New to Bitcoin


Riekert Panther asked 5 months ago

Hi,
I am from Canada and new to cryptocurrencies. I have been studying and taking the crash course videos to gain a better understanding of how it works. I have to say I gained a lot more knowledge but still there are areas unclear to me.

  1. What would be the best exchange for me to use in Canada? Coinbase? and what about exchanges that offer ripple and other smaller coins?
  2. I am definitely investing in a hardware wallet – considering the Ledger Nano S (hopefully available in Canada)
  3. This might be a simple question, i have $5000 to invest and I like your idea of diversifying 70% into bitcoin and the rest into two to four other smaller supporting coins. If I buy these coins and move them to my wallet, and the price for bitcoins increases/decreases, does the value in my wallet increase/decrease with the change in bitcoin value? I guess I am trying to figure out if this is similar to investing in stocks and buying shares, the only difference is that this is crypto currency?
  4. Once I have these coins in my wallet (my interest is more long-term investments – I have a full time job and hoping to continuous invest), how do you withdraw these coins to having fiat money again? I noticed that Coinbase is linked with the Shift Visa, I believe you can sell these coins on eBay. What other options are there? Can I transfer a certain amount of coins to coinbase to get a SHIFT Visa? Little more information on this topic will be appreciated.

I hope to hear from you soon, I am only on day one of the crash course but very excited to start investing. Thanks for a great website, very helpful.

1 Answers
Steven Hay answered 5 months ago

Hi Riekert,
 

  1. Kraken is pretty good! QuadrigaCX is ok too, although their prices aren’t always as good as Kraken’s. However, Quad has more flexibility in payment methods and, at least for me, their verification went faster.
  2. Yep, either a Ledger or a Trezor are an excellent investment and will keep your funds safe provided you follow their instructions. Definitely worth the price.
  3. The amount you hold in coin terms won’t change based on the coin’s price. For example, if I have 1 BTC today at a price of $17000 USD, then if price goes to $100 or $50 billion tomorrow, I will still have 1 BTC in my wallet. The exchange rate to regular currency is the only thing which changes.
  4. You can sell your coins on any Canadian exchange and withdraw the CAD to your bank account. It’s just like buying in reverse. You can also sell privately to individually – sites like LocalBitcoins.com and apps like Bisq are very useful for setting up and securing these type of trades.

Good luck with crypto, sounds like you’re on the right track!

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