Since its release to the public in 2009, Bitcoin’s value keeps rising, with almost 2000% growth in 2017 alone. At the time of writing, the value of the digital currency is slightly above $18000 according to Cointelegraph price index.
With the spurted growth of Bitcoin, perhaps you wonder why you did not invest in the coin earlier. According to Google, millions of people around the world searched “How can I invest in Bitcoin?” in 2017 and the number is expected to rise.
Not Too Late
It is not yet too late to invest in Bitcoin. But first, you need to understand whether you should invest in the digital currency. Before you whip out the plastic, you should ask yourself why you’re interested in joining the cryptocurrency ecosystem as an investor.
As far as investment goes, Bitcoin is just like other items in your portfolio: prices can fluctuate and it is in a bubble that can grow bigger, become smaller, or even burst. For instance, if everyone stopped taking your money, the bubble would burst and the value would drop to zero. It’s the same for Bitcoin. However, this is unlikely to happen, based on history.
From a brighter perspective, Bitcoin is practically a great investment. With a fixed supply (the total amount will never exceed 21 million) and utmost encryption, the currency is easier to store, hide, and to protect. Besides, Bitcoin transactions are irreversible, transparent, and accountable, supported by the Blockchain technology.
Digital Currency Revolution
Bitcoin enthusiasts believe that ‘price’ is not the only factor to determine the point for investing in Bitcoin. Cryptocurrency and especially Bitcoin has the potential to become the global currency, a step that will overturn and redefine dependence on banks. Just two days ago, Israeli Prime Minister Benjamin Netanyahu hinted at the disappearance of conventional banks, replaced by Bitcoin.
Eventually, cryptocurrency and the Blockchain technology will greatly improve the turnaround time for each transaction and transform how people and computers handle money. For an investor, it is important to look at the popularity of the currency rather than the capital gains that you can derive from it.
How to invest in Bitcoin
Buying Bitcoin is pretty simple. First off, you need a Bitcoin wallet to hold your keys. And just so you know, keys are a string of digits and letters that gives you access to your coins through encryption. Wallets exist in different formats. Some can simply store your Bitcoins while others can be an exchange platform on which you can trade the currency or convert it to other Fiat currencies.
With that in mind, you need to consider the following as well:
- Identity verification
- Duration of transaction
- Preferred method of payment
Different wallets have different limits on the amount you can buy or withdraw in a day. Fees structures also vary from one platform to another, which is an equally important factor to consider. In addition to this website, you can also register at BestBitcoinExchange to get updates on reviews regarding the crypto community.
For US residents, Coinbase is a suitable site for Bitcoin investment. The site is friendly for beginners with an A+ Trust Evaluation. Other great places where you can purchase Bitcoins include Bittrex, LocalBitcoins, and etoro.
Once you sign up on a particular site, you need to determine the number of dollars you would like to spend or the number of Bitcoins you would like to purchase. While you may not afford a single Bitcoin at $18000, it is possible to purchase pieces of the currency, broken down into one hundred millionth of a Bitcoin.
The next thing to do is to link your banking information to your wallet. Based on the platform, you may use a credit card, PayPal, bank transfer, or another digital currency to buy Bitcoins. Obviously, you’ll require verification from your bank, a process that can take a few business days to set up. For that reason, you cannot expect to buy Bitcoin on the same day that you sign up on an exchange platform.
Once the verification process is complete, you can choose and enter the amount of Bitcoin you wish to purchase. Next, click on the “BUY” button and follow the prompts. It happens almost instantaneously. Welcome to the world of Bitcoin and cryptocurrency!