So you want to invest in Bitcoin. Well, you should because millions of people all over the world are incurring huge profits through Bitcoin investment. But do you know the exact process? How can you tell if it’s the appropriate investment for you? Where can you actually buy Bitcoin?
Worry not !! You will easily learn how to invest in Bitcoin with this 3 minutes Bitcoin investment guide.
The craze of Bitcoins
Bitcoin has grown in popularity among today’s investors over the course of its journey. During this period, there has been a lot of discussion on Bitcoin and other cryptocurrencies. Proponents say that they are the future of finance and investing, while opponents argue that they are a dangerous choice with low returns.
To better grasp its actual value in the marketplace, we need to look at its most recent activities. Bitcoin’s value has lately grown by more than 763 percent within a single year, far surpassing traditional stock sector gains.
What is Bitcoin?
Bitcoin was created with the intent to develop the optimal form of global currency. This decentralized currency is independent of any control of any government, bank, or business. You can transfer this decentralized digital currency anywhere around the globe.
The valuation of bitcoin has been an up and down journey throughout the years. But it attracted the attention of people when its value increased to more than 1000% (on the 17th of December, 2017). Investors and businessmen yearn for such opportunities. You too can start investing in bitcoin given you follow the correct procedure. Read along!
What you will need to start investing in Bitcoin.
The first thing that you need to understand is that investing in crypto is different from traditional investment. That means now you do not need to go to an investment broker or a bank for consultation and investment. The following things are a must for bitcoin investment are-
- An app or exchange where you can buy the crypto coin from. Coinbase, Robinhood, Webull, and eToro are a few of the most used apps for crypto trade/exchange.
- A Crypto Wallet for holding your coins. Ledger Wallet, Mycelium, Exodus are some of the popular wallets.
Once you are set up with the, you need to provide the app with your bank account information. That’s it! However, keep in mind that you may need to pay taxes based on the number of coins you own.
Where to Buy Bitcoin
There are two ways through which you can buy Bitcoin. You may buy them via an exchange, which is a marketplace for crypto coin exchange. You may also buy Bitcoin through a stockbroker. But, there are a handful of investment brokers and crypto investment apps that let you invest in Bitcoin and trade at the same time.
Here is a list of our top 3 recommended brokers and exchanges for buying Bitcoin:
Coinbase
Coinbase is probably the most popular among all the crypto exchanges. Not only Bitcoin but you can also buy and trade other cryptocurrencies through this exchange. It also provides a hot wallet, as do many other cryptocurrency exchanges. It also enables you to trade between different cryptocurrencies.
Robinhood
Robinhood is a trading app and the only brokerage system that allows the exchange of Bitcoin and other digital currencies. Alongside this, it also provides services regarding equities, exchange-traded funds (ETFs), and alternatives. Additionally, Robinhood also accepts Ethereum, Bitcoin Cash, Litecoin, and Dogecoin.
eToro
Perhaps the most advanced exchange app ever made, eToro offers stocks, funds, and most traditional assets, although it now only enables crypto trading in the United States. With its CopyTrader Technology, you can replicate the investing methods of the platform’s most successful crypto traders. It also provides CopyPortfolios, similar to crypto robot advisers which help you learn professional portfolio management. Lastly, they provide you a demo account so you may practice trading without risking your real money.
Other, noteworthy exchange apps are Webull, Gemini, Unifiymoney, Biance.US, etc.
Now that you are aware of the apps, let’s jump to the next topic of Digital Wallets.
Types of Digital Wallets
There are generally two types of wallets used for storing cryptocurrency. They are-
- Software wallets- Also known as hot wallets, you can access them anywhere. They are named so because they are prone to hacking and security breaches.
- Hardware wallets- Hardware wallets are popularly known as cold wallets. These are simply computer storage devices where you can download and store your cryptocurrencies. Ledger and Trezor are two of the famous hardware wallets.
How to Link Your Bank Account to a Trading Platform (Exchange)
It’s easy. You have to enter your bank details at the respective segments where the platform asks you to. Your account is now successfully linked to the trading app/platform. Now you are all set to start investing in Bitcoin!!
Warning: We suggest you keep the balance within the trading account minimal due to the increasing cases of hacking and online fraudulency. After all, you are working through a third party. You also need to keep proper track of the exchange records within the application.
How to trade with Bitcoin
Again, there is nothing fancy. Once your app/exchange and wallet setting up are complete, you can start trading.
You can simply use money from your account to buy Bitcoin. The process is swift, and you will get your Bitcoin in an instant. Your coins will be stored in your digital wallet. After getting the coin, you can-
- Exchange your coin for another cryptocurrency
- Exchange it for cash and deposit it into your bank account from your digital wallet.
- Trade for other coins or investment for future benefits, and
- Make purchases from other third-party applications.
Tip: It is always recommended to track your coin value as the market tends to fluctuate frequently. There are tracker applications available that can make your job easier.
Points you should consider before you invest in Bitcoin
We need to make sure that you are fully aware of all the bits-and-buts before you start your investment journey. Follow the tips provided below, and you may continue to invest in Bitcoin fearlessly.
- The market of cryptocurrency highly fluctuates. You should always remain updated about the current value of the currency before investing.
- Never invest a large amount of your money. Follow a strategic investment procedure.
- Look out for the investment options in other cryptos as well. Tether and Ethereum are highly stable cryptos in terms of investment options.
- Enjoy the journey!!
Conclusion
That’s it. We hope this guide has helped you understand how to invest in Bitcoin. Develop your investment and trading strategy and become a millionaire. However, we highly advise you to acquire all of the relevant information and confidence before making your final decision.
At NFTically, we have a team of technical experts and blockchain virtuosos who are constantly available for your help. All of them are well-versed in blockchain programming, cryptocurrencies, NFT, and blockchain technology. Book a consultation with one of our experts to know more about Non-Fungible Tokens and NFT marketplace creation/investment opportunities.
Stay Safe! Keep investing smartly.