Ray Hoger

Similarly , my 32-year-old daughter and I had previously discussed her need for a long-term , relatively safe investment strategy . She wondered if crypto fit the bill .

What is Cryptocurrency ?

We are familiar with “ fiat ” currency — dollars , yen , pounds , euros , and so on , which are backed and regulated by their respective governments . Cryptocurrency does not rely on banks or governments to verify transactions — there is no central authority or regulatory element involved in its creation . Instead , a computerized database with ( hopefully ) strong security levels is used to control transactions and the creation of new coins .

The granddaddy of cryptocurrencies is Bitcoin ( ), which launched in 2009 . Other popular cryptocurrencies are Litecoin ( 2011 ) and Ethereum ( 2015 ). There are , as of June 2023 , over 2,500 other , lesser-known cryptocurrencies ( sometimes called alt currencies ), but they all have similar characteristics . They all exist digitally and are created using encryption algorithms .

If you are going to use cryptocurrency , you will need a digital wallet . Your wallet is software living somewhere in “ the cloud ” or on an offline electronic device ( your computer or a USB stick ). The digital wallet doesn ’ t hold your currency , it stores your encryption keys that confirm your identity and ownership of the currency . If you lose

your password , you have lost your wallet , and your cryptocurrency is no longer available to you . There is no “ forgot my password ” option here .

How Do I Get Cryptocurrency ?

The most common way to get cryptocurrency is to buy it on a cryptocurrency exchange . Binance , Coinbase , and Kraken are the top three exchanges by trading volume . You provide your fiat currency ( Canadian dollars ) and buy the cryptocurrency of your choice . You can also use Bitcoin ATMs to transfer fiat funds from your bank account into bitcoins in your digital wallet . Many cities in Alberta have Bitcoin ATMs available locally .

What Can I Do with Cryptocurrency ?

It is legal to buy cryptocurrency in Canada , though it is not legal tender — that is , companies do not need to accept it as payment for goods . The original dream for Bitcoin was for it to be exchanged for everyday items : to get a coffee at Tim ’ s , as a down payment for a car , or to book your next holiday excursion . Needless to say , this dream hasn ’ t yet been realized .

Some online stores based in the United States do accept Bitcoin ( either directly or through an intermediary app ), such as Microsoft , Walmart , Nike , Expedia , Disney , Best Buy , Home Depot , and Apple . However , Canadian branch locations may not yet be participating in this endeavour .

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