Understand Investing
Investing puts your money to work so you can meet your financial goals faster. Learn the fundamentals including different investment types and accounts, buying and selling investments, and more.
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Investing puts your money to work so you can meet your financial goals faster. Learn the fundamentals including different investment types and accounts, buying and selling investments, and more.
Home > Search results for ‘ InvestingFAQs’ > Page 2 Consider the level of risk you are prepared to take before you invest. Risk essentially means the possibility of losing some or all of the money you have invested. Risk levels differ for each asset class. There is also a risk in doing nothing and leaving […]
“Get Started with Investing” is a free video-based resource designed to help you learn about the fundamentals of investing, and to help you become a more engaged and better-informed investor. The videos are packaged into two components – the first set covers the basics, and the second set takes a deeper look at key […]
Home > Search results for ‘ InvestingFAQs’ > Page 2 Keep track of your investments to make sure they are still right for you. At any particular time, the value of your investments may be up or down. If the market is falling, some or all of your investments will likely be losing value as well. […]
Home > Search results for ‘ InvestingFAQs’ > Page 2 Return on investment (ROI) helps you understand the profitability of an investment. ROI is the gain or loss generated by interest rates, dividends, or market changes over a specific period of time, usually a year, and is often expressed as a percentage of the original investment. […]
Home > Search results for ‘ InvestingFAQs’ > Page 2 Always take the time to check out an investment and the person selling it before you invest. Before You Invest Do a Background Check First, use the National Registration Search (NRS) on the Canadian Securities Administrators’ (CSA) website to check if your advisor or firm is registered. […]
Home > Search results for ‘ InvestingFAQs’ > Page 2 Asking a registered advisor these key questions can help you and the advisor establish an informed basis for deciding whether to work together. Even in a preliminary interview, a registered investment advisor may ask you about your net worth, income and expenses, and your financial goals. […]
Home > Search results for ‘ InvestingFAQs’ > Page 2 What is Investment Fraud via Social Media? Social media gives us plentiful opportunities to connect with others and share content worldwide with ease. Fraudsters use these same social perks to promote fraudulent investment opportunities. Social media provides them with access to personal information to target potential […]
Home > Search results for ‘ InvestingFAQs’ > Page 2 The BCSC publishes a list of unregistered and unqualified investments being offered in British Columbia. In a global information economy, investment solicitations can come from anywhere in the world. The BC Securities Commission (BCSC) takes a proactive approach to help protect BC investors by publishing an […]
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Cryptocurrencies and blockchain are the same thing.
Correct Answer: False
Blockchain is a type of digital ledger. A digital ledger records transaction information and then duplicates and distributes the information across the entire network of computer systems on that ledger. A cryptocurrency, on the other hand, is a digital asset that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
Regulators and law enforcement can’t trace cryptocurrency transactions.
Correct Answer: False
Cryptocurrency transactions can be traced. Though cryptocurrencies can be created, moved, and stored outside the purview of governments, regulators, and financial institutions, each transaction is recorded in a permanent fixed digital ledger. The ledger allows anyone who is plugged in to view the transaction history.
Cryptocurrencies are low-risk investments if you buy and hold.
Correct Answer: False
Many factors may make cryptocurrencies and crypto assets risky investments (e.g., cyberattacks and hacking, their speculative nature, liquidity, security, and volatility). Additionally, many crypto assets and online crypto trading platforms aren’t regulated in Canada. Securities regulators are working with operators of platforms to ensure they comply with applicable securities laws.
I can trade crypto assets through a registered dealer in Canada.
Correct Answer: True
You can trade crypto assets in Canada using registered cryptocurrency platforms. Cryptocurrency trading is legal in Canada, and you should note that profits are taxable as capital gains, or as income if you are classified as a day trader. You can check a platform’s registration by visiting the Canadian Securities Administrators’ website or by contacting a Canadian securities regulator to inquire.
Non-fungible Tokens (NFTs) are a crypto asset that people can collect and trade.
Correct Answer: True
An NFT is a digital asset that often represents real-world objects like art, music, and videos. NFTs are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptocurrencies. “Non-fungible” means that it’s unique and can’t be replaced with something else.
There is no difference between cryptocurrencies and crypto assets, these terms are interchangeable.
Correct Answer: False
The term “crypto assets” is generally used to reference a broad range of digital assets with a variety of properties and/or uses. The term “cryptocurrencies" refers to a specific type of crypto asset, which is generally designed to be used as a medium of exchange, similar to the way we use fiat currencies (a.k.a. government-issued money) to purchase goods and services.
Not all crypto assets are securities.
Correct Answer: True
Not all crypto assets are securities or are subject to securities laws. That said, the regulatory treatment of a particular crypto asset will depend on whether it is a security or derivative. Despite the fact that a crypto asset may not be classified as a security or derivative, the way they are bought, sold and/or traded can be subject to securities laws.
Bitcoin will retain its value and rise in price over time because there’s a limited supply.
Correct Answer: False
You could lose some or all of the money you used to purchase any crypto asset or cryptocurrency, including Bitcoin. Like many investments or financial assets, there is no guarantee that crypto assets or cryptocurrencies will retain their value or rise in price.
Cryptocurrencies can be used for payments.
Correct Answer: True
Some cryptocurrencies can be used for payments; however, it can be difficult, expensive, and/or slow. Their price volatility may also be a factor in an individual or business accepting cryptocurrency as a form of payment.
Crypto asset scams are among the most popular types of online investment scams.
Correct Answer: True
As the popularity and price of cryptocurrencies rise, so do the scams associated with these digital assets. The volatile, online, and often unregulated nature of crypto assets makes it easy for people to fall victim to fraud in a number of ways. For example, fraudsters use the anonymity of the internet to attempt to avoid detection by regulators or law enforcement.
Nice work. You have a good understanding of crypto assets! Crypto assets are a constantly evolving type of investment, so there is always more to know. Visit InvestRight.org to learn more about crypto assets, investment fraud, and other important investor education information with these resources:
Good job. You understand the basics of crypto assets! Because crypto assets are an ever-changing type of investment, there is always more to know. Check out InvestRight’s crypto asset resources to learn more about these digital investments:
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