Investing in Bitcoin may look daunting and difficult, but it is not, and we will show you how to invest in Bitcoin.
Moreover, the legitimacy of the cryptocurrency exchanges and wallets are rising too, meaning the process is a easier than it has ever been for new starters looking to invest in the most famous cryptocurrency in the world.
What You Need to Invest in Bitcoin?
Do you know that no need to break your account to invest in Bitcoin? You will need:
Identity proof
Bank account details
A reliable internet connection
Steps to Invest in Bitcoin:
Here is the process to invest in Bitcoin:
Find the right Bitcoin Exchange
First, you need to decide how you want to buy the Bitcoin. Most traders prefer cryptocurrency exchanges for this purpose.
You won’t find an official “Bitcoin” company as it is an open-source platform, but you will come across many crypto exchanges that you can use for Bitcoin transactions. These exchanges act as a middleman of cryptocurrency investing, more like a stock brokerage.
Next, you need to pick an exchange, and below are some popular options:
Coinbase: A reputed exchange that also covers losses in case of any security breach.
Binance: Serving since 2017, Binance is a well-known crypto exchange with great facilities.
Kraken: This is a San Francisco-based crypto exchange and deals in almost all cryptocurrencies, including Bitcoin.
Gemini: It offers facilities for casual and veteran Bitcoin traders with different interfaces for both.
Use a Bitcoin Wallet
When you purchase bitcoin or any other currency, it is stored in a digital “wallet.” Here you will see two types of wallets: a “hot wallet” and a “cold wallet.”
Hot Wallets:
A hot wallet operates through your cryptocurrency exchange or by a service provider. Some crypto exchanges provide you a hot wallet by default at the time of account opening. These wallets are convenient as they allow you to use your coins via an app or the internet.
Some popular hot wallets for Bitcoin are Electrum and Mycelium.
However, hot wallets are not securest out there for coin storage. If somehow it gets hacked, then your coins and other details will be at risk.
Cold Wallets:
Conversely, a cold wallet is the safest storage option for your digital assets. A cold wallet is physical or actual hardware that stocks your coins, and it looks like a flash drive.
Usually, these wallets will cost $60 to $100.
Some reliable cold wallets are Trezor and Ledger Nano.
If you plan to buy a small number of coins, we advise you to use hot wallets or an insured crypto exchange. Cold wallets are more suitable for large amounts of coins.
Link Your Digital Wallet to Your Bank Account
After purchasing your crypto wallet, you need to connect it to your bank account. By doing so, you can buy or sell your coins. Moreover, you can also link your exchange account with your bank account.
Now You Can Place The Order
Now you are all set to purchase and invest in Bitcoin. Now the question is, how much Bitcoin you want to buy?
Some coins and digital currencies are expensive and cost you thousands of dollars. But some exchanges allow you to get fractions of a single coin. In this way, your initial investment will be much lower.
Investing in Bitcoin is risky as the market is unpredictable. So play wisely and define your risk tolerance level and plan your investment strategy before investing in Bitcoin.
Does Utopia Digital Asset Management invest in bitcoin?
As the biggest asset in the cryptocurrency market, bitcoin has an important place at the centre of the blockchain economy.
Although we to beat the performance of bitcoin, due to its unique place as the asset all other cryptocurrencies are quoted against, we consider Bitcoin to still be a very important asset and as such it remains the biggest constituent of our fund.
You can invest with us via the ICONOMI platform from as little as €10.