Bitcoin, the digital currency, has been all over the news for years. But because it’s entirely digital and doesn’t necessarily correspond to any existing fiat currency, it’s not easy to understand for the newcomer.
Let’s break down the basis of exactly what Bitcoin is, how it works, and its possible future in the global economy.
Investing in Bitcoin is all the rage but how exactly does a beginner get started? Do you need to already have Bitcoin to invest?
Or do you transfer money from your bank account to somewhere and convert it to Bitcoin? What does that look like?
We’ll answer all of these questions and best popular websites for investing in Bitcoin.
Best Bitcoin And Cryptocurrency Investing Sites
6. Bitcoin IRA
How To Invest In Bitcoin
Investing in BTC is similar to investing in stocks, except far more volatile because of the daily swings in BTC. Here are the steps to invest in stocks from the beginning:
- Open a brokerage account at a firm that allows crypto investments
- Deposit funds from your bank into the brokerage account.
- Buy a stock using deposited funds (cash balance).
- Later sell the stock for a gain or loss. Funds are returned to your cash balance.
The main difference with BTC is for step three; you buy BTC or another cryptocurrency instead of stock.
With BTC, the above flow is similar in most cases but it depends on the exchange or trading platform. In some cases, you can buy BTC using your credit card or by transferring funds from your bank account.
For other platforms, you must transfer BTC directly. This is known as a direct deposit of BTC.
We’ll discuss how to invest in BTC for US citizens. The methods vary across countries because of differences in laws and regulations. Some countries require more private information than others to verify you are legitimate.