How to invest in bitcoin?
The popularity of Bitcoin has increased among investors in the last few years. Bitcoin and other cryptocurrencies were also in the spotlight during the same period. Its proponents argued that cryptocurrencies were the future of currency and investing, while its detractors said they were risky investments that would not yield big returns.
We need to examine its latest movements to understand its true value better. For example, recent Bitcoin valuation gains have surpassed traditional gains in the stock market by more than 763% in just one year. In addition, Bitcoin is increasingly seen as a global currency, particularly because of its decentralized nature.
In case you are wondering how to get exposure to Bitcoin – you can do so in as little as 10 minutes, as long as you invest with a trustworthy online broker. As discussed in this guide, we will review the best ways to invest in Bitcoin using a low-cost and regulated brokerage website.
Investing in Bitcoin
The most appropriate place to invest in Bitcoin will depend on individual needs.
Some platforms are designed for beginners, and others are geared toward large-scale investors who require highly sophisticated trading tools.
When considering where to invest in Bitcoin, we recommend considering the pre-vetted brokers listed below.
1. Toro – Overall Best Bitcoin Investment Place 2022
The best way to invest in Bitcoin and buy cryptocurrencies is by using eToro. Simply put, you can create an account on eToro in minutes and risk only $10, investing in Bitcoins safely and securely.
As eToro accepts various payments, such as debit cards or credit cards, e-wallets, such as Neteller and Paypal, and traditional bank transfers, it offers various payment methods. Therefore, you can choose whether you should buy Bitcoin with PayPal, bank transfer, or any other way that suits you.
Also, if you are from the US, you won’t be charged any fees for deposits or withdrawals, regardless of which payment method you choose.
2. Webull – Invest in Cryptocurrencies With Just $1
With an online broker such as Webull, you can invest in Bitcoin without spending much money. You can purchase Bitcoins for just $1 on this user-friendly platform, and you don’t need to meet any minimum deposit requirements.
It is a good option for first-timers who want to test out Bitcoin markets before investing higher sums. It is worth noting that the $1 minimum is extended to all other cryptocurrencies supported on Webull, which may include everything from Shiba Inu, Dogecoin, and Litecoin up to Ethereum, Chainlink, and Basic Attention Token. Furthermore, Webull’s platform offers access to asset classes – such as stocks, ETFs, and options – listed on US exchanges.
3. Binance: Invest in Bitcoin and 60+ Other Cryptocurrencies.
Binance US, a platform offered by Binance, allows US residents to invest in Bitcoin and more than 60 other types of cryptocurrencies. This is a good option if you intend to diversify your portfolio with various digital currencies. Apart from Bitcoin, the most popular tokens are Ethereum, Litecoin, Dogecoin, and Cardano, all digital currencies.
There is also a wave of new tokens supported by Binance US under the DeFi (Decentralized Finance) category. Some of them include Chainlink and VeChain. As far as the fees for your Bitcoin investment are concerned, the charges will be determined by the payment method you opt for. For example, if you prefer to use your debit or credit card, you will have to pay 4.5% in transaction fees and a 0.5% commission. Alternatively, you can use ACH and domestic wire transfers for free – meaning you only pay the 0.5% commission.
4. Coinbase – Invest in Bitcoin via a Beginner-Friendly Platform
In the context of where to invest in Bitcoin, Coinbase is the next broker to consider. Among the NASDAQ-listed cryptocurrency brokers, this company serves tens of millions of users – many of whom are in the US. Moreover, investing in Bitcoins and dozens of other cryptocurrencies is safe and easy using the platform- so beginners and experienced investors alike can take advantage of it.
Despite this, regardless of how you intend to pay for your Bitcoin investment, this broker is very expensive compared to the others we have discussed thus far. By way of example: if you deposit funds via ACH and then proceed to invest in Bitcoin once the funds have arrived – you will be charged a 1.5% fee. On the other hand, paying instantly with a debit or credit card for your Bitcoin investment will cost you 3.99%.
Should I Invest in Bitcoin?
Once you have chosen which online broker is suitable for your trading goals and skill set, the next step will be independent research to ensure the broker is a good fit for your needs.
We mean delving deep into whether a Bitcoin investment is right for you.
We will explain the reasons below why you should consider investing in Bitcoin right now to clear up the mists.
The Bitcoin asset class is still emerging.
According to many market analysts, Bitcoin in 2022 will be like Apple or Microsoft in the 1980s. Thus, it is important to note that considering Bitcoin was only launched in 2009, blockchain technology and cryptocurrencies are still in their infancy.
In other words, you can gain exposure to a relatively new asset class that has yet to reach its full potential by investing in Bitcoin today.
Growth in bitcoins since 2009
However, even though Bitcoin was launched in January 2009, it wasn’t credited as a known and trusted currency until February 2011, when its value surpassed $1 per token. Further, it took Bitcoin two more years to reach a value of $1,000.
After finishing the year 2021, Bitcoin had reached a value of nearly $69,000 at its time of all-time high. Compared to Bitcoin’s price in 2011, this would mean a return of over 6.8 million per cent in ten years.
Therefore, if you had invested $500 into Bitcoins in 2011 and sold them when the digital currency reached $69,000 for each coin, you would have cashed out almost $68 million that year. In just a short amount of time, Bitcoin has performed extremely well.
Highly liquid and easy to invest
The process of buying Bitcoin is often confusing to first-time investors. A further misconception is that cashing out is difficult. On the contrary, this is completely untrue.
Anyone can invest in Bitcoin with a credit or debit card or a bank transfer in just a few minutes from the comfort of their home. Through an SEC-regulated cryptocurrency broker, this can be accomplished safely and conveniently.
A second factor is that Bitcoin is part of an industry that trades cryptocurrencies daily and generates billions of dollars. So, you can easily cash out the Bitcoin you invested back into US dollars through your preferred online broker 24 hours a day, 7 days a week.
Investing in Bitcoin: What is the Best Way?
Bitcoin can be invested in two ways in 2022.
A digital currency can be purchased on an online exchange or through a broker, or you can buy stocks that provide direct exposure to BTC.
Having said that, you can also gain exposure to the crypto market through crypto CFDs, which offer exposure to the crypto market. By opening an account with one of the crypto bots such as Bitcoin Prime, or Bitcoin Trader, you can speculate on the price movement of the BTC crosses through the use of contracts for difference. Furthermore, the benefit of using a crypto robot is that you can configure it to do all the work on your behalf based on the parameters and criteria you set.
Investing in Bitcoin is easy by opening an account with an online broker and purchasing some tokens.
Until you cash out, you will continue to own all your digital assets. Bitcoin’s market price will directly affect your profits or losses.
For example, if you invested $500 in Bitcoin and its price rose by 25%, you would make $125.
Stocks of bitcoins to invest in
Another possibility is to invest in stocks that are correlated to the Bitcoin market. When it comes to investing in Bitcoin stocks, Coinbase is your best option.
In addition to its large US-based cryptocurrency brokerage, Coinbase is publicly traded on the NASDAQ. As a result, the Stocks of Coinbase should benefit from an upward trend in Bitcoin prices and the wider cryptocurrency market.
However, a like-for-like correlation won’t be possible because there is no similarity between the two. Even so, there are many factors to consider when buying stocks. For instance, it is important to consider the company’s balance sheet, quarterly earnings, debt levels, and others.
This is another reason Bitcoin is the best digital asset to invest in.
When should you invest in Bitcoin?
Timing the market is useless unless you are an experienced investor who understands technical analysis and high-level research.
A dollar-cost-averaging strategy instead of attempting to purchase Bitcoin at the right time will be far more effective than buying Bitcoin at the right time.
Since Bitcoin is a long-term investment, you’ll regularly allocate smaller amounts to the digital token.
Due to this, you don’t have to worry whether or not you have timed your investments correctly – as your investments will be adjusted depending on their proportions.
The Bitcoin Investing Tutorial: How to Get Started
It is important to note that the following section of our guide describes how to invest in Bitcoin via the SEC-regulated broker eToro.
Within less than 10 minutes, you will learn how to sign up for a verified account, deposit your funds, and place an investment order with the site.
Step 1: Open an Account
You can join eToro by going to the website and clicking the ‘Join Now’ button at the top of the webpage. This will lead you to a registration page.
Your first step will be to enter your first and last name, your email address, your cell phone number, and a username and password that you choose.
As a next step, you’ll need to provide additional information about yourself – including your date of birth and address.
To complete the registration process, enter the SMS code eToro will send to your mobile phone to verify your cellular number.
Step 2: Verify your identity
Verifying your EToro account is as easy as uploading your ID. In addition, it increases your deposit limits and makes withdrawals possible.
Verification can be achieved by uploading a copy of your ID, such as a driver’s license or passport. In addition, you can upload a recent bank statement or bill that proves your residency status.
Step 3: Make a Deposit
No fees apply to deposits in US dollars. Your e-wallet or debit/credit card will be used to process your deposit instantly at eToro.
Wire transfers and ACH transfers are also available if you are willing to wait 1-3 working days. For US clients, eToro’s minimum deposit is just $10.
Step 4: Search for Bitcoin
At this point, you should have at least $10 in your eToro account. After that, you can invest in Bitcoins.
Enter ‘BTC’ in the search bar and click on ‘Trade’ to navigate directly to the investment page.
Step 5: Invest in Bitcoin
A trading screen order box will now appear. The next step is to let eToro know how much you’d like to invest in Bitcoins.
For example, This can be as little as $10 or as much as $50. Lastly, eToro will instantly carry out your Bitcoin investment as soon as you click the ‘Open Trade’ button. So now that you know how bitcoins will be used in 2022, you can start spending bitcoins.
Step 6: Selling Bitcoin
In your eToro portfolio, you can monitor your Bitcoin investments. Then, if you choose, you can sell them anytime.
Find the cog button beside Bitcoin and click the ‘Close’ button. You will then be able to sell your Bitcoin tokens back to eToro at a discounted price.
Before investing in Bitcoin, it is important to research the market and consider the risks involved.
You can now invest in Bitcoin at eToro – an SEC-regulated broker – by opening an account and placing an order within 10 minutes.