How do I Invest in Bitcoin?

When it comes to the crypto market, Bitcoin still remains the backbone of the entire crypto world in relation to price and value. From a financial point of view, it serves as a hedge against government and central banking confidence just like the role gold plays in its inverse correlation with the US dollar.

Relatively, Bitcoin as digital money is still in its early stage, so it is difficult to say for certain what is, and what is not when it comes to crypto investment. It’s not just about how to invest anymore but also where to invest. This article is going to answer questions on Bitcoin investment. 

Compared to other investment opportunities with fiat money, it is safe to say Bitcoin is still young. Young opportunities like this are usually considered risky, the nature of Bitcoin is also not helping matters, it is volatile, with margin and leverage trading as high as x100 leverage ( this is 10 times higher than traditional investment opportunities).

Overall, investing in Bitcoin is risky, but also profitable, if you can capitalize on the opportunities afforded when you are investing in Bitcoin, you will be smiling in the bank in no time.

Step-by-step guide

Few years after Bitcoin was first traded in exchange, numerous exchanges have sprung up since then. Today people can either chose to buy Bitcoin on exchanges or directly from other people through P2P platforms. There are also payment methods that will make transactions easier for you, from cash, to credit cards, wire transfer, and other digital currency.

If you want to buy a Bitcoin token, there are factors you need to put into consideration such as who is the seller? how urgently do you need Bitcoin? what region are you buying from? After answering these questions, you then can determine how you want to purchase the token. Below is a step by step guide:

Create a Bitcoin wallet. Opening a Bitcoin wallet is pretty easy, it is just like opening a bank account.

Decide whether you want a person-to-person marketplace or a bitcoin exchange.

Decide on the number of Bitcoin you want to buy, then enter your email and signup on the platform of your choice.

Select your payment method for cash deposits. Then you will see a list of payment options on the left-hand side of the page in which you will see Walmart2Walmart listed.

Chose a payment method for your cash deposit, you’ll be given a list of numerous payment methods, pick the option that best suits you.

Once you have an account, you can go ahead and acquire your crypto currency.

Step One: Get a bitcoin wallet

The two essential trade strategies are you purchase bitcoin then and hold, or trading. If your plan is to hold, then you have to be mindful of the type of wallet you are getting. One mistake traders make is holding your Bitcoin on an exchange. This is a risky way to go about investing in cryptocurrency.

Your choice of cryptocurrency wallet is important because blockchain technology means everybody’s balance and address are public. A high value of bitcoin in your wallet makes you a target for hackers, scammers, and thieves. Fund your wallet using your credit card, then buy when Bitcoin’s price is favorable or you can choose to trade on an exchange.

Step Two: Choose an exchange

Different countries have a cryptocurrency exchange that favors that region, for instance, US, UK, and Canadian customers, Coinbase is the most popular cryptocurrency exchange which serves both as a hot wallet and a software wallet.

Before you start investing, do a little research on the platform that best suits your region. On these crypto exchange platforms, you can easily see bitcoin price as well as for other crypto coins.

Once you have chosen the crypto wallet of your choice, the next step is to fund the wallet, there are different ways to go about this, you can choose between cash, credit or debit cards, bitcoin cards, wire transfers, or other cryptocurrencies.

It is important to know that even if two exchanges are offering similar cryptocurrencies, their services is never the same, these little details shouldn’t be overlooked. 

Bitcoin rally, bitcoin’s value, asset class, bitcoin’s volatility, cryptocurrency trading are useful concepts a bitcoin investor should be familiar with. The key point here is that we should take the cryptocurrency market as a combination of an online bank, and stocks that are volatile. So when investing in bitcoin, you should be ready to either gain or lose your personal finance (quantitative easing). 

Step Three: Place your order

There are numerous ways for you to actually buy a Bitcoin, one of the easiest ways is to place your order directly on an exchange. You don’t necessarily have to stick to the digital currency exchange, just like I mentioned earlier, you can buy and sell Bitcoin from people who are willing to trade. UT if you want to use an exchange, you’ll need your bank account or a credit card. At any time, you can decide to sell Bitcoin back for USD or other cryptocurrencies. 

In most countries where Bitcoin is banned that usually means that financial institutions are not allowed to deal with bitcoins, which doesn’t include private citizenry. The private citizenry can buy Bitcoin through P2P platform Buying bitcoins is more than a hobby, it is an investment and you have to be careful and fully informed before making any financial decision.

Another choice is to use Bitcoin ATMs. They are more like standalone electronic Bitcoin exchanges, they can be found mostly in big cities and malls, you’ll certainly find one if you are in New York. Before using this ATM, you’ll need a wallet. 

Bitcoin ATMs are usually issued too, so if you are in a big city like New York, you might want to give the Bitcoin ATM a try. Besides, it is no different from your regular money.

Hardware Bitcoin Wallets

The hardware wallet offers better security from theft and hack. With it, you will easily be able to transact Bitcoin and other cryptocurrencies. Especially if you are holding thousands of dollars worth. 

Rather than save your millions worth of Bitcoin on just any online wallet, you can make it more secure by investing in an offline wallet. 

A hardware wallet will give you total control over your private key. crypto investment is faced with some challenges, it’s just like the stock market but more volatile. If you want to buy or sell crypto, an exchange is not a good place to store your investments, since personal information is in the market immediately after you sell or buy bitcoins.

Digital Bitcoin Wallets

If you have ever owned crypto, or if you are into bitcoin mining, then there’s a big chance that you are already familiar with Digital Bitcoin Wallets, it is just like your regular bank account – a place where you can store your token after a Bitcoin transaction. you can either buy Bitcoins using fiat currency then transfer it directly into your wallet or from a crypto exchange. 

Bitcoin trading needs a digital bitcoin wallet by its side because we cannot trust the bitcoin market. this digital currency is prone to hack and theft. In addition, cryptocurrency investing and the bitcoin marketplace is risky.

So, if you are trading with Bitcoin ETF, a Bitcoin miner, or you are buying bitcoin, investing, or trading bitcoin, you need a digital wallet.

Key Takeaways on how to Invest in Bitcoin

If you invest in Bitcoin out of ignorance you are bound to fail, this makes it essential for you to understand the entire process before putting a penny. 

Research is important, it will help you avoid scams and help you understand everything about blockchain technology, crypto, and Bitcoin. Your Bitcoin fund is not safe until you know how investments are done.

Knowing the right time to buy Bitcoin is equally as important as other investment strategies. 

Making Bitcoin Investment a passive source of income is good, but if it starts yielding more than your active income, there’s no harm in investing full time into Bitcoin. So you can take sick leave at will, and travel around the world. 

Financial experts advise investors to invest over 50% of their capital for various investments, on the other hand, buy Bitcoin at a tune that you can afford to lose, and think of it as a credit card, a source where you can always fall back on.


Views and opinions expressed are solely those of the author and not of The DeChained or any affiliated party. Views or opinions expressed in this article (or any article on the website) are not financial advice. Articles are for informational purposes only. The author and The DeChained may hold positions in assets discussed in this or other articles.
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