Investing In Bitcoin

BITCOIN INVESTING INFORMATION

If you’re looking for a new way to make some extra money, then investing in Bitcoin might be the way to go. Investing in Bitcoin isn’t such a difficult process as it sounds, but if you’re not sure where to start, this guide is here to help. It’s written specifically for beginners and will teach you everything you need to know about investing in cryptocurrency. You’ll learn how Bitcoin works, which platforms or exchanges are best suited for your needs, and what all of the terms mean. If you’re ready to get into Bitcoin now or want more information on the topic, read on!

WHAT IS BITCOIN?

Bitcoin is a peer-to-peer electronic payment system and digital currency introduced as open-source software in 2009 by developer Satoshi Nakamoto. It was the first decentralized digital currency without central control.

Bitcoin is often called the first cryptocurrency, although, at the time of its introduction, it had some significant differences from other cryptocurrencies. For example, Bitcoin does not use the SHA-256 cryptographic hashing function like most other cryptocurrencies but instead uses the Hashcash proof of work function which requires less computing power to create new coins.

The original paper that described how Bitcoin would work and its proposed transactions were published on 31 October 2008. The system was released as open-source software in 2009 with a public beta release in early 2010. Bitcoins can be generated at no cost through a process called mining, or they can be bought on exchanges such as MtGox or Bitstamp using local currency.

ONLINE EXCHANGES

The first thing you’ll need to do is decide where to put your money so that it can grow. You’ve likely heard of Bitcoin, but this digital currency isn’t the only one on the market. There are over a hundred different types of cryptocurrencies.

Though they vary in terms of what they’re used for and how they’re generated, most cryptocurrencies are decentralized and not controlled by any government or corporation.

If you want to invest in cryptocurrency, then you need to get it from an online exchange. Exchanges are websites where you will be able to buy or sell coins for another form of currency. When buying coins with fiat currency, the exchange will convert your money into the equivalent amount of coins and send them directly to your wallet.

You’ll use this address as a wallet address when confirming transactions on the exchange’s website or apps. Your wallet address might be public if you decide to use an exchange that has a public platform like Coinbase or Kraken. This means other users will immediately know how many coins you have in your account and which cryptocurrencies are stored there.

Some of the popular online exchange platforms include Coinbase, Gemini, and Binance.

HOW INVESTING IN BITCOIN WORKS

Like most other cryptocurrencies, Bitcoin is traded on the open market. The first step to buying Bitcoin is to find a reputable exchange that will allow you to trade your local currency for it. There are a few ways of doing this.

One way would be to visit your online bank and transfer money into their account. They’ll then send you an email with all the information necessary to purchase the cryptocurrency.

The second option would be through an online platform such as Coinbase or Gemini. Both platforms offer customers four options: buy, sell, exchange, and send. If you’re looking to buy Bitcoin immediately, this might be your best option because these platforms allow users to purchase and sell Bitcoin within minutes of signing up for an account.

Another alternative would be purchasing Bitcoins from another person directly over the internet and having them send it over via digital means like email or file-sharing services like Dropbox or Google Drive. This method should only be used if you trust that person; otherwise, there’s a chance their account could have been hacked and they could steal your coins from you before sending them over!

Once you’ve purchased some bitcoins—or if you already have some—the next step is to store them. This can take the form of either holding your bitcoins in a bitcoin wallet or trading them for another currency which you then hold in a bank account.

The third step is to decide how much money to invest in bitcoin. You can go all-in and invest everything you have, or just put a few dollars into it and hope it goes up enough to make back what you spent. Or, if you’re really daring, you might try day trading with bitcoin: buying low and selling high multiple times per day. But be careful: bitcoin is extremely volatile, and you could easily lose all your money if you’re not careful.

BEST PLATFORMS TO INVEST IN BITCOIN

So, you’ve decided to invest in Bitcoin. Now it’s time to choose which platform or exchange you’ll use. There are many different types of exchanges that offer their own set of benefits and experiences. The platforms below were selected because they’re the most reputable, trustworthy, and secure options available today.

• Robinhood

Robinhood provides free stock, options, ETF and cryptocurrency trades, and its account minimum is $0, too. Mutual funds and bonds aren’t offered, and only taxable investment accounts are available.

*What I like about Robinhood is if you sign up, they give you free stock. You can keep it, sell it to buy bitcoin, or watch it grow. Click here to claim it.

• Coinbase

Coinbase was founded in 2012 and has an excellent reputation among cryptocurrency users. It’s also the most popular place to buy and sell cryptocurrencies in the U.S., with over 13 million customers worldwide. Coinbase is easy to use, allows relatively quick transactions, offers tax reporting tools, and provides an app for mobile devices that makes investing even easier.

• Binance

Binance was established in mid-2017 and has quickly risen as one of the top cryptocurrency exchanges with a large number of users from all over the world. It’s easy to use with a clean interface and uses order-based trading instead of maker/taker pricing like other exchanges do.