Bitcoin is a cryptocurrency that was invented by a group of developers using the name “Satoshi Nakamoto.” It is the most popular cryptocurrency on the planet and can be used instead of cash. In the course of this article, we will be looking at a practical guide on how to invest in Bitcoin. Without further mouthing, let us delve in.
How to Invest In Bitcoin In 4 Practical Steps
The best way for individuals to acquire the bitcoin cryptocurrency is with the aid of a cryptocurrency exchange account. Another alternative is to purchase the bitcoin with a digital wallet. All the same, the easiest way to acquire bitcoin is with the aid of a crypto exchange account.
Step 1: Select The Right Cryptocurrency Exchange Or Brokerage
The first step involves starting your bitcoin purchase by selecting the best place to buy and store your digital currency. Most platforms that offer to sell bitcoin to you have fees that they incur. If you wish to transfer out your bitcoin in the future, make sure that the platform supports the feature. It is important to note that not all bitcoin brokerages offer that option.
Step 2: Open an Account With Bitcoin Support
After you are done selecting your brokerage platform, the next step will involve opening your brokerage or cryptocurrency. Most brokerage platforms have KYC requirements that you must fulfill in other to have an account with them.
Step 3: Fund Your Account With A Government-Backed Currency
The moment you are done with creating your account, the next step will be to add funds to it. The best way to do this is to perform an online funds transfer from a connected bank account. There are some exchange platforms that allow their customers to make use of PayPal for account funding. It is important to note that most cryptocurrency exchanges can grant you instant trading access, while others will require the added funds to clear.
Step 4: Add Your Purchase Order In a Bid To Start Trading or Investing In Bitcoin
When you are ready to start investing in bitcoin, click the buy button on the platform. This will convert the dollars in your account into bitcoin. This bitcoin will then the stored in the account, which is quite similar to holding stocks in a brokerage account. The moment that your trade is executed, you are officially a bitcoin owner.
Advantages Of Investing In Bitcoin
- Purchasing bitcoin is relatively easy: it is important to note that buying bitcoin is as easy as getting a stock or other investments with a brokerage or cryptocurrency exchange.
- It is Secure: It is important to note that the blockchain technology that is behind bitcoin makes it very secure and impossible to hack. There is a public ledger, where all coins are tracked from inception through current ownership.
- Investing In Bitcoin offers alternative currency: With the aid of bitcoin, you can have a hedge against inflation and other risks that comes with fiat.
Is Investing In Bitcoin A Good Idea?
Bitcoin is inarguably the largest cryptocurrency in the world. According to finance pundits, it is only a matter of time before bitcoin hits 100,000 dollars. This is why it is a good idea to invest in bitcoin so that you can ride in the wave of profit.
Best Platforms for investing in Bitcoin
Let us take a look at the three best platforms for investing in Bitcoin Stock.
i. Binance
Binance is the world’s largest cryptocurrency exchange that carries out over 22.6 billion dollars in trading volume every 24 hours. It is a platform that does not only allow you to trade or invest bitcoin but to also trade 500 other crypto assets.
ii. eToro
eToro exchange is a platform that has a stellar reputation worldwide. It is an exchange that has over 23 million registered users and is functional in over 100 countries. One interesting advantage of using the eToro platform to invest in bitcoin is that they do not charge a transaction fee if you open or close a trade.
Rather, it makes use of a spread-based structure that is quoted at only 0.75 % for bitcoin trading. Another interesting advantage of using the eToro platform is that when you invest in bitcoin, you have complete ownership of the bitcoin asset. Finally, they have a “CopyPortfolio” feature that is available for all bitcoin traders and investors.
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iii. Coinbase
Coinbase is another platform for investing bitcoin that is based in the United States of America. It is a crypto exchange platform that has over 73 million verified users from around the world.
The procedure for registering on this platform lasts for approximately 10 minutes and is the perfect platform to go to if you are a beginner. When you use Coinbase to invest in bitcoin, your digital tokens will reflect on your online portfolio. You can then choose to keep your Bitcoin funds there or withdraw them to a wallet.