Bitcoin: How to invest in the largest virtual currency?
Bitcoin is one of the trendiest cryptocurrencies, also referred to as digital or virtual currency. While there are many differences between digital currencies and traditional currencies, the most significant one is that digital currencies aren’t backed or issued by banks or central governments. Does the hype of bitcoin in the market also influence you? Do you also want to invest in Bitcoin? So, let’s read out what you need to learn. Additionally, if you want to invest your money and are looking for platform Like this trading platform .
What is Bitcoin?
Bitcoins are different from stocks and bonds as banks or public corporations don’t issue these. Instead, Bitcoin is a digital currency that operates on a peer-to-peer network and can be sent electronically to anyone and from anywhere across the world. It is the digital currency developed with anticipation to become a foremost international currency that isn’t connected to any bank, corporation, and government. This digital currency was formed in 2009, and during that time, its price started below $1. Started from $1 in 2009 and rose to $20,000 in 2017, Bitcoin gained huge attention from the mainstream. Although it suffered many drops as well as bitcoin’s value dropped to $10,000 in 2020, but it remained the leading cryptocurrency in the world,
The prices of cryptocurrencies keep on fluctuating as the market is extremely volatile. The crypto market gets highly affected by every minor news or event in the financial world. But these price movements are what that thrills investors and attracts them to invest in cryptocurrencies.
How to start investing in Bitcoin?
If you are a newbie to the crypto world, you need to note that you cannot buy bitcoin through banks or any traditional investment broker. There are specialized services that allow you to trade cryptocurrencies, including investment applications and crypto exchanges.
Cryptocurrency exchanges are specially designed and developed platforms that allow investors to buy bitcoin. You need to follow few steps to invest in Bitcoin. Firstly, choose a reputable crypto exchange and open an account with the exchange to buy bitcoin. Secondly, you need to find the right place or location to store your crypto tokens, and therefore you need to choose the right wallet to hold crypto tokens. Once you have opened an account and have selected a digital wallet, the third step involves funding your exchange account through a bank transfer or debit/credit card. Provide your bank account information to exchange and fund your account, and you are ready to trade cryptocurrencies.
Keep in mind that every investor must pay taxes on cryptocurrencies that they hold or generate money from. It would be better to learn about taxes on crypto investments.
How and where to buy bitcoins?
In the above paragraph, you have read one way to buy bitcoin: to buy through a crypto exchange. The second way is to buy bitcoin or other cryptocurrencies through a broker. However, there are a limited number of investment brokers or investment applications that have been developed that allow investors to invest and trade cryptocurrencies simultaneously from the same platform.
Let’s check out the list of best investment brokers and exchanges from where you can buy bitcoin that include:
eToro is one of the most advanced investment platforms for cryptocurrencies. This crypto platform operates globally and allows investors to invest in funds, stocks, and other traditional investments worldwide. It is currently only allowed to trade cryptocurrencies in U.S. eToro, allowing investors to learn the ropes of bitcoin investments and even allowing traders to create a virtual portfolio to trade in the paper account without risking their own money. This platform allows users of their digital wallets to hold and store cryptocurrencies.
Coinbase is the top-notch exchange that is listed as the best exchange. This crypto exchange allows users to buy and sell a huge number of cryptocurrencies and also offers a hot wallet to store crypto coins. Traders can also trade cryptocurrencies through this platform. The pro version of Coinbase offers an intuitive interface with trade history, real-time order books, a simple order process, and charting tools.
Robinhood is an investment broker and app that allows users to trade different digital coins and exchange-traded funds and stocks. This platform allows trading a large number of cryptocurrencies along with Bitcoin.