Skip to main content

How to Invest in Bitcoin?

 How to Invest in Bitcoin?


What is Bitcoin?

Unlike stocks and bonds, they aren't issued by public corporations. Instead, it's a decentralized digital currency that can be sent electronically from one person to another anywhere in the world. It was developed with the expectation of becoming a truly international currency, unconnected to any government, bank, or corporation.

Bitcoin gathered attention when its price rocketed from about $1 when it was rolled out back in 2009 to nearly $20,000 at the end of 2017. It suffered a big drop thereafter but moved back above $10,000 in 2020. Most recently it's gained even more traction, reaching over $40,000 in June 2021. That kind of price movement generates investor interest.

What You Need to Start Investing in Bitcoin

Unfortunately, you can't invest in bitcoin through a traditional investment broker or bank. Specialized services offer trading in cryptocurrencies (crypto). These include cryptocurrency exchanges and certain limited investment apps.

You need to choose an exchange or app (TD Ameritrade, for example, is one great option) where you want to buy bitcoin. You also need to select a wallet where you'll hold them. (We discuss digital wallets as a separate topic next.) Once you have a bitcoin wallet and have chosen an exchange, give the exchange your bank account information. Then you can start trading.

Where to Buy Bitcoin

There are two ways to buy bitcoin. You can buy them through an exchange, or a marketplace where cryptos like bitcoin are traded. Or you can buy bitcoin through a broker. However there are only a small number of investment brokers — more accurately, investment apps — where you can invest in bitcoin on the same platform where you trade other investments.

Here is our list of the top recommended brokers and exchanges to buy bitcoin:

1. Coinbase

Coinbase may be the best known of all the exchanges. You can buy and sell various cryptocurrencies in addition to bitcoin. And like many crypto exchanges, it offers a hot wallet. It even allows you to trade between different cryptos.

They also offer a pro account, Coinbase Pro. The Pro version offers an intuitive interface with real-time orderbooks, charting tools, trade history, and a simple order process so you can trade from day one.

2. Robinhood

Robinhood is an investment app and currently the only investment broker that allows you to trade bitcoin and other digital coins, in addition to stocks, exchange-traded funds (ETFs), and options. Robinhood offers Ethereum, Bitcoin Cash, Litecoin, and Dogecoin, in addition to bitcoin. In that way, it offers an opportunity to hold bitcoin and others on the same app where you hold other investments. Best of all, you can trade bitcoin commission-free on a 24/7 basis.

3. eToro

eToro may be the most advanced crypto investment platform. It operates globally, offering stocks, funds, and most traditional investments worldwide, but it currently allows crypto trading only in the U.S.

eToro also offers unique investment options. With its CopyTrader Technology, you can copy the more successful crypto traders' investment strategies on the platform. It also offers CopyPortfolios, which are something like crypto robo advisors, providing professional portfolio management. And to help you learn the ropes of investing in bitcoin, it offers virtual portfolios where you can trade up to $100,000 in a paper account without risking any of your own money.

3. Webull


Webull works similarly to Robinhood in that it's an investing app where you can trade commission-free. That currently includes stocks, options, and ETFs. But the company allows you to sign up for its waitlist for bitcoin trading, which it expects to roll out soon. Webull offers traditional and Roth IRA accounts, while Robinhood is limited to taxable investment accounts.

4. Gemini

Besides trading cryptocurrencies, Gemini allows users to store crypto in a digital wallet. They also offer extensive crypto research and tools. And you can earn up to 7.4% APY interest on select cryptocurrencies just for holding them in your Gemini account. The exchange also offer third-party clearing service, a payment platform and a credit card. And it has its own stablecoin — the Gemini dollar (GUSD) — a cryptocurrency tied to the U.S. dollar.

5. Unifimoney

With Unifimoney you can sell and buy 33 cryptocurrencies through their partnership with Gemini. But what really makes Unifimoney stands out is the ability to invest, spend, and manage your finances on one app. Plus right now you can get up to $5,000 in bitcoin when you sign up for an account.

Unifimoney was made with busy professionals in mind. You can invest in commission-free trading of U.S. stocks and ETFs, as well as trade cryptocurrencies and precious metals. And they even offer a robo advice service through their partner TenjinAI.

If you're tired of having a different app for every trading platform and banking service you use, then Unifimoney is worth looking into. However, they are only available on iOS.

6. Biance.US

Biance.US is the American arm of parent company Biance. It has lower trading fees than most other exchanges. It doesn't offer as many trading pairs between different cryptocurrencies as it's parent company but it's still on par with other leading exchanges. And while you can use your bank to deposit money, they do have a ACH deposit limit of $5,000.

7. Bisq

Bisq is not designed for active trading, and its fees are a little bit higher than elsewhere. But it is one of the most well-known decentralized exchanges out there. And if you're trading only bitcoin, you can link a bank account without having to provide government-issued ID documentation.

8. Kraken

Kraken allows you to buy and sell bitcoins using U.S. dollars, euros, Canadian dollars, British pounds, and Japanese yen. It also allows you to trade between the various cryptos. And in an almost unique feature, it offers margin trading. However, only intermediate or pro verified users can fund their account with a credit or debit card.  This is another exchange designed primarily for more advanced investors.


Labels:

Comments

Post a Comment

Popular posts from this blog

Best Bitcoin Trackers to Manage Cryptocurrency Investments.

  Best Bitcoin Trackers to Manage Cryptocurrency Investments Best Bitcoin Trackers When deciding on a crypto portfolio tracker, carefully consider what matters to you. We looked at a variety of portfolio trackers with different price points and features, emphasizing those that also allow for trading within the app. Depending on what you’re looking for, it should be possible to find something that meets a variety of needs and preferences. Here are some of the best Bitcoin trackers available: Personal Capital  If you’re looking for an easy-to-use tracker that can also be used with assets such as stocks and bonds, then consider  Personal Capital . Its free financial tracking tool allows you to see all of your assets in one place. Plus, you can track your cryptocurrencies with their crypto BETA tool. Just add in your crypto manually and you'll be able to see it alongside your other assets. Altrady If you want an all-in-one crypto monitor that’s compatible with the m...
Post a Comment
Read more

Best swing trading stocks in nse which is booked profit in 7 days.

For swing trading stocks in the NSE on January 14, 2025, here are some recommended options: **Top Swing Trading Stocks**: - Infosys - Aarti Industries - Airtel - Hindustan Zinc - Union Bank of India **Recommended Stocks with Potential**: - AstraZeneca Pharma India Limited (Neutral signal) - BGR Energy Systems Limited (Bullish signal) - Sundaram Finance Limited (Bullish signal) **Additional High-Potential Stocks**: - HCLTech: Recently reported a 5.54% increase in consolidated net profit - Biocon: Buy recommendation with target of ₹382 - Marico: Buy recommendation with target of ₹705 **Trading Strategy Tips**: - Look for stocks with strong recent movement - Consider sector performance - Watch for breakouts and pullbacks - Set clear stop-loss and target prices Remember to conduct your own research and assess market conditions before making any trading decisions.
Post a Comment
Read more

What is a cryptocurrency?

What is a Cryptocurrency? Cryptocurrency is formed from two words - “crypto” (data encryption) and “currency” (medium of exchange). Thus, a cryptocurrency is a medium of exchange (like ordinary money) that exists in the digital world and uses encryption that ensures the security of transactions. Cryptocurrency is an alternative form of payment in cash and credit cards. In simple terms, cryptocurrency is a type of digital or virtual money. It serves as ordinary money, such as dollars, pounds, euros, yen, etc. But it has no physical counterparts — banknotes or coins that can be carried around, that is, the cryptocurrency exists only in electronic form. How is cryptocurrency different from digital currency? Unlike fiat currency (legal means of payment, which includes most paper money), digital currency does not have physical equivalence stored in the form of cash or gold. It consists of arbitrary numbers stored in a user account. Like regular cash, digital currencies are accepted as a mea...
Post a Comment
Read more