Quote:
|
Originally Posted by iDumb
What's TFSA account.. retirement fund?? Why not buy bitcoin outright from an exchange that trades them. Do they have coinbase in canada? or robinhood? THere has to be an exchange - they are everywhere - it;s very profitable. You can also try paypal and buy coin there.
|
TFSA is a tax free savings account, so essentially here in Canada people invest through their TFSA so gains aren't taxed. Think of it as tax-sheltered savings vehicle rather than a savings account, you can use it as more than a place to place your cash (and earn a measly 0.01 % interest). There is a contribution limit per year, but no limit to how much those investments can grow once the funds are put into the account.
RRSP is our retirement fund where pre-taxed income is stored and you can't withdraw til you retire (and also get taxed) and can also be used for investment. People tend to buy their American dividend paying stocks in this account since an RRSP is exempt from the US withholding tax.
We do have exchanges for crypto, but you can't hold bitcoin or any other digital asset in a tfsa, but like I mentioned people use other proxies such as ETFs and funds that track it, which can he be held in a TFSA. Its mainly to protect your capital gains from being taxed.