How to Invest in Bitcoin

Visit the cryptocurrency resource section where you will find links to the best cryptocurrency exchanges, and places to buy Bitcoin and other cryptocurrencies.  You will also find links to buy the best hardware wallets to store your cryptocurrencies, and a list of the most exciting upcoming ICO’s.

Links to the best places to buy Bitcoin can be found here

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The price of a single Bitcoin passed $1,000 in February, 2017. It had climbed 20-fold by December of the same year, to almost $20,000. Travel back another few months, or years, and the windfall for early virtual currency buyers is almost unfathomable. So, how do you get in on this? And even if you could afford Bitcoin, should you make an investment now? A 5-year technical analysis demonstrates Bitcoin’s long-term reliability, resilience, and propensity to provide significant returns for investors to outperform traditional investments. An investor who invested in Bitcoin in 2012 would have seen total returns of 22,004 percent! Given the risks of investing in the new, formerly experimental, and open-source Bitcoin Blockchain technology, it would make sense that such strong long run returns would arise.

The easiest and simplest way the average person can invest in Bitcoin is to buy some outright. Buying Bitcoin today is easier than ever, with many established companies in the US and abroad involved in the business of buying and selling Bitcoins. The easiest and most popular site for U.S. residents to buy and sell Bitcoin is Coinbase. Coinbase is the largest secure online platform for buying, selling, transferring, and storing digital currency. It’s beginner-friendly and has a trust evaluation of an A+. The company sells Bitcoin, and a handful of other cryptocurrencies to customers at a mark-up that is usually around 1% over the current market price.

If you live in America and are using Coinbase to buy Bitcoin, you have the option to link your bank account to your Coinbase wallet. This makes all future payment transfers much easier. Coinbase also offers automatic Bitcoin buying at regular intervals. For example, you could buy $50 in Bitcoin on the first of the month, right after you get your paycheck. You can setup an auto-buy for that amount of Bitcoin on Coinbase. Be careful if you issue an automatic buy order, because you will not have control over the price at which the Bitcoin is bought.

You’ll be asked to connect your banking info to a wallet. Depending on the exchange, you may be using a direct bank transfer, Paypal, a credit card, or another cryptocurrency to purchase your Bitcoin, and other cryptocurrencies. Most likely, this will require verification from your bank, and it often takes a couple business days to set up. Don’t expect to be able to buy your Bitcoins the same day you register with an exchange. Once you’re all verified, enter the amount you wish to purchase and press “Buy.” Welcome to the world of cryptocurrency!

Once you establish an account with one of these exchanges, connect it to your payment source — a bank account or a credit or debit card — via two-factor authentication. The best way is to use Google Authenticator rather than just relying on text-based authentication, which can be more vulnerable to cybertheft, when investing in Bitcoin. Two factor authentication is very easy to setup, and is the best way to keep your Bitcoin secure. Once you have purchased some Bitcoin, it will stay in your digital wallet until you trade it — either by using it as currency for a purchase, or by selling it on an exchange.

For cryptocurrency traders that prefer a traditional Bitcoin exchange, Binance may be a better option. Liquidity is much higher and you can almost always find another person to take the other side of your trade. And with Binance the fees are less than most of the other cryptocurrency exchanges.

Other Ways to Buy Bitcoins

Cryptocurrency exchanges are not the only way you can acquire Bitcoin. The two best sites to buy Bitcoin without having to go through a cryptocurrency exchange are Paxful and Coinmama. You can buy Bitcoin directly from these sites in a hassle free way, and without having to enter a cryptocurrency exchange for the transaction.

Will Bitcoin become a long-term trusted store of value like gold?

The question of whether you should invest in Bitcoin or not depends on if you think Bitcoin will become a long-term trusted store of value like gold is today. Bitcoin is empirically a great investment. There is a fixed supply (there will never be more than 21 million Bitcoins), and it’s encrypted, which it makes it easy to store, hide, and protect. Transactions of Bitcoin are irreversible, and data about all parties holds buyers and sellers completely accountable. Cryptocurrencies, and specifically Bitcoin, have the possibility to globalize currency, overturn and reset our dependence on banks, vastly improve the speed of transaction times, and overall revolutionize how we, and computers, handle money.

If Bitcoin does become a long-term trusted store of value, Bitcoin should trade around $1,000,000 a coin. These numbers might be hard to believe, but Bitcoin has a fixed supply that can be mined (created). It is precisely because of this built in scarcity that one Bitcoin may come to be worth a million dollars or more. Expert opinions on this range from five to ten years or more before Bitcoin would ever see this kind of valuation. Most people agree though that the price of Bitcoin will just keep going up and up for several years into the future.

Gold is down by 29.66 percent sitting at a near 5-year low. Conversely, Bitcoin became more valuable than an ounce of gold for the first time ever in mid-2017. This is a significant shift away from traditional investing logic as well, as Bitcoin’s portability, security, and global nature are increasingly appealing to investors who may have otherwise looked towards gold or silver as a hedging investment.

Bitcoin, traditionally viewed as a “digital gold”, contains overlapping properties of limited scarcity and its resurgent rally combined with the relatively cheap price of gold shows that perhaps now is an opportunistic time to buy the two. Particularly as instability and uncertainty geopolitically may turn investors back towards both modern and digitally scarce stores of values in 2018 and beyond.

It is important to remember that Bitcoin is the breakthrough of 40 years of research in computer science, and in turn, this enables a new form of digital asset creation. Just as gold is scarce, these properties can be mirrored online.

Much like any speculative investment, buying Bitcoin can be risky. However, if you can tolerate some level of risk than investing in Bitcoin may change your life. If you’re aware of the risks and still willing to take the plunge, this is what you need to know about investing in Bitcoin: Cryptocurrencies exist in an unregulated, decentralized digital sphere without involvement by a central bank. This is part of Bitcoin’s appeal. People or entities can buy and sell cryptocurrency anonymously, and there are fewer middlemen taking a cut of transactions. But it also means you can’t just buy Bitcoin via mainstream investing tools like a brokerage account. There is a bit of a learning curve when it comes to buying Bitcoin through a brokerage or exchange, but anyone with enough motivation and a little bit of time to learn the ropes can buy and sell Bitcoin like a pro.

Another interesting thing about buying Bitcoin is that you can buy fractions of a Bitcoin. That means you don’t need to spend $15,000 to buy one Bitcoin. You can buy whatever amount you want. If you are buying smaller amounts of Bitcoin on a regular basis, then at some point you might own one or more. This could be viewed like a savings plan, but the return on your investment is sure to be far greater than letting a traditional bank hold on to your money.

Visit the cryptocurrency resource section where you will find links to the best cryptocurrency exchanges, and places to buy Bitcoin and other cryptocurrencies.  You will also find links to buy the best hardware wallets to store your cryptocurrencies, and a list of the most exciting upcoming ICO’s.

Links to the best places to buy Bitcoin can be found here

Don’t forget to follow me on Twitter