I’m sure you’ve heard about Bitcoin, the cryptocurrency that has grown exponentially in popularity. But, you may also be asking, how to invest in Bitcoin? If you’re not up-to-date on how to invest in Bitcoin, this post is for you! I’ll walk through all of the steps so you can start investing now.
At the time of this post, Bitcoin is valued at more than $44,000 USD (as of September 2021). One year ago, it was worth over $10,000 USD. Imagine the growth since its inception when it was a penny stock. Unfortunately, most people think investing in Bitcoin is too complicated. I’m here to tell you it’s easier than you think, and if you want to learn more about how to invest in Bitcoin, read on!
It’s not surprising that many people are interested in getting involved with Bitcoin as an investment opportunity because this increased popularity means volatility, leading to higher returns for investors. Interested? Read on for a step-by-step guide on how to invest your money wisely into Bitcoin without any hassle!
- What is Bitcoin
- How to buy Bitcoins
- Ways to invest in Bitcoin (the easy & advanced approaches)
- Benefits of investing in Bitcoin
What Is Bitcoin?
First, it’s essential to understand what are Bitcoins are and how they work. Bitcoins are decentralized digital currency meaning no centralized bank or government is regulating them. Bitcoin is a peer-to-peer currency that allows people to transact across the world without middlemen or banks being involved in their transactions. No single institution controls your funds if you use Bitcoins instead of traditional currencies like USD or GBP. For example, transactions cannot be easily traced like with a debit card.
Bitcoins can be bought using traditional currencies like dollars, euros, yen, etc., but also using other cryptocurrencies like Litecoin or Etherum. This is done through mining them yourself- which takes time and skill.
Bitcoins’ inventor, Satoshi Nakamoto, created it as a means of daily transactions and an escape from traditional banking. The 2008 financial collapse catalyzed this idea, with the inventor developing it for its use in circumventing institutions after they failed to provide stability during that time when people were losing their homes. Its intention also serves not to be devalued by inflation and economic downturns.
How To Buy Bitcoins
Bitcoin is a hot topic these days. Some people are betting it will be worth more than gold, while others invest in the cryptocurrency with hopes of making big bucks when its value spikes up exponentially. But how do you buy bitcoins? There are a few ways. I’ll explain some easy ways and some for advanced investors.
The Easy Way To Buy Bitcoins
You can buy Bitcoin with PayPal and Cash App. So if you already have an account, you can buy the cryptocurrency.
Some cities offer Bitcoin ATMs to transfer cash to cryptocurrency. However, starting in 2020, some Bitcoin ATMs require a government-issued ID. Providing identification should not be necessary; thus, purists do not like this route because it no longer makes the transaction anonymous. Nevertheless, this can be an easy option for beginner Bitcoin investors to get started.
The Advanced way to buy Bitcoins
Some crypto exchanges hold true to the Bitcoin ethos by not requiring customer identity information to purchase. However, these exchanges exist outside of the United States. In the U.S., you can invest in Bitcoin using an exchange like Coinbase. Please also note, the transaction is tied to your Coinbase account. And the platform requires you to verify your identity in order to create an account.
According to Investopedia, follow these four steps to get started:
- Choose a Decentralized Exchange – besides Coinbase; you can try Kraken, Gemini, or Binance.
- Connect Your Exchange to a Payment Option – once your account is established, connect your banking details.
- Place an Order – similar to purchasing stocks, you can invest a specified amount into cryptocurrency.
- Safe Storage – there are two types of storage options known as wallets. You can store cryptocurrency in an online wallet (known as a “hot wallet”) or offline such as a USB drive (known as a “cold wallet.”)
Benefits Of Investing In Bitcoin
There are many benefits of investing in Bitcoin. I’ve already explained in detail about decentralization. Furthermore, it’s immune to seizure (because it is your money.) You don’t need permission from banking or government institutions to make transactions. There are little to no transaction fees when used as payment for goods or services. There is no risk of charge-backs. And the best benefit of all… Bitcoin is real money!
If you haven’t started with Bitcoin, now is the time. Experts predict it will be valued at over $500,000 by the year 2030. But, don’t wait too late.
I hope you’ve learned the necessary steps on how to invest in Bitcoin. Check out our guide on how to make money online with Bitcoin. Be sure to share this blog post with friends.
Have any questions? Please leave them in the comments section below. I’ll be more than happy to answer anything related to cryptocurrencies.
