How to Invest in Bitcoin In 5 Simple Steps

bitcoin

The first known commercial use of Bitcoin was a purchase of two pizzas in 2010 by programmer Laszlo Hanyecz for 10,000 BTC, which is equivalent to roughly $400 million at today’s valuation.

How To Invest in Bitcoin

Investing in Bitcoin has been compared to investing in “digital gold.” Setting aside the inflation-hedge claims of Bitcoin enthusiasts, comparing it to gold is a good analogy when considering the myriad ways to invest in Bitcoin.

One way to get Bitcoin exposure in your stock portfolio is to invest in companies that use Bitcoin and the blockchain technology on which it’s based. This type of investment will not give you direct ownership of Bitcoin, but it will let you invest in innovative companies advancing the use of blockchain technologies.

Invest in Companies That Utilize Blockchain Technology

Invest in a Bitcoin ETF

An ETF is a specialized investment vehicle that tracks the performance of a particular asset without the investor having to own the actual asset itself. It takes away the hassle and security risks of owning Bitcoin directly and opens the doors for anyone with a brokerage account to invest in Bitcoin.

Bitcoin mining is a way to receive actual Bitcoin in exchange for lending your computing power to solve complex math problems and completing blocks of verified Bitcoin transactions on the blockchain. As more coins are mined, the reward for solving the subsequent successive block decreases, and the difficulty increases.

Participate in Bitcoin Mining

Last but certainly not least on the list is purchasing Bitcoin directly. If you are looking for a pure-play on the price movements of Bitcoin, there is no better way than to own the asset itself.

Purchase Bitcoin Directly

If, after evaluating the pros and cons of investing in Bitcoin, you decide you want to own it for yourself, there are a few things you need to know. The steps below offer a guide to buying Bitcoin and provide a jumping-off point for further research.

How To Buy Bitcoin

These exchanges offer a platform to buy and sell Bitcoin and many other alt-coins. Each exchange generally has different fees and consumer services provided.

Decide Where To Buy Bitcoin

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