A simple and straightforward guide to buying and trading PotCoin (POT) in Canada.
PotCoin (POT) is a peer-to-peer cryptocurrency developed with the aim of becoming the currency of choice for the legal marijuana industry. These digital coins can be transferred from person to person around the world and are designed to provide the ability to purchase cannabis anonymously without using cash.
How does PotCoin work and how can you buy, sell or trade POT in Canada? Let’s take a closer look.
Where to buy PotCoin
You can buy POT on its very own Potwallet.com peer-to-peer platform and a number of popular cryptocurrency exchanges, including the following:
How to buy PotCoin: Your step-by-step guide
If you want to buy POT, you can do so by choosing one of the following options:
Option 1. Create an account with Potwallet.com
Setting up an account with Potwallet.com is relatively easy. The user just has to enter their personal details and register the account with a valid email address. A two-factor authentication system will keep your personal details secure.
Finding POT traders is extremely easy on the platform. Just add your location then search through the traders offering POT in your country.
Please note that traders are independent to the Potwallet.com platform and each has their own criteria for trading. A seller might request a copy of your personal ID before handing over their POT, so make sure you check their exchange criteria before embarking on a trade.
Some traders haven’t detailed their trading criteria on the platform, so it will only reveal their request for ID after the payment has been made. It’s worth doing some research on the seller to check what their rating is from other buyers, including information such as are they reliable, do they communicate well, how long have they had their trading account with Potwallet.com, etc.
Users can purchase POT with PayPal, bitcoin or International Wire (Swift).
If there is an issue with a trade, then Potwallet.com will change the status of the trade to “Dispute” and will hold the coins in escrow until either the financial aspects of a trade are finalized/resolved or both parties are happy with the terms of the trade.
Option 2. Create an account with an exchange that allows you to trade POT
POT isn’t widely listed on cryptocurrency exchanges, so you’ll first need to choose an exchange that offers POT currency pairings. Once you’ve found an exchange, you can sign up for an account by providing your name, email address and password.
Under Know Your Customer (KYC) laws, some exchanges will need you to supply proof of ID in order to verify your account before you can start trading. Enabling two-factor authentication will provide an extra level of security for your account and is highly recommended.
Deposit funds into your exchange account
You may not be able to directly exchange Canadian dollars for POT, so you’ll likely need to own or buy a cryptocurrency that’s available in a currency pairing with POT, such as bitcoin (BTC), and then exchange it for POT.
To deposit BTC into your trading account, look for the relevant “Deposit” link from your account homepage and follow the prompts to generate a wallet address and transfer your funds.
Once the funds have been successfully deposited, search for the currency pair you want to trade. After you’ve found POT/BTC for example, you can then click on “Buy POT” to see the current market price.
It’s then a matter of choosing a limit or market order and entering the amount of BTC you want to spend or the amount of POT you want to buy. Some exchanges will instantly place your order as soon as you click “Buy”, while others will give you the chance to review the details of your transaction before finalizing the purchase.
How to sell PotCoin
If you want to sell your POT on a crypto exchange, the process for doing so is very similar to the buying process explained in options 1 and 2. However, keep in mind that not all currency pairings will be available on any given exchange, so it may not necessarily be possible to exchange POT for your desired currency straight away.
Which wallets can I use to hold PotCoin?
You can store your PotCoin tokens in Potwallet.com, which is available for download on the PotCoin site and can also be used to trade P2P. Desktop wallets for Windows, Mac and Linux are available, and you can also find an Android and iPhone (pending App Store approval) online wallet.
How PotCoin works
Launched in January 2014 by developers with the pseudonyms Hasoshi, Mr. Jones and Smokemon 514, PotCoin was one of the first cryptocurrencies for the marijuana industry. The new currency, based in Montreal, Canada, aimed to capitalize on the US state of Colorado’s decision to legalize marijuana by providing cannabis dispensaries with access to banking services.
In the words of PotCoin, the currency was “designed to empower, secure and facilitate the legal cannabis community’s transactions by creating a unique cryptocurrency for this thriving industry”. PotCoin claims to offer the following wide range of benefits to users:
- Direct person-to-person transactions via the net with no need for a bank or clearing house
- Low transaction fees
- Transaction speeds of 40 seconds
- State-of-the-art encryption for security
- Open-source software so that anyone can review the code
After plenty of initial hype and media coverage in 2014, PotCoin largely dropped off the radar until 2017, when its Dennis Rodman/North Korea media stunt (more details below) caused plenty of headlines. The fact that PotCoin is still going in 2018 means it has enjoyed a longer lifespan than many other cryptocurrencies, but there are several issues you’ll need to consider before deciding whether it’s worth buying.
What to consider if buying PotCoin
Cryptocurrencies are complicated and speculative, so you’ll need to thoroughly understand all of the risks involved before acquiring any coins. If you’re thinking of buying POT, make sure you consider the following:
- Supply. According to CoinMarketCap, the circulating supply of PotCoin at the time of writing on 24 January 2018, was 219,247,281 POT.
- Other cannabis cryptocurrencies. PotCoin isn’t the only cryptocurrency designed for the cannabis industry, so you’ll need to compare its strengths and weaknesses with other coins. Competitors include CannabisCoin (CANN), DopeCoin (DOPE), HempCoin (THC) and CannaCoin (CCN).
- Earn interest. PotCoin is based on a proof-of-stake system, which means users can stake their POT holdings to generate annual interest of approximately 5%. By staking your POT, your computer becomes an active node on the network and also means you are rewarded with additional PotCoin tokens.
- Legalized marijuana legislation. Since PotCoin was founded in 2014, recreational marijuana has been legalized in a number of US states, while medical marijuana is also widely available. As the decriminalization of marijuana in US states and other countries around the world continues, you’ll need to consider the potential effect this may have on the ease with which cannabis-related businesses can access banking services.
- Marijuana in Canada. Canada is set to legalize marijuana later in 2018. Many details have yet to be revealed by the Government of Canada, however it is to be legalized across all provinces and territories. Laws and regulations may differ slightly between provinces in Canada.
- Industry growth. The legal marijuana industry reached US$9.7 billion in sales in 2017, a 33% increase over 2016, with analysts predicting the market to hit US$24.5 billion in sales by 2021.
- Cannabis only. PotCoin is focused solely on the cannabis market. Other cryptocurrencies aim for widespread adoption across a range of sectors, so you will need to decide if this limits POT’s potential for growth.
- Dennis Rodman. In June 2017, PotCoin funded controversial former NBA star Dennis Rodman’s trip to North Korea, with footage of Rodman sporting a potcoin.com shirt doing the rounds in many media outlets. The risky and somewhat bizarre stunt put PotCoin in the media spotlight and saw the coin’s value rise 76% in one day.
- Roadmap. If you want to know what projects and tech developments PotCoin has in the pipeline, as well as how they could affect the value of POT in future, you should take a look at the company’s Roadmap.