Here you will learn about how to invest in Bitcoin, what are the risks and opportunities, and what is a good crypto investing strategy. You’ll also learn about the 9 ways Coinberry is used to buy Bitcoin in Canada (Coinberry is a major cryptocurrency trading platform with more than 220,000 Canadians already signed up).

How to invest in Bitcoin

The easiest way is by signing up to a major cryptocurrency trading platform. For example, at Coinberry you can quickly start on your crypto investing journey by:

  1. Signing up to Coinberry and creating an account
  2. Adding funds to your account through wire transfer or Interac e-Transfer
  3. Buying some Bitcoin or other cryptocurrencies (you can start for as little as 50 CAD)

It’s like getting started with stock trading where you need an account and some funds to start buying some stocks. In crypto investing, what you buy are some cryptocurrencies and tokens.

If you see Bitcoin as an investing instrument (you’re only interested in whether its price will rise or fall), you don’t have to acquire technical knowledge to get started. You don’t have to learn about blockchain technology, cold wallets, and other technical terms. What you need is just some funds to start small and see how it goes.

Risks and opportunities in Bitcoin

But before you start, first it’s good to know about the risks in Bitcoin investing. Some of those risks are:

  • High volatility (may result in huge gains or losses instantly)
  • Unstable market (market is still far from maturity)
  • Government regulations (a major policy can instantly make Bitcoin’s price skyrocket or drop)
  • Hacking and scams (especially about pump and dump schemes, phishing, and malware)

Beware especially of “rug pull” where the crypto developer suddenly abandons a project after a hype and then sells all its assets. This can result in instantly huge losses for investors because suddenly the crypto asset is now close to worthless. This “rug pull” has already happened several times in the crypto industry.

To reduce the risks and protect your assets, you can do the following:

  • Choose a trusted crypto trading platform (e.g. registered and compliant)
  • Secure your account and apply all reasonable measures (e.g. multifactor authentication, multiple verification before transaction goes through)
  • Reading or watching the news about crypto even for just a few minutes a day (pay attention to the latest scams because scammers are now becoming more sophisticated)
  • Avoid clicking links from random senders and ensure the website is correct whenever you log in

Notice that it’s similar to securing your bank account. If you practice all reasonable measures, you’ll avoid most scams and minimize the risks.

We’ve talked about risks, now let’s talk about the opportunities in crypto investing:

  • The crypto market is still young and evolving
  • Several billionaires and major investment firms are backing Bitcoin and other cryptocurrencies
  • There’s still a lot of room for growth because we’re still just exploring crypto’s potential

With these opportunities, you might now want to start your crypto investing journey.

Crypto investing strategies for beginners

In general, beginner investing strategies are always about:

  • Removing emotion out of the equation
  • Making investing passive and automatic

Many of us get emotional when investing. It’s especially the case when our investment’s value suddenly skyrockets or drops. Here are a few scenarios:

  • Bitcoin’s value suddenly drops (is it time to sell or wait for price to bounce back?)
  • Bitcoin’s value increases by 20% (should we sell and take the profits or wait more to see if it further rises?)
  • Bitcoin’s value has just been hovering around 30,000 CAD for weeks already (should I be patient or just sell it and buy a crypto that’s moving faster?)

Emotion and impulse also enter the scene whenever there’s big news about Bitcoin and crypto in general:

  • A new cryptocurrency comes out that analysts call the “Bitcoin killer”
  • Two billionaires have suddenly put #bitcoin in their Twitter bio
  • A huge country suddenly bans all crypto activity
  • A new government policy that requires more transparency and auditing in crypto transactions

These big events can drastically affect Bitcoin’s price. Also, general market sentiment can make Bitcoin’s price suddenly drop or rise. For instance, if the public collectively perceives that cryptocurrencies have no intrinsic value, Bitcoin’s price might drop drastically. If the economy is going well and investors have more funds to use, they might put more money into Bitcoin (making Bitcoin rise in value).

However, you might not have the energy nor time to monitor the market and economic trends related to crypto. What you can do instead is practice dollar cost averaging (this somehow automates investing and removes emotion out of the equation). In this strategy, you consistently buy small amounts of crypto each week or month (instead of investing it all one time). This lowers your risks and losses. This also spares you from getting emotional whenever something big happens in crypto.

9 ways Coinberry is used to buy Bitcoin in Canada

Now that you know a good investing strategy (dollar cost averaging, consistently buying small amounts of crypto over time), we can now learn more about Coinberry and how investors use it to buy Bitcoin:

  1. Start for as little as 50 CAD
  2. Double the fund after a day or two
  3. Or increase the fund after a week after some learning and exploration
  4. Buy some Bitcoin, wait and see how the price changes
  5. Buy a bit of Bitcoin and a bit of other cryptocurrencies (spread the risk)
  6. Start with another cryptocurrency (e.g. perhaps Bitcoin is too expensive now) and buy Bitcoin later (once its price falls down again)
  7. Sign up to Coinberry and explore the platform first before putting in your funds
  8. Buy some Bitcoin, forget about it, and move on to other opportunities
  9. Set up Coinberry Autopilot (use dollar cost averaging, save time, and automate your crypto investing)

The goal is to minimize your risks and losses while also saving time and energy. To minimize your risk, it’s good to start small so that when price drops indeed happen, the losses will be minimal. It’s also good to automate your investing and take the emotion out of the equation. This way, you’ll have more time and energy for other money-making pursuits.