Bitcoin is the world’s most popular cryptocurrency and for good reason. It has amazing benefits as an investment and currency including:
- High liquidity: At any time you can liquidate your coins for cash and not only that, payments are lightning fast.
- Less fees: Unlike traditional payment methods, when you use Bitcoin you won’t be taxed or experience extra fees like you do with a credit card per se.
- Anonymity: With Bitcoin, every trade and transaction has a unique address that changes, giving you the comfort of knowing what you do is anonymous.
- De-centralized: Bitcoin is not owned by a central bank but rather the network itself meaning it’s off-the-grid.
- Safe: These coins can not be counterfeited or reversed making them a very safe form of payment and investment. They are not physically stored but rather through private/public keys which are long strings of numbers and letters. A complex encryption algorithm creates these strings which are used to buy or send Bitcoin.
Yesterday we dived into the topic of why investing into gold is a great choice but today we’re keeping it modern. You will be learning how to invest in Bitcoin with some resources to get started today.
How To Invest In Bitcoin
The first step to begin investing in Bitcoins is to sign up for a Bitcoin wallet. As you could probably guess, this is where you will hold your coins for storing and trading. You can obtain a wallet in either desktop, mobile and web formats. Desktop versions are installed on your PC and enable you to create an address to send and receive Bitcoins. You can achieve the same thing with the mobile version but it also enables you to pay with Bitcoin on your phone if you ever need to. One of the most popular ways is through a web application like Coinbase, where you can sign up quickly and access it at any time on any device.
Once you have successfully signed up for a Bitcoin wallet, you should then join an exchange where you can begin purchasing Bitcoins. Your wallet and the exchange you use does not have to be the same so some good options include:
- Coinmama: An exchange that allows you to buy Bitcoins with a credit card and other payments. There is a quick verification process so you can get right into investing without hassle. They have an immeditate payment system you’ll appreciate and wonderful customer service.
- CEX.io: Buy Bitcoin with fiat money including USD, GBP RUB and others with a low commission rate. CEX supports many countries including the United States, Europe, South America and more so give them a look.
- Paxful: With an easy-to-use dashboard and ability to buy Bitcoin with PayPal, credit card and more, Paxful has become one of the best exchanges to use. They process over 8,000 transactions daily and have a built-in wallet if you need it.
Utilizing a separate wallet and exchange can be beneficial since it improves security of your coins. Even if you decide not to, problems are rare in the cryptocurrency world so is isn’t a major concern. Once you are on an exchange, it is simple as choosing how much Bitcoin you would like to purchase, paying and then withdrawing it or leaving on the website. From there you can use your coins to purchase online or keep them as an investment.
We recommend using a website like www.charts.bitcoin.com to stay up to date on market conditions. This data will help you more accurately invest and trade your Bitcoins. You will be able to see the current BTC price, market cap, inflation, volatility and endless metrics to help you become a successful Bitcoin investor.
Cryptocurrencies like Bitcoin are becoming extremely popular as a both a currency and investment for their liquidity and reliability. For an investor looking how to invest in to Bitcoin, setting up a wallet and signing up for an exchange is all you need to do to begin.