Investing In Bitcoin
Bitcoin has come a long way since it came into existence in 2009 when Satoshi Nakamoto mined the first block named the “genesis block” on the Bitcoin decentralized public ledger called the blockchain. Since it is decentralized, there are no banks or third-parties. You alone have full control over your Bitcoin. The chief investment officer for the Ikigai Asset Management firm Travis Kling describes Bitcoin as:
“Bitcoin is a non-sovereign, hard cap supply, global, immutable, decentralized, digital store of value, and it is an insurance policy against the monetary and fiscal policies irresponsibility of central banks globally.”
Early investors in Bitcoin have made astronomical returns on their investments and the trend doesn’t seem to be slowing down anytime soon so investing in Bitcoin might be the right asset for your future and it’s easier to get started than you might think. Here are a few steps to help you get started on your way to private financial freedom.
Get an understanding of what Bitcoin is, how they are created, and how the blockchain works. Websites like Investopedia, Coin Telegraph, and Coin Desk are full of easy to read articles covering every angle of Bitcoin and cryptocurrencies.
Choose A Place To Purchase
You can choose an exchange like Coinbase or Binance to name a couple that sells Bitcoin and create an account and digital wallet to receive your bitcoins. You will likely need personal identification documents for this to get verified. You can also purchase Bitcoin from specialized ATMs or through P2P exchanges.
- Coinbase is the most respected Bitcoin exchange in the United States for good reasons. The site is easy to use and you can securely buy and store your bitcoins in one location. Coinbase also secures cash balances up to $250,000 in the event of theft or breach of security. They also have fairly low transaction fees.
- Peer-to-peer (P2P) exchanges match you up with people in your area that you can meet face to face to buy or sell Bitcoin. It is very important to keep yourself safe when making these types of transactions because you are likely meeting someone you have never met so a public place like a busy park or restaurant is recommended.
Fund Your Purchase
Next, connect a bank account or credit card to be able to fund your purchase. Bank transactions generally take four to five days to process, but are usually recommended for first-time investors. Credit and debit cards can allow you to purchase Bitcoin almost instantly on some exchanges.
Ready To Buy
Once your account has been verified, you are ready to buy. It is recommended that a small purchase be made first to ensure that everything goes through and your purchase shows up in your wallet.
Where Should I Store My Bitcoin?
Now that you are an official Bitcoin investor, you will want to store them in a secure place if you are not planning to trade with them. At the moment, hardware wallets seem to be the most secure way to keep your funds safe. The two most popular brands of hardware wallets are Trezor and Ledger. Hardware wallets are similar to flash drives that store your private keys that allow you to access your Bitcoin on the blockchain. These devices can be unplugged from the internet and stored in secure places.