Canada continues to be one of the worst countries in the world when it comes to forward-thinking and adoption of new technology. In a further effort to hinder progress and development, some cryptocurrency exchanges announced that they will be imposing annual buy limits on their users. Toronto-based exchanges Bitbuy and Newton will be setting buy limits on all coins except for Bitcoin, Ethereum, Litecoin and Bitcoin Cash up to a maximum limit of $30,000. It appears that other crypto exchanges will be adopting similar rules in the near future.
Exchanges are also starting to require more and more information from their users such as where transactions are coming from and what they are being used for. Why should this matter? Nobody asks me anything when I withdraw a few thousand dollars cash that could literally be used to buy anything!
This is all apparently being done to comply with the Ontario Securities Commission (OSC) in an effort to protect investors from fraudulent activities. However, most people see this as yet another step in Canada’s continuous mission to be left behind when it comes to blockchain technology and allowing people the freedom to use Decentralized Finance (DeFi).
Over the last decade, it’s hard to argue that there has been a better-performing asset class than cryptocurrency. It’s therefore perplexing that exchanges are imposing limits on crypto like BNB, Solana and many others in order to “protect investors”. The only thing they are protecting them from is the possibility of creating generational wealth with the once-in-a-lifetime opportunity of being an early adopter of cryptocurrency. Banks have made people complacent in thinking that earning 2.8% annually by locking your funds for 5 years is smart investing – meanwhile with current inflation around 8%, that investor is actually losing 5% a year!
If you are a Canadian looking for a way to continue to use cryptocurrency like the rest of the world, a great strategy is to start building your DeFi portfolio. Once your funds are on a decentralized wallet like Metamask, governments and crypto exchanges can’t impose limits, dictate who you can send funds to, or even know how much you have. Another advantage to DeFi is that, as opposed to banks and traditional investment vehicles, you can actually earn annual returns that beat current inflation. An easy way to build up your DeFi portfolio is by buying the top-rated and most stable cryptocurrencies (ex: Bitcoin, Binance Coin, Cardano, etc.) and adding them into yield farms that can offer significant annual returns. A very simple way to do this is by going to PegHub.com and joining their autovaults. That way, not only will you be massively increasing your number of cryptocurrency tokens held using the power of compound interest, but you’ll also be holding the top cryptos whose prices experts expect to significantly increase over the next few years!