Well, like almost everything else in life – if not everything – you have to buy it before you invest in it. Investing in bitcoins can be very difficult, and that is if you don’t have the step you need to take.
First you need to know that Bitcoin is a type of cryptocurrency, one of the very first digital currencies that was invented, designed and developed by Satoshi Nakamoto and was released to the public in 2009.
Since then, updates and improvements have been made by a network of highly experienced developers, and the platform has been partially funded by the Bitcoin Foundation.
Since Bitcoin has become a hot topic of interest and many people are investing in it, there is nothing wrong with acquiring digital wealth as well. It is interesting to note that back in 2012, Bitcoin firms were only able to raise $2.2 million.
Despite falling in price this year, the cryptocurrency continues to grow in both users and merchants accepting it as payment.
So how can you get in on the action? Investing in Bitcoins can be easy for the average Joe if he just buys them outright.
It has become easy to buy today, as many firms in the United States and around the world are involved in buying and selling.
For US investors, the easiest solution is Coin Base, which is a company that sells BTC to people at a markup that is usually around 1% of the current market price.
If you want a traditional exchange, Bit Stamp may be the best option because the users you will be trading with are not just the company, but the users.
The company acts only as an intermediary. Liquidity is higher and you can almost always find another person to take the other side of your trade.
Commissions start at 0.5% and go up to 0.2% if you have traded more than $150,000 in the last 30 days. All this is already an investment vehicle in its own way, because the more BTC you buy, the more profit you will make if you decide to keep it or resell it to other traditional buyers at a higher price than the one you purchased with the help of the real company .
You can also buy bitcoins in other ways besides exchange. One of the most popular offline routes is Local Bitcoins, a website that connects you with potential buyers and sellers. When buying coins, they are locked with the seller in escrow, from where they can be issued only to buyers.
But buying bitcoins offline should be done with some extra precautions which are always common like meeting a stranger. Meet during the day in a public place and if possible bring a friend.
Bitcoin is the most popular thing on the internet right now. Investors and venture capital firms are betting that it will stick around. There are many ways for the average Joe to invest and buy Bitcoins.
In the US, the most popular ways are Coin Base, Bit Stamp, and Local Bitcoins. Each has its own advantages and disadvantages, so do your research to find the best fit for you.