Are you thinking of putting your money into Bitcoins? In that case, you must be aware of the different ways you can do this. For instance, you will be able to buy Bitcoins from stockbrokers and exchanges and also from other Bitcoin holders. Whatever you do to own Bitcoins, the truth is that investments in any cryptocurrency are not without their fair share of risks.
How to invest in Bitcoins:
To start with, when you wish to invest, you need to know where to get Bitcoins from.
- There are cryptocurrency exchanges like Bitcoin Evolution and Coinbase and some traditional brokers who can help you invest. These cryptocurrency exchanges will take a portion of your purchase price. It is important therefore to choose one that is credible and trustworthy. Amongst traditional brokers who can offer you a medium to invest in Bitcoins; Robinhood is the most popular investment broker available in most states in the US.
- Besides brokers and exchanges you can look to Bitcoin ATMs for investment; these are similar to regular ATMs and you can either buy or sell your Bitcoins through these.
- There are peer-to-peer owners too; so, you can buy directly from other Bitcoin owners. But this method has to be properly deliberated upon and one needs to proceed with caution.
- Finally, there are Bitcoin Futures which allows you to trade Bitcoins, but this demands a certain level of expertise.
Before investing in Bitcoins, there are some things that you must understand:
- While creating a new account on an exchange can be done in minutes you are expected to submit information like your bank account details, email ID, Social Security Number, etc. You should record and protect your passwords for the digital wallet you are using to store your Bitcoins.
- It is best not to use credit cards, although this is allowed by many providers.
- You should only use a secure Internet connection when transferring funds. It is completely wrong to transfer your Bitcoins when you are using public Wi-Fi, as in a café or library.
You must then decide where to store the Bitcoins. Bitcoins can be stored either in cold or hot wallets. Transactions are quicker with a hot wallet whereas a cold wallet is more secure because it incorporates more stringent security measures.
Once you have decided on your wallet for Bitcoin investments you can go ahead and make the purchase. You have to link this wallet to an exchange you choose and then determine how much Bitcoins you want to purchase. For those who prefer day-trading, you can buy Bitcoins now and sell these whenever the prices go up. But, when you consider Bitcoins for investment purposes, it makes sense to hold onto the assets for the long-term.
It is a good idea to invest in Bitcoins as these provide a sound monetary policy which is verifiable by one and all. You can see when new coins are created and how many coins are in circulation at a time. You can transfer Bitcoins anywhere in the globe because there is no intermediary involved; so, no bank or government can shut down your account. Bitcoins allow for cross-border payments and a sound global payment like the Bitcoin is certain to have a huge impact on the global economy.