Investing in Bitcoins is highly speculative yet can give you immense gains in the long run. However, consideing its volative nature, you should never invest more than what you can afford to lose. There is always a thrill to the chase connected to Bitcoin because it’s digital cash that can be very experimental and exciting to explore into especially in Platform Bitcoin Era agieren.
Bitcoin is the very first and most popular cryptocurrency in the world. As compared to stocks, mutual funds, and bonds, Bitcoin is very volatile and you should never invest more than 10% of what is in your portfolio. You can buy bitcoin from either leading exchanges or traditional brokers.
Major Cryptocurrency Exchanges
You can buy bitcoin and other cryptocurrencies from different major and minor cryptocurrency exchanges. The best way to get the best price in the market is to go for the leading or popular exchanges such as the following:
- Binance. This is considered to be the largest cryptocurrency exchange by volume wherein you can buy Bitcoin by using digital cash with a cryptotrade fee of 0.1% plus withdrawal fees. You also have the option to use credit card with an add-on fee. However, this option is only available to selected U.S. states.
- Coinbase. This is one of the most popular exchanges especially for U.S. traders because you have the option to link your bank account to conduct buy and sell transactions. For every transaction, they charge a spread or a price adjustment in buying an invbestment which is equivalent to 0.5% plus other fees. This could be a flat fee or would depend on the payment type and region.
- Coinmama. You have flexibile options with this exchange because you can trade a total of eight cryptocurrencies; inclusive of Bitcoin. This has a minumum required purchase of $60 with transaction fee of 5.9% plus 5% when you buy using credit card.
Robinhood Crypto is the leading stockbroker that offers trades with Bitcoins and other cryptocurrencies. It’s a reputable stock-trading platform which now offers Bitcoins available in some U.S. states. There are no fees when you buy and sell Bitcoin which is a plus point for this platform.
You can also buy and sell bitcoin with Bitcoin ATMs, Bitcoin futures, peer-to-peer Bitcoin trade, and Grayscale funds.
Have Your Personal Information Ready
While it may be a breeze to set your cryptocurrency account, you will have to provide some personal or business information like your bank account number, debit or credit card number, and your Social Security Number. Some exchanges would also require you to send a picture of your ID. Make sure to keep your crypto account password secure and confidential.
Use a Digital Wallet
You can store your Bitcoins using two options of digital wallets – hot wallet or cold wallet. Using a cold wallet, you get an extra layer of security that ensures your digital cash are kept safe but the process could take a bit longer than the hot wallet.
With the hot wallet, transactions are quicker. Bitcoins are usually stored in a cloud or an exchange which is accessed through an app or by web.
Making an Investment
After your link your Bitcoin wallet to an exchange, you decide how much to buy. The great thing about Bitcoin is that your can invest for as low as $25. You can also either engage in day trading or buy and hold for a long time to reap maximum gains in the future.
No matter how you plan to manage your investments, remember to keep a steady pace and time your investments so it is better to check on trends and have mentor or expert trader to guide you especially if you are treading the Bitcoin investment waters for the first time.