What is Bitcoin?
Bitcoin is a decentralized, peer to peer, digital currency system, designed to give online users the ability to process transactions via digital unit of exchange known as Bitcoins˳ In other words, it is a virtual currency˳
The Bitcoin system was created in the year 2009 by an undisclosed programmer(s)˳ Since then, Bitcoin has garnered huge attention as well as controversy as an alternative to US dollar, Euros and commodity currencies such as gold and silver˳
Rise to Popularity
Bitcoin had not attained much attention in the world of business and finance before the year 2009˳ It rose to prominence in the 2011-2012 period when it gained over 300%˳ Bitcoin has had a 400% growth in its value since the August of last year˳ As a result, venture capital firms and investors around the world continue to pay importance to the cryptocurrency˳
In the first half of 2014, venture capital firms invested $57 million in Bitcoin in the first quarter, followed by another $73 million in the second quarter amounting to a total of $130 million, which is 50% greater than last year’s total of $88 million˳ This is a complete contrast to the scenario in 2012 where Bitcoin firms amassed a relatively meagre sum of $2˳2 million˳
These statistics prove beyond doubt that Bitcoin is worth your investment, which begs the question, how can you buy and invest in Bitcoin?
A guideline for novice investors in Bitcoin
The easiest and least complicated method to invest in Bitcoin is by purchasing bitcoins˳ There are a lot of established firms, mainly in the US as well as abroad, who are involved in the business of buying and selling bitcoins, abbreviated as BTC˳
Coinbase
If you are living in the U˳S˳ then Coinbase is the place you’re looking for˳ Coinbase provides it’s clients with BTC at an estimated mark up of 1% over the existing market price˳ Residents of the United States have the option to sync their Coinbase wallets with their bank accounts˳ As a result, future payment transfers are made hassle free˳ This company also gives you the option of automatic bitcoin buying from time to time˳ For instance, if you’re interested to purchase $50 in bitcoins at the beginning of each month, Coinbase allows you to set up an auto buy for that amount˳
Be mindful of the terms and conditions before you begin to use this service˳ If you have subscribed to an automatic bit coin service, then you will not be able to control the price at which the BTC is bought every month˳ Note that Coinbase is does not function as a Bitcoin exchange i˳e˳ you buy and sell the coins directly from the firm˳ Since the firm has to source the coins from other buyers, you may face delays or disruptions when laying orders during fast market moves˳
BitStamp
BitStamp suits the requirements of a conventional bitcoin exchange˳ Bitcoin acts as an intermediary which allows you to trade with other users and not the company itself˳ Here the liquidity is higher and you always have a good chance to find someone who is willing to trade with you˳ There is an initial fee of 0˳5% which can be reduced to 0˳2% if you trade $150,000 in a period of 30 days˳
Alternative ways to purchase Bitcoins
Local Bitcoins
Exchanging isn’t the only method of investment in bitcoins˳ Local Bitcoins is often used to buy BTC offline˳ The website is designed to link potential buyers and sellers˳ The bitcoins are locker from the seller in an escrow and can only be released to buyers˳
Buying bitcoins offline isn’t always very reliable or safe˳ Hence it’s preferable to meet the sellers during daytime and let a friend tag along with you just in case things go south˳
Bitcoin is not just a modern trend˳ Venture capital firms consider Bitcoin to be a decent substitute to conventional currency in the long run˳ There are cointless ways for you to enter the sphere of bitcoin investment˳ As mentioned before, Coinbase, BitStamp and Local Bitcoins are the most popular channels for investing in bitcoin in the United States˳ Do your homework and find out which avenue ticks all your boxes˳
Source by https://ezinearticles˳com/?Simple-Ways-to-Buy-and-Invest-in-Bitcoin&id=8785811
