Bitcoin made its debut in the crypto space in 2008 as the first digital decentralized currency that was neither owned nor controlled by any bank, financial institution, or government. This digital payment system has much in common with regular fiat currencies but it does not exist physically. The main idea behind introducing the Bitcoin was to launch a global currency that could eventually topple standard currencies. But, since its launch, the Bitcoin has been known for being notoriously volatile. However, more and more businesses and individuals are now accepting Bitcoins for transaction purposes.
Different ways you can invest in Bitcoins:
- You can buy standalone Bitcoins through trading apps such as Coinbase, and Bitcoin era krypto plattform. You will first need to register and create an account, submitting all personal details and then deposit the money to buy Bitcoins. Just like in case of stocks, you will have access to Bitcoin’s prices and the option to sell or buy it. If you buy the coins, they will be stored securely in a digital wallet protected by a private key that will only be with you.
- You can also buy Bitcoins through meet-ups where you can come into contact with crypt enthusiasts and trade with them. Direct transactions can be rewarding and secure; but it is best to choose family members or friends rather than complete strangers to ensure safer trades.
- You can get Bitcoins through brokers that are intermediaries or middlemen that facilitate buy-and-sell of Bitcoins. Brokers will get the coins from miners and with brokers; you can buy large quantities of Bitcoins.
- Yu can use Bitcoin ATMs that work similar to regular bank ATMs. So, you can buy crypto coins and Bitcoins after depositing money rather securely.
- You may browse a P2P directory for checking prices and then buy these according to prices shown. All you have to do is link your bank account and deposit the coins to start trading successfully. Platforms work like escrows of Bitcoins.
- Investors keen to invest in this crypto asset can approach GBTC or Grayscale Bitcoin Investment Trust that offers some advantages in favor of Bitcoin investments. For examples, GBTC shares can be held in Roth IRA, IRA, and many other investor accounts so that all types of investors can have access to a wide range of accounts. Investors who are relatively less technical can use GBTC to make successful trades. BLOK refers to a managed fund with holdings in multiple countries. This invests in other firms involved in developing blockchain technologies.
- Finally, you can mine Bitcoins which is a relatively less popular way of investing in this crypto coin. In mining, you must solve complex mathematical problems using specialized computers. When a problem is solved correctly, a miner gets rewarded with Bitcoins. To mine, you must connect your computer to a network comprising of hundreds of computers all over the globe. Once a block is solved, it gets added to the blockchain, and records once added can never be changed or tampered with. Investors can either choose to mine on their own by installing mining rigs, or they can join mining pools and share profits with other miners.