Easy ways to buy and invest in Bitcoin

What is Bitcoin?

Bitcoin is a decentralized, peer-to-peer digital currency system designed to offer online users the ability to process transactions using a digital exchange unit known as Bitcoins. In other words, it is a virtual currency.

The Bitcoin system was created in 2009 by an undisclosed programmer or programmer. Since then, Bitcoin has attracted a lot of attention and controversy as an alternative to the US dollar, euros and commodity currencies such as gold and silver.

Rise in popularity

Bitcoin had not gained much attention in the business and finance world before 2009. It gained prominence during the period 2011-2012 when it gained more than 300%. Bitcoin has grown by 400% in value since August last year. As a result, venture capital firms and investors around the world continue to value cryptocurrency.

During the first half of 2014, venture capital firms invested $ 57 million in Bitcoin in the first quarter, followed by another $ 73 million in the second quarter for a total of $ 130 million, which is 50% more that totaled $ 88 million last year. This is in stark contrast to the 2012 scenario in which Bitcoin companies amassed a relatively small sum of $ 2.2 million.

These statistics show without a doubt that Bitcoin is worth your investment, which raises the question of how you can buy and invest in Bitcoin?

A guideline for novice Bitcoin investors

The easiest and least complicated way to invest in Bitcoin is to buy bitcoins. There are many established companies, mainly in the US and abroad, that are involved in the business of buying and selling bitcoins, abbreviated as BTC.

Coinbase

If you live in the United States, Coinbase is the place you’re looking for. Coinbase offers its customers BTC with an estimated margin of 1% over the existing market price. U.S. residents have the option to synchronize their Coinbase wallets with their bank accounts. As a result, future payment transfers go smoothly. This company also gives you the option to buy bitcoins automatically from time to time. For example, if you’re interested in buying $ 50 in bitcoin at the beginning of each month, Coinbase lets you set up an automatic purchase for that amount.

Please note the terms and conditions before you start using this service. If you have subscribed to an automatic bit currency service, you will not be able to control the price at which the BTC is purchased each month. Please note that Coinbase does not work as a Bitcoin exchange, that is, you buy and sell currencies directly from the company. Since the company has to obtain coins from other buyers, you may experience delays or interruptions when placing orders during rapid market movements.

BitStamp

BitStamp adapts to the requirements of a conventional bitcoin exchange. Bitcoin acts as an intermediary that allows you to trade with other users and not with your own company. Liquidity here is higher and you always have a good chance of finding someone who is willing to negotiate with you. There is an initial rate of 0.5% which can be reduced to 0.2% if you negotiate $ 150,000 over a 30 day period.

Alternative Ways to Buy Bitcoins

Local bitcoins

Exchange is not the only method of investing in bitcoins. Local bitcoins are often used to buy BTC offline. The website is designed to link potential buyers and sellers. Bitcoins are a closet of the seller in a security deposit and can only be delivered to buyers.

Buying bitcoins offline is not always very reliable or secure. Therefore, it is better to meet with the sellers during the day and let a friend tag you in case things go wrong.

Bitcoin is not just a modern trend. Venture capitalists consider Bitcoin to be a decent substitute for conventional currency in the long run. There are many ways to get started in bitcoin investing. As mentioned before, Coinbase, BitStamp, and Local Bitcoins are the most popular channels for investing in bitcoins in the United States. Do your homework and find out which avenue ticks all your boxes.