Well, as with almost anything else 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 is if you don’t have a step ahead of you.
First you need to know that Bitcoin is a type of cryptocurrency, one of the first digital currencies, invented, designed and developed by Satoshi Nakamoto and released to the public in 2009.
And since then, updates as well as improvements have been made by a network of highly experienced developers, and the platform has been partially funded by the Bitcoin Foundation.
As bitcoin has become a hot topic of interest and many people are investing in it, there is no harm in getting some digital wealth as well. It is interesting to note that in 2012, Bitcoin companies only managed to raise $2.2 million.
Despite falling prices this year, the cryptocurrency continues to see growth in both users and merchants accepting it as payment.
So how can you be a part of the action? Investing in Bitcoin can be easy for the average Joe if he just buys something outright.
Buying has become easy today, as many companies in the United States and around the world are involved in the business of buying and selling.
For US investors, the easiest solution is Coin Base, a company that sells BTC to people at a margin that is usually around 1% to the current market price.
If you want a traditional exchange, Bit Stamp might be a better option because the users you will not only be trading with the company, but the users as well.
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.
Fees start at 0.5% and go all the way up to 0.2% if you’ve traded more than $150,000 in the last 30 days. All of these are investment media in their own way, because the more BTC you buy, the more profit you will accumulate if you decide to store it or resell it to other traditional buyers at a higher price than the one you bought from the real company.
You can also buy bitcoins other than through an exchange. One of the most popular routes to do so offline is Local Bitcoins, a website that connects you with potential buyers and sellers. At the time of purchase, the coins are locked away from the seller in escrow, from where they can only be given to buyers.
But buying bitcoins offline should be done with some extra precautions, which are always common, just like you would when meeting a stranger. Meet during the day in a public place and preferably bring a friend.
Bitcoin is the hottest thing on the internet right now. Investors and venture capital firms are betting it’s here to stay. There are many ways for the average Joe to get into investing and buying Bitcoin.
In the US, the most popular payment methods are Coin Base, Bit Stamp and Local Bitcoins. Each has its pros and cons, so do your research to find the one that works best for you.