If you are interested in investing in Bitcoin we highly recommend that you read this article before doing so. Investing in Bitcoin can be a tricky game and it is important that you have a solid ground to stand on before you start to invest.
The first thing you need to learn are the different ways that you can invest in Bitcoins. Over the last years multiple alternatives for investing in Bitcoins has occurred.
1. Buying a coin.
This may be the most usual way to invest in Bitcoin – by buying a coin. You can buy an entire coin or just a fraction of a coin. This can be done on sites as Coinbase. It is very easy. You set up an account and deposit the money you will use to purchase the coin with.
GBTC stands for Greyscale´s Bitcoin Investment Trust. This trust is used by investors that wants to invest in Bitcoin. This is mostly common for investors and not as much for private persons.
1. Amplify Transformational Data Sharing ETF (BLOK)
Investors can also invest in BLOK. BLOK is a fund that invests in companies that actively develops blockchain technologies, such as Bitcoin.
Where can you invest in Bitcoin?
On today’s market, there are several sites where you can invest in Bitcoin. The different sites provide their customers with different features. Some sites may suit you better than others. Some of the sites available for Bitcoin invests are:
· Prime XBT
If you are a beginner we would recommend you to invest in Bitcoin using Changelly. Changelly is a cryptocurrency trading platform that always have high reviews and a really good reputation. Changelly was founded in 2013 and started to gain a lot of attraction in 2016. Today Changelly has over 2 million users. Until this day Changelly has no reports of frauds, bugs or even hackings.
Pros with Changelly:
– Offers widgets and API.
– 24/7 live customer support.
– No security breaches.
– Fee of only 0,5%.
Cons with Changelly:
– The site can sometimes run a bit slow.
– High fees for fiat currencies.
Which site is the most trusted when investing in Bitcoin?
When starting to invest in Bitcoin it is important to use a secure and trusted site. Changelly is a very popular site but when it comes to safety the most trusted is Coinbase. There are a few reasons to why Bitcoin is a safe trading site.
– Offline Cold Storage.
– Non US Custodial Accounts.
– US Regulated money transmission service.
Coinbase have a complete clean record when it comes to hacks on their site. Coinbase have over 30 million users and they are only growing stronger. One downside to Coinbase is that they are missing on some features on their website, for example leverage trading and BTC futures.
How do you pay on these sites?
One of the most important things to know about when investing in Bitcoin is if the site is using a safe payment method. When investing a lot of money you always want to make sure that the platform has a reliable payment system.
All the sites that we mentioned previously provides following payment methods:
· Apple Pay
· Bank Account
· Credit Cards
Depending on how fast you want your transfer to be visible on your account you can choose different options. If you want a quick transfer you should always use your credit card. This is a popular and safe method.
Some sites have a minimum amount for how little the deposit can be when investing in Bitcoin. The amount is often between 10 – 20 US dollars. This amount can differ between different sites, so if you don’t want to invest to much this is something you need to check before investing.
Investing Bitcoin to Self-IRA
Did you know that it’s possible to invest in Bitcoin through your self-directed IRA? An individual retirement account or IRA refers to a retirement savings account that offers tax advantages. Investing in Bitcoin in your IRA account is now possible. Adding cryptocurrencies to your self-IRA helps diversify your investment portfolio and promote long-term appreciation.
A cryptocurrency IRA pertains to a self-directed IRA holding Bitcoin or other cryptocurrency investments. Generally speaking, traditional IRA doesn’t allow alternative investments, unlike self-directed IRA.
While cryptocurrencies tend to be volatile in short periods, the long-term view is generally bullish. Self-directed IRA is similar to stocks with higher risk but with higher rewards. So, the longer you keep your investment, the higher the potential gains.
Interested cryptocurrency investors can open a self-directed IRA via a custodian. While you can open up a self-directed IRA without the help of a custodian, it pays off using one. It will eliminate the complex administrative burden associated with this investment.
Is It Safe to Invest In Bitcoin?
Bitcoin employs blockchain, which is a highly secure technology that revolutionizes modern-day investing and trading. Nobody owns the entirety of blockchain. The transactions only occur with permission and automatic validation across the network to add a new “block” to the chain.
Are there risks when investing in Bitcoin?
Bitcoin has a long history as a very volatile asset. The worth of a coin can drastically change overnight. In two months, the worth of a Bitcoin dropped from 19.800.000 US dollars to around 6.000 US dollars less. So, if you are investing a high amount in Bitcoin you should be aware of the fluctuations.
Bitcoin is a digital currency so the risk of hackers and glitches is always present. A glitch back on 2016 led to that the price on a coin dropped to only 0,60 US dollars. When Mt. Box did one of the first and biggest Bitcoin trade they got hacked and lost 850.000 Bitcoins.
But in the bottom line Bitcoin is a secure currency to invest in. Bitcoin is as well only getting more and more secure and the hackers has quite the challenge if they want to hack Bitcoins.