How To Invest In Bitcoin

Bitcoin is the first cryptocurrency many people wonder till today how come this bitcoin and how it is made in general what is it all about. here is a brief history of bitcoin.

what is bitcoin

Bitcoin was launched in 2009 which is regarded as the first cryptocurrency. It’s a decentralized form of digital cash that eliminates the need for traditional intermediaries like banks and governments to make financial transactions. Still, feeling a little confused? Don’t worry, that’s normal.

Fiat money (like the U.k. ponds in your bank account) is backed and regulated by the government that issues it.

Bitcoin, on the other hand, is powered through a combination of peer-to-peer technology — a network of individuals, much like the volunteer editors who create Wikipedia — and software-driven cryptography, the science of passing secret information that can only be read by the sender and receiver.

This creates a currency backed by code rather than items of physical value, like gold or silver, or by trust in central authorities like the U.S. dollar or Japanese yen.

“What is needed is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party,” wrote Satoshi Nakamoto —  the pseudonym of the mysterious Bitcoin creator, who remains unknown — in a white paper introducing the open-source technology.

It’s come a long way since then, now accepted as payment by AT&T, the Dallas Mavericks, and Wikipedia, among others.

How To Invest In Bitcoin

 

Investing in BTC is synonyms to investing in stocks, except far more volatile because of the daily swings in BTC. Here are the steps to invest in bitcoin from the beginning:

  1. Open an account with an exchange of any trusted website which will be listed below
  2. Deposit funds from your bank into the exchange account.
  3. Buy BTC using deposited funds (cash balance).
  4. Later sell the BTC for a gain or loss when the price goes up or down. This is known as crypto trading.
  5. You can still buy and hold BTC for a period of time depending on when you want to sell.

Read Also: How To become Millionaire

Top 10 Bitcoin and Crypto Investing Sites

Coinbase is by far the most popular because you can invest directly with USD. You can currently purchase Bitcoin, Ethereum, and Litecoin, and 30+ other coins and tokens on the platform.
Gemini is a popular platform to invest in crypto because of its focus on security and transparency. Unlike some exchanges that appear vulnerable, Gemini makes it a focus to protect its customers.
Blockfi is a cryptocurrency investment platform that allows you to lend and earn interest on your holdings.
Kraken is one of the original crypto trading platforms and they have a good selection of coins and tokens to trade and invest in.
Robinhood offers free crypto trades on its platform. They are starting in just a few states, and with just Bitcoin and Ethereum, but they plan on expanding this quickly.
etoro has been around for a while in the UK and throughout Europe, but they are now allowing traders in the United States.
They offer a huge variety of digital assets to buy and sell on their platform, and even better, they have a practice trading account so you can give it a try before you actually use real funds.
Bitcoin ira is a little different than the other platforms here. Unlike most exchanges and wallets, you’re basically just exchanging currency and are subject to paying taxes on your gains (learn how taxes on your cryptocurrencies work here).
Crypto.com is one of the largest and fastest-growing crypto exchanges. It’s based in Hong Kong but offers a ton of support for US-based customers.
A great platform for getting into some currencies like Cardano or Neo and many others. you can also trade crypto and swap. they also have one of the most trusted p2p platforms to buy and sell crypto.
Coinmama differentiates itself by letting you buy crypto with a credit card, debit card, Apple Pay, or bank transfer. It supports most of the popular tokens.
Summary
To buy cryptocurrencies, you’ll need a “wallet,” an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as Bitcoin or Ethereum.

Leave a Reply

Your email address will not be published. Required fields are marked *