Well, like almost everything in life – if not everything – you have to buy it before you invest in it. Investing in Bitcoin can be very challenging, and that is if you don’t have the step in front of you.
First you should know that Bitcoin is a type of cryptocurrency, one of the first digital currencies, which was invented, designed and developed by Satoshi Nakamoto, and it was released to the public in 2009.
And from there, updates as well as improvements are made by a network of highly experienced developers and the platform is 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 acquiring a digital fortune as well. It is interesting to note, back in 2012, Bitcoin companies only managed to raise $2.2 Million.
Despite the price drop this year, the cryptocurrency continues to grow with users and merchants accepting it as payment.
So how can you be part of the action? Investing in Bitcoin for the average Joe will be simple as he will buy some directly.
Buying it today has become simple, with many companies in the United States and all involved in the business of 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 about 1% of the current market price.
If you prefer a traditional exchange, Bit Stamp may be a better option because users will not only sell you to the company, but to the users.
The company only acts as a middleman. Liquidity is higher and you can almost always find someone else to take the other side of your trade.
Fees start at 0.5% and go to 0.2% if you sell more than $150,000 in the last 30 days. All these are already in their own ways, investment mediums, because the more you buy BTC, the more profit you will accumulate if you choose to keep it or sell it to other traditional buyers for more high price than you buy with real companies.
You can also buy bitcoins on another exchange. One of the most popular routes for offline is Local Bitcoins, which is a website that matches you with potential buyers and sellers. When buying, the coins are locked from the seller in escrow, where they can only be released by buyers.
But buying bitcoins offline should be done with some extra precautions, which are always common, like you would when meeting a stranger. Meet during the day in a public place and if possible, bring a friend.
Bitcoin is about the hottest thing online right now. Investors and venture capital firms are betting it’s here to stay. For the average Joe, many ways exist to get into investing and buying Bitcoin.
In the US, the most popular channels are Coin Base, Bit Stamp and Local Bitcoins. Each has their pros and cons, so do your research to find the best fit for you.