Cryptocurrencies are continuing to gain mainstream attention, and a financial advisor in Timmins told CTV some northerners have been asking whether to invest.
Jason Gervais said with thousands of digital coins available now, he believes crypto is the future, though he adds that it’s a high-risk market.
People are able to purchase the actual coins through various online marketplaces, but Gervais suggests beginners start with looking at federally-regulated ‘exchange traded funds’ (ETFs) on the Toronto Stock Exchange that track the prices of the two most popular coins — Bitcoin and Ethereum.
“It is high-risk, but if people want to start investing in cryptocurrencies, there’s two of them that are now available on an actual trading platform,” Gervais said.
Investing in crypto ETFs is a safer option, he said, since purchasing the actual coins can open less-experienced people up to online theft.
Gervais wouldn’t suggest the market for people with goals like retirement, but he believes people thinking in the long-term may find it rewarding.
Timmins resident Robert McColeman is fairly deep in the crypto market, having invested in several coins. He said with countries and banks now looking into digital currencies and the technology that powers them, it’s exciting to specify late about the future of crypto.
“Right now, all of us regular people are trying to guess which (coin) is going to be the winner or if it’s going to be involved in the future,” McColeman said.
The prices of cryptocurrencies can fluctuate quickly and drastically, making it an unreliable form of payment for goods and services, said Gervais, making it primarily an investment opportunity.
He would advise strongly against pouring your life savings into crypto, but Ryan Rheault claims he was able to quit his job thanks to investing in digital currency.
Rheault said he’s involved in a community of other crypto investors and offers advice to others looking to get started, saying it’s been a fulfilling journey for him.
“It’s been life-changing,” Rheault said. “It’s given me so many rewards and so many achievements in life that I never thought. Like I was working at Detour (Mine) for the longest time, I never thought I could get out of work.”
That said, the idea of cryptocurrencies is not for everyone and some northerners are content with leaving the emerging market alone.
That’s the case for Timmins resident Jason Mark, who said some of his friends invest in crypto, but he doesn’t feel the need to explore it.
“I just kind of stick with the cash that I can see, rather than this online stuff,” Mark said.
Investors like Taran Bassan said starting small and slow through online trading platforms like Wealthsimple and Robinhood can allow people to test the cryptocurrency waters and see if it’s for them.
That’s how she got her start, she said.
“I think I only put a hundred dollars in the first time around and just kind of played around with it,” Bassan said. “I think that’s how everybody should start off, just playing around with it.”
Gervais notes that he normally doesn’t recommend investing in cryptocurrency to his clients, mainly consisting of seniors.
But for people who have the time and are willing to spare the money, he advises that people only invest what they are willing to lose.
“(Crypto is) not going anywhere, I’m a believer in it, but it’s definitely volatile,” Gervais said.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
