How and Where to Buy Cryptocurrency in Canada?

This comprehensive guide is your all-in-one reference for learning different aspects of the cryptocurrency buying process in Canada, including how to choose the right provider, options offering the lowest fee, available payment options, and much more.

When it comes to buying cryptocurrency, you should be aware of some

To save you time, the top three providers for buying cryptocurrency are NDAX, Netcoins, and Coinsquare. These platforms offer the broadest range of cryptocurrencies, have excellent reputations with their customer base, offer intuitive user interfaces, and the list goes on.

Best Exchanges to Buy Cryptocurrency in Canada

	Name	Score	Visit	Disclaimer
	1eToro	8.7	Visitetoro.com					Don’t invest unless you’re prepared to lose all the money you invest.
	2Pepperstone	9.0	Visitpepperstone.com					Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
	3Eightcap	8.8	Visiteightcap.com
	4Webull	8.3	Visitwebull.com
	5Coinbase	8.4	Visitcoinbase.com
	6Changelly	7.4	VisitChangelly.com
	7Trading 212	8.4	Visittrading212.com					CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 83% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

How to Buy Cryptocurrency in Canada

In this section, we have outlined the process of buying cryptocurrency. Beginners will find this section time-saving when getting started.

Buying Cryptocurrency for Beginners in Canada - The Best Platforms Compared

This section is a good starting point for beginners who want to explore a suitable platform to fulfill their cryptocurrency trading needs.

Buy Cryptocurrency With Crypto Brokers in Canada - The Easiest Way

Crypto brokers are the easiest way for beginners to get started because they handle the trades on behalf of the customer. Also, you can deposit using fiat currencies, and many payment methods are available, which include credit/debit cards, bank transfers, and digital wallets. The top providers are listed in the table below.

The providers listed in the table above have been shortlisted based on their positive reputations among Canadians. On top of that, these platforms offer transparent fee structures, so you can fully understand how much you are paying while trading on the platform.

NDAX

NDAX is known for offering a simplistic user interface to make trading easy for beginners. In addition, the platform also offers learning resources, staking, referral program, and more.

Netcoins

Netcoins provide a premium user experience with an intuitive trading interface, multiple deposit options, learning resources, and swap pairs for ADA. This platform also offers rapid transaction times, fast verification, top-notch customer support, and the list goes on.

Coinsquare

Coinsquare is one of the most trusted platforms for buying, selling, and trading cryptocurrencies. This platform offers three core products, i.e. Coinsquare Trade (for trading cryptocurrency), Coinsquare Pro (for the advanced crypto trading platform), and Coinsquare Wealth (to avail personalized service from wealth experts).

Best Wallets to Store Cryptocurrency in Canada - Crypto Wallet Comparison

Crypto wallets are programs or devices that allow you to store your private keys in your personal custody rather than leaving them to the exchanges. The private keys can unlock access to your crypto holdings, hence having them in your personal custody ensures maximum security.

Crypto wallets come in various forms, including hardware wallets that are similar to USB sticks and mobile apps like the Coinbase Wallet or Trust Wallet. Hardware wallets are considered to be the best and safest option to store your keys, as these wallets don’t need to be connected to the internet unless you want to send or receive crypto.

The providers listed above offer trusted storage solutions that many customers have had great experiences with. Also, they allow you to store a large number of cryptocurrencies, which means you can store all your coins in one location.

Buy Cryptocurrency CFDs in Canada- Best for Trading

An alternative way to invest in Cardano is with CFDs (Contract For Differences) issued by brokers. These are derivative products, so you won’t own the underlying asset while still investing in the coin. This also means you cannot withdraw, transfer, or spend your crypto. However, crypto brokers often have easy investing methods, perfect for beginners. Here you can find the top three options:

FP Markets

FP Markets is on the top of the list because of its diverse range of features including but not limited to the customizable interface, one-click trading, MarketWatch, customizable alerts, and more. This platform also allows you to discover the benefits of powerful trading platforms like MetaTrader 4 and MetaTrader 5.

easyMarkets

Established in 2001, easyMarkets has been operating in the industry for two decades. This platform offers users an exclusive risk management tool for efficient trading, followed by exceptional customer support service, tight fixed spreads, zero slippage, and negative balance protection.

What Is the Difference Between Buying Cryptocurrency and CFDs?

It is essential to understand the differences between buying cryptocurrencies and CFDs to help you choose the correct transaction type. Here is a summary of the differences you should know about:

• Asset speculation: buying cryptocurrency gives you ownership of the asset. In comparison, a CFD contract does not since it is a speculation on if the price of the cryptocurrency will increase or decrease.

• No wallet: CFDs do not require a wallet to store the cryptocurrency keys, whereas wallets are required when you buy cryptocurrencies. Therefore, CFDs have fewer security risks since hacking events will not cause you to lose money.

• Fees: the fees associated with buying cryptocurrencies are typically lower than what brokers charge for CFD contracts.

• Leverage: CFD brokers usually provide leverage that allows you to increase the trading size.

Best Apps to Buy Cryptocurrency in Canada - Most Convenient

Smartphone apps designed by exchanges are considered the most convenient method to invest or trade in crypto if you can’t access a desktop device. These apps allow you to trade, stake, withdraw, and deposit coins as long as you have an internet connection. Take a look at the top three options:

The listed apps for buying cryptocurrencies above were chosen because of their rock-solid market reputations, long years of service, exclusive features, competitive pricing structure, community-driven initiatives, and more.

Buy Cryptocurrencies With Crypto Exchanges in Canada - The Cheapest Way

Cryptocurrency exchanges are the cheapest way of buying crypto. These platforms act as the intermediary between the buyer and seller to facilitate the transactions through an order book while charging a small trading fee for every completed transaction. Popular examples of cryptocurrency exchanges include Coinbase, Binance, and Kraken.

You can experience affordable trading with cryptocurrency exchanges because these platforms follow a low-fee structure. Also, having a high 30-day trading volume will place you in a different fee bracket with better terms regarding the trading fee. These options were selected for providing a premium service along with low platform costs.

You can buy cryptocurrency directly on an exchange using fiat currencies like CAD. This is done by depositing fiat into the exchange via debit/credit cards, bank transfers, or digital wallets. Once the account is funded, it can be used to buy cryptocurrencies. The transaction fees vary from one platform to another.

We have chosen the providers listed above because of their competitive and affordable trading fee structure. For example, the trading fee on Binance is an excellent value for someone who is trading large orders Also, these exchanges are tightly regulated by government-appointed organizations like the FCA, SEC, CFTC, FinCEN, etc.

Buy Cryptocurrencies Using Decentralised Exchanges (DEX) in Canada - Best for Altcoins

Decentralized exchanges are peer-to-peer trading platforms where users buy and sell crypto without the need for an intermediary. This is a great choice to enjoy anonymity while trading crypto since you don’t even need to share an email address. Also, it’s more secure to trade cryptocurrency from a DEX since you can interact with exchanges directly from DeFi wallets.

The table illustrated below provides information on some popular decentralized exchanges built on top of the Ethereum network.

The decentralized exchanges listed in the table above offer relatively higher liquidity which means it will be easier to trade with others. Also, you can enjoy anonymity since account registrations or KYC verification is not required.

Can You Buy Cryptocurrencies Using P2P Services in Canada?

Yes, cryptocurrencies can be bought using P2P services such as LocalBitcoins. These platforms allow users to post offers with a price and accepted payment method. Buyers can search the platform for offers that provide terms they are willing to accept. In the table below, you will find the top P2P platforms.

The P2P providers listed in the table above have been shortlisted because they offer low trading fees, flexible deposit/withdrawal options, and have established colossal popularity among the users in Canada.

Can You Buy Cryptocurrency Using Other Trading Platforms in Canada?

In this section, a long list of alternative trading platforms has been shared so that additional options can be explored for beginners and advanced users. You will find information such as the corresponding fee, the number of supported coins, and a link to our detailed review.

How to Choose the Best Provider to Buy Crypto in Canada

To choose the best crypto trading provider in Canada, you need to consider some important factors as explained below

• Security: Dig into the background information of the platform and scratch the details about the credibility of the founding team, security methods deployed, reputation, and track record.

• Fees: Compare different providers' deposit, transaction, and withdrawal fees to find the most affordable option.

• Available: Ensure that the provider allows you to trade coins of interest. Ideally, you will have access to hundreds of cryptocurrencies.

• Investment selection: If you want to get into crypto investments, then look at if the provider supports this.

• Educational resources: Some exchanges like Binance offer a crypto academy section that covers different topics on web 3.0, including but not limited to the blockchain, cryptocurrency, DeFi, GameFi, and more. The educational resources help a lot, especially beginners who are trying to explore the sophisticated world of crypto.

• Bonuses: you may receive bonuses for registering with a provider. This also includes commission-free trades and or cash rewards.

• User-friendliness: choose a platform that offers a smooth UI and UX to have a better trading and investment experience.

Best Ways to Buy Cryptocurrency in Canada

In this section, you will find the top ways of buying cryptocurrencies in Canada so that you can explore the method which best suits your requirements.

Buy Cryptocurrency Instantly With Online Banking in Canada - The Fastest Way

Many providers allow customers to deposit fiat currency using online banking, which is a fast and reliable method of transferring funds. NDAX is an example of a crypto trading platform in Canada that supports bank transfers.

Buy Cryptocurrency With PayPal in Canada - The Safest Way

PayPal is an industry-leading payment processor that is accepted at many cryptocurrency trading platforms. An example of a crypto trading platform that accepts PayPal as a deposit method is eToro, but unfortunately, eToro is not available to use in Canada. You can explore other options like Paxful, which allows you to buy cryptocurrencies using PayPal. If you would like to know more, take a loof at the following guides:

• How to buy Ethereum with PayPal in Canada

• How to buy Bitcoin with PayPal in Canada

Buy Cryptocurrency Using a Debit/Credit Card in Canada- The Convenient Way

Use your debit card to deposit funds on Coinbase and navigate to the spot trading tab to purchase the cryptocurrency of your choice. You can also use Bit2Me to buy cryptocurrencies using a debit card in Canada.

Buy Cryptocurrency Using Prepaid Cards in Canada

Prepaid cards allow customers to deposit money to a crypto exchange anonymously since no personal information is linked to the transaction. For example, PaySafeCard is a popular prepaid card that is offered at crypto trading platforms like Paxful.

Buy Cryptocurrency Using a Neteller, Skrill, or Venmo in Canada

Digital wallet services like Neteller, Skrill and Venmo are convenient and fast methods of depositing money to crypto trading platforms. We couldn’t find cryptocurrency exchanges in Canada accepting digital wallets for making fiat deposits; however, you can use P2P platforms like Paxful that allow you to use your digital wallet like Apply Pay to make the payments.

Buy Cryptocurrency Using Crypto ATMs in Canada

Bitcoin ATMs are available worldwide, where you can buy cryptocurrency using physical cash. The transaction requires you to insert your phone number, verify your identity, scan your wallet QR code, and deposit the cash in the machine to exchange it for Bitcoins in your wallet.

Interestingly, the world’s first Bitcoin ATMs popped up in Vancouver, Canada, in 2013. You can find multiple brands offering Bitcoin ATMs in Canada, including but not limited to Localcoin, Bitcoin Well, HoneyBadger, Hodl Digital Services, and more.

Buy Cryptocurrency Using Cash in Canada

You can use physical cash at any Bitcoin ATM in Canada. You’ll receive the Bitcoin immediately after completing the transaction, and you can use services like CointATMradar to find the nearest Bitcoin ATM.

Best Platforms to Buy Cryptocurrency in Other Countries

The best providers vary between nations due to licenses, laws, and crypto regulations. Below you can analyze the top cryptocurrency platforms in each country for buying Bitcoin.

How to Buy Cryptocurrency Safely in Canada

It is important to buy cryptocurrency safely, so you do not get scammed or make mistakes that cost you money. Here are the top points of consideration:

• Regulators: Check what regulators have given their seal of approval to the broker or exchange where you want to buy crypto. Ideally, trusted government organizations should vet the platform where you want to execute transactions.

• Peer-to-peer: When using P2P platforms, make sure to use trusted providers like NDAX that allow security features like two-factor authentication and encryption. If the platform does not require KYC verification, then the probability of getting scammed is high.

• Fees: You need to check the trading and withdrawal fees ahead of time to avoid getting charged a relatively high fee. Some platforms have hidden charges that can affect any profit you make from crypto trading.

• Wallets: If you own a large amount of cryptocurrency, it should be stored in your personal crypto wallet, especially cold storage, because it is the safest option. However, you must ensure that the seed phrase to access the wallet is not lost.

• Custom reviews: Read customer reviews about a platform to get a sense of their reputation. This can help you spot red flags that indicate you should avoid using that platform.

What Are the Fees When Buying Cryptocurrency in Canada?

This table discloses the fees you’ll pay for buying 1000 CAD worth of cryptocurrency and holding 30-days.

Cheapest Way to Buy Cryptocurrency in Canada

Binance, KuCoin, and Kraken Pro have adopted a tier system for calculating fees. Based on your trading volume amount, you can potentially enter a different bracket with better fee rates.

The options listed above observe a huge trading volume for most of the cryptocurrencies and offer the cheapest trading fee structure.

Fastest Way to Buy Cryptocurrency in Canada

The cryptocurrency platforms enlisted in the table below were selected for their quick sign-up processes and instant deposit methods. Also, they all offer excellent trading tools and learning section.

How to Buy Cryptocurrency Anonymously in Canada?

In most cases, you cannot buy cryptocurrency anonymously since a KYC verification step must be completed with most providers. However, you can buy crypto from decentralized exchanges anonymously.

How to Buy Cryptocurrency Without Registration or KYC in Canada?

There are a limited number of ways to buy crypto without registration or KYC, one of which is using decentralized exchanges like Uniswap. Here is the step-by-step process:

Buying crypto anonymously: You can also buy crypto anonymously using an ATM machine by paying cash. However, the transaction fees will be higher than completing the purchase online.

How to Buy Cryptocurrency Without Verification in Canada?

You may want to buy cryptocurrency without revealing your identity, and it is possible with a limited number of options. This includes buying crypto from an ATM machine using cash or using a wallet and purchasing from a decentralized exchange or P2P platform.

We have shared the step-by-step process for buying crypto from a P2P platform.

Can You Buy Cryptocurrency Offline in Canada?

You may want to receive cryptocurrency offline to experience enhanced security. A paper wallet is an excellent method for this purpose. Have a look at the step-by-step process to understand the process of receiving cryptocurrency in your paper wallet:

Should You Buy Cryptocurrency?

This section will help you determine if buying cryptocurrency is a good choice for you and what you should expect.

Risky investment: You should understand that investing in cryptocurrency is risky because of the volatility and unpredictability. It’s not uncommon for the new cryptocurrency projects to crash overnight due to rug pulls.

Also, crypto trading platforms are prone to attacks, which is another way your assets could be gone. Exchanges that have been hacked in the past include Kucoin, BitGrail, and MtGox.

When to invest: At the time of writing, the cryptocurrency market has taken a huge hit because of macro-level factors such as energy prices, political developments, the war in Ukraine, and inflation. Therefore, you should assess the right buying time to ensure you get the biggest gains.

Alternatively, you can follow the DCA (Dollar-Cost-Averaging) model, which means you should buy crypto over a time period to reduce the effect of price fluctuations.

Crypto volatility: The price of cryptocurrencies is generally more volatile than fiat currencies. Therefore, you must ensure you can handle the volatility financially and stick to your financial goals.

Hacks and security: Crypto trading platforms can be hacked, so it’s safer to store cryptocurrencies in cold storage wallets like Ledger Nano X.

Oversaturated market: There are a lot of crypto trading exchanges in the market, so the competition is stiff. This is great for traders because they enjoy lower transaction fees, better features, and intuitive user interfaces.

Benefits of Buying Cryptocurrency

There are multiple benefits to buying cryptocurrencies, which should help you figure out if it’s a worthwhile venture.

Make money: If you are successful in buying a blue-chip cryptocurrency like Bitcoin or Ethereum during the dip at a much lower price, then you can land yourself in an opportunity of generating a significant ROI when these cryptocurrencies reach their ATH (all-time high) during the bull run.

Diversify your portfolio: There are thousands of cryptocurrencies in the market, which means you have a lot of options to diversify your portfolio.

Limited supply & Utility: Many cryptocurrencies have limited supply and a deflationary tokenomics structure, followed by project utility which is one of the reasons why the native tokens of some projects scale in value.

Fast and easy transactions: Blockchain networks like Solana offer a robust transaction speed (faster than VISA) while keeping a low transaction cost.

Low fees: Emerging projects are reducing the cost of executing the transactions - for example, Polygon is a decentralized Ethereum scaling platform that provides lower gas fees.

Decentralization: Decentralized platforms built on top of the blockchain networks like Ethereum allow users to interact directly with each other without the need to complete the registration.

Using crypto funds loaded in your DeFi wallets, you can connect to the dApps and explore benefits including but not limited to user privacy, no censorship, development flexibility, more control, less downtime, and more.

When to Buy Cryptocurrency

Just like with stocks, getting the timing right while purchasing cryptocurrencies is important to generate maximum profits. Here are a few points to consider:

• Buy the dip: Buying the dip refers to buying cryptocurrency when it has fallen from its peak valuation.

• Dollar-cost averaging: instead of buying crypto in one transaction, you can spread them over time. Therefore, your cryptocurrency investment portfolio will be less affected by price fluctuations.

Should You Invest in Bitcoin or Altcoins?

You should conduct your own research before deciding if you should buy Bitcoins or Altcoins. This allows you to understand why one choice is better than another without relying on advice that might be misleading.

What Is the Best Cryptocurrency to Buy?

In this section, we provide suggestions for what cryptocurrencies are good investment choices. Keep in mind, that these are suggestions and not guarantees of the best-earning potential.

Bitcoin: Best Cryptocurrency for Beginners

Bitcoin is the best cryptocurrency to buy for beginners because of several reasons, including but not limited to: operating independently from other markets, not subject to the same inflation as fiat, great store of value, mammoth size community, robust infrastructure, limited supply subject to halving every four years, and more.

BNB: Potential Long-Term Growth

Many experts believe that the Binance coin will continue to grow because it has a track of continued growth. That’s because it has a lot of utility, which includes the ability to trade and invest in other securities, quarterly token burn, and reduced trading fees paid if used while trading cryptocurrency on Binance. Also, it fuels the Binance Smart Chain, which is one of the most popular programmable blockchains that runs smart contracts.

Decentraland: Great to Get into Metaverse

If you're interested in a metaverse coin, then Decentraland (MANA) is one of the best cryptocurrencies. It is ranked as the top metaverse coin based on market capitalization. The adoption by big brands gives this metaverse project value, legitimacy, and mass adoption. For example, brands like Nike, Samsung, and Coca-Cola are involved with Decentraland.

Ethereum: Easy to Buy into Smart Contracts

Ethereum is the driving force behind web 3.0 innovations like decentralized finance (DeFi), blockchain gaming, NFTs, decentralized applications, decentralized autonomous organizations, and more. These innovations have found their way into the economy to help industries to scale.

Since ETH is the native cryptocurrency of the Ethereum ecosystem, the users interacting with anything built on top of this blockchain will need to transact this coin. This leads to the immense utility for the coin followed by EIP-1559 burn functionality that reduces the circulating supply to enhance the value. The Merge upgrade is also live, making this blockchain greener and energy-efficient. Sharding is expected to go live in 2023-24, which will make Ethereum scalable and cheap.

Do You Need to Pay Tax on Cryptocurrency in Canada?

According to CRA (Canada Revenue Agency), earnings from cryptocurrency are treated as a taxable event in Canada. Any type of gains you make from commercial events involving crypto is taxed as a business income or capital gain, based on the circumstances.

Here is what you need to know:

Tax payment: CRA clearly classifies the events that are liable to tax and the events that are not. If you have generated earnings and returns in crypto that are recognized as a taxable event, then you are required to report your earnings to the CRA for the payment of tax.

Taxable events: The taxable event is triggered when you make gains or generate returns while gifting crypto, selling crypto, exchanging/trading crypto, conversion of crypto into CAD, crypto mining pursued in a commercial way, and other events as listed by CRA on its official website.

Non-taxable events: You do not need to pay taxes for holding cryptocurrency in Canada. No need to pay the tax, even if you are just moving your crypto from one wallet address to another wallet address. Other non-taxable events include using CAD to buy a cryptocurrency and creating a DAO.

Tax report: To ensure that you can accurately report cryptocurrency activity, you must keep organized records throughout the year. File your cryptocurrency activity at the end of the tax year by reporting your capital gains and losses via the Schedule 3 form and crypto income via Income Tax Return T1.

When to file taxes: The Canadian financial year is similar to the calendar year, starting from January 1st and ending on December 31st every year. Canadians are required to report the cryptocurrency income and capital gains/losses to the CRA from February 21 of the current year to April 30th of the immediately next year, making the tax deadline- May 1st.

Cryptocurrency Price Predictions: What Is the Future of Crypto?

In this section, we will cover the various aspects that contribute to the movement in the price of cryptocurrencies. This will help you better understand the complexities of trying to predict how coin prices change over time.

What Impacts Cryptocurrency Price?

Let’s dive deeper into the top 5 factors determining how cryptocurrency prices change.

• Demand for cryptocurrency: The demand depends on utility, which is what the currency can be used for. Utility increases the application of the coin and overall usefulness. Without utility, price increases are based on hype, and that eventually fades.

• Competition: Many coins have similar attributes, but if they are first to market, then they may end up the winner of that category. Also, technological improvements of previous coins may shift focus from older coins to better alternatives.

• Government intervention: Governments can interfere with cryptocurrency infrastructure. For example, China banned Bitcoin mining, which affected the coin’s price.

• Industry Adoption: Adoption of cryptocurrencies by organizations helps a lot in scaling the price and trading volume.

Cryptocurrency Market vs. Stock Market

This section will help you understand the differences between trading cryptocurrencies and stocks so that you can understand which avenue of investing is the right choice for you.

When investing in crypto, you do not get a share of a company, while stock provides this material asset. Therefore, crypto investors don’t get dividends, but they can stake crypto to receive passive income.

Another major difference is the operating hours. Stocks can only be bought during specific hours on weekdays. In comparison, cryptocurrency exchanges are online and open for trading 24/7.

Stake Crypto Using DeFi or CeFi

DeFi or CeFi staking is the process of locking up cryptocurrencies in smart contracts, which allows you to get passive income and other rewards. The value of these rewards and income differs based on the coin you have chosen.

Buy Cryptocurrencies Using ETPs (ETFs & ETNs)

Investing in ETFs is another investment form that allows users to bet on wider aspects of the industry. This investment type tracks a range of crypto assets, so in one investment, you will be spreading the risk. Some of the more popular ETFs include BLOK, BLCN, and LEGR.

Invest in Cryptocurrency Trusts

Crypto funds refer to portfolios entirely made up of cryptocurrencies. Like indices, they spread the risk of investing since you are not committing to the price fluctuations of a single currency. Two trusts that you can consider include Ethereum Classic Investment Trust (ETCG) and the Bitcoin Investment Trust (GBTC).

Buy Cryptocurrencies Using Mutual Funds

Cryptocurrency mutual funds are packaged with several cryptocurrencies and presented as a single investment product. The number and specific cryptocurrencies included in the fund varies by the service offering the investment type. Grayscale Bitcoin Trust is an example of a popular cryptocurrency mutual fund.

Buy and Sell NFTs

You can buy non-fungible tokens (NFTs) using cryptocurrencies like Ethereum, which is the most popular currency for buying NFTs. NFT marketplace like OpenSea SuperRare and Nifty Gateway offer the users to buy or sell NFTs built on top of different chains like Ethereum, Polygon, Solana, Klaytn, and more

You will need to connect a DeFi wallet like MetaMask and Coinbase Wallet to execute NFT transactions. Popular examples of NFTs include Jack Dorsey's first ever Tweet, Bored Ape Yacht Club, and Beeple’s “Everydays: The First 5000 Days”.

Buy Cryptocurrency Stocks and Shares in Companies Owning Crypto

Consider investing in companies that hold large amounts of crypto, such as Coinbase, Tesla, and Block. You can buy shares of these companies through the stock market using fiat currency. Specific stock options include

• PayPal: cryptocurrencies got a massive boost from the news that PayPal decided to add cryptocurrencies as a payment form in 2020.

• Nvidia: this is a GPU (graphical processing unit) manufacturer, which is one of the primary tools used to mine crypto.

• Santander Bank: Santander Bank is one of cryptocurrency Labs’ first partners.

Cryptocurrency Mining

Cryptocurrency mining is a process in which new digital coins are created to verify the transactions happening on top of the network. This process involves solving complex mathematical computations for validating the transactions and adding them to the decentralized ledger.

As a reward for validating transactions and adding them to the network, the miners are rewarded with cryptocurrency for their efforts. The mining is performed using sophisticated GPU hardware. It is to be noted that mining can be done only if the blockchain network is following a proof-of-work consensus mechanism, for example- Bitcoin. Cryptocurrency mining is not a profitable venture anymore because of factors including high electricity cost to run the hardware, expensive GPU cards, the short lifetime of GPU cards, etc.

Use Cryptocurrency Faucets

You can earn cryptocurrency from faucets that trickle out a small amount of crypto from completing tasks such as solving puzzles, and watching ads and videos. Some of the top crypto faucet coins include Dogecoin, Litecoin, and Dash.

Is It Still Worth Investing in Cryptocurrency or Not?

In conclusion, investing in cryptocurrencies in 2022 is like investing in stocks, mutual funds, or real estate - you need to understand the risk and choose investments that are based on research. Do not invest more than you can afford to lose, and try to spread the risk by diversifying your investment portfolio. Cryptocurrencies are volatile investments, but there is a lot of opportunity in 2022 if you make the right bets.

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