If you're interested in adding cryptocurrency exposure to your investments here are a few points from my perspective you might find useful:
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I love Bitcoin as an alternative asset class in tandem with a low-cost globally diversified index fund like VGRO, XGRO, VEQT, or XEQT.
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As someone who already invests in traditional index funds and dollar cost averages every time I get paid regardless of market conditions, I am also doing this with Bitcoin.
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Check out Newton. They have the lowest purchasing fees out of all the available exchange platforms in Canada and this is what I use to buy bitcoin.
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Check out Shakepay to earn free Bitcoin on a daily basis by physically shaking your phone once a day. It sounds gimmicky, but it is a legitimate company based out of Montreal which is regulated by both FINTRAC and AMF while also being legally licensed as a Money Service Business.
I do not buy from ShakePay because of their high purchasing fees/spreads and simply use them for the free daily accumulation of Bitcoin.
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In Canada, these are currently the cheapest methods of accumulating Bitcoin and there are sign-up bonuses for both companies (Newton $25, ShakePay $30).
Here are the referral links if you are interested in using them:
Newton (https://web.newton.co/r/N669Y7)
Shakepay (https://shakepay.me/r/NQECMIZ)
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If you want tax free capital gains, you can buy QBTC.U (USD) or QBTC.TO (CAD) in your TFSA. It is certainly expensive in terms of its fees and/or spread; however, if you are super-long and super-bullish in Bitcoin as an alternative asset class, then it does not really matter. With that said, you do not truly own Bitcoin with QBTC because QBTC is a fund; and therefore, you own shares of the fund and not Bitcoin itself. As the saying goes and as you may have heard if you have done your due diligence: "not your keys, not your Bitcoin". As such, you run and operate with all of the associated risks of leaving your coins on an exchange, platform, or app.
For large investments, I use a cold storage wallet to take my Bitcoin off of an exchange.
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If you are current in financial news, you would know what happened with the exchange/platform and Canadian company named Quadriga. In short, many investors did not truly own their Bitcoin with them since Quadriga sold "entitlements to receive crypto assets or fiat currency from Quadriga" while Quadriga held the "keys" to the real Bitcoin and investors lost around 135 million dollars CAD. This is easily verifiable information and a famous story as well as a perfect example about "not your keys, not your Bitcoin".
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There is no reason why you cannot do both (i.e. truly own actual Bitcoin in a cold storage wallet and own shares of the QBTC fund in a TFSA). Just realize that with the first option of truly owning the asset (i.e. Bitcoin), it is subject to capital appreciation tax whenever you trigger a taxable event such as selling, buying, and/or converting crypto-to-crypto.
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Before you invest in anything regardless of the asset class, make sure you understand what you are putting your money towards, understand your risk tolerance, understand the proper asset allocation percentages for your risk tolerance, and formulate a clear plan of what you want to achieve as well as how you will move yourself towards those goals.
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Finally, for me, the biggest investment is not really the Bitcoin itself, but rather, it is in the underlying technology and innovation of the blockchain infrastructure which serves as a massive global public ledger leading to the decentralization of this digital currency as well as its invincibility and independence from overbearing governing bodies whereby the Bitcoin unit itself simply has a monetary value relative to fiat currency.
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A large part of the information of this post was taken from this post: https://redd.it/kh987p
So if you'd prefer to show your support to the original commenter, I encourage you to reach out to them by using their referral links.
Best of luck to you and always do your own due diligence! =)
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