How To Invest in Bitcoin in 5 Simple Steps

How To Invest in Bitcoin

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.

How To Buy Bitcoin

If, after evaluating the pros and cons of investing in Bitcoin, you decide you want to own it for yourself, there are a few things you need to know.  Here are the steps offered to buy Bitcoin 

1. Decide Where To Buy Bitcoin

The first step in buying Bitcoin involves choosing a cryptocurrency exchange to make your purchase. Some of the most popular exchanges include: 1. Coinbase 2. Binance 3. Gemin 4. Kraken

2. Choose a Bitcoin Wallet

After purchasing Bitcoin, it is stored in a wallet. There are two kinds of wallets: a “hot wallet” and a “cold wallet.” Most cryptocurrency exchanges automatically provide you with a hot wallet that allows you to access your coins through the internet.  Cold wallets are a safer option for the long-term storage of your coins.

3. Connect Your Bank Account

To buy and sell Bitcoin, you will need to link a bank account to your cryptocurrency exchange or wallet. This process is similar to connecting a bank account to a traditional investment account and allows you to exchange dollars for crypto coins.

4. Place Your Order

Once your account is set up and your bank account linked, you are ready for the easiest step, placing your order. Most exchanges offer multiple ways to place orders, such as market orders, limit orders, and stop-loss orders.

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