You’ve heard of Bitcoin, everyone’s talking about it. Getting started in cryptocurrency is overwhelming and you might not know where to start. Here is a guide on Bitcoin and how to buy it. Less stress, more knowledge. Enjoy!
Investing in Bitcoin has been compared to investing in “digital gold.” Setting aside the inflation-hedge claims of Bitcoin enthusiasts, comparing it to gold is a good analogy when considering the myriad ways to invest in Bitcoin.
Invest in Companies That Utilize Blockchain Technology
One way to get Bitcoin exposure in your stock portfolio is to invest in companies that use Bitcoin and the blockchain technology on which it’s based. This type of investment will not give you direct ownership of Bitcoin, but it will let you invest in innovative companies advancing the use of blockchain technologies.
Many experts consider the introduction of a Bitcoin ETF a significant step forward in allowing for broader adoption of Bitcoin as an investment. An ETF is a specialized investment vehicle that tracks the performance of a particular asset without the investor having to own the actual asset itself.
Participate in Bitcoin Mining
Bitcoin mining is a way to receive actual Bitcoin in exchange for lending your computing power to solve complex math problems and completing blocks of verified Bitcoin transactions on the blockchain. As more coins are mined, the reward for solving the subsequent successive block decreases, and the difficulty increases.
If you are new to cryptocurrencies, owning Bitcoin differs from holding other assets. Investors can buy Bitcoin from an exchange such as Coinbase and take ownership in an encrypted wallet. More technically, the wallet stores the private keys that you use to access your coins and prove they belong to you.