Simple Ways to Buy and Invest in Bitcoin

What is Bitcoin?

Bitcoin is a decentralized, peer-to-peer, digital currency system, designed to give online users the ability to process transactions through the digital entity of an exchange known as bitcoin. In other words, it is a virtual currency.

The bitcoin system was created in the year 2009 by an unknown programmer (s). Since then, bitcoin has gained enormous attention as well as controversy as an alternative to commodity currencies such as the US dollar, euro and gold and silver.

Rise to popularity

Bitcoin did not get much attention in the world of business and finance before 2009. It rose to prominence in the period 2011–2012 when it gained more than 300%. Bitcoin has increased its value by 400% since August last year. As a result, venture capital firms and investors worldwide continue to value cryptocurrency.

In the first half of 2014, venture capital firms invested $ 57 million in bitcoin in the first quarter, followed by another $ 73 million in the second quarter, totaling $ 130 million, compared to last year's total of $ 88 50% more than the million. This is the complete opposite of the scenario in 2012 where bitcoin firms accumulated a relatively nominal amount of $ 2.2 million.

These figures prove beyond doubt that bitcoin is worth your investment, which also gives rise to the question, how can you buy and invest bitcoins?

A guide for novice investors in bitcoin

The easiest and least complicated way to invest in bitcoin is by purchasing bitcoins. There are a number of established firms, mainly in the US as well as abroad, involved in the business of buying and selling bitcoins, abbreviated as BTC.

Coinbase

If you are living in the US then Coinbase is the place you are looking for. Coinbase provides customers with BTC at an estimated mark of 1% at the current market price. Residents of the United States have the option to sync their Coinbase wallet with their bank accounts. As a result, future payment transfers are made hassle-free. This company also gives you the option to purchase automatic bitcoins from time to time. For example, if you are willing to buy $ 50 in bitcoins at the beginning of each month, Coinbase allows you to purchase an auto for that amount.

Be aware of the terms and conditions before you start using this service. If you have subscribed to the Automatic Bit Coin service, you will not be able to control the price at which BTC is purchased every month. Note that the coinbase does not act as a bitcoin exchange i.e. you buy and sell coins directly from the firm. Since the firm has to source coins from other buyers, you may face delays or disruptions when placing orders during fast market moves.

Bitstamp

Bitstamp suits the requirements of a traditional bitcoin exchange. Bitcoin acts as an intermediary that allows you to trade with other users and not with the company. Liquidity is high here and you always have a good chance of finding someone who is ready to do business with you. If you trade $ 150,000 over a 30-day period, there is an initial charge of 0.5% that can be reduced by 0.2%.

Alternative ways to buy bitcoins

Local bitcoins

Bitcoin is not the only way to invest. Local bitcoins are often used to buy BTC offline. The website is designed to connect potential buyers and sellers. Bitcoins are lockers from the seller in an escrow and can only be issued to buyers.

Buying bitcoin offline is not always very reliable or secure. So it is better to meet the vendors during the day and tag a friend with you in case things go south.

Bitcoin is not just a modern trend. Venture capital firms have long considered bitcoin to be a decent alternative to traditional currency. There are coinless ways for you to enter the field of bitcoin investment. As previously mentioned, Coinbase, Bitstamp, and local bitcoins are the most popular channels for investing in bitcoin in the United States. Do your homework and find out which avenue ticks all your boxes.