This beginners guide will show you how to trade successfully in Cryptocurrencies. You will learn about blockchain technology and how to buy Bitcoin Online in 2020.
In This Article:
It was in 2013 that I started to write about Cryptocurrencies. It was during the year that I did much research on Bitcoins. Then, I analyzed the concept. Today, there is an exponential growth in the market of alternative investments. Cryptocurrencies have gained much popularity due to the explosion of technology in the financial industry. The technology has influenced the acceptance of alternative monetary products that are desired by financiers and motorized by the technology of blockchain.
The Growth of Blockchain Technology
Based on a record presented by CB Insights, there’s a new investment result reported in every quarter of the year, in financial technology companies. The Startup Capital amounted to almost $5.2 billion by Q2 2017. Out of the total amount, $232 million formed an investment in Blockchain companies.
The verification of cryptocurrency transactions is being powered by blockchain technology. Hence, there is no need to search for a third-party that is trustworthy. The technique can check transactions that belong to a public address, which is activated by personal codes across dispersed networks.
Why Should you Invest in Bitcoin?
We have listed a number of reasons why you may consider adding Bitcoin to your trading portfolio if you are still unsure or skeptical about the process.
Cryptocurrencies: The New Class of Asset
It’s no gainsaying that Bitcoin has become widely accepted as a substitute digital asset. Amongst cryptocurrencies, Bitcoin is well-established. In August 2017, the commission in charge of enforcing the security laws in the United States announced that cryptocurrencies would become regulated like securities.
Sometime after that, the options exchange in Chicago stated that they would create more options on how to derive cryptocurrency. They said that they had investors with different approaches to incorporating assets to their collection. They were interested in Bitcoin and other digital products.
Today investors have more knowledge about cryptocurrencies. They have come to acknowledge that Bitcoin and Altcoins are classes of assets. It is, therefore crucial for Bitcoin traders to know the three best ways of trading cryptocurrencies.
How To Buy Bitcoin Online In 3 Easy Steps
If you prefer not reading the article and jump right into investing in Bitcoin online, here are the 3 simple steps and the my number 1 choice for the Broker offering Bitcoin. Otherwise proceed reading “Buying Bitcoin” to know the different options of purchasing Bitcoin and the risks that may be associated and how to avoid exposure to it.
3. Buy Bitcoin Online
Search for Bitcoin (BTC), specify the number of shares you want to purchase, and click ‘buy’.
Buying Bitcoin Online
There are several ways you can purchase Bitcoin online, each comes with its cons and pros, which I wanted to go over in details. The method you choose will depend on the level of expertise you have with the Cryptocurrency and digital assets. We will start from the easiest most secure way, to the most advanced way for experts.
- Buy the Bitcoin CFD (Beginner) – Purchase a Bitcoin CFD from an online broker that offers cryptocurrency in their portfolio. I consider it the best most secure and efficient level, where you don’t have to worry about the safekeeping of the Bitcoins, or the potential hacks of exchanges, and in return you do get all the benefits of the Market fluctuations for your trades.
- Buy Bitcoin From Crypto exchange (Medium)– Engage in an online exchange by buying from crypto exchanges, which only offer the digital assets. Like Coinbase, Binance and Huobi.
- Buy Physical Bitcoin Online (Expert) – You can purchase Physical Bitcoin, from a peer-to-peer platform like www.LocalBitcoins.com (Warning! I do not recommend this for beginners crypto investors, as it may expose you to the fraudulent sellers of physical Bitcoins, as well as with lack of knowledge of safekeeping the Bitcoin, you may lose all of it at one, irreversible)
Buying the Bitcoin Online CFD (Best For Beginners)
Buying or selling a CFD on Bitcoin unburdens the task of safeguarding private codes or backing up recovery phrases. You are offered a higher leverage on derivates, giving you an opportunity to buy more, and increasing your reward or risk. The derivatives allow you to open a position as a seller even when you’ve not grown in a buying position. They are perfect for anyone who’s speculating a fall in rates of underlying assets. Brokers tend to propose lower fees for transactions, even though there are slightly marked up or broader spreads. It all depends on the sources of liquidity that the brokerage makes use of.
Bitcoin Brokers You Should Consider
It’s high time investors realized that not all exchanges and brokers offering delivery of Bitcoin are reliable and trustworthy. So far, many organizations have fallen victim to hackers, who are fond of stealing money belonging to clients at exchanges. Apart from that, many other Bitcoin exchanges, including Mt. Gox, have gone bankrupt – all thanks to mismanagement and fraudulent acts.
And because of the risk of losing money to hackers, lots of investors have resolved to transfer their Bitcoins to an independent wallet, instead of holding them on exchanges. However, as outlined above, that also comes with several risks.
Irrespective of the risks attached in both cases, it’s still essential for cryptocurrency investors to choose the right exchange that meets their requirements.