Well, like almost everything in life – if not everything – you have to buy it before you can invest in it. Investing in Bitcoin can be very challenging, and that’s if you don’t have the pace set before you.
First, you need to know that Bitcoin is a type of cryptocurrency, one of the earliest digital currencies, which was invented, designed, and developed by Satoshi Nakamoto, and was released to the public in 2009.
And since then updates and improvements have been made by a network of very experienced developers and the platform has been partially funded by the Bitcoin Foundation.
Since Bitcoin has become a hot topic of interest and a lot of people are investing in it, it’s okay if you get some digital wealth too. It is interesting to note that in 2012, Bitcoin companies were only able to raise $2.2 million.
Despite the price drop this year, the cryptocurrency continues to see growth in both users and merchants who accept it as a form of payment.
So how can you be part of the action? Investing in Bitcoin for the average Joe can be simple if you just buy some.
Buying it today has been made simple, with many companies in the United States and everywhere involved in the business of buying and selling.
For US investors, the easiest solution is Coin Base, which is a company that sells BTC to people for a markup that is typically around 1% off the current market price.
If you want a traditional exchange, Bit Stamp may be a better option because users will not only be trading with the company, but with users.
The company only acts as an intermediary. Liquidity is higher and you can almost always find someone else to take the other side of your trade.
Fees start at 0.5% and go down to 0.2% if you have traded more than $150,000 in the last 30 days. All of these are already, in their own way, means of investment, because the more you buy BTC, the more profit you will accumulate if you choose to store it or resell it to other traditional buyers at a higher price than the one you bought with the real companies.
You can also buy bitcoins from another form of exchange. One of the most popular routes to get this offline is Local Bitcoins, which is a website that matches you with potential buyers and sellers. When buying, the coins are blocked from the seller in escrow, from where they can only be released to buyers.
But buying bitcoins offline needs to be done with some extra precautions, which are always usual, like you would when meeting a stranger. Meet during the day in a public place and, if possible, bring a friend.
Bitcoin is the hottest thing online right now. Investors and venture capital firms are betting that it is here to stay. For the average Joe, there are many ways to invest and buy Bitcoin.
In the US, the most popular avenues are Coin Base, Bit Stamp, and Local Bitcoins. Each has its advantages and disadvantages, so do your research to find the one that best suits your needs.
