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Crypto Blog: Coinberry

How to Buy Optimism (OP) in Canada

Optimism (OP) is a cryptocurrency with a market capitalization of more than 400 million CAD. Total transaction value for 24 hours often ranges in a few hundreds of millions of dollars. With this trading volume and market cap, it’s worth considering adding Optimism (OP) to your crypto investing.

Buying Optimism (OP) in Canada

If you’re planning to buy Optimism (OP), the easiest way to do it is through a crypto exchange platform. It’s like a huge online marketplace of buyers and sellers of crypto. In general, you can buy Optimism through a platform by doing the following:

  1. Signing up to the platform
  2. Verifying your account and identity
  3. Adding funds through wire transfer and Interac e-Transfer
  4. Buying Optimism

No technical knowledge is required because buying cryptocurrencies now only requires you to create an account and add your funds. Although you can find other ways to buy crypto assets, these ways often require some technical know-how.

In addition, it’s likely that you’ll buy other cryptocurrencies in the near future. Using individual wallets (where you store your crypto) requires individual setups and logins. On the other hand, using a platform only requires a single setup and login. And then, you get access to dozens of cryptocurrencies and you can manage all your crypto investments in a single platform.

Whether you buy Optimism (OP), Ethereum (ETH), or any other cryptocurrency, it’s always good to do it in the easiest and most practical way possible. This way, you can quickly get started and finally see what crypto investing is all about.

How Optimism (OP) works

But before you buy a particular cryptocurrency, it’s always good to learn a bit about how it works and why it’s good. This way, you’ll know if it’s better than other cryptocurrencies. This in turn will help you decide whether to put your money in Optimism (OP) or other crypto coin or token.

First, what is Optimism (OP)? As mentioned earlier, Optimism (OP) is a cryptocurrency with a market cap of hundreds of millions of dollars. It’s a lot less popular than the top crypto giants Bitcoin and Ethereum (with a market cap of hundreds of billions of dollars).

Still, Optimism (OP) has a decent size and popularity. One reason is that it allows low-cost and near-instantaneous Ethereum transactions.

In other words, the Optimism network helps speed up Ethereum transactions. Optimism does this by running on top of a blockchain protocol (in this case it’s Ethereum). It happens by shifting some of the transactional burden to an adjacent system. This makes the workload lighter, which results in faster transactions.

This greater transactional speed is critical in scalability (which is often a problem in Ethereum itself). Moreover, if transactions are always slow to process, this makes it difficult for us to use the network in our everyday transactions. This also makes the network less attractive to users and investors.

Aside from greater speed and scalability, a cryptocurrency or blockchain network becomes more attractive if it has low transaction costs. Optimism (OP) accomplishes this by rolling up multiple transactions into one. The result is that the cost is distributed to all who took part in the transaction. This results in huge savings for everyone.

Those technical features make Optimism (OP) attractive to blockchain users, developers, and enthusiasts (those who actually use the Optimism network in transactions). But for general investors, often they’re mostly interested in whether OP’s price will rise in the near future.

Is Optimism (OP) a good investment?

Most starting investors only see cryptocurrencies and blockchains as investment instruments (a way to increase our assets). Whether blockchains can transform or revolutionize finance, what we’re mostly interested in is once we buy a particular cryptocurrency, does it have a good chance of skyrocketing or at least give a reasonable return on our investment?

The answer is uncertain. This applies to Optimism (OP) and any other cryptocurrency. After all, crypto’s future is being shaped by the following:

  • Government regulation
  • Investor sentiment towards crypto
  • Number of participants and competitors
  • Rate of adoption
  • Churn (the rate at which investors and users leave)
  • Supply and demand
  • Economic factors
  • News, social media, and other sources of information and rumors

The government’s role has become more significant recently. One reason is the recent incidents about fraud and huge financial losses. As a result, cryptocurrencies are now undergoing scrutiny from different government and law enforcement agencies. With better or appropriate government regulation or intervention, this might help protect the investors as well as minimize the negative impact in case a crypto catastrophe occurs.

News and social media also play a significant role. It’s especially the case about hype when a particular cryptocurrency is receiving an unusually high level of attention from the public. The hype might cause the crypto’s price to rise because more people suddenly want to buy it. Also, movements from billionaires and huge corporations and institutions can cause the hype (and draw in more investors towards the cryptocurrency).

The crypto market is still far from maturity. As a result, cryptos’ prices are often wildly fluctuating. Every day, cryptocurrencies worth billions of dollars are being exchanged. With this enormous trading volume, the prices are always dynamic and unpredictable.

It’s also the case with Optimism (OP). If you look at its historical price chart, you’ll see several significant ups and downs for days and weeks. For example, as of this writing, Optimism (OP) has lost around 15% of its value compared to the previous week’s. You can also see weeks where Optimism (OP) posted significant gains. The price is always moving and no one knows for sure when the sustained gains and losses will happen.

If you’re starting out in your crypto investing, it’s good to be aware of that price volatility. This way, you can set reasonable expectations about your investment. This will also help you limit your losses and reduce your risks. For instance, if you know the risks, you’ll tend to limit the money you’ll put in a particular cryptocurrency. This awareness can help you avoid huge financial losses and preserve your total assets.

If you want to learn more about crypto investing, you can do it by reading the latest news about cryptocurrencies (especially if there’s a recent huge incident). You can also do it by reading about and comparing different cryptocurrencies.