Investing in cryptocurrencies is a daunting task for beginners as they hear a plethora of new terms and learn about a highly volatile market. If you are a beginner who wants to start investing in the world’s largest cryptocurrency, Bitcoin, you need to learn many things. At first, bitcoin’s market is very volatile, and it doesn’t provide the expected rate of returns many times. This article will first learn about the steps involved in investing in bitcoin, and then we’ll read about the very popular bitcoin trading platforms. You must visit wealth matrix if you want to get knowledge of different financial services.

How to invest in bitcoin?

Have you ever invested in stocks? The investment process in stocks is similar to investing in bitcoin expect the volatile market of Bitcoin. Let us consider the steps that are involved in investing in Bitcoin:

1. Open an account with a crypto exchange that allows buying and selling crypto tokens.
2. Deposit funds through your bank account using fiat currencies to a crypto exchange account.
3. Buy bitcoin using the cash balance that you deposited into your crypto exchange account.
4. Either buy bitcoin for a long time or sell them to earn limited gain or loss.

Users can buy bitcoins from trading platforms or crypto exchange through bank accounts or credit cards. They will directly transfer your bitcoins to your digital wallet. It is suggested to make use of hardware wallets to keep your funds secure. Trading bitcoin requires an understanding of all different charts that can only be gained through technical analysis. Crypto exchanges allow users to trade a wide range of cryptocurrencies.

Some crypto exchanges don’t allow users to buy bitcoins through bank accounts or credit cards directly. In such cases, users can deposit their bitcoins by purchasing from another exchange. It is crucial to be careful while choosing the right bitcoin investing sites or crypto exchange because there are many fake exchanges present online.

Let us study the most popular bitcoin exchanges or investing sites that are well-known worldwide.

BlockFi

BlockFi is a dedicated crypto investment platform that is best in its working and interface. BlockFi is one platform that allows users to lend their crypto investments and earn interest in them. You can get the maximum advantage of holding your coins and can earn interest on your coins. Some users also benefit from a bonus offer with BlockFi as it provides a $250 bonus to users that make a $25 deposit and maintain their balance for a specific time.

Coinbase

Coinbase is world-famous and reputable trading and investing platform that directly allows users to invest using fiat currencies. This platform allows users to invest in 40 different coins and can earn interest in their investments by lending them. Coinbase offers users to complete different activities on their platforms and earn a reward for completing the activities. New users also get a $5 bonus when they open an account with Coinbase.

Robinhood

Robinhood is an open-source platform that is completely free and allows users to trade cryptos for free on their trading platform. Today, there are only limited states where there is Robinhood, but with an increasing number of users, it is planning to expand on to other states. There aren’t any limitations on trading and investing cryptos on Robinhood. When a new user joins Robinhood and opens an account, they get a free and tiny share of stocks. This is a major benefit that attracts most of the new traders.

Kraken

Kraken is an original cryptocurrency trading platform that offers its users a great selection of crypto tokens to invest and trade-in. It is one of the top trading platforms, making it difficult to see as it is designed for advanced crypto users. It is one of those platforms that allow users to trade the riskiest cryptocurrencies. This platform allows users to do margin trading of cryptocurrencies.

Binance

Binance is a user-friendly platform that allows users to make use of cryptocurrencies through its mobile app easily. It is a platform that is in its US version. It allows users to only invest in limited cryptocurrencies as compared to other versions of Binance. You can easily open an account with Binance and can start trading or invest in cryptocurrencies.