Interest in Bitcoin has surged over the last few years – everyone from governments to grandmothers are talking about it, however, there is still much uncertainty on how to actually invest in it and the reasons why people are doing so.
This article aims to help you understand why Bitcoin’s popularity has increased so much and how to do so using different investment strategies via trusted cryptocurrency platforms. It may seem intimidating to start getting involved with Bitcoin but it has become incredibly easy to gets started investing in cryptocurrency and you can get started very quickly.
This guide is going to discuss reasons why you should invest in Bitcoin, how to do it and what you need to watch out for to limit risk.
How to Invest in Bitcoin on our Recommended Platforms in our Step-by-Step Guide:
Investing in Bitcoin can seem like an intimidating task at first, but our recommended platform eToro has made investing in Bitcoin and other cryptocurrencies easier than ever! There is a great selection of cryptocurrencies to choose from and you can enjoy low fees.
How to Invest in Bitcoin on eToro (Step by Step)
Step 1: Sign up to eToro
Signing up to eToro is incredibly easy, click this link to create your account and fill in your details. You will just need to put in your name, username, e-mail, password and phone number. Accept the terms & conditions and click on start trading!
After signing upyou will be free to explore the platform’s various features. There is a watchlist to add all your favourite cryptocurrencies, a newsfeed to see different trader’s opinions and open trades and you’ll be free to explore all the different markets that eToro has to offer.
Before you start trading you’ll be asked some simple questions and required to upload some ID verification. The verification process with eToro is very quick and you should be fully verified within a couple hours. This will give you full access to the platform, enabling you to deposit, withdraw and trade your desired funds.
Step 2: Fund your account
Once your account is fully verified it’s time to fund your account. A huge advantage here is that you can deposit with various methods, including debit card, credit card and even PayPal! The minimum deposit, however, is $200.
Step 3: Buying Bitcoin
The third and final step can be completed within seconds! Click ‘Trade Markets’ on the side bar, choose ‘Crypto’ from the top of the search filter then you will see Bitcoin right at the top.
Click ‘Buy’ and this box will pop up. Set the amount you want to invest and then confirm. You will have now invested in the most exciting asset of our time, Bitcoin!
How to invest in Bitcoin on Crypto.com (Step by Step)
Step 1: Register for an Online Account
To buy Bitcoin through Crypto.com firstly you should visit Crypto.com exchange and click on the “Sign Up” button which you will find in the upper right corner of the website. After you click the button, a registration window will spring up where you must provide the required details. The personal details you must fill in include your name, birth, and nationality.
Plus, you should create a password, provide an email and confirm your registration by clicking on the “Create Account” button. A confirmation link will be sent to your email containing a One-Time password which you must use to verify your registration.
One more verification process is required through a mobile phone number. Fill in your mobile number in the appropriate window and wait for the SMS. When you get the verification code, fill in and click on the “Submit” button to verify your account. That’s all: you have successfully registered on the Crypto.com exchange. Still, if you want to use the platform to the advanced level, you will also be required to verify your ID and provide a photo of yourself.
Step 2: Download the DeFi Wallet and Connect it to Your Account
Connecting your exchange account to the DeFi wallet is an optional step but it’s recommended if you want to provide more secure storage for your coins. The Crypto.com DeFi Wallet app is available for both iOS and Android users, so you can download it in the Play Store or App Store. After downloading and installing it on your mobile phone, you must link it to your Crypto.com exchange account. For this, you must provide the email address of your exchange account.
Now when your DeFi Wallet app and your exchange account are connected you can create a wallet inside the app or deposit an existing one. In terms of security, the wallet will require creating a passcode. Plus, you are free to turn on extra security features, including the fingertip option, 2FA, and a 12-word recovery phrase which you can use to recover your account in case you forget your passcode.
Step 3: Fund Your Account
Of course, creating and verifying your account is not enough to start buying Bitcoin and you must also charge your account. The Crypto.com exchange supports multiple ways of depositing funds on your account, including credit and debit cards, bank transfers, ACH transfers, etc. While buying Bitcoin on Crypto.com you must consider that different trading and transaction fees are applied depending on the payment method and your credit card type.
You can buy Bitcoin with zero trading and transaction fees using an ACH transfer option, but you must pay a 2.99%-3.99% fee when making a transaction through a credit card. Also, the platform charges taker and maker fees and withdrawal fees which vary depending on the coin you want to withdraw. However, we should notice that Crypto.com charges relatively competitive fees compared to several other exchanges.
Step 4: Buy Bitcoin
The Crypto.com exchange has an attractively designed and easy-to-use platform where you can trade almost 180 cryptocurrencies through 20 fiat currencies. It’s an excellent platform for your portfolio diversification, as along with Bitcoin you can invest in several popular and not-so-popular crypto assets.
Plus, you will be able to stake several coins, access a marketplace of NFTs and several DeFi products. The only disadvantage is that you can’t swap between crypto pairs, but this function is available on the DeFi Wallet app.
To buy Bitcoin on Crypto.com, sign in to your account and click on the “Markets” section where you will find the cryptocurrencies available on the platform and some price and volume tracking charts. You will find the BTC/USDT pair on the top of the chart, so click on the “Trade” button next to it and more graphs will be available to analyze the market.
After making the final decision, on the right part of the platform fill in the amount of BTC you want to purchase (the minimum limit is $1), choose the way you want to trade (a market order or a limit order), and click on the “Buy BTC” button to finalize the order.
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Top 11 Reasons Why You Should Invest in Bitcoin?
1. Buy Low Sell High – Ability to Profit from Low Prices in a Bear Market
Bitcoin has been the most exciting asset to invest in for decades, the profitable gains that are possible trading Bitcoin are second to none. There have been huge rises in the past and when we saw the highs of December 2017 many people would have rushed to buy anything below $10000.
Now Bitcoin is trading around $46000, and the price is low compared to its all-time-high so it makes sense to accumulate at a low price and sell at the highs (and above). The market works in cycles, and you can see from the above chart we have had a healthy correction – the new cycle is ready to start that could spark another parabolic movement.
2. Young Market and Tech – Plenty of Ways for Demand to Increase
Bitcoin’s potential huge gains are not the only thing making it such an exciting asset. The fact that both the technology and market are so young means there is so much room for improvement and therefore price growth. In the grand scheme of things, people investing now could still be seen as early investors, especially if the predictions of Bitcoin reaching $100,000 and above would come true.
Bitcoin is around 13 years old and the amount of work being done on blockchain is increasingly massively each year. Bitcoin developers are always at work and the code is being worked on non-stop to increase scalability, privacy and other impressive features. The potential growth for Bitcoin is unimaginable. The higher the market cap grows, the higher the prices rise due to more money circulating.
3. Increasingly High Adoption Rate – Only 1% of the World own Bitcoin
The adoption rate for Bitcoin is growing at an extremely impressive rate. In 2013 there were 1,789 merchants accepting Bitcoin. In December 2018 there were 14,346 venues globally accepting BTC, which is a massive 700% rise – indicating that adoption is growing constantly and will continue to do so throughout the years.
Basically, more and more people want to use digital currencies for their everyday purchases. Looking at the above infographic, we can see that countries experiencing issues with corruption, difficult monetary policies and hyperinflation (Venezuela) are adopting Bitcoin the fastest and rightly so. People are losing faith in their own country’s currencies and are warming up to cryptocurrencies. This would positively impact because more people using and buying Bitcoin increases demand, which will increase the price as the supply is capped.
4. The Launch of a Bitcoin ETF and Institutional Investors will Drive the Price Up
The potential of publicly trade bitcoin ETFs should not be ignored. An exchange-traded fund is an investment fund that follows the price of an underlying asset (such as gold) and is traded on exchanges. Since regulated bitcoin futures contracts are now on the CME and CBOE, the chances of an approved ETF are improving. ETFs would legitimise BTC further and would attract all kinds of investors, especially institutional investors. It would also remove barriers for the masses to invest. In the early 2000s, the ETF market opened for gold and the price rallied for years, the same could happen for Bitcoin. As an approved ETF would remove barriers to entry, a huge spike increase would be likely.
5. Own Your Money – Decentralisation
Start owning your money! Bitcoin is decentralised, meaning you own the coins and transactions. Banks and other third parties are not involved and you have access to deposit and withdraw money 24 hours a day, 7 days a week. A great example of where decentralised money would be extremely effective was during the Greek financial crisis, where citizens were not even able to withdraw their own cash due to a government lock down to pay off debts. Bitcoin is available to withdraw whenever you want, no matter the situation of the government. We are in a time where people are becoming increasingly worried about their money, and decentralised forms of payment are becoming more desirable which would drive the price up.
6. Bitcoin Supply is Limited – The Price can only increase with Demand
If every millionaire in the world wanted one Bitcoin, it would not be possible! There are only 21million Bitcoins available in total, and 17.6million have already been mined. New research also claims there could be up to 4million Bitcoins already lost, decreasing the supply even further than it already is. It is similar with gold, gold must be mined out the ground and Bitcoin must be mined via complex algorithms. Demand will increase with the years to come, and with that value increases also.
7. Sending Money Overseas Made Easy
International bank transfers are still very difficult to do, they take much longer than national transactions and the fees are much more expensive. Bitcoin removes the middle man and allows you to send payments anywhere in the world instantly for low fees. It allows you more freedom and privacy when handling your money, which is crucial these days. Using standard bank accounts are somewhat old fashioned, so it’s worth investing in this new piece of technology, removing barriers and allowing people to send money to each other no matter where they live.
8. Metcalfe’s Law and Bitcoin – High adoption with Push the Price up Exponentially
Metcalfe’s Law is a term coined by Robert Metcalfe that states that the value of a network grows by the square of the size of the network. The idea behind this law is that a network’s value is increased as the size of the network increases. For example, approximately 0.7% of the population use Bitcoin so (0.72 =0.49), but if we saw an increase to 2% of the population using Bitcoin, then the value of the network would quadruple (22 =4), if 4% of the population used Bitcoin then the value would of the network x16 (42 =16) and so on. The value of the network quadrupling would also push the price exponentially – there is no limit to what price Bitcoin can hit!
9. Privacy and Anonymity
Lack of privacy and anonymity is becoming an increasing issue in 2019. Bitcoin operates differently to your usual banking network. Opening a bank account requires lots of effort, identification and sometimes cost. You could use Bitcoin to keep your funds anonymous, an interesting example is a domestic abuse victim could use Bitcoin to safely and securely save funds to prepare for an independent life. Privacy and anonymity is something people are beginning to value more nowadays due to increased hacks, malware and viruses. If people are valuing privacy and anonymity more, they will with Bitcoin too.
10. Flexibility in the Market
Investing and trading Bitcoin can be done on any day at any time. Giving you flexibility to work with your investments and no barriers. Unlike stocks you do not need to wait for the market to open to handle trades and your investments. This gives investors and traders more freedom with their money. Flexibility is valued and traders do not want to be told when they can and can’t trade with their own capital. Thus, this will be positive and drive the price as the flexibility is attractive to traders.
11. Increasing Regulation
There is increasing regulation when it comes to Bitcoin and cryptocurrencies but this is not necessarily a bad thing. With more regulation, the asset will gain trust and adoption will increase. As stated in one of the previous points, increased adoption is one of the quickest ways Bitcoin can rise in price. Investing in Bitcoin will be safer and information about the asset will be much more clear, bringing in many more investors. Governments are constantly discussing Bitcoin and other cryptos, showing that it is here to stay.
The History of Bitcoin Prices – How has it Grown since 2008?
In October 2008, a paper titled ‘Bitcoin: A Peer-to-Peer Electronic Cash System’ was written and published by Satoshi Nakamoto. This paper explained the idea behind Bitcoin, outlining exactly how it would operate and describing the details of a completely functional cryptocurrency. Bitcoin works in a fully decentralised system, operating in a trustless manner making it possible to send and receive financial transactions without the need for a third-party. Over 10 years later, this network has grown rapidly and evolved to connect with the needs of its ever-burgeoning user-base.
See How the Bitcoin Price Has Increased Over Time
- Bitcoin
(BTC) - Price $58,877.00
- Market Cap
$1.16 T
Bitcoin has had a crazy history of up and downs. In March 2010, 10,000 BTC was auctioned for $50 but no buyer was found. A couple months later, L.Haynecz completed the first real-world transaction by buying two pizzas in Florida for 10,000 BTC (an amount that would be over $50m today).
Fast forward 11 years and we experienced the parabolic Bitcoin rise in April 2021. Bitcoin hit its all-time-high of around $65000, making many early investors a great amount of profit. Since then, this has still been the top and the price had experienced a rocky year, crashing all the way to around $46K – where the price seems to have bottomed.
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How to Take Advantage of Investing in Dips in the Market
Since the beginning of 2019, buying every significant Bitcoin dip has proved to be a rewarding strategy. Dollar-Cost Averaging (DCA) is a popular trading strategy that involves buying the same dollar amount of an investment regularly. Entry points can be daunting for investors so this method decreases the importance of short-term volatility and allows investors to scale into an asset. People have become more reluctant to invest in cryptocurrencies due to the latest crash from the 2017 highs, but the market has been correcting since and some stability has been found. There is good risk/reward ‘DCAing’ the dips on Bitcoin and could prove to be very rewarding in say a years time.
Most importantly, the last rebound in Bitcoin price following the drop in Bitcoin’s price in July 2021 to around $30k has proven that Bitcoin is ‘buying the dips market’.
Overview: What are the Benefits and Risks of Investing in Bitcoin?
Benefits of Bitcoin Investments
✅ Possibility of huge profit margins
✅ Low fees
✅ Control and security
✅ 24/7 Trading – market does not close
✅ Fast transactions
✅ Anonymity
✅ No inflation risks
Risks of Bitcoin
❌ Volatile market
❌ Lack of historical data
❌ Chance of cybertheft
❌ Little regulation
How to Store your Bitcoin Investment in a Secure Wallet
When you make a Bitcoin investment, it’s necessary to get a secure place to store it. Well, actually, you don’t store your Bitcoin, but you hold a code linked to your bitcoin address which gives you access to the part of the blockchain where your bitcoin is. These codes, also known as private keys, are very long and complicated, so you need a place to keep them. But it’s also crucial not to show it to someone else and store it securely, as when someone gets your private keys, it can easily access your BTC.
So, whatever wallet you select, you need to pay attention to its reputation and security features. When it comes to the exchange wallets, these are actually your exchange accounts. So, how safe it is, depends on whether the brokerage platform or the crypto exchange possesses good security systems and regulations. Among our most recommended exchange wallets is eToro, which has a robust security system and is regulated by four top financial authorities.
Apart from this, eToro also provides a software wallet known as Money wallet, which supports more than 120 cryptocurrencies and more than 500 crypto pairs. Software wallets are apps that are created to store your private keys in a decentralized way. Among the best and most secure software wallets, we have also included those provided by Coinbase and Binance and are called Coinbase wallet and Trust wallet accordingly.
As for the hardware wallets, these are physical devices that keep your private keys offline; that’s why they are considered the most secure wallets. These wallets are cold storage, and they are specially designed for those who want to keep larger amounts of Bitcoin and don’t make transactions too often. If you prefer buying a hardware wallet, we would recommend Trezor wallet and Ledger Nano S wallet. To get more detailed information and read our reviews about bitcoin wallets, visit our guide about the Best Bitcoin Wallets.
Can You Invest in Bitcoin Mining?
There are various ways to invest in Bitcoin, and an interesting one is mining Bitcoin. Bitcoin is a decentralised system which keeps running via its decentralised workforce. The miners are this workforce and they get paid in newly minted Bitcoins for keeping the infrastructure running. It is similar to a tax on everyone who owns Bitcoins.
In the earlier days of Bitcoin mining was extremely lucrative as you could earn a lot of BTC due to the competition being limited, however, now mining is a massive industry with huge warehouses being built solely for mining cryptocurrencies. Today the easiest way to get into mining is usually through an application-specific integrated circuit (ASIC) miner which is still a rather heavy investment that comes with electricity costs, hardware costs and takes time. There are plenty of tutorials online that can show you how to get started with your own mining rig.
Is it Too Late to Invest in Bitcoin?
The short answer – absolutely not! The current total market cap of the crypto industry is under $2.1tn. Companies such as Amazon and Apple have market caps of around 1 trillion which just goes to show exactly how young Bitcoin and the crypto market is as a whole. The technology is still in its early stages and you’d be crazy to write off blockchain and Bitcoin. Many of today’s top companies are exploring the use of blockchain technology such as Facebook, American Express, IBM and many more! The number of companies that will use blockchain will only increase with years to come, and this will benefit the cryptocurrency industry as a whole.
The crypto market has slowly bled out since January 2018 but we experienced a positive bounce in recent years, especially in 2021. It is understandable that people are somewhat reluctant to invest in Bitcoin but that’s why you can start with however much you can afford and using the Dollar-cost-averaging method mentioned above, you can slowly scale yourself in.
Countries that are experiencing financial crises or corruption have currencies with hyperinflation (such as in Turkey, Venezuela and Zimbabwe) are adopting cryptocurrencies faster than any other countries and it’s likely this will continue because Bitcoin can offer people financial freedom and protection from corruption due to its trustless, decentralised system. Less than 1% of the population use Bitcoin so it is still early, and definitely not too late!
Security and Risks of Investing in Bitcoin
When investing in Bitcoin, you should not only take into account the risks of losing your money but also what platform you select for this purpose. Choosing a good crypto exchange is a crucial factor in this process as the platform that lacks safety features and is not regulated by financial institutions cannot recommend secure trading. So, before you trust any information to a trading platform, do careful research and check if the platform has a good reputation in terms of secure trading.
There are plenty of cryptocurrency exchanges, but not all of them are safe and secure. The market is also filled with many scammers and fraud. So, trusting your wallet information or card details to a broker that seems suspicious, does not have a good reputation, and lacks strong security systems, is actually very risky. Your profile can be easily hacked, resulting in your capital loss. Furthermore, suppose the selected brokerage platform is not regulated, and no financial authority oversees the process. In that case, they can hardly compensate for your loss.
Hence, we would recommend you to trust those platforms that possess strong regulatory systems and require you to undergo the Know-your-customer process to assure your safety and avoid account hacks. eToro is among the safest brokerage platforms worldwide, which is regulated by four financial institutions, including FCA in the UK, SEC in the US, CySEC in Cyprus, and ASIC in Australia. Binance is also considered a safe cryptocurrency exchange and possesses Two Factor Authentication.
Responsible Bitcoin Investing
Though Bitcoin is the most popular and the largest cryptocurrency by its market capitalization, we should always keep in mind that investing in Bitcoin involves risks too. One of the main reasons is its high volatility, as Bitcoin prices fluctuate too often. Despite involving significant risks, it is also an advantage. You can speculate on these fluctuations and win high returns if you guess the buy and sell signals.
But this requires consistent research, so you must always keep an eye on the market, follow the price charts and market trends, as well as pay attention to experts’ analyses and tips. Apart from the technical analyses, you also need to do fundamental analysis and consider the risks of a bitcoin crash. It’s also a good idea to follow the news, pay attention to its public endorsements, what companies start accepting payments through Bitcoin, etc.
You also need to consider diversifying your portfolio, which means investing in different assets or cryptocurrencies so that you can profit from the others when one fails. Though this is a bit difficult in the case of cryptocurrencies, as Bitcoin is usually considered the driver of the market, and other cryptocurrencies follow it when it increases or decreases. So, it would be best if you researched a bit to find the best methods of your crypto portfolio diversification.
Another crucial factor to consider is what platform you choose for trading. There are several crypto exchanges that offer trading services, but they differ in some features, including trading and non-trading fees, safety systems, payment options, etc. Hence, you need to research and find the one with competitive prices and good security systems to avoid spending your capital on trading fees or being a victim of fraud.
And what is most important, always invest with caution. Meanwhile, consider that there is always some risk of losing your money. So, don’t put more than you can afford at risk and lose the money if you need it in the near future.
Security and Risks of Investing in Bitcoin
When investing in Bitcoin, you should not only take into account the risks of losing your money but also what platform you select for this purpose. Choosing a good crypto exchange is a crucial factor in this process as the platform that lacks safety features and is not regulated by financial institutions cannot recommend secure trading. So, before you trust any information to a trading platform, do careful research and check if the platform has a good reputation in terms of secure and safe trading.
There are plenty of cryptocurrency exchanges, but not all of them are safe and secure. The market is also filled with many scammers and fraud. So, trusting your wallet information or card details to a broker that seems suspicious, does not have a good reputation, and lacks strong security systems, is actually very risky. Your profile can be easily hacked, resulting in your capital loss. Furthermore, suppose the selected brokerage platform is not regulated, and no financial authority oversees the process. In that case, they can hardly compensate for your loss.
Hence, we would recommend you to trust those platforms that possess strong regulatory systems and require you to undergo the Know-your-customer process to assure your safety and avoid account hacks. eToro is among the safest brokerage platforms worldwide, which is regulated by four financial institutions, including FCA in the UK, SEC in the US, CySEC in Cyprus, and ASIC in Australia. Binance is also considered a safe cryptocurrency exchange and possesses Two Factor Authentication.
Selling your Bitcoins
Whether you want to trade Bitcoin actively or purchase it as a long-term investment, it’s also essential to know how you can sell it. The process usually consists of two main components – finding a platform where you can sell it and deciding which payment method you want to use to make the transactions.
As for the trading platform, you have hundreds of options, though it does not mean that all platforms are suitable for all kinds of traders. You need to select a trading platform that meets your requirements. These platforms can be either designed explicitly for crypto trading or to support cryptocurrency investments and many other assets. For example, eToro is a brokerage platform where you can buy and sell Bitcoin and stocks, forex, and several other assets. In contrast, Binance and Coinbase support only cryptocurrency trading.
When looking for an excellent platform to sell your bitcoin, you need to consider some factors. First, take safety as a priority, not to lose your money as a result of hacks or scams. In addition, explore their trading fees and choose an exchange that offers competitive fees, ensuring that there are no hidden fees included in the asset price.
Other factors to consider are the minimum deposit that the platform requires to allow you to trade and the minimum amount of Bitcoin you can withdraw from your account. Some brokerage platforms also provide educational content about trading, price charts and graphs to do market research, and many trading tools. And what is most important, you need to check out if the payment options your broker offers are available for you.
Basically, you can deposit and withdraw your bitcoin earnings through bank cards, wire transfer methods, and e-wallets. The completion time of the transaction and the withdrawal fees may differ depending on the trading platform and the payment option. Bank card transactions are usually faster but involve high transaction fees. In contrast, wire transfer takes more time but is cheaper. You can find more information on this topic in our guide about How to Sell Bitcoin.
Taxes and Regulations Regarding Bitcoin
If you are trading bitcoin, you should also be aware that you must report your capital gains and losses to an appropriate body and be taxed for it. In 2004, US Internal Revenue Service issued a notice about bitcoin where it is referred to as virtual currency and treated as property. According to that document, the general tax principles applicable to property transactions are relevant to bitcoin and other cryptocurrencies too.
So, taxes for Bitcoin earnings are applicable to the following actions:
- When you sell cryptocurrencies for fiat currency.
- When you exchange cryptocurrencies for another cryptocurrency.
- When you sell goods or services for cryptocurrency.
- When you mine blocks and get rewards for that.
- When you trade cryptocurrencies through crypto exchanges or P2P marketplaces.
- When you receive bitcoin as a salary, etc.
When it comes to calculating your capital gains, it actually depends on your income tax brackets and on how long you have held your Bitcoin before selling it. Considering these factors, your capital gains fall into two groups – short-term capital gains and long-term capital gains. If you kept your Bitcoin less than a year before you sold it, your capital gain would be classified as short-term. If you held your Bitcoin for more than a year before you sold it or exchanged it through crypto exchanges, your capital gain would be classified as long-term.
Still, it should be noted that there is not a clear regulatory framework for cryptocurrencies. Bitcoin is classified in different ways by various institutions. So, it is regarded as a commodity by the Commodity Futures Trading Commission; SEC classifies it as a security, while according to the Treasury, Bitcoin is a currency. Bitcoin trading is regulated in the US by the Bank Secrecy Act and must register with the FinCEN. For more information about the taxes applicable to Bitcoin, visit the IRS website, the section of FAQs, or review its Notice about virtual currencies.
Conclusion
To conclude, Bitcoin is a digital currency that is among the hottest tradable assets worldwide. It has existed for more than ten years already, and its value has been growing exponentially. Plus, Bitcoin has a limited supply which means that its value will keep growing if the demand for Bitcoin increases even more. In this article, we have introduced several reasons to invest in Bitcoin, including its decentralized technology, adoption rate, flexibility, anonymity, limited supply, high public demand, easy transactions worldwide, etc.
With the guide, you will also learn how to buy your first Bitcoin using a cryptocurrency broker. At the same time, we have emphasized how risky it can be to invest your money in Bitcoin, as cryptocurrencies are highly volatile. So, you need to consider that there is always some possibility of losing your capital when you invest in Bitcoin and never put the money you cannot afford at risk.
Apart from investment risks, Bitcoin trading also involves security risks. It means that you must be very careful during the whole process – from selecting a crypto exchange through which you will buy bitcoin to choosing a bitcoin wallet where you will store it; to selling it through brokerage platforms. We have also noted that Bitcoin is a tradable asset, so you must pay the appropriate taxes for the capital gains from BTC trading, mining, etc.
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Frequently Asked Questions
Can I use Paypal to invest in Bitcoin?
Yes. Even though it is quite rare to find platforms that allow you to deposit with Paypal - eToro fortunately accept Paypal deposits as well as credit and debit card!
Do you have to buy a whole Bitcoin?
No. People can often get confused thinking you must buy a whole Bitcoin to own Bitcoin. You can buy them in decimals (such as 0.01 BTC) so it's possible to start investing with as much as you'd like.
Is Bitcoin legal?
Bitcoin is 100% legal and every year governments are respecting it more, talking about it and thus legitimising it further.
What is BTC? Is it different to Bitcoin?
No. BTC is just the ticker for Bitcoin, and people will often use that as a shorter way to say it.
Is Bitcoin the only cryptocurrency you can invest in?
10 years ago, yes. Now in 2022 there are thousands of cryptocurrencies people can invest in. Other popular cryptocurrencies include Ethereum (ETH), Dogecoin, and Ripple (XRP).
What does raising the leverage do?
Raising the leverage refers to various techniques that can increase your profits by increasing your risk. If the trade is not on X1 leverage then you are trading a CFD and not the underlying asset. Only experienced traders should use leverage.
Is Bitcoin Cash the same as Bitcoin?
No. Bitcoin cash is a fork of Bitcoin that was started by bitcoin miners and developers. It operates differently and is nowhere near as popular.
Is it easy to mine Bitcoin?
If you are completely new to mining you will definitely have to research further online on how to mine Bitcoin. ASIC miners have made it easier for people to start mining but it still requires some research and reading.
