Are you ready to make the leap into cryptocurrency trading? Need more information? We’ve put together a handy crypto trading & investing guide to show you how easy it is to trade crypto. Keep reading to learn everything from how to make money trading crypto and which is the best crypto trading platform in Canada.

Whether you’re a crypto investing beginner or a seasoned pro, you’ll find answers to all your questions, including what is crypto trading, how to day trade crypto, what does crypto staking mean, and of course, how crypto trading and investing works.

For those new to cryptocurrency, we’ve also got a handy beginner’s crypto trading guide with the most common terms, FAQs and other helpful information to help you get started.

What is cryptocurrency?

A cryptocurrency is an encrypted peer-to-peer decentralized virtual currency that is used over the internet

A cryptocurrency is an encrypted peer-to-peer decentralized virtual currency that is used over the internet. Because it is secured by cryptography – mathematical concepts and rule-based protocols that protect information and advance communications – it is impossible to counterfeit digital currencies. 

The objective behind cryptocurrency is to streamline the current financial system by fostering an environment of faster, cheaper, and independent transactions between two existing parties without depending on banks or central authorities. 

Cryptocurrencies can be used to purchase goods and services, save and invest your money, and even lend capital to borrowers.

When Did Cryptocurrency Become Popular?

The cryptocurrency industry has exploded in popularity in recent years, attracting everyone from armchair traders to technology enthusiasts to institutional investors.

Be it in North America or Europe, crypto trading and investing have flourished, thanks to numerous innovations worldwide and continued adoption throughout the international marketplace. Virtual tokens have become entrenched into the global economy, but it is the protocols behind these digital currencies that will continue to solve problems, grow sectors, and build new technologies.

Over the years, Bitbuy and Coinbase have become the two most popular crypto exchanges in Canada. There are supporters on both sides of the Bitbuy vs Coinbase debate, championing their features. Additionally, other emerging platforms have gained rapid momentum in the industry. While crypto trading and investing might appear complex at first, the more you research and participate, the easier it is to buy and sell tokens. And, of course, have fun!

How Much is the Crypto Industry Worth?

The global market capitalization of the cryptocurrency industry is about $1 trillion. At its peak, it was about $2.5 trillion, with two-thirds of the market value controlled by Bitcoin and Ethereum. Crypto prices can range from as little as a fraction of a penny to $20,000 (the approximate value of Bitcoin).

How Many Tokens Are There for Crypto Trading and Investing?

The crypto sector started from one and ballooned to more than 20,000 tokens. As of Aug. 20, 2022,  there were 20,671 digital currencies to choose from. While it is impossible to go through the entire catalogue of virtual tokens, here is a list of the top ten cryptos based on market cap that are commonly traded:

Bitcoin (BTC)

Bitcoin is the best cryptocurrency in the world.

Bitcoin is the world’s first decentralized cryptocurrency and payment system that was launched in 2009. It is the premier token for crypto trading and investing.

Ethereum (ETH)

Ethereum is the second best cryptocurrency used worldwide.

A transactional token that enables operations on the decentralized peer-to-peer Ethereum network that is home to electronic money, global payments, and digital applications. Learn how to buy Ethereum!

Tether (USDT)

Tether is a good cryptocurrency for trading.

A stablecoin that is pegged to the U.S. dollar and backed by the coin’s reserves. Stablecoins function similarly because their prices are anchored to a less-volatile asset, be the greenback, the euro, or gold.

USD Coin (USDC)

The USD coin is a popular cryptocurrency.

The USDC is a digital version of the buck and is pegged to the U.S. dollar. The USD Coin serves two purposes: to facilitate individuals and businesses to transfer currency and to act as a hedge in any crypto portfolio.

BNB (BNB)

BNB is one of the top cryptocurrencies.

This is a cryptocurrency mainly utilized to cover the cost of transactions and trading fees on the Binance exchange platform.

Binance USD (BUSD)

Binance USD is a popular cryptocurrency.

Binance USD is also a dollar-backed stablecoin issued by Binance and blockchain firm Paxos Trust. It tries to maintain a price of a single U.S. dollar 24/7 through its backing of fiat reserves.

XRP (XRP)

Ripple is a great cryptocurrency.

Ripple is a payment settlement system and currency exchange network that has been constructed for crypto applications across the global financial services sector. Although its goal was to migrate transactions from central authorities, XRP is also used by major financial institutions worldwide.

Cardano (ADA)

Cardano is an excellent cryptocurrency.

Cardano is a flexible, scalable, and sustainable proof-of-stake (PoS) blockchain platform that was established through peer-reviewed research and put together by evidence-based methods that are meant to counter proof-of-work (PoW) networks. Learn how to buy Cardano!

Solana (SOL)

Solana is a good cryptocurrency.

Solana is now one of the biggest cryptocurrencies in the world due to its high-performance blockchain that helps builders across the globe who manufacture crypto applications. Today, it has become primarily known for its speed and efficiency. Learn how to buy Solana!

Dogecoin (DOGE)

Dogecoin is a popular cryptocurrency.

Dogecoin is more than a meme coin pumped by billionaire Elon Musk. The highly inflationary Dogecoin is an open-source, peer-to-peer cryptocurrency that is a terrific tool that facilitates digital micropayments. Learn how to buy Dogecoin!

Bitbuy has many different cryptocurrencies to choose from, including Bitcoin, Polygon, Litecoin, Chainlink, ApeCoin, and much more, to enhance your crypto trading and investing journey.

Trading cryptocurrency

The Best Crypto Trading Guide for Beginners

Crypto trading and investing is a popular method of participating in and trying to profit from the cryptocurrency industry.

Getting started in crypto investing may seem intimidating for many beginners. That’s why we prepared the best crypto trading strategies to help you master the process.

What is Crypto Trading?

Crypto trading and investing is a popular method of participating in and trying to profit from the cryptocurrency industry. There are several strategies for crypto trading and investing.

The first is to purchase a position in a coin. For example, you can buy as little as $1 worth of Bitcoin and wait for the digital currency to appreciate in value.

The next option is to speculate on cryptocurrency private movements by opening a contract for difference (CFD) trading account at your preferred brokerage form.

Crypto trading and investing can also act similarly to forex trading. So, for instance, traders could establish a position in the price direction of an individual cryptocurrency against the dollar, including BTC/USD or ETH/USD. Moreover, investors can speculate against another crypto through crypto-to-crypto pairs, such as BTC/DGC or ETH/ADA.

How to Trade Bitcoin

To get started on Bitbuy, all you need to do is open up a trading account.

You can begin your Bitcoin trading endeavours in a few short clicks.

To get started on Bitbuy, all you need to do is open up a trading account. After completing this step, you will verify your identity, fund your account, and purchase positions in Bitcoin or any other cryptocurrency available on the platform.

Once the basics are done, you can treat Bitcoin trading like any other asset, whether a stock or a commodity. So, what does this mean?

  • Determine your Bitcoin trading strategy. Are you swing trading or going long?
  • Keep tabs on Bitcoin’s price movements and then monitor your trade.
  • Select how you want to gain exposure to Bitcoin: exchange-traded funds (ETFs), crypto pairs, CFD trading, or direct ownership.
  • Create your stops and limits.
  • Diversify your crypto portfolio with other coins you might be interested in at the right price.

In addition, Bitbuy has a terrific and in-depth guide on how to buy Bitcoin.

Is Crypto Trading and Investing Safe?

Yes, crypto trading and investing can be safe when you do your due diligence. Use this crypto trading guide to help with the security best practices!

Yes, crypto trading and investing can be safe when you do your due diligence, use reliable sources, and employ security precautions.

First, cryptocurrency is safe because it relies on encryption to confirm transactions. Second, crypto is secured using advanced coding to store and transmit data between blockchains and wallets.

Now, when it comes to crypto trading and investing, it is as safe as trading stocks on your brokerage firm. That is if you select the right crypto trading platform.

In Canada, many one-stop-shop exchanges comply with regulations and rules outlined by federal or provincial securities agencies. This can offer peace of mind for many investors, particularly younger traders getting started in the crypto ecosystem. 

Although the Canadian Deposit Insurance Corporation does not insure crypto holdings (CDIC), any funds parked in crypto can be kept safe by using a cold (or offline) wallet, doing your due diligence on the exchange of your choosing, and routinely transferring your money to your bank account.

Many websites also contain multiple safety features. Bitbuy maintains multi-tiered security, including two-factor authentication, audits, regulatory compliance, and world-class cloud providers and disaster recovery services.

Overall, when you are using a dependable crypto exchange with a long history of safety and security, a data breach might not be something you may need to worry about when crypto trading and investing.

Where Can You Participate in Crypto Trading and Investing?

The number of locations where investors can buy and sell cryptocurrencies has been increasing in recent years. In the beginning, it required mining Bitcoin and other virtual currencies. Today, however, customers can purchase digital tokens on a wide range of platforms, such as bank brokerage accounts, Bitcoin ATMs, or crypto exchanges. A financial institution’s brokerage service generally offers only the leading digital currencies, while exchanges typically provide clients with an extensive list of obscure tokens for either novice or advanced crypto trading and investing.

How Much Can You Invest in Cryptocurrency?

For the most part, investors can start their cryptocurrency journey with as little as $1. While you can purchase entire coins, you can also buy fractions of these tokens. When a digital currency is trading for $20,000 or $1,500, buying $5 worth might not seem like much, but it is the exposure that matters in the infancy stage of crypto trading and investing.

How Much Does It Cost to Buy or Sell Crypto?

The cost to buy or sell cryptocurrency does vary based on trading platforms. Use this crypto trading guide to learn how much to spend on buying and selling crypto.

The cost to buy or sell cryptocurrency does vary based on trading platforms. Most cryptocurrency exchanges and other crypto trading platforms charge between 0 percent and 1.5 percent for each trade. Of course, this depends on your status (maker or taker). That said, for the most part, if you are investing $1,000 into crypto, be prepared to spend as much as $15 for the transaction.

And, yes, there are tactics you can employ to minimize your crypto trading and investing fees:

  • Use an exchange with commission-free trading.
  • Buy cryptocurrency with another cryptocurrency.
  • Plan your transactions in advance.
  • Keep track of your transaction amounts.
  • Take advantage of promotions, like receiving a specific amount if you refer a minimum of five people to the website.

Check out Bitbuy’s guide on fees.

Are There Mobile Options for Crypto Trading and Investing?

Yes, investors can partake in crypto trading and investing on the go, but it will depend on what mobile applications are offered by the platform. Some might have an app that has limited abilities. Others might have state-of-the-art apps that make the trading process easy to use. You can trade on the go, on the bus, or at a coffee shop!

Are Your Crypto Investments Taxed?

Yes, your crypto trading and investing earnings are taxed by the federal government.

All over the world, governments have had a challenging time determining the tax status of cryptocurrencies. According to the Canada Revenue Agency (CRA), crypto is determined as a digital asset and is, therefore, subjected to capital gains. However, if crypto is utilized to pay for goods or services, the CRA will consider the digital currency as a barter transaction for income tax purposes.

Here is a statement from the CRA:

“To figure out the value of a cryptocurrency transaction where a direct value cannot be determined, you must use a reasonable method. Keep records to show how you figured out the value. Generally, the CRA’s position is that the fair market value is the highest price, expressed in dollars that a willing buyer and a willing seller who are both knowledgeable, informed and prudent, and who are acting independently of each other, would agree to in an open and unrestricted market. For example, you could choose an exchange rate taken from the same exchange broker you are using or an average of midday values across a number of high-volume exchange brokers. Whichever method you choose, use it consistently.”

Staking Crypto

Use this crypto trading guide to learn how to stake crypto.

Everything You Wanted to Know About Staking Crypto

Whether you are a seasoned crypto investor or just getting started, you might have heard about staking, especially with news regarding ETH 2.0 (see below!). But what is staking all about anyway? Be sure to check out Bitbuy’s guide on staking.

What is Crypto Staking?

Cryptocurrency staking involves committing your crypto-related assets to help support a blockchain network and confirm transactions. Staking offers many benefits: verify transactions, earn rewards, and support energy efficiency in an energy-intensive tech industry.

How Does Crypto Staking Work?

 Crypto staking begins with participants extending their coins to the cryptocurrency protocol.

It should be noted that only cryptocurrencies using the proof-of-stake model can facilitate staking.

The process begins with participants extending their coins to the cryptocurrency protocol. In this pool of participants, validators are selected to confirm blocks of transactions. To increase the odds of being chosen as a validator, you will need to pledge more coins.

Each time a block is added to the blockchain, new tokens are minted, distributed, and rewarded to the block’s validator. Rewards can either be the same type of crypto or interest on your deposits.

It is vital to know – depending on the project you are partaking in – your coins continue to be in your possession even when they are staked. The only difference is that you allow your coins to be put to work. Ultimately, you can unstake your coins at a later time if you wish to return them to your possession.

How can you participate in the staking process? Here are three steps you need to take:

  • Buy a digital currency that uses a proof-of-stake system.
  • Transfer your cryptocurrency to a blockchain wallet.
  • Sign up for a staking pool that is reliable, affordable, and sizable (it is best to opt for mid-size pools).

This is all you will need to do!

Can You Make Money from Staking?

Yes, you can make money from staking because it is comparable to putting money in a high-yield savings account.

Every time you deposit funds into a savings account, the bank will use this money and lend it out to others. In exchange, you receive interest. The crypto equivalent is staking: Your digital coins are used by protocols in the blockchain, and the client earns rewards that are calculated percentage yields.

Staking is a terrific strategy to generate a passive income.

Are There Risks to Staking?

There are risks to staking comparable to risks in every other component of the financial markets.

The first vulnerability is a broader crypto market downturn that can collapse prices, projects, and tokens. The other is a liquidity risk, which can be a concern if some protocols have a lockup period (a minimum period of time before you can unstake and sell your cryptocurrencies). 

Finally, blockchain network operation threats are common, much like the overall internet landscape, be it websites or online connectivity.

Mining vs. Staking: What’s the Difference?

Learn the differences between mining vs staking in this crypto trading guide.

Yes, there is a difference between mining crypto and staking crypto.

Mining integrates a Proof of Work (PoW) consensus mechanism whereby users with powerful computational hardware can solve complex mathematical problems, which requires extensive amounts of energy that can lead to harmful environmental effects. 

Staking is a relatively new strategy because it became prevalent once crypto users understood the environmental cost of mining. Plus, it eliminated the need to depend on expensive Graphics Processing Units (GPUs).

Both mining and staking have their own sets of advantages and disadvantages. But it is clear that the crypto market is veering toward staking in the future, especially considering the cost of energy.

What Coins to Stake?

Here is a list of ten staking coins that you can buy to start earning staking rewards potentially:

Is Staking Crypto Halal?

Yes, staking is permissible under Islamic rule, so it is Halal. 

If a crypto project is forthright and offers straightforward staking concepts, it will most likely comply with Sharia Law. In addition, staking is merely a mechanism for producing more coins, so it will be critical to ensure the overall project is Halal, such as not using the endeavour to gamble.

Whats the Deal with ETH 2.0?

The launch of ETH.20 is kind of a big deal.

Put simply, Ethereum 2.0 is an upgrade to the Ethereum blockchain. It is an update that improves the efficiency, scalability, and speed of Ethereum and uses a Proof of Stake (PoS) consensus mechanism to verify transactions. This has led to the creation of ETH 2.0, which is not a new coin and will not alter the amount of ETH that you hold.

The Future of Cryptocurrency

Since its inception more than a decade ago, the cryptocurrency ecosystem has matured and thrived.

Since its inception more than a decade ago, the cryptocurrency ecosystem has matured and thrived. Everyone wants to get involved in digital currencies, be it Ethereum, Bitcoin or Dogecoin.

The trillion-dollar world of cryptocurrencies is an exciting one as it never stagnates. Because it is a decentralized industry, engineers, investors, and organizations are honing the technology, developing new features, and resolving some of the setbacks the industry has endured over the years.

Like cryptocurrency has become ingrained in the broader economy, crypto trading and investing have already been integrated into the broader financial markets. Is it time you begin participating in crypto?