{"id":896,"date":"2022-03-31T09:03:46","date_gmt":"2022-03-31T09:03:46","guid":{"rendered":"https:\/\/digitalcoinprice.com\/blog\/?p=896"},"modified":"2023-03-29T12:06:38","modified_gmt":"2023-03-29T12:06:38","slug":"tips-trading-bitcoin-canada","status":"publish","type":"post","link":"https:\/\/digitalcoinprice.com\/blog\/tips-trading-bitcoin-canada","title":{"rendered":"6 Tips For Trading Bitcoin In Canada"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Content<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #223c50;color:#223c50\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #223c50;color:#223c50\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/digitalcoinprice.com\/blog\/tips-trading-bitcoin-canada\/#Choose_A_Safe_Method_To_Buy_Sell_Or_Trade_Bitcoin\" title=\"Choose A Safe Method To Buy, Sell, Or Trade Bitcoin\">Choose A Safe Method To Buy, Sell, Or Trade Bitcoin<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/digitalcoinprice.com\/blog\/tips-trading-bitcoin-canada\/#Decide_Whether_To_Trade_Short_Term_Or_Long_Term\" title=\"Decide Whether To Trade Short Term Or Long Term\">Decide Whether To Trade Short Term Or Long Term<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/digitalcoinprice.com\/blog\/tips-trading-bitcoin-canada\/#Report_Your_Bitcoin_Earnings_To_The_Relevant_Authorities\" title=\"Report Your Bitcoin Earnings To The Relevant Authorities\">Report Your Bitcoin Earnings To The Relevant Authorities<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/digitalcoinprice.com\/blog\/tips-trading-bitcoin-canada\/#Plan_How_To_Manage_Your_Risks\" title=\"Plan How To Manage Your Risks\">Plan How To Manage Your Risks<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/digitalcoinprice.com\/blog\/tips-trading-bitcoin-canada\/#Stay_Informed\" title=\"Stay Informed\">Stay Informed<\/a><\/li><\/ul><\/nav><\/div>\n<p><span style=\"font-weight: 400;\">Bitcoin (BTC) is known as the first cryptocurrency to be introduced in the virtual market. Today, it\u2019s considered one of the most popular and valuable virtual coins. Its trading has significantly increased globally over the last few years, and Canadians haven\u2019t been left behind.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For most people, there are various other reasons why they\u2019re attracted to BTC trading besides its value. For instance, this investment has better security, and the transactions are considered fast and easy with only minimal fees, if any. Some also prefer it because it\u2019s an inflation hedge, it could offer more returns, and it can be an excellent way to diversify one\u2019s investment portfolio.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">That said, bitcoin trading also has its risks. If you\u2019re a new investor, you also have to be aware of these. Cyber theft and the currency\u2019s volatile price are some of the risks you have to be mindful of before you start BTC trading. Besides that, since this venture is legal in Canada, you also have to pay taxes. You could get in trouble with the law if you fail to do so.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To make things less complicated for you, here are six tips to help you successfully engage in bitcoin trading in Canada:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Choose_A_Safe_Method_To_Buy_Sell_Or_Trade_Bitcoin\"><\/span>Choose A Safe Method To Buy, Sell, Or Trade Bitcoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Firstly, you have to choose a safe method to buy, sell, or trade BTC. This may be a cryptocurrency broker, exchange, or automated teller machine (ATM). Since Bitcoin has become quite popular and more acceptable today, several options are available for you in Canada. But this may also make it challenging for you to identify the best choice to go with. One tip to help you identify good BTC brokers, exchanges, or ATMs is to check their reputation and reliability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, some BTC enthusiasts share their online feedback about various trading, buying, and selling platforms. Take time to go through these reviews first before considering any trading platforms. Also, you could seek helpful information from a trusted friend who invests in <a href=\"https:\/\/www.savvynewcanadians.com\/buy-bitcoin-canada\/\" target=\"_blank\" rel=\"noopener\">BTC <\/a><\/span><span style=\"font-weight: 400;\">or good bitcoin sites<\/span><span style=\"font-weight: 400;\"> that offer reliable data on cryptocurrencies.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Decide_Whether_To_Trade_Short_Term_Or_Long_Term\"><\/span><strong>Decide Whether To Trade Short Term Or Long Term<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s also a good idea to decide early on whether to trade BTC in the short or long term as a beginner. The former involves selling and buying BTC on the same day, taking advantage of the coin\u2019s price swings. On the contrary, the latter involves holding your BTC for an extended period with the hope of using or selling later when its value becomes much higher.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Short-term BTC trading may have quicker and more significant rewards but is also highly risky. On the other hand, long-term trading can be less stressful and may offer more returns. That said, you might also miss out on opportunities with potentially high profitability.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, before you start BTC trading, it\u2019s best to find out first which strategy will work better for your skills, lifestyle, and available resources. If you find it difficult to decide, talk to an experienced investor.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Report_Your_Bitcoin_Earnings_To_The_Relevant_Authorities\"><\/span>Report Your Bitcoin Earnings To The Relevant Authorities<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Unlike in other countries, Bitcoin is legal in Canada. As a citizen, the government may consider your revenue accumulated from BTC taxable. Generally, you may be required by the CRA (Canadian Revenue Agency) to report your earnings after disposing of your BTC in these ways:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Changing the cryptocurrency to Canadian dollars<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Exchanging or trading BTC for another virtual coin<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Purchasing services or goods using BTC<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Gifting or selling BTC<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Note that the CRA considers BTC mining, exchanging, and trading as a form of business. They might require you to pay business income tax for BTC if:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You intend to make profits, even though you might not do so in the short term<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019re promoting a service or product<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You\u2019re carrying on your activity in a business-like manner or for commercial purposes.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In such cases, 100% of your profits are subject to tax. However, if you haven\u2019t finished setting up your business, the CRA might not require you to report your earnings yet. You must first do something recognizable as part of your revenue-generating process.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, the CRA may consider your BTC earnings as capital gains. This might happen if you didn\u2019t sell your coins for commercial purposes, but you acquired a profit from your transaction. In this case, you\u2019re only taxed half of your total capital gains. If you incurred losses, you could offset them with your profits.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Plan_How_To_Manage_Your_Risks\"><\/span>Plan How To Manage Your Risks<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">It\u2019s also crucial to managing your risks as a trader. This means you should limit the amount of cash you invest in BTC. In most cases, <\/span><a href=\"https:\/\/www.cnbc.com\/2021\/06\/30\/how-much-of-your-money-should-be-in-bitcoin-according-to-experts.html\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">experienced professionals<\/span><\/a><span style=\"font-weight: 400;\"> advise beginners not to put more money than they\u2019re comfortable to part with into the trade.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is a strategy you could consider, too. This will help you avoid substantial financial losses if you aren\u2019t successful in your day\u2019s trade.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h4>Have Profit Targets And Set Stop-Loss Levels<\/h4>\n<p><span style=\"font-weight: 400;\">Besides spending only what you can afford to lose in BTC trading, it\u2019s also recommendable to set stop loss levels and profit targets. These two will allow you to exit a trade whether you\u2019re winning or not.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Setting stop-loss levels enables you to limit how much you can lose. For instance, you may have gained USD$100 in a particular trade and set that as your stop loss level. If BTC prices start falling, you\u2019ll only part with your selected amount. Hence, your initial investment will be safe.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">On the other hand, a profit target is a point at which you exit a trade after a successful gain. This also helps to manage your risks. Some experienced investors may encourage small but consistent profits, especially if your risk appetite is low. A <\/span><a href=\"https:\/\/digitalcoinprice.com\/interest-calculator\"><span style=\"font-weight: 400;\">BTC gains estimator<\/span><\/a><span style=\"font-weight: 400;\"> could be helpful here.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Stay_Informed\"><\/span>Stay Informed<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">News on current events can affect BTC investors\u2019 perception of the virtual currency in some cases. This means the sentiments created by the developments could cause traders to make decisions that may affect BTC\u2019s price.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Therefore, as a trader, you need to stay informed on the latest trends, especially those affecting the economy. Although not all developments cause significant changes, it\u2019s best to know what kind of news can impact BTC\u2019s value. This way, you\u2019ll make better trading decisions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><\/p>\n<h4>Conclusion<\/h4>\n<p><span style=\"font-weight: 400;\">Investing in BTC can be a highly profitable venture. However, there are also several risks involved. As a Canadian BTC investor, it\u2019s best to conduct extensive research before getting into this trade. This way, you\u2019ll know the strategies that could help increase your chances of success. That said, not all approaches may work for you, especially because Canada\u2019s laws on crypto trading may be different from most countries.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This article provides some strategies that may help make things easier for you as a new Bitcoin trader in Canada. As advised above, you have to select a safe method to buy, sell, or trade bitcoin and choose whether to trade in the short or long term. Additionally, always ensure you report your BTC earnings to the relevant authorities and manage your risks. Lastly, have profit targets, set stop-loss levels, and stay informed. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) is known as the first cryptocurrency to be introduced in the virtual market. Today, it\u2019s considered one of the most popular and valuable virtual coins. Its trading has significantly increased globally over the last few years, and Canadians haven\u2019t been left behind.\u00a0\u00a0 For most people, there are various other reasons why they\u2019re attracted [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1100,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin"],"_links":{"self":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/comments?post=896"}],"version-history":[{"count":4,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/896\/revisions"}],"predecessor-version":[{"id":2498,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/posts\/896\/revisions\/2498"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media\/1100"}],"wp:attachment":[{"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/media?parent=896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/categories?post=896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/digitalcoinprice.com\/blog\/wp-json\/wp\/v2\/tags?post=896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}