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 set in front of you.
First you need to know that Bitcoin is a type of cryptocurrency, one of the first digital currencies that was invented, designed and developed by Satoshi Nakamoto and released to the public in 2009.
And from there, updates as well as improvements are made by a network of very experienced developers and the platform is partially funded by the Bitcoin Foundation.
Since bitcoins have become a hot topic of interest and many people are investing in them, there is nothing wrong if you also get a little digital wealth. It is interesting to note that in 2012, Bitcoin firms only managed to raise $2.2 million.
Despite falling prices this year, the cryptocurrency continues to see growth among both consumers and merchants who accept 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 straight.
Buying it today is made easy with many businesses in the United States and everywhere 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 premium, which is usually about 1% above the current market price.
If you want a traditional exchange, Bit Stamp might be a better option as you will be trading users not only with the company but also with 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.
Fees start at 0.5% and go up to 0.2% if you’ve traded over $150,000 in the last 30 days. All of them are already investment vehicles in their own way, because the more BTC you buy, the more profit you will accumulate if you decide to store them or resell them to other traditional buyers at a higher price than what you bought with real companies.
You can also buy bitcoins in another way other than an exchange. One of the most popular routes to so much offline is Local Bitcoins, which is a website that connects you with potential buyers and sellers. Upon purchase, the coins are locked by the seller in escrow, from where they can only be released to buyers.
But buying bitcoins offline should be done with some extra precautions that are always common, just like you would when meeting a stranger. Meet during the day in a public place and if possible bring a friend.
Bitcoin is the hottest thing online right now. Investors and venture capital firms are betting it’s here to stay. There are many ways for the average Joe to invest and buy Bitcoins.
In the US, the most popular avenues are Coin Base, Bit Stamp and Local Bitcoins. Each has its advantages and disadvantages, so do your research to find the one that’s right for you.