The concept of cryptocurrency became more popular when the price of one Bitcoin surpassed the $1,000 mark many years ago.
Since then Bitcoin has established itself as a legitimate store of value and trading instrument.
Many people thought that Bitcoin was a bubble that would soon burst and leave investors regretting their decisions to invest.
But several years down the line, Bitcoin has proved many people wrong. Although its value has been fluctuating from time to time, the cryptocurrency has remained largely stable.
That’s why many people have now cast out their fears and decided to invest in Bitcoin.
Nonetheless, investing in Bitcoin is one thing and reaping benefits is another.
There are many unscrupulous individuals who are taking advantage of ignorant and unsuspecting investors to swindle them their money. Â
Is there a safe way to invest in Bitcoin?
If your main goal is to earn high returns, then the best option is to start by opening a crypto savings account.
You can earn up to 12% from these accounts but just like any other crypto account, there are certain risks that you will be exposed to.
How to Invest in Bitcoin
Investing in Bitcoin is not different from investing in stocks.
However, Bitcoin is much more volatile compared to regular stocks. Below are the steps involved:
• Open a brokerage account in a company that permits crypto investments
• Deposit funds into the brokerage account from your bank
• Purchase a stock using your balance
• You can later sell your crypto to gain interest. The money gained will be transferred to your cash balance
How to by Bitcoin and other crypto using USD
Coinbase one of the major platforms that transact cryptocurrencies. The good thing about Coinbase is that you investors get $10 for every $100 invested.
To get started, you will have to open a Coinbase account and link it with your credit card or bank account.
The next step is to transfer money from your bank account in order to buy BTC. Buying BTC using a credit card is very expensive.
Your cryptocurrency wallet typically has space USD and Bitcoins. For example, if you deposit $ 5,000 and use the whole of it to buy Bitcoins, you will your Bitcoin account balance will read 0.34.
Wallets play a key role when it comes to cryptocurrency transactions. The type of wallet you choose will determine a lot of things including the ease of transaction.
You can either use an exchange wallet, a standalone wallet (Electrum.org), or a hard wallet (LedgerWallet.com).
You are ready to start investing as soon as you have deposited money in the exchange wallet of your choice.
Trading platforms used by most exchanges are almost the same as those used in the stock market.
It is possible to exchange into other cryptocurrencies when trading in Bitcoin.
It is actually another option for selling your Bitcoins or exchange them for a different type of cryptocurrency.
Direct deposits
In case you are not able to buy Bitcoins using your credit card or by transferring funds, you are able to deposit Bitcoins from a different exchange.
This is possible by acquiring your wallet address from the targeted exchange.
You will then input the address into the sources exchange together with the specific amount of Bitcoins you wish to transfer to the new exchange. The transaction will take a few minutes to complete.
Below is a list of 7 popular Bitcoin investing sites:
1. Coinbase
As mentioned earlier, Coinbase is one of the safest and reliable ways of investing in Bitcoin.
This is because it is directly linked with USD. The downside of it is that currently only three types of cryptocurrencies can be transacted. They include Bitcoin, Litecoin, and Ethereum.
2. BlockFi
BlockFi is a cryptocurrency investment platform that gives you an opportunity to earn interest in your holdings.
Besides, you can also borrow tokens and coins against your holdings instead of selling them.
BlockFi is a great option if you just want to hold coins and earn interest.
3. Robinhood
Robinhood gives free cryptocurrency trades to its investors. The platform currently operates in a few states and deals with just Ethereum and Bitcoin.
The company however plans of expanding to other states and add a number of cryptocurrencies.
4. Bitcoin IRA
Bitcoin IRA is somehow different from compared to other platforms. It is different in the sense that all you have to do is to exchange currencies that are subject to taxation for any gains made.
Having said that, Bitcoin IRA is a great combination of exchange and a crypto wallet besides being an IRA.
5. eToro
eToro has been in existence for some time in Europe and the United Kingdom. But now traders in the United States can also access the platform.
The company provides a wide range of digital assets that investors can buy and sell on the platform.
Bottom line
There is no doubt that Bitcoin has proved to be a reliable investment opportunity.
However, it important to understand how cryptocurrency works and the safest platforms to use.
#4 should be iTrustCapital. They are the premier Crypto IRA provider.