Coinbase is about to be listed on the Canadian stock exchange exposing this cryptocurrency for the first time. Several cryptocurrencies are listed on the Canadian stock exchange. Here is a guide on how investors can bet on the future of cryptocurrencies.
Direct investments into Bitcoin
Crypto trading platform was added last year by Wealthfront enabling its users to trade directly into digital assets. A trading app is also allowing users to purchase or sell Bitcoin or Ethereum directly. Other exchange platforms such as Paypal are now allowing Canadians to purchase Bitcoin directly.
The Purpose Bitcoin ETF, Evolve Bitcoin ETF and CI Galaxy Bitcoin ETF have all been listed in the Toronto stock exchange. The Bitcoin exchange-traded funds are safe and easier to invest in than buying cryptocurrency directly.
The ETF management ensures that Bitcoin holdings are safe and protected from cyberattacks ETF can serve as a tax-free saving account or a Registered Retirement Savings Plan (RRSP). The most appealing part of ETF is that it mitigates loss through taxes.
Investing in crypto mining stock is another safer way of betting on Bitcoin. Mining companies generate digital assets through the Proof-of-Work method. Mining companies have server farms that do complex mathematics to win newly minted BTC. The new BTC is sold or held as a reserve.
HIVE Blockchain (TSX: HIVE) is an example of a mining company that has seen its margin rise by 2, 347 percent in its stock value over the past year. Mining companies are thus diversified than any ETF and can hold an Ethereum, Ethereum Classic, or Bitcoin reserve.
Canadian investors looking for an alternative way to invest in the emerging market may consider Canadian Bitcoin ETFs and mining stock before considering the upcoming Coinbase. The listing of Coinbase is probably the biggest tech listing in 2021. Although experts believe that the company would be worth more than major banks once it is listed on the stock exchange, it is still far better for investors to consider investing with either domestic ETFs or crypto mining stocks.