How do you invest in Bitcoin?
Investing in Bitcoin is now easier than ever. These steps are for beginners. Here’s a summary.
- Select a platform where you want to invest
- Register for an account
- Fund your account
- In the search bar, type “Bitcoin”.
- Choose the amount in euros, dollars, or pounds you want to invest in Bitcoin
Take etoro for an example.
Step 1: Open an eToro account
Signing up for a reputable platform such as eToro is the first step to start investing.
Click on “Create an Account” to get started
Enter your email address and create a password.
You agree to the processing and the terms of its use.
After you create your account, you need to verify it using the following documents
An identity document
A proof of address
Step 2: Fund your Bitcoin Account
Next, deposit funds into your trading account.
The minimum deposit for eToro accounts is $50
You can use the following to fund your account:
The “My Account” tab
then “Fund Account”.
eToro accepts a variety of payment methods.
- Credit card
- Skrill and many other companies
Step 3: Choose Bitcoin
Just type “Bitcoin”, in the search box on the trading board, and click on the Bitcoin section.
Step 4: Complete your purchase
Next, you can invest in Bitcoin through CFDs (Contract For Difference). Simply enter the Euro amount you want to trade, and then click “Open Position”.
Top 5 CFD Trading Platforms:
What should I do if I want to invest in Bitcoin?
It has many benefits, including diversifying your portfolio. These are some of its benefits.
Bitcoin, an alternative currency that inspires trust
BTC, a decentralised currency, was created to give people control over their money. It is an attractive monetary option for anyone looking to start their own bank.
It is not subject to price manipulation from central bodies or political influences because it is decentralised.
A more accepted method of payment
Bitcoin is a forward-looking cryptocurrency and many merchants accept it as a payment method, including multinationals.
It is the oldest and most well-known crypto-currency
Bitcoin investing is about taking advantage of the 2009 launch of the first cryptocurrency. BTC, the largest crypto-currency by market capitalization, is still around.
It is cheaper to use than the traditional currencies
Transferring Bitcoins can avoid high fees from financial institutions. There is no limit to how many Bitcoins you can own and there is no risk of running out of money.
An increasingly rare digital currency
Bitcoins are very rare as the supply of Bitcoins drops over time. 21 million Bitcoins are total. The total amount of Bitcoins available is therefore limited. There is a limited supply of BTC, and mining it becomes more difficult and more expensive.
Is it too late for Bitcoin investments?
This is the most common question.
BTC’s price can be affected by many factors:
- Market regulation
- BTC available in a limited number
- Situations in politics
It is impossible to predict the future of financial markets, particularly when they are based on new technology.
11 Things to Know Before You Invest in Bitcoin
These are 11 great tips, especially for those just getting started in Bitcoin investing.
1. Understanding the Bitcoin blockchain
With Bitcoin, 2008 was the year that blockchain became a reality. This technology allows you to transfer value online.
Internet users can send money securely and autonomously through the Internet network, without banks or third parties.
2. Understanding the major crypto-currencies
Many crypto-currencies have appeared since the introduction of Bitcoin. Many of these currencies are just copies of Bitcoin and may not have a long-term future.
Some have made real innovations, so it’s important to know the top crypto-currencies.
3. Learn about the risks
Large fluctuations are often a result of the high volatility associated with crypto-currencies. This volatility can result in big gains but can also cause big losses.
Therefore, it is recommended that you only invest a small amount of your capital. Experts recommend that you only invest 2-5% of your capital into this market.
Bitcoin and other assets can also be used to diversify investments, as they are not directly related to any other asset.
4. Defining your investment strategy
There are two main strategies.
Long-term, first bitcoin investment: These are investors who purchase currencies to earn a steady return over time. This means that you invest in one or more cryptocurrency-currencies to make a profit over many months, or even years.
The very short-term Bitcoin investment: traders who trade only, i.e. Making several dozen, or even hundreds of transactions per day on crypto-currencies. This second strategy takes more effort and requires more technique.
5. Try to focus on crypto-currencies which bring novelty
6. Avoid making rookie mistakes when trading
A high price for a virtual currency doesn’t necessarily indicate a more lucrative investment. It is important to consider the daily trading volume, and the market capitalization of the currency.
Don’t invest in crypto-currencies because someone told you to, or because it’s a good investment.
7. Bitcoin trading and buying
There are currently only ten cryptocurrency-currencies that can be purchased (by bank transfer, credit card or PayPal). These are the most well-known ones.
- Bitcoin Cash
- Ethereum Classic
You will need to trade Bitcoins once you have them.
8. Secure your Bitcoins and Cryptos
You can choose to keep your crypto-currencies safe by keeping them in your pocket or leaving them online.
This type of storage device is known as a “hardware wallet”, which is a tangible wallet similar to a USB stick. We recommend this product when your investment exceeds EUR500/1000.
9. Diversify your crypto investments but not too many
Many people start by buying dozens of crypto-currencies to spread the risk.
We know that many projects will fail and it’s better to place your bets on certain values, such as Bitcoin.
You also run the risk of making mistakes if you have too many crypto-currencies. As mentioned, it is important to only invest in assets that add real value.
10. Check out the latest news on Bitcoin and crypto-currencies
You should also keep abreast of the latest news to know the horse you want to place a bet on, and to make the right trades at right times.
11. Learn about investing and crypto-currency in books
There are many books that can help you gain perspective and clarity if you don’t know where else to look.
Conclusion: Should you invest in Bitcoin
BTC is a popular crypto-currency that is traded in physical and online shops. It is highly popular among those looking to diversify their portfolios by investing in alternative assets that aren’t correlated with traditional stock markets.
It is important to avoid making rookie mistakes and to choose the right platform for Bitcoin investments.
This information is provided for informational purposes only. It should not be construed as investment advice. Investing in digital assets and bitcoin is highly risky and speculative. We urge you to never invest more than you can afford.
Is it too late for Bitcoin investments?
Because Bitcoin’s price can fluctuate dramatically, you can make a profit.
Which platform is best to invest in Bitcoin?
Although there are many places to invest in Bitcoins, eToro is our favorite.
How much Bitcoin can you invest?
It depends on the trading platform or exchange, the payment method used and where you are located.
Can I invest anonymously in Bitcoin?
It is now difficult to purchase Bitcoins anonymously online. You must comply with KYC (Know Your Clients), and AML (Anti Money Laundering) requirements when buying tokens from a cryptocurrency exchange or trading platform. This requires you to provide personal data. Although peer-to-peer marketplaces are available to purchase anonymous BTC, they are not recommended. A Bitcoin ATM might be an option.
Is Bitcoin safe?
Bitcoin is a secure network as it provides a transparent, reliable and secure system. Bitcoin is distributed, meaning there is no central authority to govern it. The system is accessible to all. Because the Bitcoin blockchain is immutable, there is no risk of transactions being tampered with.