Canada Is the First Country to Allow Trading BTC on Its Stock Exchanges

Published on: 13 April 2021 Last Updated on: 27 December 2024

Bitcoin has officially been introduced at the traditional stock exchange. The first country to make this significant move was Canada. Before that, the only way to buy and sell BTC was by using a digital currency stock exchange, which is still the most popular way to trade Bitcoin and other cryptocurrencies.

The Great White North officials authorized a Bitcoin fund that was immediately introduced to the stock market. This event will pave the way for many investors to access the popular cryptocurrency and try to make a profit with its help.

The Bitcoin index fund was proposed by a company called Purpose Investments.

The Toronto Stock Exchange approved the start of the fund on February 18. As announced by the spokesperson from the Ontario Securities Commission, the fund uses the acronym BTCC.

The role of the fund’s administrator belongs to a Canadian company called CIBC Mellon Global Securities Company. The sub-custodian is the Gemini Trust Company. There are no similar traded Bitcoin funds anywhere in the world. It means that Canadian stock traders could start a trend where many other stock exchanges will introduce a cryptocurrency-backed fund.

Purpose Investments issued an official press release declaring that the fund was the first in the world to be physically settled in BTC and not derivatives. It means investors will access cryptocurrencies conveniently without self-custody risks and all associated dangers that digital cryptocurrency wallets bring.

The main risk brought by digital wallets is the usage of keys. A private key is the only thing that allows you access to your cryptocurrencies. This key is like a password, but it’s irretrievable, meaning your Bitcoin storage will be lost forever if you forget the key.

For instance, if you lose your Facebook password, you can always send a request to change it. The platform, being a centralized entity, will grant you that request. Unfortunately, that option isn’t available when it comes to digital wallets, meaning a lost key is gone forever.

Many people don’t feel confident about this arrangement and believe handling your own keys brings a certain risk. That is why an exchange-traded fund seems like a better option at the moment.

In other words, being in charge of your own fortune requires having a high level of responsibility and keeping your private keys safe and secure.

Bitcoin Reaches New Heights:

When Bitcoin was introduced to the world in 2009, it was worth almost nothing. You could buy hundreds of Bitcoins for a couple of dollars. The first time that the cryptocurrency peaked was in December 2017, when the price reached almost $20K. After that, the price started going down, with many pessimists predicting the ultimate fall of BTC.

However, there was no reason to worry. After a somewhat quiet period in 2018, when the BTC rate reached as low as $3,500, a slight bump happened when the price increased to more than $10k in 2019.

Then, the Covid-19 pandemic started, and people started looking for a way to store their wealth. At that moment, Bitcoin turned out to be one of the most lucrative solutions.

Therefore, they joined a stock exchange cryptocurrenc y and started massively buying BTC. The price first reached around $30K, and it is currently being traded at about $45K. This was a reason good enough for many people to consider buying “digital gold.”

Another reason why this cryptocurrency increased in value was the fact that big companies started investing in it heavily. For example, Tesla invested approximately $1.5 billion in bitcoin, and many smaller investors followed its steps.

What About Other Cryptocurrencies?

So far, Bitcoin has been the most popular cryptocurrency, traveling the longest distance on the road to widespread adoption.

However, it’s definitely not the only crypto out there, as many other altcoins are pretenders to BTC’s trone. Some of them might even get a similar treatment by traditional stock exchanges. The most likely candidate for that is Ethereum, a cryptocurrency supporting the Ethereum platform.

Besides Ethereum, Bitcoin Cash is doing a pretty good job, as well as Tether, Binance Coin, Ripple, Litecoin, and more.

Final Thoughts:

The introduction of Bitcoin to the traditional stock exchange gives Canadian investors more room to access the cryptocurrency.

They’ll be the first ones to test how that works and whether one can make a profit by investing in the Bitcoin ETF. If all goes well, we could expect other exchanges to do the same.

All eyes are now on the Wall Street exchange, which is expected to copy the homework from the Canadian stock exchange. Will there be additional Bitcoin funds used by investors to trade on stock exchanges around the globe? At this moment, everything seems possible.

Read Also:

How To Cope Up With Debt For New Residents In Canada

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

How to Choose the Best Merchant Account for Your Burgeoning Insurance

In the modern era, there is numerous business that has seen immense changes. From newer fields like web design and IT to industries that have existed for decades, the 21st century has certainly proved that all fields are subject to change. One of the fields that have seen some of the most changes in the modern world has been insurance. No matter the type of insurance company you run, you have to ensure that your business has the best tools at its disposal to ensure that your business runs effectively. The top insurance companies understand this concept and have chosen the best merchant accounts available to ensure that their businesses run effectually. Merchant accounts are incredibly important in the insurance field, so it is crucial to utilize the ones with the most useful features, especially when your business is growing. Learning about merchant accounts will certainly aid you when growing your insurance company. Merchant Accounts for Insurance Companies Insurance companies are essential to our society, and as the industry is constantly changing, it is important to understand how to ensure that your company stays ahead of the competition. No matter the size of your insurance company, it is essential for you to invest in a high-quality merchant account in order to attain success. Insurance is a difficult industry to operate a business in, so an excellent merchant account will certainly alleviate some of the challenges. Insurance companies utilize their merchant accounts on a daily basis, so it is essential for them to invest in the best ones available that are stocked with a multitude of essential features. Learning about these features is crucial to attaining success. What Do Insurance Companies Need in a Merchant Account? In order to be successful, insurance companies need a merchant account that can provide them with the most benefits and that have the most applicable features. Top-tier merchant accounts come equipped with a multitude of facets, but the most important of these is safety. When investing in a merchant account, you have to ensure that the one you choose has a reputation for security as well as ethical business practices. If you use a low-quality merchant provider with poor safety features, you will find yourself in serious trouble if any breaches occur to your financial data. Other features besides security that you should look for include interchange-plus pricing, which enables you to save money on credit transactions. You should also search for all-in-one payment processing – this will allow you to merge your in-person and online transactions in a single convenient location. Other top features that you should look for include availability of activity records, batch and deposit reports, and cumulative custom reporting. Final Thoughts Running an insurance company is certainly a very challenging task. Between dealing with customers, complying with regulations, and so much more, it is an incredibly difficult business. However, in order to be successful in this industry, especially as your company is growing, it is essential to invest in a top-quality merchant account in order to ensure that your business will attain immense success. Read Also: 5 Tips For Transport & Logistics Business Owners Before Investing In Insurance How To Choose The Best Auto Insurance Company?

5 Ways to Become a Profitable Landlord

Becoming a landlord is an appealing prospect to many, with the opportunity to make long-term investments. However, there is also a common belief that becoming a landlord is a way to get rich quick, but this is rarely the case. In fact, being a landlord can be a lot of hard work, requiring dedication, knowledge, and skill to turn a profit. To help boost your earnings, here are 5 ways to become a more profitable landlord. Treat Being a Landlord as a Business : Firstly, in order to boost profit, you need to know your figures. This means more than calculating how much you can afford when looking to buy property, but also fully understanding the actual return on investment. This is where rental yield is essential. Calculated as a percentage of the property’s value, yield shows yearly rental income compared to the investment price. The higher the percentage, the higher the yield and therefore, the bigger the income. Read here to find out more about rental yield. Stick to Areas You Know : When investing in property, it may be tempting to buy in another location that offers more attractive rental yields, or an area has been deemed as up and coming. However, this may mean buying in the property market that you are unfamiliar with, which can pose a larger risk. As such, it may be a good idea to stick to areas you know. This is particularly true for early investments, as securing a profit is essential to building a successful portfolio. Invest in Property Upkeep : In order to boost the profitability of your portfolio, you may want to spend as little money as possible. While this works in theory, properties require continual upkeep and investment. Often, this required some simple DIY, such as repainting a property before a new tenant moves in. Although this is an additional expense, a clean and modern interior could make your property more attractive to prospective tenants and boost rental value. Ensure Tenants are Happy : There is one thing that landlords dread: a vacant property. Not only does this mean zero income – while the mortgage, council tax and insurance must still be paid – but an empty property is also at a higher risk of being broken into. When aiming to keep a property leased, think about the needs of your tenants. After all, happy tenants are likely to stay for a longer period, reducing turnover. To do this, in addition to property upkeep, thoroughly screen applications and address maintenance issues in a timely manner. Consider Letting Through an Agent : Lastly, in order to increase your profit margin, you could consider letting as a private landlord. However, this can be time-consuming, meaning you would be responsible for dealing with tenant screening and repairs. In this instance, it may be a good idea to let through an agent. While this will carry a monthly fee, it can save you a lot of time – especially if you own multiple properties – allowing you to build your property portfolio or continue to work. Being a landlord can be difficult, but it can also be rewarding, both personally and financially. To help you get more out of your portfolio, you could consider these tips. However, these suggestions alone are not enough – it is also important to thoroughly research every potential investment.

Crypto Staking: Locking Up Crypto Holdings To Earn Interest

Staking cryptocurrency is a growing trend since it allows individuals to generate passive income from their existing cryptocurrency holdings. Making money in the crypto space can be done in several ways. You can join in DeFi and stake your cryptocurrencies, acquire and keep coins with the expectation of price appreciation, or trade on price speculation via crypto CFDs. In this post, we will define staking and walk you through the steps necessary to begin staking your own coins. What Is Crypto Staking? How Does Staking In Crypto Work? By "locking up" assets to maintain the integrity of a cryptocurrency network, "staking" allows users to receive a passive income from their cryptocurrency holdings without ever having to sell their coins. Investing in cryptocurrency through staking is equivalent to putting money into a high-interest savings account. Staking allows cryptocurrency networks to obtain consensus on the status of transactions via a proof of stake mechanism, with the tokens themselves acting as a kind of internal security rather than the computer power and electricity consumed by the network. This is demonstrated by the success of proof-of-stake cryptocurrencies like Cardano, Solana, and Polkadot in the cryptocurrency market. These networks are able to process a high volume of transactions with low transaction fees because of the various staking mechanisms they employ. Blockchain infrastructures benefit from this because they become more adaptable, affordable to users, and eco-friendly. Besides improving cryptocurrency's safety, scalability, and efficiency, staking lets its owners make passive revenue. To maximize their returns, many long-term holders are taking advantage of staking rewards. Staking, however, has some negatives, such as a reduced ability to sell assets swiftly in the event of a market downturn. The network chooses validators according to the number and age of tokens they have staked. Staking more tokens for a longer period of time increases the likelihood of getting chosen as a validator. Users that have a lesser portion of tokens have a decreased likelihood of contributing to the network's security and earning incentives as a result of their participation. Because of this, users with a lower stake make use of staking pools so that they can take part in the network. Staking Pool Definition To increase their chances of being chosen to validate blocks and receive block rewards, cryptocurrency network users can form staking pools by pooling their funds with other users. Those who have stakes in the pool receive a proportional share of the block reward based on the sum of stakes they own. Staking pools, therefore, often result in lower payouts than individual staking. In contrast to the reliable and predictable payouts from staking pools, solo staking involves a significant investment in the crypto network. Operators of staking pools, typically cryptocurrency exchanges, are in charge of maintaining the network's validator nodes. Participants in the pool are obligated to store their funds at a predetermined public blockchain address. The pool has a nominal price for this convenience. Other options enable users to stake money from their wallets directly into pools. Cold staking is one method that allows users to participate in pools while still using their hardware wallet. Users who don't feel comfortable managing and running their own node but still want to contribute to the security of the cryptocurrency network can do so through staking pools. Why Is Staking Limited To Some Cryptocurrencies? Whether or not a cryptocurrency network supports staking depends on the consensus process used. Many cryptocurrencies, including Bitcoin and Litecoin, are not stackable because of the consensus method they employ. The double-spending issue that plagued early attempts with digital currency is resolved by crypto networks thanks to their consensus processes. These consensus procedures are resilient in the face of opposition because of the careful economics they employ. The economics of the first cryptocurrency networks relied on mining, the mechanism through which nodes competed to solve cryptographic challenges with computational power. Tokens and transaction fees are awarded to the node that verifies the right set of transactions and solves the cryptographic issue first. Bitcoin mining has come under fire due to concerns over its impact on the world's energy supply. Later, in 2012, Peercoin's developer presented the notion of staking as a solution to the problems with the proof of work consensus mechanism. By risking their tokens, nodes demonstrate their support for the right set of transactions without having to solve complicated cryptographic challenges. Staking is only possible in cryptocurrencies because only they use this particular consensus methodology. However, in order to attain consensus, several cryptocurrencies use a hybrid approach, combining proof of stake with proof of work. Bitcoin and Litecoin are examples of very straightforward cryptocurrency networks that can function adequately using proof of work. Moreover, proof of work is notoriously time-consuming and expensive, making it unsuitable for use in cryptocurrency networks like Ethereum. How Are Crypto Staking Rewards Calculated? Crypto staking calculators are utilized to determine the value of staking incentives. These calculators provide you with an estimate of the amount of interest you will get after the investment period has passed. Calculators work with the number of tokens invested, the annual percentage yield, and the length of time the tokens are held. Be sure to do the math on the potential winnings from your bets before you place them so that you can pick the solution that works best with your goals. What Are The Benefits Of Crypto Staking? As is the case with all different kinds of investments, there are potential downsides as well as potential upsides. Find out more about the benefits of staking cryptocurrency below: It validates financial transactions with a little amount of energy consumption. A cryptocurrency network can have its own internal security without having to rely on third-party hardware. Provides customers with the ability to generate passive income from their cryptocurrency holdings. It contributes to increasing the scalability of cryptocurrency networks. Provides an incentive for users to contribute to the safety of blockchains by reducing the required investment in their tokens. Is Staking Crypto Safe? There is some risk involved in staking, despite the fact that it is a revolutionary and relatively simple technique to generate passive income from your crypto holdings. Before staking their coins, investors need to be aware of certain risks, including the following: Low Liquidity When staking cryptocurrencies with a lesser market cap than Bitcoin or Ethereum, users frequently run the danger of being unable to sell their tokens once the staking time has ended. Choose a cryptocurrency that has a high level of liquid market activity and one that supports staking in order to reduce the impact of this risk. Lockup Periods Users will not be able to access their tokens while they are participating in the staking process since several staking protocols have lockup periods. You will not be able to sell the staked token in order to reduce your losses in the event of a personal financial crisis or if there is a significant reduction in the value of the staked token. Alternatively, you may have to pay a high price to get at your tokens, reducing the number of tokens you have staked. Staking tokens without lockup periods is one way to deal with this. Validator Limitation In order to enhance their likelihood of successfully validating blocks, certain protocols mandate that validators keep their nodes online and operational at all times. In addition, validators need to exercise extreme caution whenever they operate a node. If validators make a mistake and include invalid transactions by accident or if they default by going offline, they run the risk of having their staked tokens wiped out, which could include the tokens of individuals who are associated with that node. Protect yourself from this by either becoming a validator by learning how to host a node or by staking your tokens with a trusted staking pool. Conclusion If you have cryptocurrency that you may stake and you do not have any immediate plans to trade it, then you should consider staking it. You won't have to put in any effort at all, but your cryptocurrency holdings will grow as a result. What happens if you don't currently possess any cryptocurrency that you can stake? Researching cryptocurrencies that support staking is something you should do because of the potential returns. There are many platforms that provide this service; nonetheless, it is important to determine whether or not each cryptocurrency represents a sound financial investment. You should only buy a cryptocurrency with the intention of staking it if you are also convinced that it is a suitable long-term investment. The proof-of-stake system has proved useful, not just for cryptocurrencies but also for investors in crypto assets. Proof of stake is a method that can be utilized by cryptocurrencies to facilitate the processing of a high volume of transactions with a low associated cost. Since you now have a better understanding of staking, you can begin looking into cryptocurrencies that have this feature. Read Also: Why Entrepreneurs Should Pay Attention To Cryptocurrencies In 2021 Is 2021 The Most Critical Year For Bitcoin And Other Cryptocurrencies? The Future Of Digital Currencies: 7 Things We Can Expect In 2022

Canada Is the First Country to Allow Trading BTC on Its Stock Exchanges

Bitcoin Reaches New Heights:

What About Other Cryptocurrencies?

Final Thoughts:

Read Also:

11 Tips To Save Money For Financial Trouble And Emergencies

How To Cope Up With Debt For New Residents In Canada

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Technologies For Creating A Startup Idea

How to Download Facebook Videos on Android?

7 Rules of Effective Ecommerce Web Design

The 10 WordPress Plugins Every Sucessful Blogger Uses

Follow Us

Recent

Agricultural Consulting Services: Boosting Farm Efficiency and Yield

5 Symptoms Women Entering Into Menopause Should Keep an Eye Out For

How to Download Airtel Thanks App and Recharge Seamlessly in 2025

How to Choose a Gift That Matches Their Personality Perfectly

Related

How to Choose the Best Merchant Account for Your Burgeoning Insurance

5 Ways to Become a Profitable Landlord

Crypto Staking: Locking Up Crypto Holdings To Earn Interest

Canada Is the First Country to Allow Trading BTC on Its Stock Exchanges

Bitcoin Reaches New Heights:

What About Other Cryptocurrencies?

Final Thoughts:

Read Also:

Share this Article

11 Tips To Save Money For Financial Trouble And Emergencies

How To Cope Up With Debt For New Residents In Canada

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related