Managing your own investments is becoming more popular among Canadians, but not everyone approaches it in the same way.
To better understand how Canadians are navigating self-directed investing, the BC Securities Commission studied the habits and attitudes of do-it-yourself (DIY) investors, also known as self-directed or self-managed investors. The DIY Investing – 2024 National Study found significant diversity among them based on factors like how often they trade investments and research new strategies or ideas.
The study identified five distinct groups of self-directed investors, based on how active they are with their portfolios.
Self-directed Investing Quiz
Curious where you fit in?
When it comes to self-directed investing, are you all-in, casually curious, or mostly hands-off? Take this quiz to find out – and learn why it matters.
This quiz is intended to help you understand how your self-directed investing habits compare to others. It is not definitive and not intended to provide investment or financial advice.
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QUESTION 1/4
Do you have any investments?
Which of the following options best describes how you manage your investments?
How many hours per day do you typically spend reading about, researching, or looking for new investment ideas or strategies?
How often, if at all, do you typically buy or sell investments yourself?
You are a Non-Investor
RESPs and TFSAs might be new terms for you, but that doesn’t mean you’re not financially savvy. You might be a saver – you put money aside in a savings account for emergencies or future purchases, even if you’re not expecting to earn large amounts of interest on it. If you’re curious about investing but don’t know where to start, visit our Get Started with Investing resource to learn more.
You don’t manage any of your investments yourself – you trust this task to an investment advisor at a bank or firm. You may be less comfortable taking risks with your investments. When it comes to investing advice, you’re more likely to turn to professionals and steer away from online tips.
You’re the most common kind of self-directed investor – confident enough to do it alone, but not obsessed with the markets. You manage most of your own investments because you value control and want to avoid high fees. Investing is part of your life, but not your whole life. You’re thoughtful, steady, and likely prefer a lower-risk approach. Social media investing advice? Not your thing. You trust your own judgment and keep things simple.
You’ve dipped your toes into self-directed investing, but it’s not a big focus for you. You likely have an investment advisor and opened a self-directed account out of curiosity, but you rarely – or never – trade or do research. You value safety and stability. Risk? No thanks. You’re cautious, thoughtful, and prefer a more traditional investing strategy. Self-directed investing may not be your passion, but you know what works for you.
You might have one foot in each world – working with an advisor and managing part of your portfolio yourself. You’re working toward long-term financial goals like retirement, but you also have other goals for investing, like generating extra income. Managing some of your own investments and learning along the way is a fun challenge for you. You like to do your own research, but you’re open to advice from peers and social media.
You’re a strategic investor who prefers to lean on the professional advice from your investment advisor, but you still like to dabble in self-directed investing. You’re not trading every week or spending hours a day researching, but you do manage a portion of your own portfolio to build your financial literacy and work toward long-term goals. You’re practical, goal-oriented, and prefer stability over speculation. Social media investing tips? You’ll pass – you trust your advisor to guide the way.
You like to be in control and you’re all in – you take managing your own investments seriously. It’s not just something you do, it’s something you might even love. You check your accounts multiple times a week, dive deep into researching new investments and strategies, and you’re not afraid to make bold moves. You thrive on control and independence, and you’re comfortable taking risks. You’re financially savvy and digitally fluent. You turn to social media for investing advice, but you know how to separate hype from substance. You’re the least likely to work with an investment advisor and most likely to hold stocks, crypto, and ETFs.
This quiz is designed to introduce you to the basics of crypto assets. It is not intended to provide investment or financial advice, and should not be relied upon as a substitute for such advice.
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QUESTION 1/10
Cryptocurrencies and blockchain are the same thing.
Correct Answer: False Blockchain is a type of digital ledger. A digital ledger records transaction information and then duplicates and distributes the information across the entire network of computer systems on that ledger. A cryptocurrency, on the other hand, is a digital asset that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
Regulators and law enforcement can’t trace cryptocurrency transactions.
Correct Answer: False Cryptocurrency transactions can be traced. Though cryptocurrencies can be created, moved, and stored outside the purview of governments, regulators, and financial institutions, each transaction is recorded in a permanent fixed digital ledger. The ledger allows anyone who is plugged in to view the transaction history.
Cryptocurrencies are low-risk investments if you buy and hold.
Correct Answer: False Many factors may make cryptocurrencies and crypto assets risky investments (e.g., cyberattacks and hacking, their speculative nature, liquidity, security, and volatility). Additionally, many crypto assets and online crypto trading platforms aren’t regulated in Canada. Securities regulators are working with operators of platforms to ensure they comply with applicable securities laws.
I can trade crypto assets through a registered dealer in Canada.
Correct Answer: True You can trade crypto assets in Canada using registered cryptocurrency platforms. Cryptocurrency trading is legal in Canada, and you should note that profits are taxable as capital gains, or as income if you are classified as a day trader. You can check a platform’s registration by visiting the Canadian Securities Administrators’ website or by contacting a Canadian securities regulator to inquire.
Non-fungible Tokens (NFTs) are a crypto asset that people can collect and trade.
Correct Answer: True An NFT is a digital asset that often represents real-world objects like art, music, and videos. NFTs are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptocurrencies. “Non-fungible” means that it’s unique and can’t be replaced with something else.
There is no difference between cryptocurrencies and crypto assets, these terms are interchangeable.
Correct Answer: False The term “crypto assets” is generally used to reference a broad range of digital assets with a variety of properties and/or uses. The term “cryptocurrencies" refers to a specific type of crypto asset, which is generally designed to be used as a medium of exchange, similar to the way we use fiat currencies (a.k.a. government-issued money) to purchase goods and services.
Not all crypto assets are securities.
Correct Answer: True Not all crypto assets are securities or are subject to securities laws. That said, the regulatory treatment of a particular crypto asset will depend on whether it is a security or derivative. Despite the fact that a crypto asset may not be classified as a security or derivative, the way they are bought, sold and/or traded can be subject to securities laws.
Bitcoin will retain its value and rise in price over time because there’s a limited supply.
Correct Answer: False You could lose some or all of the money you used to purchase any crypto asset or cryptocurrency, including Bitcoin. Like many investments or financial assets, there is no guarantee that crypto assets or cryptocurrencies will retain their value or rise in price.
Cryptocurrencies can be used for payments.
Correct Answer: True Some cryptocurrencies can be used for payments; however, it can be difficult, expensive, and/or slow. Their price volatility may also be a factor in an individual or business accepting cryptocurrency as a form of payment.
Crypto asset scams are among the most popular types of online investment scams.
Correct Answer: True As the popularity and price of cryptocurrencies rise, so do the scams associated with these digital assets. The volatile, online, and often unregulated nature of crypto assets makes it easy for people to fall victim to fraud in a number of ways. For example, fraudsters use the anonymity of the internet to attempt to avoid detection by regulators or law enforcement.
Nice work. You have a good understanding of crypto assets! Crypto assets are a constantly evolving type of investment, so there is always more to know. Visit InvestRight.org to learn more about crypto assets, investment fraud, and other important investor education information with these resources:
Good job. You understand the basics of crypto assets! Because crypto assets are an ever-changing type of investment, there is always more to know. Check out InvestRight’s crypto asset resources to learn more about these digital investments:
Taking this quiz is a good start in assessing your knowledge. There is much to learn about crypto assets. This quiz is only an introduction to the basics. To find out more about crypto assets, check out some of the following resources:
