[REQ_ERR: 403] [KTrafficClient] Something is wrong. Enable debug mode to see the reason. How to buy bitcoin and not pay taxes in Canada? – Soccerhubb

How to buy bitcoin and not pay taxes in Canada?

You can legally invest in cryptocurrency and not only through the stock exchange and not pay taxes on profits. Despite the fact that I am a programmer myself and have a pretty good understanding of technology, I will be honest, I was always scared by the process of buying cryptocurrencies. You have to make some wallets, use some scary exchanges, figure out how to deposit your account and, most importantly, you need to understand how to withdraw money after selling Bitcoin, Ethereum, Ripple, Litecoin, Dogecoin and other currencies, there are so many of them now. I’m not even talking about the mining craze, when the prices of video cards and hard drives skyrocket. It’s mostly a domestic thing done by young people looking for quick money. My friends from Canada, who started investing in cryptocurrency, chose a gray scheme: they do not pay taxes and withdraw the money through prepaid Visa cards. This way is definitely not for me and I do not recommend it to you.

Now I will tell you how you can buy etherium or bitcoin, avoiding left-hand exchanges and without creating wallets. Since I live in Canada, I will describe my Canadian experience, but I think that from Russia or Ukraine it is also possible to repeat it. On February 12, 2021 they had launched the world’s first investment fund, which allows you to invest in bitcoins via the stock exchange. You buy shares in this fund, and they are directly backed by bitcoin. If the cryptocurrency goes down, the value of the shares goes down, too; if bitcoin goes up, the shares get more expensive. As of June 20, the fund has more than 20,000 bitcoins spinning around with a total value of more than $700 million USD. Importantly, the fund has been vetted by Canadian securities regulators and is traded through the Toronto Stock Exchange, which is the Toronto Stock Exchange. I’ve told you many times before about how I invest in securities, and I showed you the process of buying funds not long ago. Buying bitcoin through the exchange is done in a completely similar way. There is also the option of investing in ethereum through another fund from the same company. There, however, there is less money, about $120 million USD.

At the very beginning I promised to tell you how you can avoid paying taxes on bitcoin and other cryptocurrencies. If you buy bitcoin itself, you can’t get away from taxes. But if you invest in bitcoin through exchange-traded funds, it is possible. In Canada, there is a special account called TFSA, a tax-free savings account. It translates as “tax-free savings account. When you get your Canadian residency, you can put money into it each year and use it to buy securities. Any gains are tax-free. The problem is that a limited amount of money is allowed per year in this account. When I immigrated to Canada it was $5,500 CAD, in 2021 the amount went up to $6,000 CAD due to inflation. Another very important information, you just have to know it. You may not have any extra money to invest in the first years after you move to Canada. Now, the amount you may have deposited into a TFSA account accumulates over each year. I think this tax-free account is perfect for buying cryptocurrency. In addition to bitcoin in TFSA, you can buy Apple stock, Tesla stock, index funds, or bonds. I have now decided to rebalance my securities portfolio to have 5% cryptocurrencies in it. I recently bought bitcoin and etherium just in TFSA. Generally speaking, it is not recommended to change your investment strategy to avoid some silly psychological decisions. For instance, a year ago, when the stock market crashed, many investors got scared and started to sell their stocks, whereas I followed my strategy and bought them, even though I was very scared. I ended up earning tens of thousands of dollars, but that’s another story. As soon as I bought crypto, its rate dropped immediately. It is unfortunate, but I invest for a long term, so I do not really care whether bitcoin exchange rate will go up or down in the next few months. The important thing is to rebalance my portfolio periodically, that’s all. Sooner or later there will be funds with crypto with automatic rebalancing in addition to the usual U.S., international, Canadian stocks and bonds.

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