The U.S. Securities and Exchange Commission (SEC) has recently approved the listing of ETFs that invest in the cryptocurrency Ether, a move facilitated by thorough reviews of applications from Nasdaq, Cboe Global Markets, and the New York Stock Exchange. 

These spot Ethereum ETFs align with the requirements of the Securities Exchange Act, although the SEC must still approve individual asset manager applications before trading can begin. 

This development comes on the heels of the SEC’s cautious approval of bitcoin ETFs and has been well received by the crypto community and asset managers eager to launch these funds, such as VanEck. Spot Ethereum ETFs offer investors a way to gain exposure to Ether without directly purchasing or managing the digital asset. 

This is significant as Ether underpins the Ethereum network, a platform for smart contracts and decentralized applications, and is the second-largest cryptocurrency by market capitalization.

It’s important to note that owning an ETF does not provide the same anonymity or direct utility as owning actual Ethereum, which may influence investor decisions

However, if you are seeking to purchase Ethereum. Baltisee Virtual Unit can offer payments via Kiosks, Online Portal and our Over the Counter Platform for large transactions!

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On May 22, 2010, Florida resident Laszlo Hanyecz made what is considered the first real-world transaction using Bitcoin by purchasing two Papa Johns pizzas for 10,000 bitcoins (BTC).

 At the time, these bitcoins were valued at approximately $41 USD, making each bitcoin worth just under $0.10. Fast forward to today, and those same coins would be worth around $700 million, given the current Bitcoin price of about $70,300 USD. This transaction not only represents the most expensive pizza purchase in history but also marks a pivotal moment for the adoption of digital currencies.

This day highlights the humble beginnings of crypto commerce and its evolution into a revolutionary force in the global financial landscape. Bitcoin and other cryptocurrencies continue to demonstrate their potential to transform how we conduct transactions, promising a more diverse and innovative financial future.

In celebration of this groundbreaking event, Baltisee Virtual Unit invites you to explore the world of cryptocurrencies. You can make purchases through our kiosks across Canada, our online platform, or our Over-The-Counter (OTC) service for larger transactions.

Join us in commemorating a key milestone in the world of Cryptocurrency!  

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Investing in financial markets presents individuals with the choice between traditional stocks and the rapidly evolving world of cryptocurrencies. Understanding the distinct characteristics of each can guide better investment decisions.

Asset Types 

Cryptocurrencies are digital or virtual currencies secured by cryptography, operating independently of central banks and governments. They include a broad spectrum of digital assets, with popular examples like Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP). They function as decentralized currencies, digital commodities, or tokens that provide access to decentralized applications (DApps).

Stocks represent ownership in a company, giving shareholders rights to a portion of the company’s earnings and assets. Stocks have been a staple of investment portfolios for decades. Examples include Apple (AAPL), Tesla (TSLA), and Microsoft (MSFT).

Market Maturity and Regulation

The cryptocurrency market is relatively young, still evolving, and largely unregulated, although jurisdictions are increasingly implementing rules and oversight. This nascent stage leads to high volatility driven by speculative trading, technological innovation, and shifting market sentiment.

In contrast, stocks are well-established and heavily regulated by government agencies like the U.S. Securities and Exchange Commission (SEC). The stock market is mature and less volatile compared to crypto, with market movements driven by economic data, company performance, and geopolitical events.

Investment Strategies and Accessibility

Cryptocurrency investment strategies range from holding (HODL) and staking to decentralized finance (DeFi), which involves lending or providing liquidity to earn interest or rewards. Day trading is also popular due to high volatility. Investors need a crypto wallet and access to crypto exchanges, where trading happens 24/7.

Stock investors can choose from a range of strategies like dividend investing (focusing on high-yield companies) and technical analysis-based day trading. Trading stocks requires a brokerage account, and most exchanges have specific market hours.

Risks and Challenges

Cryptocurrency investors face potential risks:

• Regulatory Risks: Government bans, regulatory crackdowns, and unclear legal frameworks.
• Market Manipulation: Pump-and-dump schemes and market sentiment swings.
• Lack of Fundamental Valuation: Valuation is mostly speculative and based on supply-demand dynamics.

Stocks also come with their own challenges:

• Market Risks: Economic downturns, inflation, interest rate hikes.
• Business Risks: Company bankruptcies, poor management decisions.
• Regulatory Risks: Regulatory fines, compliance issues.

Potential Returns and Growth

Cryptocurrencies offer the potential for massive returns due to their high volatility and rapid growth, driven by technological advancements in blockchain and decentralized finance. For instance, Bitcoin grew exponentially from less than $1,000 to over $60,000 within five years.

Stocks have historically provided consistent long-term returns, with high-growth sectors like technology offering significant gains. The S&P 500 Index, a common benchmark, has averaged annual returns of around 10% over several decades. Some individual stocks have outperformed significantly, such as Apple or Amazon.

Diversification

Diversifying within the crypto market can be challenging due to the high correlation among major cryptocurrencies. However, investors can gain some diversification by investing in different blockchain projects, tokens, and decentralized finance protocols.

Stocks offer broader diversification options across sectors, industries, and geographies. Investors can access a mix of growth, value, and dividend stocks, reducing portfolio risk.

Tax Implications

Cryptocurrencies are taxed as property, with gains dependent on the holding period (short-term vs. long-term capital gains). Staking, mining, and airdrops can add complexity to tax reporting.

Stocks are subject to capital gains taxation based on the holding period, while dividends are taxed at ordinary income or qualified dividend rates.

Now to finally compare, cryptocurrencies offer high growth potential but come with significant volatility, security risks, and regulatory uncertainty. Stocks provide a more stable investment environment due to established regulation and historical consistency in returns. Ultimately, the choice between the two depends on an investor’s risk tolerance, investment horizon, and diversification goals.

Investors looking for high potential returns with a tolerance for risk may find cryptocurrencies appealing, just like Baltisee Virtual Unit does! 

Those seeking stability and long-term growth through diversification may lean towards stocks. A balanced portfolio that includes both asset classes can offer the best of both worlds. Therefore Baltisee Virtual Unit can offer payments via Kiosks , Online Portal and our Over the Counter Platform for large transactions!

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What exactly is a halving? It’s the process where the reward for mining new bitcoins is halved, decreasing by 50%. This reduction impacts miners who employ a complex, energy-consuming process to unlock new tokens on the blockchain.

Occurring every four years just like the Olympics, the halving aims to slow the rate at which new bitcoins are introduced into the market, capping the total supply at 21 million. This artificial scarcity is designed to preserve Bitcoin’s value.

Approximately every four years, the blockchain network adds 210,000 blocks, a benchmark set by its creators to systematically decrease the rate of cryptocurrency issuance. By March 2024, roughly 19.65 million bitcoins were in circulation, leaving only about 1.35 million yet to be mined.

The first halving took place in November 2012, reducing the reward from 50 to 25 bitcoins per block. Subsequent halvings in July 2016 and May 2020 further reduced it to 12.5 and then 6.25 bitcoins, respectively. The next halving will decrease the reward to 3.125 bitcoins per block, marking a pivotal moment that could drastically alter the mining landscape, affect profitability, and spur advances in mining technology.

Source: Glassnode as of 4/10/2024. .A Terahash represents 1 trillion hashes per second. A Exahash represents 1 quintillion hashes per second. Past performance is not a guarantee of future results (Source)

Bitcoin’s halving underscores its limited, decentralized nature and reinforces its appeal as a secure investment, further shaping its role in the modern financial arena. Therefore, to be ahead of this event, why not go to a Baltisee Virtual Unit Kiosk to make a purchase for this glorious event! 

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This development is particularly meaningful considering the recent history of the cryptocurrency market, which has seen price volatility and the collapse of several crypto firms. However, the approval of Bitcoin ETFs has been long anticipated and is seen as a positive step towards mainstream acceptance. It has coincided with a surge in Bitcoin’s price and has had a knock-on effect on Ethereum, with its price also rising amid speculation of potential Ethereum coins.

For those interested in exploring the world of cryptocurrency, the Baltisee Virtual Unit online platform and ATM kiosks across Canada offer a user-friendly and accessible option for purchasing Bitcoin and Ethereum. This provides an excellent opportunity for Canadian investors to engage with these leading cryptocurrencies in a convenient and secure manner. For more information and to get started, be sure to visit the Baltisee Virtual Unit website.

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The British multinational financial institution initially proposed a $100,000 Bitcoin valuation by 2024 in April, but has now identified a 20% potential increase, which it attributes to several factors, including the recent banking-sector crisis. “Our initial estimate may have been too conservative,” reads the latest report, suggesting a more substantial rise on the horizon.

#StandardChartered raises #bitcoin price forecast — now expects #BTC to reach $50,000 this year, $120,000 next year pic.twitter.com/TTWEo23NM6

— Bitcoin News (@BTCTN) July 12, 2023

In the analysis, Geoff Kendrick, the bank’s leading FX and digital assets researcher, outlined a pivotal aspect that could catalyze this price escalation: Bitcoin miner profitability. As miners contribute significantly to the Bitcoin supply chain by creating and maintaining the ledger, Kendrick reasons that the increasing profitability per Bitcoin mined allows these miners to sell less while sustaining cash inflows.

Previously, miners were offloading 100% of their new coins, but if Bitcoin hits the forecasted $50,000 mark, Kendrick anticipates that they would only need to sell between 20-30%. This change equates to a daily selling reduction from 900 to merely 180-270 Bitcoins, leading to an annual reduction from 328,500 to a range of 65,700-98,550. This significant decrease in the net Bitcoin supply, approximately 250,000 Bitcoins per year, could intensify the demand and drive prices higher.

Moreover, an inherent supply and issuance mechanism, scheduled to halve the total number of Bitcoins that can be mined daily around April or May, will further limit supply. This mechanic has traditionally been instrumental in maintaining Bitcoin’s appeal, and its impending activation will only fuel this bull run further.

Despite the crypto sector’s significant losses in 2022, including the fall of multiple crypto firms and traditional-style banks, optimism pervades. Skyrocketing predictions have often accompanied Bitcoin’s previous rallies, and as history repeats, this sentiment shows no signs of abating. Standard Chartered’s report hence underscores that Bitcoin’s value ascension will be driven by the convergence of increased miner profitability, banking-sector crises, and inherent supply limitations.

If you are interested in reading more, feel free to subscribe here.

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However, with an increase in awareness from retail and institutional investors, beginning largely in 2017 when BTC pushed through the USD$10,000 threshold, its independence has waned.

Increasing Interest Rates

For most of the last twelve months, bitcoin has been fighting the same downward pressure that’s been impacting both the stock and bond markets. Major central banks around the globe have been on a quest to tighten monetary policy in a battle to tame inflation down to a target of two percent.

“The price of bitcoin is maintaining the $19,000 level, but with the FOMC’s minutes and CPI ahead this week, the market will likely refrain from taking risks, which in turn will likely put pressure on bitcoin,” said Yuya Hasegawa, crypto market analyst at Bitban.

Macroeconomics

Macroeconomic factors continued to play an important role in driving the prices of cryptocurrencies, as well as other risk assets. Throughout the third quarter, the correlation of bitcoin with major stock indexes remained high, at over 60%.

For added context, a correlation above 50% is considered moderately strong and above 70% is very strong, while correlations between 30% and -30% are very weak. A value of 100% or 1 means that movements between bitcoin and the broader markets are perfectly synchronized.

With rising interest rates, investors wanting to de-risk their portfolios have weighed on bitcoin’s price as reflected in a rather underwhelming yearly performance of negative 37% as of January 31, 2023.

Some examples provided by Fidelity Investments of bitcoin’s price following macroeconomic announcements in 2022:

• July 27: BTC increased by over 8% following the announcement by the Federal Reserve that it was raising interest rates by 75 basis points.
• August 10: July U.S. CPI inflation came in below expectations at 8.5% (compared with 8.7% expected). BTC climbed 4% in the hours following the release of the CPI before slowing later in the day.
• August 19: BTC plunged nearly 10%, falling in sync with traditional markets amid renewed fears that the Fed and other central banks will have to get more aggressive in fighting inflation. The decline started with unexpectedly high inflation data in Germany.
• August 26: BTC dropped after Fed Chair Jerome Powell doubled down on restrictive monetary policy at the Fed’s Jackson Hole economic symposium.
• September 13: BTC fell on the release of August U.S. CPI data, which showed an unexpectedly high 8.3% increase in prices (compared to 8.1% expected).

With its widespread adoption, it is clear that bitcoin is no longer on the fringe of the financial system. Tensions between Russia and the West over the Ukraine war could continue to roil markets, from energy prices to foreign exchange. Bitcoin’s tighter correlation with broad markets means it will not be immune.

Conotoxia Senior Market Analyst Daniel Kostecki gave his opinion on this correlation to CoinDesk last year.

“It is what is happening in the arena of international relations that seems to be the main driver of the markets for both stocks and cryptocurrencies,” he said.

2023 Bump

$SPX $BTC

Ask yourself, Why should Bitcoin have a 40% pump when nothing special has happened in the stock market?

Moreover, $VIX & $DXY are on technical support and ready to bounce up which will be bearish for risky assets!#Crypto #cryptocurrency #BTC #Bitcoin pic.twitter.com/gmXC4lXFqi

— Dollarcurrency21 (@Dollarcurrency1) January 21, 2023

As of January 31, 2023, the YTD of bitcoin is up approximately 39%, while the S&P 500 and Nasdaq Composite are up 5.9% and up 10.8% respectively.

Analysts say that there is a multitude of factors behind bitcoin’s new rise in 2023, including the probability that interest rates will be lowered in the coming months, easing of short-term inflation, as well as massive purchases by large buyers, otherwise known as “whales.”

The U.S. dollar has also lowered, with the greenback down 8.5% in the last three months in terms of its strength against a basket of other notable currencies, such as the Euro, Pound and Yen.

If this is the case, bitcoin continues to show a coupling with macroeconomic indicators, despite showing less correlation with stock markets.

As bitcoin’s adoption continues to increase along with the development of applications built on top of the blockchain it is likely we would see a decoupling between the cryptocurrency and stock markets in the future.

“We expect them to not be as highly correlated going forward,” Ben McMillan, CIO of IDX Digital Assets said. “But I do think a positive correlation between bitcoin and risk assets, in particular things like technology stocks, is here to stay.”

That said, bitcoin is still a relatively new asset class when compared to its counterparts, like bonds, stocks and gold. Its relationship with them and macroeconomics will be closely watched.

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Terra (LUNA)

The Terra ($LUNA) crypto token crashed from $120 to $0.002, a 99.9% correction between May 11 to May 12. Along with LUNA, the TerraUSD ($UST) stablecoin endured a significant crash from $1 to $0.30. The Terra blockchain was a platform created to peg stablecoins to fiat money, initially founded by 31-year-old South Korean Do Kwon. 

Combined, $LUNA and $UST had a market capitalization of roughly $50 billion, and the reasoning behind the crash is still unconfirmed. Interpol issued an arrest warrant for Kwan but was recently thrown out by a South Korean judge.

That awkward moment from @UpOnlyTV when Martin lets @stablekwon know that “prison isn’t that bad.”

Martin: “So don’t fret.”

Do Kwon: “Good to know.”@cobie #LUNA #terra #ust @ledgerstatus pic.twitter.com/oCNxFv3xFg

— Colin Talks Crypto (@ColinTCrypto) November 8, 2022

Three Arrows Capital

In June, Three Arrows Capital, a Singapore-based cryptocurrency hedge fund failed to meet its margin calls and repay the money lent from cryptocurrency broker Voyager Digital. The hedge fund subsequently filed for Chapter 15 bankruptcy in the United States. Not surprisingly, Voyager Digital declared bankruptcy the following month.

FTX

Arguably the biggest crypto story of the year was the fallout of FTX, one of the world’s largest crypto exchanges and custodians led by founder Sam Bankman-Fried, also known as ‘SBF.’ 

At the moment, SBF has pleaded not guilty in New York federal court to eight charges related to the collapse of FTX and hedge fund Alameda Research. He is facing charges of conspiracy to commit wire fraud and securities fraud, individual charges of securities and wire fraud, money laundering and conspiracy to avoid campaign finance regulations. In total, SBF is facing 115 years in prison.

In sum, FTX was once valued as a $32 billion company that used QuickBooks for its accounting methods, freely transferred client funds back and forth between FTX subsidiaries and Alameda Research and spent millions of dollars donating to U.S. Democratic politicians and even shadow donations to Republican politicians. FTX filed for Chapter 11 bankruptcy in the U.S. in November.

“They use QuickBooks… A multimillion dollar company using QuickBooks,” FTX CEO John Ray said when explaining why FTX is worse than Enron https://t.co/WJWMxhZ7Oa pic.twitter.com/PHm5QXlaZW

— Bloomberg (@business) December 13, 2022

At this time, it appears FTX will be remembered as one of the biggest financial frauds in history. Depending on the total amount of money and crypto that bankruptcy auditors uncover, it will likely rank as the second largest financial fraud, right behind Enron.

Scams in 2023?

2023 has only just begun, and we are already hearing rumblings about further scams and potential defaults.

Logan Paul and CryptoZoo

Uncovered by a leading investigative journalist in the financial industry, Coffeezilla has put forward information that could incriminate famous YouTuber Logan Paul on his crypto game titled CryptoZoo.

It was only AFTER not getting a response from him, that I began calling his manager Jeff for answers about the CryptoZoo developers, and got comically stupid responses. pic.twitter.com/IjtHC0egGu

— Coffeezilla (@coffeebreak_YT) January 3, 2023

Binance

This may shock most of our readers, but those in the industry wonder if Binance is financially stable after the FTX collapse. Largely, Binance has never revealed its liabilities and in fact, Binance CEO, Changpeng Zhao (also known as ‘CZ’) has indicated that the big four auditors have difficulties auditing crypto firms.

“Many of them don’t even know how to audit crypto exchanges” – CZ, December 2022 

This @cz_binance clip is going viral but lacks context.

Question: Could Binance handle someone asking for $2.1billion back?

CZ avoids answering directly: “we are financially strong”

This wasn’t about customer deposits, it was about $2.1B FTX paid them.pic.twitter.com/fcpWX5BXvm

— Luke Martin (@VentureCoinist) December 15, 2022

Binance originally invested as a shareholder in FTX in 2019 and exited while receiving $2.1 billion in its own stablecoin ($BUSD) and in $FTT (FTX Tokens) as part of the deal. Now if Binance is forced to claw that back to FTX creditors, one wonders if Binance can remain afloat.

What Will Happen to Crypto in 2023?

With 2022 behind us, let’s throw out some of our predictions on what will happen to crypto and Bitcoin in 2023.

1) Bitcoin Sees Positive Returns

Often regarded as a hedge against inflation, we were able to put Bitcoin to the test with elevated inflation levels across the globe in 2022. As it turns out, Bitcoin’s return performed worse than U.S. stock markets. That said, Bitcoin’s network and decentralized nature have remained strong throughout a tough 2022. Crypto’s reputation was dented by the crises and scandals, but the salability and strength of its network have cemented itself as here to stay for the long run.

Even Cathie Wood, the CEO of ARK Invest who posted a 150% return on her ARK Innovation ETF in 2020, believes that Bitcoin’s price is still on pace for US$1,000,000 by 2030.

2) Global Bitcoin Adoption

Currently El Salvador and the Central African Republic (CAR) are the only nations in the world where Bitcoin acts as legal currency. That will change in 2023 with likely candidates Saint Kitts and Nevis, Venezuela and Paraguay. In November 2022, Terrance Drew, the Prime Minister of the Caribbean nation of Saint Kitts and Nevis indicated the country may adopt Bitcoin Cash (BCH) as legal tender.

Planting seeds in 44 countries.

3 days to go…#Bitcoin is good for the world pic.twitter.com/eOwhJZQ4RX

— Nayib Bukele (@nayibbukele) May 16, 2022

Venezuela is a likely candidate as over 10% of its population owns cryptocurrency while its current year-over-year inflation rate stands roughly around 155%. Bitcoin would be regarded as a more stable currency for Venezuelans.

Paraguay is a possibility as Carlitos Rejala, a member of Paraguay’s Chamber of Deputies has proposed a bill to have Bitcoin as legal tender in the country. Whether the bill is passed is up for debate, but Rejala has indicated he is willing to run for President which would accelerate the possibility.

3) Regulatory Battles

With the fall of FTX, the Ontario Teacher’s Pension Plan wrote down its stake to zero, taking a US$95 million loss barely a year after initially investing in the company. The loss has a limited impact due to the size of the fund ($242.5 billion) but these losses catch the attention of regulators and politicians. 

We saw a movement towards further oversight in December in Canada and we will likely see more. The Canadian Securities Administration announced that it will require all crypto exchanges seeking registration to sign undertakings before they are formally under regulatory watch.

This will take time as the wheels of government take a strong push to move, especially in an industry as complex and new as cryptocurrencies. Will 2023 be the year that regulators finally reach their limit?

4) Rebuilding Trust

Not only in crypto, but in many other industries like tech, rising interest rates, high inflation and a looming recession has forced many businesses to cut costs and cut them quickly. Years of zero interest rates will do that to an economy, where founders, venture capitalists and angel investors were flooded with cash and invested in any startup with a pulse.

The crypto industry in 2023 will have to rebuild and regroup. Over-leveraged firms and poor exposure to bad counterparties will not be tolerated in crypto anymore. New firms that come into the space will have to demonstrate integrity, trust and positive cash flows in order for the industry to rise again.

5) The Rise of Self-Custody

Trust is at an all-time low in exchanges, which inevitably will lead to a rise in users holding their crypto in self-custody wallets. When trust is low, incumbents will consolidate, pushing investors to obtain crypto from financially stable institutions and place them in self-custody, which ultimately lowers the risk of default for many retail investors.

If you do not own the keys, do you really own your Bitcoin?

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The good news is there are plenty of methods to choose from so there is something for everyone. Below we have outlined the pros and cons of 10 different ways to purchase crypto. We have also given each one a score out of five for the following categories: convenience, security, and value.

Read on to find out the best way to buy Bitcoin in Canada for you.

How can I buy Bitcoin in Canada?

The good thing about living in a relatively crypto-friendly country like Canada is there are lots of options to exchange fiat currency for Bitcoin and other cryptocurrencies like Litecoin and Ethereum.

The first decision you have to make is whether you want to trade online or in person at a physical location. That’s right, you can actually swap cold hard cash for cryptocurrency!

The next step is to choose a payment method. In a short space of time, trading platforms have expanded their ways to pay exponentially. While it may seem intimidating at first, don’t fear! We have compiled some of the most popular options out there to help you make up your mind.

Crypto gift cards

Crypto gift cards just like any gift card you might buy at a normal retail store. The main difference is you can’t buy goods and services with it. Instead, you can send someone a digital gift card with crypto assets from your own wallet or by buying a certain amount with fiat currency.

Pros:

• Potential to increase in value: A crypto gift card is essentially a hot wallet, meaning it holds a certain amount of crypto on it. This means the value could increase if you hodl it.
• Great gift idea: Whether you are looking for a present for a Bitcoin maximalist or someone who knows next to nothing about crypto, a gift card is a fun and easy gift idea. The recipient doesn’t even need a bank account. All they need is a crypto wallet.

Cons:

• Lack of flexibility: Once you buy a gift card using fiat, you lock in your chosen coin. If the recipient is more into altcoins, for example, you’d probably be better off just sending them some cash.
• Not secure: If a gift card gets lost in the mail, there’s not much you can do to retrieve your coins. Similarly, if it gets stolen, someone could easily extract the value for themselves. This is a lot riskier than simply sending it from your wallet.

Convenience: 3/5

Security: 1/5

Value: 3/5

Bitcoin ATM

Bitcoin ATMs, also known as Bitcoin kiosks or BTMs, enable you to exchange cash for BTC, Litecoin, Ethereum, or other cryptocurrencies in person. Although they are different from the machines you would find at a traditional bank, just like an ATM, you can deposit or withdraw cash. The main difference is you buy cryptocurrency when you deposit cash and you sell it when you make a withdrawal.

Bitcoin ATMs are a great option because they save a lot of the hassle of going through lengthy online sign up processes and they are one of the easiest methods to use.

Pros:

• Simple to use: It doesn’t get much easier than inserting cash into a machine and instantly buying your cryptocurrency of choice. All you need is cash, a phone, and a digital wallet. This makes it a great way to explore the market without the hassle of creating an account with an online exchange.
• Direct: There is no middleman at all if you buy from an ATM. It’s a direct transaction so there’s no waiting for funds to arrive from your bank or for an online exchange to approve your transaction.
• Secure: Bitcoin ATM providers are regulated by FINTRAC. If you are unsure about whether the machine you are using is legit, you can search for the name of the company on FINTRAC’s registry for peace of mind your transaction will be secure.

Cons:

• Must have cash: If you don’t happen to have cash on you, there are not a lot of options out there to buy at a machine. Fortunately, there are ways you can still transact without cash, such as via Interac® e-transfer.
• Fees: one of the drawbacks of machines is that trading fees are usually higher than online exchanges. Of course this all depends on your personal preference and plenty of people prefer to use Bitcoin ATMs for the convenience and ease of use.

Convenience: 5/5

Security: 5/5

Value: 3/5

OTC Desk Locations

OTC, or over-the-counter, involves buying cryptocurrency via a broker, either in person or virtually. This option is ideal for investors looking for a personalized service.You speak directly to an account manager who provides advice and handles the trade for you.

The downside is you usually have to spend a certain amount to qualify, however, using private exchange services makes sense for large volume trades. 

Pros:

• Personalized service: Having someone else place a trade on your behalf removes a lot of the stress involved in buying Bitcoin.
• Expert advice: OTC brokers usually have experience when it comes to making trades. If you’re new to the world of cryptocurrency, expert advice can help maximize your investment.

Cons:

• Fees: At the end of the day, you are paying for a service with OTC, and this is reflected in the slightly higher fees you pay.
• Large volume: OTC is designed for people with large sums to invest in Bitcoin, meaning it is not suitable for the average customer.

Convenience: 5/5

Security: 5/5

Value: 3/5

Purchase Bitcoin direct from a seller

There are forums and posts on sites like Facebook Marketplace, Reddit, and Craigslist (That’s right! Remember Craigslist?) as well as niche sites where people will literally sell you Bitcoin. Of course, there are risks involved because you’re essentially buying from a stranger.

It is possible to find cheaper rates, but this method is more labour intensive than other alternatives. When you buy from a reputable company, you do not need to scour multiple websites for a cheaper deal, customers know exactly what to expect every time.

Pros:

• Bargain deals: People who buy crypto this way are usually looking to squeeze every satoshi they can out of a deal. It is possible to find some great rates, especially if you find a motivated seller.

Cons:

• Risky: Buyers take on a lot of risk when they buy directly from a seller online. Often there is no way of knowing if the seller will deliver what they promise.
• Time consuming: Searching through page after page to find the best deal consumes a lot of time and effort.

Convenience: 1/5

Security: 1/5

Value: 3/5

INTERAC® e-Transfer

INTERAC® e-Transfer is arguably the best way to buy Bitcoin in Canada. It is as easy as sending money to a friend, it takes just a few minutes, and the fees are relatively low. Transactions are secure when you buy Bitcoin via e-Transfer from a reputable company and service is convenient and fast.

The sign up process is much shorter for e-transfer than it is for online crypto exchanges like Newton or Shakepay, which can take hours or even days to go through. Similarly, you don’t have to wait what seems like an age for a bank wire transfer to fund your account.

Pros:

• Fast: Transactions are usually seamless and completed in a matter of minutes.
• Secure: So long as you are buying from a trusted source, you can rely on the proven INTERAC® e-Transfer infrastructure, so you know your funds will be safe.
• Simple: All you need to get started for transactions below $1,000 is a phone number and there are no extra hoops you have to jump through like there are for online exchanges.

Cons:

• Limited transaction size: A downside to using e-Transfer is your bank will usually limit the amount you can send in one day. So long as you only plan to purchase Bitcoin below a few thousand Canadian dollars in value, however, this option is perfectly suitable.

Convenience: 5/5

Security: 5/5

Value: 3/5

Debit

Buying digital currencies with a debit card is a simple way to join the cryptocurrency world. It works just like making a standard purchase online. All you need to do is pick a trustworthy trading platform, sign up for an account and enter your card details.

The downside of debit transactions is that not all banks allow it and some operators will flag crypto purchases as fraudulent. This can lead to long, frustrating delays.

Pros:

• Fast: Most exchanges can process transactions quickly.
• Simple: The sign up process usually takes a few minutes, unlike online exchanges.

Cons:

• Bank restrictions: Banks can sometimes get involved and prevent purchases from going through

Convenience: 3/5

Security: 5/5

Value: 3/5

Credit

You should tread carefully when buying crypto with a credit card. Customers should avoid making speculative purchases and only spend what they know they can pay back comfortably.

One of the key drawbacks of using a credit card is the fees. Banks usually charge more for purchases of cryptocurrency on credit because of the inherent risk the borrower might not be able to pay it back.

Having said that, if you’re responsible and know what you’re doing, buying Bitcoin with a credit card is as equally straightforward as using a debit card.

Pros:

• Convenient: Just like debit transactions, the process is usually fast and simple.

Cons:

• Fees: There are cheaper options out there that are just as fast and convenient.

Convenience: 3/5

Security: 5/5

Value: 1/5

Bank wire transfer

If the fees involved with using a credit card put you off and you have some time on your hands, bank wire transfers are a cheaper alternative. There are usually no bank fees involved in transferring money to fund your crypto account, however, whether you run into problems with your bank is another question.

Bank transfers can take days to go through, especially if you are a first time buyer. This can be annoying to say the least, especially if you miss out on an opportunity with a Bitcoin price fluctuation, for example.

Pros:

• Free: Bank transfers to fund your account usually cost nothing.

Cons:

• Time: Wires sometimes take a day or two to go through.

Convenience: 1/5

Security: 5/5

Value: 3/5

Apps

Some mobile apps, such as Wealth Simple, offer Bitcoin investment options. The apps are usually user-friendly and if you are familiar with how they work, funding your account is simple enough.

It is important to exercise caution when choosing which app to go with. Make sure the app allows you to send BTC to your crypto wallet. Some providers only allow you to keep funds in their custody wallet, meaning you do not have total control over your crypto asset.

Pros:

• User-friendly: If you’re new to crypto, the apps will help to guide you through the whole process.

Cons:

• Lack of control: Some apps only allow you to keep funds in their custody wallet.

Convenience: 2/5

Security: 3/5

Value: 3/5

Online exchanges

If you have looked into buying cryptocurrency at all you are bound to have come across online exchanges like Binance, Coinbase, and Kraken. These trading platforms are usually good for beginners and offer a wide range of altcoins in addition to the more established cryptocurrencies.

While they are a lot of people’s first step into the crypto universe, many people soon start looking for alternatives. Users are put off by lengthy sign up processes, privacy concerns, and poor customer service.

Pros:

• Guidance: Most sign-up processes, while lengthy, are well designed and walk the user through step-by-step.

Cons:

• Slow: If you are using an exchange for the first time, it can take a long time to get your account approved and funded.
• Invasive: Some online exchanges require you to surrender a lot of information before you can start trading.

Convenience: 3/5

Security: 3/5

Value: 3/5

Conclusion

There is no shortage of methods you can use to buy Bitcoin. INTERAC® e-Transfer is the best way to buy Bitcoin in Canada from an overall perspective. It scored highest in our ratings and is generally fast, secure, and good value.

The ultimate deciding factor in what defines “best”, however, is you. That is the great thing about cryptocurrency today: with more ways to buy than ever before there is bound to be an option that fits your needs and level of knowledge.

Click here to buy using INTERAC® e-Transfer

The post What is the Best Way to Buy Bitcoin in Canada? appeared first on Baltisee Virtual Unit.

We are over the moon!

Baltisee Virtual Unit celebrates a major milestone with over 100+ Bitcoin ATM locations across Canada.

Thank you to all the great businesses that have worked with us – from the early adopters who were open to trying out our kiosk concept to the national retailers who aligned with our vision to provide cryptocurrency services in Canada.

Keep your eyes peeled – there will be 200 Baltisee Virtual Units in the wild before you know it.

To infinity and beyond,

The Baltisee Virtual Unit Team

The post Baltisee Virtual Unit Celebrates A Major Milestone appeared first on Baltisee Virtual Unit.