How To Invest In Bitcoin Stock

When it comes to investment products, Bitcoin has been a subject of pros and cons among investors. It is true that some Bitcoin investors have enjoyed some ginormous amount of profit from their investment, especially during the Bitcoin boom in 2017, but the number of investors who experienced a huge loss from their Bitcoin experiment is also great, especially during the Bitcoin crash during the period of January to February 2018.

So basically Bitcoin is like any other investment, there’s a potential for a huge profit and a huge loss. Just make sure you know exactly what you’re going into when you decide to invest in Bitcoin, so whatever decision you make, you are making it based on knowledge. If this is the first time you are investing in cryptocurrency, you can just start small while learning your way around the crypto business. There’s one magic rule known to every experienced Bitcoin that says “never invest more than you can afford to lose”.

Starting out with bitcoin stock as an investment is very easy, just a few simple steps and you’re in the game. Here are a few important steps you need to take in making your Bitcoin investment.

You can purchase Bitcoin in a few different ways. The most popular way is to purchase it through Bitcoin exchanges. Another popular method is to buy from traditional brokers. Then there are also other least popular ways, including through Bitcoin ATMs, Bitcoin futures, Grayscale funds, as well as peer to peer.

It’s not difficult to find Bitcoin exchanges today, no matter where you are in the world or what currency you are using, you can always find an exchange that can provide you with the service you want. Basically these exchanges operate the same way and offer similar services, but in details, there could be a lot of differences.

Some exchanges are built for experienced investors, and some are built for both experienced and new investors with more user-friendly platforms. These exchanges also charge different fees on each transaction. Some of the most popular Bitcoin exchanges are:

Surprisingly many Bitcoin buyers still don’t know that they can also buy Bitcoin from traditional stockbrokers, perhaps because there isn’t so many of them that offer cryptocurrencies.

Robinhood is the most popular traditional stockbroker that offers Bitcoin, and also the first one to do so. Today their service is available in most US states. The great thing about Robinhood is that it charges no fees in Bitcoin trading, just like in its stock trading platform. Another well-known stockbroker that’s trading Bitcoin is TradeStation.

There are two options for you to store your Bitcoin, a hot wallet or cold wallet. A hot wallet is basically a form of software provided by the exchange or third party provider that can be accessed through an app on your mobile device or from your computer. It’s recommended to use a hot wallet from third-party provider because it’s considered safer, especially if you want to keep your Bitcoin for a long time.

The cold wallet is considered to be a much safer option. It’s basically a portable device that you can use to download your Bitcoin and keep it in a safe place away from the reach of any hacker. However, it’s actually a less practical option when compared to a hot wallet. The cold wallet is highly recommended if you have a large amount of Bitcoin to keep.

When everything is all set, you can go ahead and make your purchase. Don’t worry if you don’t want to spend too much money on your first purchase, because even though 1 Bitcoin worth thousands of dollars, Bitcoin actually can be traded in fractional shares.

Do some research, take your time and learn how to manage your investment in order to gain profit. An exchange like eToro that has a social trading platform could be very useful to help you learn how to profit from your investment.

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