How Coinberry Became One of Canada’s Top Crypto Platforms
Aug 03, 2022 01:06
Many North Americans might be looking to choose the best platform to buy Bitcoin, Ethereum or other cryptocurrencies. Doing so can let investors better focus on analyzing the trends and making smart decisions about your investment. But when beginners and seasoned investors choose a crypto platform, they should look for the following:
●Trust and security
●Availability of several cryptocurrencies and tokens
●Many users (preferably hundreds of thousands or more)
●Quick, simple and small start
In Canada, one of the top crypto platforms is Coinberry because it meets the above requirements:
●Trust and security (Coinberry is insured, OSC & FINTRAC registered, PIPEDA compliant)
●Availability of several cryptocurrencies and tokens (35+ cryptos available)
●Many users (220K+ Canadians have already signed up)
●Quick, simple and small start (start for as low as 50 CAD)
●Low fees (in fact, Coinberry has no CAD deposit and withdrawal fees)
Coinberry earns money by sourcing crypto at lower prices and then reselling them at the listed prices. This happens behind the scenes so that investors can get the best value from their money. Instead of paying for fees, investors can use the money to buy more cryptos and further diversify their portfolio.
Crypto for beginners
To make smart choices about cryptos, it helps to better understand the following:
●What is cryptocurrency
●How crypto platforms work
●Why prices of cryptocurrencies rise and fall
●Is cryptocurrency still a good investment?
What is cryptocurrency
Cryptocurrency is a virtual currency or a form of digital asset. It’s backed by blockchain technology, which is decentralized in contrast to the currencies issued and run by banks and governments.
Advantages of cryptocurrencies:
●Cheaper and quicker money transfers
●Decentralized (won’t collapse because a single point failed)
●No third-party intermediaries
●Price is highly volatile and unpredictable
●High energy use (especially for Bitcoin mining)
Although many businesses support and accept cryptocurrencies as payment for goods and services, people often buy crypto for investment and trading. That’s because cryptos’ prices can suddenly skyrocket and deliver high returns on investment. However, they can also drastically fall and make people suffer huge losses.
Cryptos’ high volatility is both an opportunity and a risk. It will still take time for the prices to somehow stabilize and become more predictable. If you want to protect yourself from losses, it’s good to keep yourself updated about the cryptos’ movement and government regulations (these regulations can greatly influence cryptos’ prices).
How crypto platforms work
A crypto platform is where you can buy and sell crypto. You can think of it as a digital marketplace where you find buyers and sellers.
In other words, a crypto platform is a middleman or an intermediary. Usually, these platforms earn money through withdrawal and deposit fees. This way, they can continue running their business and expand their services (e.g. add more supported assets, further improve security).
In contrast though, Coinberry (one of the top crypto platforms in Canada) has zero deposit and withdrawal fees. They earn money by sourcing crypto at lower prices from their network of liquidity providers and then selling crypto at the listed prices. As a result, investors keep more of their money and they can use that to buy more digital assets.
Aside from knowing the fees, investors also practice the following when choosing a crypto exchange platform:
●Being cautious (you should take the time to ensure a platform is registered and legitimate)
●Doing research (especially about the platform’s reputation)
●Knowing about how the platform protects investors from fraud and data breaches
Popular crypto platforms such as Coinberry continuously invest in security to protect investors. They also comply with the latest government regulations when it comes to data security and privacy.
Why do prices of cryptocurrencies rise and fall?
As with most other investments, cryptos’ prices rise and fall because of supply and demand. For example, if demand for Bitcoin is high or more people suddenly want to buy it, the price increases (especially because Bitcoin has limited supply).
On the other hand, if people rush to sell their Bitcoin because of unfavorable news and market conditions, suddenly Bitcoin’s supply increases (which can drive down the price).
Aside from supply and demand, cryptos’ prices also fluctuate because of the following:
●Developer updates and internal governance
Mining crypto and verifying transactions take time, computing power and money (we can think of it as the cost of production). Higher production costs can lower the value of a cryptocurrency because miners and participants will have lower incentives. This affects the adoption and support of a particular cryptocurrency.
Competition is also a huge factor. If a new cryptocurrency comes out that has lower costs and better scalability than Bitcoin and Ethereum, more people might sell their existing crypto to buy the new one. The new crypto’s price might rise and the price of other cryptos might fall.
Technological updates about a cryptocurrency also affects its price. For instance, if Bitcoin suddenly addressed its issue about energy use, its price might rise suddenly. That’s because lower energy use can make a cryptocurrency more attractive to investors (especially now we’re concerned about sustainability and energy crisis).
Government regulations and legal requirements also influence cryptos’ prices. If a huge country with hundreds of millions of population suddenly bans cryptocurrencies and blockchains, the entire market might fall. On the other hand, if a country suddenly backs a particular cryptocurrency, that crypto’s price might suddenly skyrocket.
Is cryptocurrency still a good investment?
Now that you understand the risks, is cryptocurrency still a good investment? Because crypto is still new, we still can’t rely on historical data. And because the field is still young, the prices are still highly volatile. When the market matures, somehow the prices will stabilize.
For now, your first step could be reading the news about cryptos and blockchains. If you see prices are falling, this means you can buy more crypto. If prices are getting higher, this can mean people are renewing their faith in this digital asset. It’s up to you and your interpretations.