Over the years, Bitcoin stock has become increasingly popular among investors. During that time, there’s been a lot of debate about Bitcoin prices and other major crypto exchanges. Its proponents argue that it’s the future of cryptocurrency exchanges and investment, while its detractors say that it’s a risky investment option that may not generate significant returns.
To better understand the actual value of Bitcoin transactions, we must look to its latest movements. Bitcoin’s price has recently increased more than 763% in just one year, easily outpacing traditional gains in the stock. More people are buying into digital currencies, becoming a decentralized, global currency. One tailwind, in particular, is the acceptance of Bitcoin by several high-profile individuals and businesses.
COVID-19 helped accelerate several digital reforms in companies large and small to invest in Bitcoin. We’ve seen two years’ worth of digital transformation in two months. Crypto assets and Bitcoin blockchain have been part of that transformation.
There’s no doubt about it. The momentum in value of Bitcoin is certainly building and Bitcoin futures look brighter than ever. Recent developments have contributed to BTC prices rise, and proponents of the asset are convinced this is just the beginning.
The companies utilizing these technologies run the gamut, from traditional financial powerhouses looking to develop their cryptocurrency exchanges to fintech firms looking to add cryptocurrency exchanges functionality to their products to other companies using blockchain to improve their operations.
Elon Musk, the mastermind behind both Tesla and SpaceX, recently announced that Tesla would not only purchase $1.5 billion in Bitcoin, but it also intends to accept the cryptocurrency as payment in the future.
Several popular FinTech companies like Square and PayPal also announced their intentions to start supporting virtual currency and Bitcoin derivatives moving forward. Despite all of these, the most important development for Bitcoin maybe the recent initial public offering (IPO) of Coinbase Global, Inc. (NASDAQ:).
Cryptocurrencies behave like the stock. Cryptocurrency investment today is a bit like living in the early days of the 1850s gold rush, which involved more speculating. The more people who buy shares of Bitcoin, the higher the currency’s price. The fewer people who purchase Bitcoin, the lower its price. Buying a Bitcoin stock might be the right investment at the moment for an online broker or trader.
While the price of most cryptocurrencies might have dropped off the radar over the last couple of days, professional investors, billionaires, retail investors and even publicly traded companies have maintained a keen interest in Bitcoin market ever since. The secure authentication technology behind Bitcoin and other cryptocurrencies could help fuel gains in several companies as we head into 2022.
However, the source of Bitcoin’s value and how you buy into it is very different from an investment in the shares of a public company. So, what exactly is Bitcoin purchase, and how can you buy Bitcoin stock? This guide provides the essential details on Bitcoin stock investment to help investors get at least a taste of the crypto market.
Whether you’re looking to invest in Bitcoin boom for a big sell later or spend it on various items and assets, there’s a universal process you’ll have to go through to invest in Bitcoin or buy stock in it. Let’s dive into that process.
1. Download a wallet
Crypto wallet is an online storage place for all your digital currency. It doesn’t just hold your Bitcoin, though. Wallets also store your personal key, a unique identifier assigned to every Bitcoin owner, consisting of a long string of letters and numbers that keeps your Bitcoin secure.
This is your Bitcoin password. The first step to purchase Bitcoins is to download a virtual wallet and link your bank card to it. More than a dozen Bitcoin wallets are available on the internet, and you can download, both to your desktop or your mobile device. Here are the wallets that work with the most devices and operating systems:
- Bitcoin Core
2. Register with any of the reliable Bitcoin exchanges
If there are national stock exchanges like NASDAQ, does that mean there’s also Bitcoin exchanges? Bitcoin trades on various online exchanges around the world, and to start buying and selling Bitcoin, you’ll have to register with one of them. Have your email address and bank card information ready.
Don’t worry. All your exchange options recognize the same Bitcoin trading price. Each exchange just caters to a different country or continent and offers an exchange rate that corresponds with the currency you’ll use to buy Bitcoin.
For example, while Korean exchanges sell Bitcoin for won, U.K. exchanges sell Bitcoin for pounds. Here are some international Bitcoin exchanges you can register with that will allow you to start trading cryptocurrency for most currencies across the globe for a little transaction fee:
Although there are Bitcoin exchanges that specialize in just one country, it might be easier to register with a trading platform that also supplies you with a virtual wallet, so you’re not submitting your bank information to two different services and this would also give you different investment options. Coinbase pro is one of those options. After downloading the Coinbase wallet, you can move right over to its exchange to buy your Bitcoin stock and fill your wallet.
3. Select a Buy-In Amount
Once you’ve selected the exchange where you want to buy your Bitcoin, navigate to the exchange’s “Buy” section and select your buy-in amount. You’ll tether your wallet to this purchase a “bit” differently depending on the exchange you use to buy your Bitcoin.
are you nervous? Don’t be. You can buy less than one Bitcoin if you want to. Bitcoin exchanges sell cryptocurrencies down to several decimal places, so if Bitcoin is trading at $37,418 per Bitcoin, you can invest as low as $50 and receive .0000006 Bitcoin. Then, as Bitcoin’s trading price increases, so does the value of the Bitcoin you bought.
4. Browse a Crypto Marketplace
With your Bitcoin in your wallet, you can do one of two things with your Bitcoin cash: Spend Bitcoin in a marketplace or holding it and selling it later for higher gain. Bitcoin has its very own ecommerce marketplaces where you can trade Bitcoin for products.
Products include those that are shippable to your doors, such as jewelry and those you can download to your computer, such as Microsoft Office. Remember, no banks are involved in these transactions. The market simply verifies your Bitcoin’s individual blockchain and completes the purchase.
Common Bitcoin marketplaces where you can spend Bitcoin include Glyde, Bitify, and even a Reddit community called BitMarket. Keep in mind that you can also sell your own products for Bitcoin, making these marketplaces an easy way to build up your Bitcoin investment.
Can you purchase Bitcoin on the stock market?
Bitcoin can be bought and sold on Bitcoin stock exchange through brokerage accounts, and you can use it at a few vendors to pay directly for goods and services. However, You’ll still need a cryptocurrency wallet like Coinbase, Bitstamp, or Bitfinex to buy or trade on Bitcoin stock exchange. Then you’ll need to link your bank to that wallet. Most of these cryptocurrency service provider used double authentication to protect your security.
Cryptocurrency startups use the Initial Coin offerings (ICO) method to bypass the regulated and rigorous capital-raising processes that banks and venture capitalists require. Typically, in an initial coin offering, a percentage of the new cryptocurrency is sold to early investors in exchange for Bitcoin or other legal tenders.
Currently, the interest in Wall Street in Bitcoin is probably not going to affect ICOs very much. It looks like there will be more of an effect on initial coin offerings when regulators come in to deal with the growing Bitcoin stock and other cryptocurrency efforts. However, as crypto gets bigger, regulation is more likely to happen.
How to buy Bitcoin
Step 1: Get a Cryptocurrency Wallet
Before you buy Bitcoins, you’ll need to set up a cryptocurrency wallet. A cryptocurrency wallet is an app that allows you to safely store your Bitcoins off the exchange you purchased them on. A cryptocurrency wallet is just a virtual storage center, just like your physical wallet holds your cash and debit and credit cards.
Holding your Bitcoin in a wallet is a more reliable choice for long-term storage because it limits the possibility of losing your tokens in an exchange hack.
There are a few options regarding these wallets:
- An online wallet
- A wallet made from software that is stored on your computer’s hard drive.
- An offline option that acts like a vault. These use special keys that only you have access to, which adds an extra layer of protection for your crypto. This is also called “cold storage.”
If you’re an everyday user, online services are your best option, as long as you don’t need complete anonymity and don’t mind the long setup procedures.
If you’re an investor, any of these platforms will work since you likely won’t be regularly spending from your wallet. Here are some of the most secure wallets.
- Cold storage: For those who don’t trust the security of wallets, cold storage options allow you to store your Bitcoins offline. Some people keep their Bitcoin info on a USB locked in a safe deposit box. Others use a paper wallet, which is simply a document containing all of the data necessary to generate any number of Bitcoin private key (a secret number that allows Bitcoins to be spent). The problem with cold storage is obvious – if your USB drive or paper wallet gets stolen, or you lose it, you have no way of getting your Bitcoins back.
Step 2: Choose from any of the cryptocurrency exchanges
After you have a wallet, you’ll need to register with a ‘fiat-to-crypto exchange to start buying Bitcoin. This means a company that accepts regular money in exchange for cryptocurrency, such as Bitcoin. In crypto parlance, ‘fiat’ currency is any government-issued money like U.S. Dollars, Euros, or Sterling.
When you buy Bitcoin from a fiat-to-crypto exchange, the company sells you cryptocurrency from their own reserves. This means that they can set the price and charge a fee for their service. For this reason, fiat-to-crypto exchanges are sometimes referred to as ‘broker exchanges.’
Some examples of reliable, trusted, and secure exchanges include:
Other ways to buy Bitcoin
A Bitcoin ATM works in much the same way as the ATMs issued by your bank or credit union. Insert cash into the machine, purchase Bitcoin at the current market rate and transfer your tokens to a secure virtual wallet. Websites like Coin ATM Radar can help you track down a Bitcoin ATM near you.
Peer-to-Peer (P2P) Exchanges
P2P exchanges like LocalBitcoins connect Bitcoin buyers and sellers together directly using a marketplace format. Users holding Bitcoin can post sales ads, while buyers can respond to the ads that interest them.
The site facilitating the transaction offers escrow accounts that protect both the buyer and the seller. If you’re interested in buying a Bitcoin with payment methods like Cash App or Zelle, a P2P exchange can facilitate these types of transactions.
How to Invest in Bitcoin: A Beginner’s Guide
There are numerous things that a new Bitcoin investor must know before they can invest or trade Bitcoin, and those things include personal identification documents, digital wallet, secure internet connection, bank for cryptocurrency exchange, and more.
Here in this article, you will understand the steps that are included in Bitcoin investments. This is especially for first-time investors or beginners:
1. Join a Bitcoin exchange
First, you’ll need to determine where you want to make a Bitcoin purchase. Most Bitcoin investors use cryptocurrency exchanges. There’s no official “Bitcoin” company because it’s an open-source technology, but there are several different exchanges that facilitate Bitcoin transactions.
These exchanges are the middlemen of cryptocurrency agents, like a stock brokerage. If you decide to purchase from an exchange, you’ll have to decide which exchange you want to buy from. Here are a few of the most popular options:
2. Get a Bitcoin wallet.
When you purchase a coin, it’s stored in a “wallet,” which is where all your cryptocurrency is stored. There are many different types of Bitcoin wallets, and the user can choose anyone according to their needs. The two main types of Bitcoin wallets are hardware and software wallets.
Software wallets are similar to mobile applications that get connected to the bank of the user. Some exchanges will automatically provide you with a software wallet when you open your account. In any case, software wallets are convenient because you’ll be able to access your coins through a software program.
However, software wallets are not the most secure form of coin storage. If the software wallet provider is hacked, then your coin information may be at risk. A hardware wallet is the safest storage method for your coins.
A hardware wallet is an actual piece of hardware that stores your coins, usually a portable device that’s similar to a flash drive. Some popular hardware wallets are:
- Ledger Nano
3. Connect wallet with a bank account
The user needs to connect their wallet to a debit card/credit card and a bank account to purchase Bitcoin. The transactions that are made using the bank usually take over four days for the new investors.
But once the user links their bank to the Bitcoin wallet, the user can easily buy or sell the Bitcoins.
4. Place your Bitcoin order
All the setup is completed, and the user can now start to buy and sell the Bitcoins. The first time buyers must keep in mind that, no doubt, a Bitcoin’s value is over thirty thousand dollars, but still, they can be broken down into decimal points.
The smallest unit of Bitcoin is called Satoshi, and you can still buy a tiny fraction called Satoshi if you can’t afford to buy one Bitcoin.
5. Manage your Bitcoin investments
After you’ve purchased Bitcoin, you can:
- Use your coins to make online transactions
- Hold your coin for a long period in the hopes it’ll appreciate in value
- Perform day trade with your coins-that is, buying and selling coins with other Bitcoin owners, which can be facilitated on the cryptocurrency exchange
The steps mentioned above are for the beginners who are entering into the world of cryptocurrencies and wanting to invest in Bitcoins.
It is good to know every fact and step involved in Bitcoin investments. Also, Bitcoin investment involves some security and technical issues; therefore, for investors, it is better to know about every detail before they start investing in Bitcoins.
How to invest and trade Bitcoin
Just as there the stock market trading, there are various investment strategies involved in investing in Bitcoin. For example, just as there are day traders and swing traders with stocks, there are also active and passive traders in Bitcoin.
Since the value of the currency is so volatile, it may be possible to profit from short-term swings. Like other securities, Bitcoin often holds within certain price ranges for extended periods of time. Buy on the low end of the swing and sell on the high end, and you could make a series of short-term profits. But this is probably no more likely to succeed than day trading stocks.
Buy and hold Bitcoin
Buying and holding is a method in which you purchase Bitcoin in anticipation of the price rising to new highs. Just as you might purchase stock at $60 and plan to hold it until it reaches $600, you could buy Bitcoin at $1,000 to hold until it reaches $10,000 or even $100,000.
Many people invest in Bitcoin simply by purchasing and holding the coin. These are the people who believe in Bitcoin’s long-term prosperity, and they see any volatility in the short term as little more than a blip on a long journey toward high value.
Long positions on Bitcoin
Some investors want a more immediate return by purchasing Bitcoin and selling it at the end of a price rally. There are several ways to do this, including relying on the cryptocurrency’s volatility for a high rate of return should the market move in your favor.
Several Bitcoin trading sites also now exist that provide leveraged trading, in which the trading site effectively lends you money to hopefully increase your return.
Short positions on Bitcoin
Some investors might bet on Bitcoin’s value decreasing, especially during a Bitcoin bubble. Investors sell their Bitcoins at a certain price, then try to buy them back again at a lower price. For example, if you bought a Bitcoin worth $10, you would sell it for $100 and then wait for that Bitcoin to decrease in value.
Assuming the buyer of that Bitcoin wanted to sell, you could buy it back at the lower price. You make a profit on the difference between your selling price and your lower purchase price. Investors can also invest in Bitcoin ETF.
How to purchase Bitcoin for the first time
The most common method to buy Bitcoin is via a Bitcoin exchange. These exchanges are basically cryptocurrency service providers who buy and sell Bitcoins through an exchange facilitates, and in turn, takes some commissions out of this exchange of Bitcoins.
This is one of the most convenient ways to buy and sell Bitcoins for any traders. I’m going to walk you through the steps on how to buy Bitcoin for the first time.
Steps to buy Bitcoin
Create an account
After downloading the trading application, complete the short form and create your account. The process is fast and easy. The next step is to fill in your email address and password.
Verify your email
Head to your inbox and click the verification link. It may take a few minutes to arrive (check the junk folder if longer).
Connect your phone
To secure your account, you’ll now be asked to link up your mobile phone. This is known as two-step verification and means no one can access your account without knowing your password and holding your phone. The app will immediately send you an SMS with a code. Enter this in the box, and your account’s created and secured.
Verify your identity
To follow financial regulations. The service provider needs to verify your identity, and this is the next page you’ll see. Enter your details and on the next step, select an ID type for which you’ll need to upload a photo. Similarly, you’ll then need to do the same for proof of address. The live verification check only takes a minute or so. Once complete, you’ll be taken to your dashboard.
Add a payment method
I suggest using a debit card. This allows you to buy Bitcoin instantly for a small fee. Bank transfer is an option but can take several days to set up. Run through the card authentication process, and now you’re ready to buy your first Bitcoin.
Once the service provider approves your account, you can start trading Bitcoin. You can buy and sell via the app. Click “Buy/Sell” in the top menu. Ensure “Bitcoin” is selected, and your payment method should be pre-loaded.
Enter in the amount of money (or Bitcoin) you wish to buy. Click “Preview Buy” to see the conversion and the full transaction, including the fees. Click “Buy now”, and the Bitcoin will be added to your wallet immediately.
Check your Bitcoin digital wallet
Click “Portfolio” in the side menu. Against “Bitcoin”, you should now see your owned Bitcoin amount.