitcoin?
Bitcoin is the first and most popular cryptocurrency. It's a digital asset that is often compared to gold because of its limited supply.
Cryptocurrencies have gained adoption in mainstream finance. Large companies like PayPal and Fidelity made moves in the cryptocurrency space, investors such as Paul Tudor Jones and Stanley Druckenmiller publicly invested in Bitcoin, while the likes of Square and MicroStrategy have used their own balance sheets to buy Bitcoin.
What’s a good entry level investment?
A common misconception is that you need to buy 1 Bitcoin, but you can actually just buy a fraction of it. You can invest as little as $100 or allocate a percentage of your wealth. Many people start by dollar cost averaging in (buying a set amount each day, week, or month).
How do I buy or sell Bitcoin?
The most common way is through an online exchange or brokerage that allows you to trade cryptocurrencies. At Netcoins.ca, you can deposit Canadian Dollars straight into your Netcoins account and convert that to Bitcoin. Similar to how you would exchange CAD for USD, but it's all done online. You can also get amazing support from the Netcoins team via live chat, phone or email. To buy and sell or learn more, visit Netcoins.ca