Bitcoin is becoming a popular topic, and many people are curious about how to invest in Bitcoin and what it is all about. When you realize how easy cryptocurrencies function, you would be tempted to give them a shot.
Investing in Bitcoin can be unpredictable, much like any other investment, and it is still a smart thing to be prepared. There are several ways to earn money with Bitcoin, and it may be advantageous to get started when the whole topic is still relatively fresh.
According to experts, the value of this cryptocurrency is likely to increase in the future, and this is already a good enough reason to invest in Bitcoins itself. Add the fact that it is possible to earn money even if the price goes down thanks to Bitcoin trading with secure platforms such as eToro (official site), and you have the full picture.
What is Bitcoin?
Satoshi Nakamoto, the original creator of Bitcoin, developed it as a digital or virtual currency in 2009. He is known as the inventor, despite the fact that no one knows who he is. This form of currency is known as crypto, and it simply represents a data file on your computer or phone, rather than physical money as we are used to. These files are encrypted or closed, and it takes time to decrypt them before they can be exchanged for money, so the value of one Bitcoin is increasing purely due to supply and demand rules.
We all know that limited-access merchandise, such as gold or diamonds, has more value. There are a small number of encrypted files online, and there is a limited amount of Bitcoin available for mining.
The smallest unit of Bitcoin is named by the creator Satoshi, and most people now own those smaller parts of cryptocurrency, since it’s becoming harder to mine for the whole Bitcoin.
How to Invest in Bitcoin 2021?
There are several options to invest in Bitcoin. The first and most common method is to purchase the cryptocurrency with cash. With a few extra steps, this is conveniently accomplished by online exchanges.
There are Bitcoin ATMs where you may purchase Bitcoin, and you may even buy it from individuals using peer-to-peer software, but be cautious if you use this method of transaction.
Bitcoin Trading
If you opt to trading Bitcoin through one of the best trading bitcoin broker provider such as ROInvesting (official website), it is possible to carry out “short” transactions, that is earning on sales when the price of the virtual currency falls. Obviously, you can also perform “long” operations, i.e. on a bull market where you earn on Bitcoins’ price increases.
These are investments in CFDs or Contracts for Difference. In essence, “physical” cryptocurrency is not acquired, but rather a representative contract, whose value is calculated on the real-time price of the cryptocurrency itself.
The advantage of CFDs is that profits are made even if the price of a virtual currency is falling, so for many, it is an excellent and profitable choice.
CFDs are also convenient for those who do not know how to store Bitcoins or other cryptocurrencies and therefore choose to invest without buying.
To make your Bitcoin investment worthwhile, you must first choose the best bitcoin investment sites and to learn how to trade with it. Trading is the act of buying and selling cryptocurrencies in order to make a profit. Simply put, the idea is to buy something at a cheaper rate and market it as the price rises.
There are a few more things to consider when it comes to Bitcoin investing. First and foremost, do you see it as a long-term investment or a short-term trade? In any case, you must devote some time to learning about how prices are shaped and how they move. Consider the price’s upper and lower bounds, and be prepared to cut any losses.
There are several trading websites where you can check the market and determine when it is a reasonable time to purchase or sell. It is advised that you learn about the market before you begin trading to ensure that you are not exposing yourself to too much uncertainty.
Trading in Bitcoins is a unique opportunity to invest whether the price of the currency rises or falls. All brokers buy CFDs (contracts for difference), which allow investors to buy Bitcoins or sell short.
This means opening an account with an authorized broker, such as eToro (trade with real crypto and ideal for those who want to copy experts’ operations), Plus500 or XTB.com.
Buying Bitcoins with Exchanges
Bitcoin Exchanges are platforms where you can purchase Bitcoin in exchange for cash and vice versa.
There are several websites where you can buy Bitcoins, one of the best known and safe is CoinBase – that also offers a $10 free bonus in Bitcoins on on its website.
Exchanges are one of the most convenient places to buy Bitcoin. As the theme of cryptocurrencies becomes more popular, there are some good ones accessible.
Most exchanges and transactions require some kind of identity and personal details, so get your ID ready. Given that you are dealing with money, it is only natural that you will want to show some identification. This is a straightforward procedure that normally takes just a few minutes to complete.
After you have verified your account, you can link it to your bank account, debit card, or credit card. Before purchasing Bitcoin, ensure that your country’s regulations authorize it and that your bank will not refuse the transaction. In addition, depending on the exchange, certain fees will be included in the price.
One of the must famous exchanges to buy Bitcoin paying less fees is CoinBase (Official Website), which gives you $10 of free Bitcoin when you buy at least $100 in Bitcoin.
Buy and Sell Stocks of Companies Related to Bitcoins
Another way to trade in Bitcoin and cryptocurrency is to purchase and sell stocks in companies that are connected to Bitcoin.
Thanks to secure platforms such as eToro (official website) you can invest in crypto stocks or in companies like Tesla (that started to accept Bitcoin as mean of payment to buy its cars) or CoinBase (the first exchange to be quoted in a stock exchange).
eToro (official website) have only recently opened a new Copy Portfolio called “Bitcoin World Wide” that allows you to invest both in Bitcoin and in stocks of companies related to this industry such as Intel, Nvidia and Samsung.
Until recently, only a few businesses accepted Bitcoin, but more are jumping on board. Like in every other industry, you can buy and own a share of a business in this manner and become a member of the Bitcoin group.
Since cryptocurrencies are often volatile, this is regarded as a safer investment choice. By purchasing stock in a Bitcoin-related business, you increase your chances of profiting rather than losing. The stock’s valuation will climb in tandem with Bitcoin’s but will not see significant spikes, allowing you to cut your losses.
Since more businesses join in and participate in Bitcoin trading, additional opportunities are available to reach the crypto-world with lower risk. This is also a good opportunity for more seasoned traders who are accustomed to dealing with stocks and businesses, to transition.
Even in this case it is convenient to invest in shares of companies linked to Bitcoin through trading platforms such as eToro (official website).
Mining Bitcoins
Mining Bitcoins is the process of creating new ones by encrypting data. This seems to be a straightforward task, but as time passes and there is less Bitcoin available for mining, this task becomes repetitive and difficult.
Mining reflects the mathematical operations that your computer performs in order to encrypt a certain file. These encryptions were small and basic in the beginning, but they have become increasingly complex and require machines of incredible technological performance to accomplish this.
Mining for Bitcoins is yet another way to own cryptocurrency without having to pay for it in cash. However, as Bitcoin grows in popularity and more people get interested, it is becoming more difficult to gain a significant amount of Bitcoin by mining.
Mining appears to be a bit too hard and expensive, given that there are some simpler ways to access cryptocurrencies, such as blogging.
However, there are several bitcoin mining services and platforms, which allow you to buy mining power to mine bitcoins without buying expensive hardware. Among the main services, the most famous and secure is HashFlare (official site).
There are also great free games to mine Bitcoins; the most interesting is Roller Coin (official site).
Play for Free
There are sites and platforms that allow you to earn free Bitcoins. Among the best you can have:
- Freebitcoin (Official Website): you can spin a wheel once every house and win up to $100 dollars in Bitcoin. The nice things of this website is that you can also take part to the weekly lottery in which you can win a Lambo;
- Rollercoin (Official Website): the best website to mine Bitcoin for free. You just need to sign up and start mining. You are guaranteed a mining power even if you invest zero dollars, but if you like to mine quicker you can buy some virtual mining power by paying in satoshi or in dollar;
- mBitCasino (Official Website): one of the best crypto casinos out there. Once you sign up you can deposit $100 and start to play to the best casino games. Like if you were in Vegas.
If you are eager, but not sure how it works, to try and trade with cryptocurrencies and Bitcoin, then there is a solution. As many people are now subject to this trend, but there is a lack of expertise, risk-free ways of doing it are available.
There are platforms and apps now that allow you to learn to trade in simulators without risk. There is no physical currency, and the exchange is virtual, even though it is entirely consistent with the real world and transactions.
This is an excellent practice before embarking on a real-world enterprise and trading in Bitcoin. The platforms simulate any market setting, and you can learn tricks and tips as you go, as well as how pricing can change. All of this experience is beneficial if you want to sell for your investment and maybe earn additional money.
Bitcoin Price Forecast
Trading and everything related to it is extremely volatile. This is why it is impossible to predict how the price of Bitcoin would move. Experts also made several short-term and long-term forecasts. They all agree on one thing: Bitcoin is here to stay, and it is almost impossible to imagine it ever falling to zero, despite extreme price drops.
Maximum price projections range from $170,000 to $500,000 in 2030. With this in mind, now might be an excellent time to invest in Bitcoin.
You can open a free trading account with eToro (Official Website) and start to copy trading strategies from the best traders out there.
Investing in Bitcoin is safe and secure?
Investment of any sort is not regarded as a safe or secure choice, but it can be very rewarding. Bitcoin and cryptocurrency markets are highly risky and therefore not a stable investment, but they are gaining popularity.
High risk also leads to higher profits, so it is no wonder that everyday people are being more involved in the market.
4 Tips for investing in Bitcoins safely during [anno corrente]
- It is critical choose a safe broker to invest in CFDs such as eToro (Official Website);
- buy Bitcoins only from reliable exchanges such as Coinbase (Official Website);
- store Bitcoins in a safe physical Bitcoin wallet such as Ledger Nano (Official Website);
- it is mandatory to diversify investments among different cryptocurrencies, and between those and other financial instruments (currencies, commodities, etc.).