If you’re looking to gain exposure to Bitcoin &#; you can invest in this top-rated cryptocurrency in less than 10 minutes via a trusted online broker.  

In this guide, we clear the mist by showing you how to invest in Bitcoin with a low-cost and regulated brokerage site. 

We also discuss whether Bitcoin represents a viable investment and what risks you need to consider before proceeding.

By following the quickfire guide above, you have just learned how to buy Bitcoin with an SEC-regulated broker in less than 10 minutes.

Keep on reading should you require a more in-depth walkthrough of the investment process.

Where to Invest in Bitcoin

It is important to assess the best place to invest in Bitcoin for your personal requirements. 

For instance, some platforms are geared towards beginners, while others are more suited for large-scale investors that seek high-level trading tools. 

With this in mind, when thinking about where to invest in Bitcoin &#; consider the selection of pre-vetted brokers reviewed below. 

1. eToro &#; Overall Best Place to Invest in Bitcoin

We used eToro as our example broker in the quickfire guide above, not least because this is the overall best place to invest in Bitcoin and buy cryptocurrency. Bitcoin investing for beginners step by step simply, you can open a verified account in minutes at eToro and you only need to risk $10 to invest in Bitcoin in a safe and secure manner. 

Payment types accepted at eToro include debit/credit cards issued by Visa and MasterCard, e-wallets like Paypal and Neteller, and traditional bank transfers. So whether you want to buy Bitcoin with PayPal, bank transfer, or any other method, the choice is yours.

Moreover, if you’re from the US, you won’t pay any deposit or withdrawal fees &#; regardless of which payment method you opt for. Once your account is funded in US bitcoin investing for beginners step by step, eToro then allows you to invest in Bitcoin on a spread-only basis (from %). 

This means that instead of paying a variable commission, you simply need to cover the gap between the buy and sell price. eToro is also useful if you are looking to invest in alternative cryptocurrencies &#; with the broker supporting over 45+ digital tokens. Hence, you can buy Solana, Dogecoin, Ethereum, Polkadot, the Graph, and more with the click of a button. You can also invest in stocks, ETFs, commodities, indices, bitcoin investing for beginners step by step, and forex. If you’re strapped for time or have little to no experience in the investment space &#; you might also consider the eToro Copy Trading tool. 

This allows you to select an experienced trader that you like the look of and then copy their ongoing investments. This comes at no additional fee and requires a minimum outlay of just $ You can also invest in a pre-made basket of cryptocurrencies via the CryptoPortfolio tool &#; which is professionally managed and rebalanced by the eToro team. 

When it comes to safety, eToro is regulated on multiple fronts. This is inclusive of the SEC (with FINRA membership), FCA, ASIC, and CySEC. The platform is home to over 23 million clients make money old coins around the world &#; and it’s planning to go public later this year. Finally, if you want to invest in Bitcoin via your smartphone, you can download the eToro app and use the eToro crypto credit card to conveniently spend your crypto holdings as and when you want.    

Invest in Bitcoin on eToro Now

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

2. Webull &#; Invest in Cryptocurrency With Just $1 

The process of investing in Bitcoin doesn’t require a large capital outlay when you use an online broker like Webull. Not only does the user-friendly platform allow you to open an account without meeting a minimum deposit &#; but you can invest in Bitcoin from just $1 upwards. 

And as such, this will suit first-timers that wish to test the Bitcoin markets out before risking higher sums. At Webull, this $1 minimum extends to all of the other cryptocurrencies supported on the platform &#; which includes everything from Shiba Inu, Dogecoin, and Litecoin to Ethereum, Chainlink, and Basic Attention Token. Moreover, Webull supports other asset classes on its platform &#; such as US-listed stocks, ETFs, and options. 

Although Webull is typically used by casual traders, the platform does offer a selection of advanced tools and features that will appeal to seasoned investors. This includes no less than 12 charting tools and 50+ technical indicators. In terms of fees, you can invest in Bitcoin &#; and any other supported financial instrument, bitcoin investing for beginners step by step, at 0% commission. No deposit fees apply on ACH transactions, but bank wires are charged at $8.      

Invest in Bitcoin on Webull

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

3. Binance &#; Invest in Bitcoin and 60+ Other Cryptocurrencies 

The Binance US platform enables Americans to invest in Bitcoin and 60+ other supported cryptocurrencies. As such, this is a good option if you are planning to create a diversified portfolio of digital currencies. Some of the most popular tokens available in addition to Bitcoin include Ethereum, Litecoin, Dogecoin, and Is it worth investing in stocks and shares isa now US also supports a wave of DeFi (Decentralized Finance) tokens &#; which includes the likes of Chainlink and VeChain. In terms of paying for your Bitcoin investment, the fees will depend on the payment method that you opt for. For instance, if you prefer the convenience of using a debit or credit card, this will set you back % in transaction fees &#; in addition to a % commission. Alternatively, ACH and domestic wire transfer deposits are free &#; so it’s just the % commission that you will pay.

If you decide to use Binance to exchange digital tokens &#; for instance, Bitcoin to Ethereum or Cardano to Litecoin, then the commission stands at just % per slide. Moreover, if you trade large volumes, this commission is lowered even further. To open an account at Binance, you will need to upload some ID. After that, you can proceed to invest in Bitcoin at the click of a button. Finally, Binance also bitcoin investing for beginners step by step educational materials and OTC services.

Invest in Bitcoin on Binance

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

4. Coinbase &#; Invest in Bitcoin investition website via a Beginner-Friendly Platform   

The next broker to consider when thinking about where to invest in Bitcoin is Coinbase. This NASDAQ-listed cryptocurrency broker is now used by tens of millions of clients &#; many of which are based in the US. The platform offers a safe and convenient way to invest in Bitcoin and dozens of other cryptocurrencies &#; so it’s ideal for beginners. 

However, irrespective of how you intend on paying for your Bitcoin investment, Coinbase is a lot more expensive than the other brokers discussed thus far. For example, if you deposit funds via ACH and proceed to invest in Bitcoin once the money arrives &#; this will cost you % in fees. Paying for your Bitcoin investment instantly with a debit/credit card will set you back %.    

Taking this into account, fee-conscious investors might be better off using eToro. Nevertheless, Coinbase also stands out for its commitment to security. Among many other safeguards, 98% of client funds are kept offline in cold storage and all account users must set up two-factor authentication. Furthermore, you can place a hour time lock on withdrawal requests, which ensures that you have sufficient time to act should your account become compromised.    

Invest in Bitcoin on Coinbase

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

5. Kraken Pro &#; Invest in Bitcoin via an Advanced Trading Suite 

If you’re an active trader that is looking to gain exposure to Bitcoin via sophisticated tools, Kraken Pro could be the best option for your skillset. This top-rated cryptocurrency exchange was launched way back in &#; which makes it one of the most established in this space. US clients can deposit funds only with a domestic bank wire or crypto. ACH payments are only accepted when making a withdrawal.  

With regards to the Kraken Pro platform itself, you will find a large suite of advanced order types and charting tools. The latter includes the ability to draw trend lines and overlays, as well as access technical indicators. In terms of trading fees, Kraken Pro charges market makers and takers % and % respectively. Lowers commissions are offered when trading volumes hit certain milestones, starting from $50, within a day period.  

Invest in Bitcoin on Kraken

Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

Should I Invest in Bitcoin?

Once you have decided which online broker is a good fit for your trading goals and skill set, it’s time to do some independent research. 

By this, we mean diving deep into whether or not a Bitcoin investment is right for your portfolio. 

To help clear the mist, below we discuss five key reasons why you might choose to invest in Bitcoin right now.  

Bitcoin is Still an Emerging Asset Class

Many market bitcoin investing for beginners step by step argue that Bitcoin in is the Apple or Microsoft of the s. In other words, bitcoin investing for beginners step by step, when you consider that Bitcoin was launched as recently asthe concept of cryptocurrencies and blockchain technology is still in its infancy. 

And as such, by investing in Bitcoin today, you have the opportunity to gain exposure to an emerging asset class that is yet to reach its full potential.  

Bitcoin Growth Since

Although Bitcoin was launched in Januaryit wasn’t until February that the digital currency surpassed a value of $1 per token. Moreover, it took a further two years for Bitcoin to hit $1, 

Fast forward to lateand Bitcoin reached an all-time high value of nearly $69, When comparing this to the price of Bitcoin inthis translates into year returns of over million percent. 

In other words, bitcoin investing for beginners step by step, if you invested $1, into Bitcoin back in and sold when the digital currency hit $69, per token, you would have cashed out more than $68 million. This highlights just how well Bitcoin has performed in such a short period of time. 

Bitcoin vs Stock Markets

One of the best ways to assess whether or not an alternative asset class like Bitcoin is worth buying is to compare its performance against the broader stock markets. For this purpose, a great benchmark is the S&P index. 

• Over the past five years, the S&P has grown by approximately 94% &#; which illustrates attractive returns. 
• However, over the same period, Bitcoin has grown by over 3,% &#; which dwarfs that of the S&P

Crucially, it is important to note that your investment portfolio should remain well diversified. As such, if you choose to invest in Bitcoin, it’s also worth allocating some funds to the traditional stock markets &#; and perhaps, bonds too.  

Digital Gold

Bitcoin is often referred to as the digital version of gold, not least because the two asset classes carry a number of similar characteristics. For instance, there is a finite bitcoin investing for beginners step by step of gold, meaning that once the Earth’s entire supply is mined, nothing more can enter circulation. 

• Similarly, Bitcoin is also finite, as only 21 million tokens will ever be created. Furthermore, just like gold, the circulating supply increases at steady intervals. 
• In the case of Bitcoin, this happens every 10 minutes, albeit, every four years or so, the amount minted per block bitcoin investing for beginners step by step halved. 

Another characteristic that both Bitcoin and gold share is that both asset classes are viewed as a hedge against the broader financial markets. More specifically, when the inflation levels are rising and the stock markets are down, Bitcoin and gold offer attractive hedging opportunities. 

Easy to Invest and Highly Liquid

First-time Bitcoin investors are often concerned that the process of buying the digital currency is complex. Moreover, there is also a misconception that there are barriers when it comes to cashing out. However, this couldn’t be further from the truth. 

First and foremost, anyone can invest in Bitcoin from the comfort of home in a matter of minutes with a debit/credit card or bank transfer. This can be achieved safely and conveniently via an SEC-regulated cryptocurrency broker. 

Second, Bitcoin operates in a multi-trillion dollar cryptocurrency trading industry that never sleeps. As such, 24 hours per day, 7 days per week &#; you can easily cash out your Bitcoin investment back to US dollars through your chosen online broker. 

What is the Best Way to Invest in Bitcoin?

There are essentially two ways to invest in Bitcoin in  

You can either buy BTC tokens via an online exchange or broker, or invest in stocks that offer direct exposure to the digital currency. 

Having said this you could bitcoin investing for beginners step by step gain exposure to the crypto market via crypto CFDs. For example, if you opened an account with the leading crypto bot Bitcoin Prime, you could speculate on the price movements of BTC crosses via contracts for difference. Moreover, the best part about using a crypto robot is that it does all the work for based on criteria and parameters that you configure.

Buying Bitcoin

It goes without saying that the easiest way to invest in Bitcoin is to simply open an account with an online broker and purchase some tokens. 

In doing so, you will retain full ownership of your digital assets until you are ready to cash out. And, your profits or losses will directly correlate with the market price of Bitcoin. 

That is to say, if you invested $ into Bitcoin and its value subsequently increases by 25%, you make a profit of $ 

Investing in Bitcoin Stocks

The other option is to buy some stocks that correlate to the Bitcoin market, bitcoin investing for beginners step by step. If you’re wondering how to invest in Bitcoin stocks, the best option is to look at Coinbase.

As mentioned earlier, Coinbase is a large US-based cryptocurrency broker that is publicly listed on the NASDAQ, bitcoin investing for beginners step by step. In theory, when the value of Bitcoin and the wider cryptocurrency markets are in an upward trend, this should have a positive effect on Coinbase stocks. 

However, the correlation will never be like-for-like. After all, bitcoin investing for beginners step by step, there are many other variables to take into account when you buy stocks &#; such as the company’s balance sheet, quarterly earnings, debt levels, and more. 

Once again, this is why buying Bitcoin is the best way to invest in the digital asset. 

Invest in Bitcoin vs Trading Bitcoin

Another thing to consider when learning how to invest in Bitcoin is the specific trading strategy that you adopt. 

For example, more experienced investors will often look to time the markets &#; which means actively placing trades. 

This means that the investor might invest in Bitcoin when the markets are overly strong, bitcoin investing for beginners step by step, and offload when it appears that the upward trend is beginning to reverse. Then, they might wait for the markets to correct before once again entering a new position. 

On the other hand, beginners will be better suited to a longer-term investment strategy. In most cases, this bitcoin investing for beginners step by step see you invest in Bitcoin and then keep hold of your digital assets for several months or years.

This option means that you can spend less time researching the markets and watching over the value of your position. Instead, you can sit back and ‘HODL’ until you feel it is the right time to sell. 

Note: The term ‘HODL’ is a play on the word ‘hold’. In Bitcoin jargon, this simply means holding onto your investment in the long run &#; and not selling when the markets go through short-term pricing spikes. 

How Much to Invest in Bitcoin

Irrespective of which asset class you are investing in &#; it is important to have a clear plan in terms of stakes. By this, we mean thinking about how much money you can realistically afford to lose when investing in Bitcoin &#; based on your budget and tolerance for risk. 

• For example, although Bitcoin is a highly liquid asset &#; which means that you can cash out at any given time, it is also highly volatile and speculative. 
• This means that should you need to cash out your Bitcoin tokens to fund an emergency expense &#; you might get back less than you originally invested. 
• This is why you should only invest amounts that you are comfortable with. 

Another thing to note is that you should avoid going ‘all-in’ when investing in Bitcoin. Instead, your portfolio should contain a much larger percentage of traditional asset classes &#; such as index funds, ETFs, and blue-chip stocks. 

This will help balance out the risks involved with Bitcoin &#; and ensure that you are not overexposed to a single asset. 

Moreover, and as we cover in more detail shortly, instead of investing a lump sum into Bitcoin &#; it’s best to inject small but regular amounts via a dollar-cost average strategy. 

Choosing a Bitcoin Wallet for Investing

Another aspect that often puts newbies off from investing in Bitcoin are the steps involved in bitcoin investing for beginners step by step the digital tokens safe. This is because Bitcoin &#; like all other cryptocurrencies, is stored in a ‘wallet’. 

• These Bitcoin wallets often come in bitcoin investing for beginners step by step form of a mobile app, albeit, desktop software, hardware devices, and online storage options also exist. 
• Regardless of the wallet type you elect to use when storing your Bitcoin tokens, it is crucial that you adopt a range of security procedures. 
• This includes never giving out your private keys, setting up two-factor authentication (if offered by the wallet), and sticking with reputable and trusted providers. 
• After all, if the worst happens and your wallet is compromised, bitcoin investing for beginners step by step, then there is every chance that your Bitcoin funds will be bitcoin investing for beginners step by step this does happen, you will have nowhere to turn. This is why we suggest considering SEC-regulated broker eToro for your Bitcoin storage requirements. 

  This is because once you invest in Bitcoin via the eToro website, the tokens will be safeguarded by eToro’s institutional-grade security tools. 

  This means that you don’t need to worry about learning the ropes of wallet security tools and risks, as the tokens will be kept safe by eToro until you decide to cash out.  

  

  Bitcoin Investment Strategies

  Seasoned traders will never invest in Bitcoin without first having a pre-defined strategy in place. 

  There are many Bitcoin investment strategies to consider, albeit, the one that you opt for will typically depend on your financial goals and how much risk you are willing to take. 

  With this in mind, when learning how to invest in Bitcoin &#; consider some of the strategies discussed below. 

  Dollar-Cost Average to Avoid Volatility

  We mentioned earlier that Bitcoin can be an extremely volatile asset class at times. As a newbie investor, this can be intimidating. 

  • For example, in mid, Bitcoin went from highs of $61, to lows of $31, in the space of just a few months. 
  • However, just a few months later, Bitcoin then hit all-time highs of almost $69, 

  Crucially, this emotional rollercoaster ride can be mitigated by dollar-cost averaging your investments. 

  This simply means investing smaller amounts at regular intervals. For instance, you might elect to invest $ per month &#; regardless of how Bitcoin is performing. 

  In doing so, you will average out your break-even point on each investment. If adopting this Bitcoin investment strategy, it’s best to use a broker that supports small stakes. 

  At eToro, for instance, you only need to meet a $10 minimum. As such, by depositing $, you can invest $10 per month for an entire year. 

  Stay Safe With SEC-Regulated Bitcoin Brokers

  The next strategy to adopt when learning how to invest bitcoin investing for beginners step by step Bitcoin is to ensure that you only make purchases from a trusted broker that takes security and regulation seriously. 

  You can do this with ease by sticking with Bitcoin brokers that are authorized and regulated by the SEC. 

  The alternative to this is to use an unlicensed cryptocurrency exchange that offers nothing in the way of regulatory protection. 

  Although such exchanges might offer super-low fees and an assortment of features, you can never be certain that your Bitcoin funds are in safe hands.  

  Have an Investment Target in Place

  Another strategy to consider using when investing in Bitcoin is to have clear targets in place. 

  • For example, let’s suppose that you bitcoin investing for beginners step by step to make gains of 75% from your Bitcoin investment. 
  • If you invest when the price of Bitcoin is $40, &#; this means that the digital currency needs to exceed a value of $70, per token. 

  If and when your target is met, you can then elect to sell your Bitcoin tokens back to cash. The most effective way of deploying a target Bitcoin price is via a take-profit order.  

  For those unaware, take-profit orders &#; which are available at platforms like eToro and Binance, allow you to specify an exact price that you wish to sell your investment. 

  When this price is triggered by the markets (for example, $70,), your chosen broker will automatically close your position. 

  In addition to take-profits, it is also worth considering a stop-loss order when you invest in Bitcoin. This works in the same way as a take-profit but in reverse.

  • For instance, you might decide that the most you are prepared to lose from your Bitcoin investment is 20%. 
  • If the price of Bitcoin stands at $40, bitcoin investing for beginners step by step, at the time of the investment, you would need to set your stop-loss at $32, 
  • If the specified price is triggered, then the broker will automatically close your position. 

  Ultimately, by placing both take-profits and stop-losses, this means that you don’t need to constantly check the price of Bitcoin, as your chosen broker will close your trade when one of your orders is triggered.   

  How to Invest in Bitcoin & Make Money &#; Example

  If you’re wondering how to make money from a Bitcoin investment, this section of our beginner’s guide will explain the process with some simple examples. 

  Fractional Investment 

  The first thing to mention is that unless you are looking to invest thousands of dollars to purchase a single Bitcoin, you will be buying a fraction of one token. 

  The good news is that the returns on your investment will work out in exactly the same way as buying a full Bitcoin. 

  

  For example:

  • Let’s suppose that you want to invest in Bitcoin when the digital asset is priced at $45,
  • You decide to invest a total of $
  • This means that you are buying 1% of a single Bitcoin token &#; or units. 
  • We’ll then say that a few months later, Bitcoin is priced at $53, &#; or 30% higher
  • On your stake of $, this means that your investment is now worth $

  As per the above, it doesn’t matter if you own a full Bitcoin or just a tiny fraction of one token &#; your gains and losses will be determined by the percentage amount that the digital asset increases or decreases.

  Long-Term Buy and Hold Strategy 

  In this example of how to make money by investing in Bitcoin, we’ll look at what returns you would have made had you entered the market five years ago. 

  • In the five years prior to writing this guide, Bitcoin was priced at just over $1, per token
  • We’ll say that you decided to invest a total of $5, at this entry price
  • As of writing, Bitcoin is trading around the $42, level
  • This translates into 5-year returns of over 4,%

  In the above example, bitcoin investing for beginners step by step, you invested $5, five years ago and you are now looking at returns of 4,%. And as such, bitcoin investing for beginners step by step, if you were to cash out, you would receive over $, For more details on the best long term crypto investments be sure to read our full guide.   

  Short-Term Strategy 

  Now let’s look at a real-world example of how a short-term Bitcoin trade might pan out. 

  • Let’s say that you invested $2, into Bitcoin in mid-July &#; when the digital token was priced at just over $30,
  • Just three months later, Bitcoin was priced at $64, per token
  • This represents growth of approximately %
  • As such, you decide to cash out your investment

  As per the above, in the space of just three months, you made a % profit on a $2, Bitcoin investment. Therefore, your total cash-out amount would have stood at $4, 

  When is the Best Time to Invest in Bitcoin? 

  

  Unless you are a seasoned investor with a firm understanding of technical analysis and high-level research, there is no value in attempting to time the market. 

  On the contrary, instead of trying to invest in Bitcoin at the right time &#; the previously discussed dollar-cost averaging strategy will be a lot more effective. 

  This is because you will be investing in Bitcoin in the long run by allocating smaller amounts to the digital token &#; but at regular intervals. 

  And as such, you do not need to worry about whether or not you have timed the market correctly &#; as each investment will be averaged out. 

  How to Invest in Bitcoin  &#; Tutorial 

  This section of our guide will explain how to invest in Bitcoin via SEC-regulated broker eToro. 

  You will learn how to open a verified account, deposit funds, and place an investment order in less than 10 minutes.   

  Step 1: Open an Account 

  The first step is to visit the eToro website and click on the ‘Join Now’ button &#; which you will find at the top of total money makeover forum homepage. A registration form will then appear on your screen. 

  Initially, you will need to enter your first and last name, email address, bitcoin investing for beginners step by step, cell phone number, and a chosen username and password.

  Next, you’ll need to provide some additional personal details &#; such as your date of birth and home address.            

  Finally, to complete the registration process, you will need to verify your cell phone number by entering the SMS code that eToro sends to you.  

  Step 2: Identity Verification 

  In less than minutes, you can verify your eToro account by uploading some ID. This will increase your deposit limits and make you eligible to request withdrawals.  

  To get verified, you can upload a copy of your driver’s license, passport, or state-issued ID. To prove your residency status, upload a recently issued bank statement or electricity/water bill. 

  Step 3: Make a Deposit 

  If you are depositing funds in US dollars, then no fees apply. At eToro, you can choose from a debit/credit card or an e-wallet to have your deposit processed instantly. 

  

  If you’re happy to wait working days, ACH and bank wire transfers are also supported. The minimum deposit at eToro for US clients is just $ 

  Step 4: Search for Bitcoin 

  You should now have a verified eToro account with at least $10 in funds. If so, bitcoin investing for beginners step by step, you can invest in Bitcoin. 

  

  To go straight to the correct investment page, use the search bar by entering ‘BTC’ and clicking on ‘Trade’.  

  Step 5: Invest in Bitcoin 

  An order box will now appear on your trading screen. This is where you need to let eToro know how much money you want to invest in Bitcoin.  

  

  This can be any amount from $10, albeit, in the example above, we are investing a total of $ Finally, once you click on the ‘Open Trade’ button, eToro will carry out your Bitcoin investment instantly.    

  Step 6: How to Sell Bitcoin 

  You can keep track of your Bitcoin investment by heading over to your eToro portfolio. At any given time, you can elect to sell your Bitcoin investment.  

  Just look out for the cog button next to Bitcoin, and click on ‘Close’. eToro will then sell your Bitcoin tokens back to US dollars at the best available price. 

  Conclusion 

  This guide has explained the importance of researching the markets and considering the risks involved before investing in Bitcoin. 

  We’ve also reviewed the best Bitcoin brokers and exchanges to consider, and which strategies are worth adopting. 

  If you want to invest in Bitcoin right now &#; it takes just 10 minutes to open an account and place your order at SEC-regulated broker eToro. 

  Invest in Bitcoin on eToro

  Cryptoassets are a highly volatile unregulated investment product. No UK or EU investor protection.

  Frequently Asked Questions When Investing in Bitcoin

  Is Bitcoin a good investment in ?

  Bitcoin has outperformed the traditional stock markets by a considerable amount since the digital currency was launched in You should, however, go easy with your stakes if you choose to invest in Bitcoin, as this asset class is highly volatile.

  Can I invest in Bitcoin with $1?

  Yes, you can invest in Bitcoin with just $1 via Webull. However, the spread on Bitcoin markets at Webull is often uncompetitive. As such, you might consider eToro instead, which requires a slightly higher bitcoin investing for beginners step by step of $

  How do I invest in Bitcoin?

  You can invest in Bitcoin by opening an account and depositing funds with a trusted cryptocurrency broker like eToro.

  What is the minimum to invest in Bitcoin?

  Bitcoin can be divided by up to 8 decimal places, so super-small investments are possible. However, the minimum amount that you can stake on Bitcoin will depend on which broker you decide to use.

  How much should I invest in Bitcoin?

  This will depend on your budget and how much risk you are comfortable taking. Crucially, never invest more than you can afford to lose.

  What is the best site to invest in Bitcoin?

  eToro is arguably the best site to invest in Bitcoin &#; as US clients benefit from free debit/credit card and e-wallet deposits, alongside a minimum stake of just $ Moreover, eToro is licensed by the SEC.

  If I invest $ in Bitcoin today in how much is it worth in ?

  Bitcoin operates in a speculative and volatile marketplace, so predicting its value in is a challenging task.

  What is the best way to invest in Bitcoin?

  The best way to invest in Bitcoin is via an SEC-regulated broker like eToro.

  Is it too late to invest in Bitcoin?

  Bitcoin has only been a tradable asset since As such, Bitcoin is still in its infancy.

  Should I invest in Bitcoin or Ethereum?

  If you can’t decide between Bitcoin or Ethereum, it could be worth diversifying across both digital currencies.

  Should you invest in Bitcoin?

  You should only invest in Bitcoin if you have performed your own research and considered the risks.

Despite its well-known volatility, cryptocurrency is on fire and many investors are looking to profit on its white-hot rise. Cryptos such as Bitcoin and Ethereum ebb for a while and then climb higher, and many other popular digital currencies are doing so, too. Experienced traders have been speculating on crypto for years, but what if you&#x;re new to the market and looking to get a piece of the action?

Here&#x;s how to start investing in cryptocurrency and what you need to watch out for.

5 steps for investing in cryptocurrency

First things first, if you&#x;re looking to invest in crypto, you need to have all your finances in order. That means having an emergency fund in place, a manageable level of debt and ideally a diversified portfolio of investments. Your crypto investments can become one more part of your portfolio, one that helps raise your total returns, hopefully.

Pay attention to these five other things as you&#x;re starting to invest in cryptocurrencies.

1. Understand what you&#x;re investing in

As you would for any investment, understand exactly what you&#x;re investing in. If you&#x;re buying stocks, it&#x;s important to read the prospectus and analyze the companies thoroughly. Plan to do the same with any cryptocurrencies, since there are literally thousands of them, they all function differently and new ones are being created every day. You need to understand the investment case for each trade.

In the case of many cryptocurrencies, they&#x;re backed by nothing at all, neither hard assets nor cash flow. That&#x;s the case for Bitcoin, for example, where investors rely exclusively on someone paying more for the asset than they paid for it. In other words, unlike stock, where a company can grow its profits and drive returns for you that way, many crypto assets must rely on the market becoming more optimistic and bullish for you to profit.

Some of the most popular coins include Ethereum, Dogecoin, Cardano and XRP. Solana has been another massively successful coin as well. So before investing, understand the potential upside and downside, bitcoin investing for beginners step by step. If your financial investment is not backed by an asset or cash flow, it could end up being worth nothing.

2. Remember, the past is past

A mistake that many new investors make is looking at the past and extrapolating that to the future. Yes, Bitcoin used to be worth pennies, but now is worth much more. The key question, however, is Will that growth continue into the future, even if it&#x;s not at quite that meteoric rate?

Investors look to the future, not to what an asset has done in the past. What will drive future returns? Traders buying a cryptocurrency today need tomorrow&#x;s gains, not yesterday&#x;s.

3. Watch that volatility

The prices of cryptocurrencies are about as volatile as an asset can get. They could drop quickly in seconds on nothing more than a rumor that ends up proving baseless. That can be great for sophisticated investors who can execute trades rapidly or who have a solid grasp on the market&#x;s fundamentals, how the market is trending and where it could go. For new investors without these skills &#x; or the high-powered algorithms that direct these trades &#x; it&#x;s a minefield.

Volatility is a game for high-powered Wall Street traders, each of whom is trying to outgun other deep-pocketed investors. A new investor can easily get crushed by the volatility.

That&#x;s because volatility shakes out traders, especially beginners, who get scared. Meanwhile, other traders may step in and buy on the cheap. In short, bitcoin investing for beginners step by step, volatility can help sophisticated traders buy low and sell high while inexperienced investors buy high and sell low.

4. Manage your risk

If you&#x;re trading any asset on a short-term basis, you need to manage your risk, and that can be especially true with volatile assets such as cryptocurrency. So as a newer trader, you&#x;ll need to understand how best to manage risk and develop a process that helps you mitigate losses. And that process can vary from individual to individual:

• Risk management for a long-term investor might simply be never selling, regardless of the price. The long-term mentality allows the investor to stick with the position.
• Risk management for a short-term trader, however, might be setting strict rules on when to sell, such as when an investment has fallen 10 percent. The trader then rotely follows the rule so that a relatively small decline doesn&#x;t become a crushing loss later.

Newer traders should consider setting aside a certain amount of trading money and then using only a portion of it, at least at first. If a position moves against them, they&#x;ll still have money in reserve to trade with later. The ultimate point is that you can&#x;t trade if you don&#x;t have any money. So keeping some money in reserve means you&#x;ll always have a bankroll to fund your trading.

It&#x;s important to manage risk, but that will come at an emotional cost. Selling a losing position hurts, but doing so can help you avoid worse losses later.

5. Don&#x;t invest more than you can afford to lose

Finally, it&#x;s important to avoid putting money that you need into speculative assets. If you can&#x;t afford to lose it &#x; all of it &#x; you can&#x;t afford to put it into risky assets such as cryptocurrency, or other market-based assets such as stocks or ETFs, for that matter.

Whether it&#x;s a down payment for a house or an important upcoming purchase, money that you need in the next few years should be kept in safe accounts so that it&#x;s there when you need it. And if you&#x;re looking for an absolutely sure return, your best option is to pay off debt. You&#x;re guaranteed to earn (or save) whatever interest rate you&#x;re paying on the debt. You can&#x;t lose there.

Finally, don&#x;t overlook the security of any exchange or broker you&#x;re using. You may own the assets legally, but someone still has to secure them, and their security needs to be tight. If they don&#x;t think their cryptocurrency is properly secured, some traders choose to invest in a crypto wallet to hold their coins offline so they&#x;re inaccessible to hackers or others.

Other ways to invest in cryptocurrency

While investing directly in cryptocurrency may be the most popular way to do so, traders have other ways to get into the crypto game, some more directly than others. These include:

• Crypto futures: Futures are another way to wager on the price swings in Bitcoin, and futures allow you to use the power of leverage to generate massive returns (or losses). Futures are a fast-moving market and exacerbate the already volatile moves in crypto.
• Crypto funds: A few crypto funds (such as the Grayscale Bitcoin Trust) also exist that allow you to wager on the price swings in Bitcoin, Ethereum as well as a few other altcoins. So they can be an easy way to buy crypto through a institutional investor money flow product.
• Crypto exchange or broker stocks: Buying stock in a company that&#x;s poised to profit on the rise of cryptocurrency regardless of the winner could be an interesting option, too. And that&#x;s the potential in an exchange such as Coinbase or a broker such as Robinhood, which derives a huge chunk of its revenues from crypto trading.
• Blockchain ETFs: A blockchain ETF allows you to invest in the companies that may profit from the emergence of blockchain technology. The top blockchain ETFs give you exposure to some of the key publicly traded companies in the space. But it&#x;s important to note that these companies often do much more than crypto-related business, meaning your exposure to cryptocurrency is diluted, reducing your potential upside and downside.

Each of these methods varies in its riskiness and exposure to cryptocurrency, so you&#x;ll want to understand exactly what you&#x;re buying and whether it fits your needs.

Cryptocurrency investing FAQs

How much money do I need to start investing in cryptocurrency?

In theory it takes only a few dollars to invest in cryptocurrency. Most crypto exchanges, for example, have a minimum trade that might be $5 or $ Other crypto trading apps might have a minimum that&#x;s even lower.

However, it&#x;s important to understand that some trading platforms will take a huge chunk of your investment as a fee if you&#x;re trading small amounts of cryptocurrency. So it&#x;s important to look for a broker or exchange that minimizes your fees. In fact, many so-called free brokers embed fees &#x; called spread mark-ups &#x; in the price you pay for your cryptocurrency.

How does a blockchain work?

Cryptocurrency is based on blockchain technology. Blockchain is a kind of database that records and timestamps every entry into it. The best way to think of a blockchain is like a running receipt of transactions. When a blockchain database powers cryptocurrency, it records and verifies transactions in the currency, verifying the currency&#x;s movements and who owns bitcoin investing for beginners step by step crypto blockchain databases are run with decentralized computer networks. That is, many redundant computers operate the database, checking and rechecking the transactions to ensure that they&#x;re accurate. If there&#x;s a discrepancy, the networked computers have to resolve it.

How do you mine cryptocurrency?

Some cryptocurrencies reward those who verify the transactions on the blockchain database in a process called mining. For example, these miners involved with Bitcoin solve very complex mathematical problems as part of the verification process. If they&#x;re successful, miners receive a predetermined award of bitcoins.

To mine bitcoins, miners need powerful processing units that consume huge amounts of energy. Many miners operate huge rooms full of such mining rigs in order to extract these rewards. As of earlyrunning the Bitcoin system burned as much energy as a medium-sized country.

How can I invest in Bitcoin?

If you&#x;re looking to invest in Bitcoin, you have a variety of ways to do so, bitcoin investing for beginners step by step, and you can work with a number of companies, including:

• Crypto exchanges: Exchanges have some bitcoin investing for beginners step by step the widest selection of cryptocurrencies, and they tend to be the most competitive on price. Top players include Coinbase, Kraken and Binance, but there are literally dozens of others.
• Traditional brokers: Many traditional brokers also allow you to trade Bitcoin in addition to stocks and other financial assets, though they have a relatively limited selection of other cryptocurrencies. Top players here include Interactive Brokers, TradeStation and tastyworks.
• Financial apps: Many financial apps now allow you to trade Bitcoin and a few other cryptos. Top players here include Robinhood and Webull as well as payment apps such as PayPal, Venmo and Cash App.

If you&#x;re looking to buy Bitcoin, pay particular attention to the fees that you&#x;re paying. Here are other key things to watch out for as you&#x;re buying Bitcoin.

What are altcoins?

An altcoin is an alternative to Bitcoin. Many years ago, traders would use the term pejoratively. Since Bitcoin was the largest and most popular cryptocurrency, everything else was defined in relation to it. So, whatever was not Bitcoin was lumped into a derisive category called altcoins.

While Bitcoin is still the largest cryptocurrency by market capitalization, it&#x;s no longer as dominant as it was in the very early days of cryptocurrency. Other altcoins such as Ethereum and Solana have grown in popularity, making the term altcoin somewhat outmoded. Now with a reported 15, or more cryptocurrencies in existence, it makes less sense than ever to define the industry as Bitcoin and then everything else.

Bottom line

Cryptocurrency is a highly speculative area of the market, and many smart investors have decided to put their money elsewhere. For beginners who want to get started trading crypto, however, the best advice is to start small and only use money that you can afford to lose.

Learn more:

• Bitcoin investing involves choosing an exchange, verifying your identity, and withdrawing to a wallet.
• Investing in bitcoin is risky since it's a volatile and speculative asset.
• Experts recommend using a buy-and-hold strategy when buying bitcoin, in order to average out rises and falls.
• Visit Insider's Investing Reference library for more stories.

More than a decade into its existence, Bitcoin doesn't seem to be going away. The cryptocurrency has attracted good and bad headlines as it's worked its way through multiple peaks over the years, and despite a reputation for volatility, it continues to attract new investors with its promise of market-beating returns.

Here's what to know about investing in Bitcoin.

What to know about Bitcoin 

Bitcoin is a cryptocurrency. This bitcoin investing for beginners step by step it's a form of electronic money that secures and validates transactions via the use of cryptography. In Bitcoin's case, people and organizations known as "miners" use computing hardware to calculate a code — known as a "hash" — that encrypts the data contained in transactions. This data is collected into "blocks," which are linked together in a blockchain that cannot, in theory, be changed once written.

On an economic level, Bitcoin's creator — the pseudonymous Satoshi Nakamoto — created it in as a form of "sound money," akin to digital gold.

"What makes Bitcoin so special is that it has a finite supply of 21 million coins, with only a couple million left to be mined," explains Edward Moya, chief market strategist at OANDA'sMarketPulse, bitcoin investing for beginners step by step. "Simple supply and demand for Bitcoin is the main reason why prices have skyrocketed over the past year."

Despite having a fixed maximum supply, Bitcoin has shown remarkable volatility throughout most of its life with major fluctuations in its price.

Such swings make Bitcoin a highly speculative asset, one that should be considered only by traders willing to stomach a fair amount of risk. That said, at least some analysts suspect that its volatility will gradually decline over time, as its market grows and reduces its destabilizing reliance on leverage.

Step 1: Choose a crypto exchange 

For most people, bitcoin investing for beginners step by step, the best place to buy Bitcoin is on a crypto exchange. These are online platforms dedicated to facilitating trades in cryptocurrency, usually by offering trading pairs (e.g., USD to Bitcoin) and usually by matching buyers with sellers.

In the US, the leading crypto exchange by volume and customer base is Coinbase. That said, other reputable — and regulated — crypto-exchanges include Kraken, Gemini, eToro, and www.oldyorkcellars.com

More inexperienced traders may wish to try a more general trading platform such as Robinhood. These have the benefit of being more user-friendly than the average crypto exchange, although their major downside is that many don't let users withdraw their bitcoin.

Quick tip: New investors should check the fees charged by exchanges, since these can vary quite widely. They should also check for the minimum account balance required by their chosen platform, since certain exchanges impose a minimum. Others also set minimums for account deposits via bank transfer.

Step 2: Choose a payment method

Exchanges also vary in terms of the payment methods they support. Most major platforms do offer the option of linking your bank account for wire and ACH transfers, as well as the option of linking a debit card. Some also let you pay via PayPal, with Coinbase also supporting Apple Pay.

Quick tip: Most bank transfer deposit options incur no fees. Nonetheless, certain special services (e.g., FedWire via Silvergate or Synapse) may require a small charge (e.g., $1 or $5), while using PayPal to deposit money into your exchange incurs a % charge with Coinbase, for instance.

Regardless of the option you choose, you will have to verify your identity when first signing up for an account and registering a payment method. In the US, you're usually required to submit a scan of a state-issued ID, such as a driver's license or identification card.

Depending on where you are and on your chosen platform, you may also be required to provide scans of additional documentation (such as your passport), as well as being asked to submit bitcoin investing for beginners step by step proof of address.

Step 3: Place your order 

Once you're verified and have deposited cash into your account, you can then begin buying Bitcoin. This process varies according to the exchange you use, with some exchanges offering a process that simply involves clicking a Buy or Sell button and then specifying how much Bitcoin you want to buy (or sell).

In general, most crypto exchanges offer at least three basic order types:

• Market order: the option to choose if you simply want to buy Bitcoin at its current price. This type of order is usually completed in a matter of seconds, depending on the time of day.
• Stop order: an order where you specify the price at which you will buy or sell Bitcoin, bitcoin investing for beginners step by step. This type is good if you want to make sure you sell Bitcoin before it falls too sharply, bitcoin investing for beginners step by step. This type of order can take some time to execute, depending on how quickly the market moves.
• Limit order: instructs the exchange to execute a buy or sell order at a specific price or better. In contrast to stop orders, limit orders are visible to the market and can take longer to fill.

Again, executing any one of these options usually involves clicking a Buy, Trade, or New order button on an exchange's home screen. You'll then be able to choose from the above three (and more advanced) options, before clicking a Submit button or something equivalent.

Quick tip: All exchanges will let you buy a fraction of a bitcoin (BTC). So while the price of 1 BTC may seem prohibitively expensive right now, you will be able to choose to buy BTC, BTC or whatever else you type into the exchange's interface.

How to buy Bitcoin with PayPal

PayPal has enabled its US-based customers to buy Bitcoin (and other cryptocurrencies) since October But before you can purchase Bitcoin, you'll have to agree to their terms and conditions and then set up a PayPal Balance real money making surveys first.

1. From the home screen, click the button that looks like a bar graph.
   

   

   Jasmine Suarez/Insider

2. Click Bitcoin.
   

   

   Jasmine Suarez/Insider

3. Scroll down and select how much you'd like to purchase. Then click Buy.
   

   

   Jasmine Suarez/Insider

Quick tip: When you press the Buy button for the first time, you'll have to prove your identity (if you haven't done so on PayPal already). This involves providing your name, physical address, date of birth, and taxpayer identification number, and may also include submitting a copy of your ID and showing proof of address.

Step 4: Store your crypto in a safe place 

While bigger exchanges are becoming safer, hacks and fraud remain a big problem for the industry. This is why investors with significant sums in Bitcoin are advised to consider storing their cryptocurrency bitcoin investing for beginners step by step traders that are very good with cybersecurity might prefer to own their wallets, as this gives you the ability to move your cryptocurrencies whenever you want to and not be subject to an exchange. The saying 'Not your keys, not your coins' was popular last year, as many exchanges got hacked or shut down," says Moya.

This means transferring your Bitcoin from the exchange you use to your own cryptocurrency wallet. Such wallets come in two forms:

• Cold wallets: also known as hardware wallets, these are small devices that store your Bitcoin address' private key, which is necessary to transfer Bitcoin out of the address. They do not connect to the internet and are therefore considered safer than online, bitcoin investing for beginners step by step, software-based alternatives.
• Hot wallets: also known as software wallets, these are apps that can be used through your phone, desktop computer, bitcoin investing for beginners step by step, or web browser. They also store the private key of your Bitcoin address, but because they do connect to the internet, they aren't considered quite as safe as hardware/cold wallets.

Software wallets aren't quite as secure as hardware wallets, but the leading varieties do still offer a range of security features, such as two-factor authentication and compatibility with hardware wallets.

Selling bitcoin 

While many traders turn to Bitcoin in the hope of making big money fast, pretty much every analyst advocates a long-term, buy-and-hold strategy. This is largely because holding for a longer period of time tends to average out gains and losses, providing a greater probability of a significant positive return by the time you sell your Bitcoin.

"In my opinion, it is better to buy and hold, bitcoin investing for beginners step by step, perhaps allocating a small portion of your portfolio to cryptocurrencies, focusing on the ones typically held by institutional investors, such as Bitcoin and Ethereum at the moment," says Nikolaos Panigirtzoglou, an analyst at JPMorgan Chase & Co.

Likewise, many analysts also recommend adopting a dollar-cost-averaging (DCA) strategy, largely because this is another way of averaging out peaks and troughs.

"The best strategy for newcomers would be to [trade] Bitcoin on the DCA approach [] you'll just buy a tiny bit on a monthly or weekly basis, not looking at the price movements at all," says Michaël van de Poppe, the CEO and founder of cryptocurrency consultancy, Eight.

However, Moya warns that even with a long-term hold strategy, new traders are generally advised to enter the world of Bitcoin investing with the mindset that they could lose most of their money.  

"A new investor should only apply a very low, single-digit percentage of their trading portfolio to cryptocurrencies. Despite the many bullish calls for Bitcoin or Ethereum, massive plunges have happened in minutes. New investors may want to consider buying and holding a basket of cryptocurrencies, with an approach of scaling into positions," he says.

A longer-term approach is also beneficial from a tax perspective, since Bitcoin is classified as property in the US, and therefore liable to capital gains tax when sold. 

Quick tip: You'll have to pay capital gains tax if you sell bitcoin after holding it for more than one year. But if you hold for less than a year, bitcoin investing for beginners step by step, your gains are taxed as ordinary income. Investors with an annual income of $40, or less pay no capital gains tax on Bitcoin profits, whereas those in the next bracket pay 15%.

The financial takeaway

Bitcoin is an interesting and exciting technological innovation, representing a form of decentralized electronic money that doesn't require a central authority (such as the Federal Reserve) to operate. It's also exciting from an investment perspective, with its high annual returns (in most years) making it one of the best-performing assets of the past decade, even if its volatility means it has suffered more than a few dramatic falls.

While investing in Bitcoin may seem complicated, starting off is as simple as picking a reputable exchange and setting up an account. Once you've verified your identity and deposited some money, you're then good to go, with most exchanges offering a range of order types in addition to the ability to simply buy Bitcoin.

When you've acquired a significant sum of Bitcoin, most experts recommend withdrawing it to your own cold (i.e., hardware) wallet. They also recommend a buy-and-hold strategy, so that you can iron out market dips and also avoid having your profits taxed as ordinary income.

If you’re new to the world of crypto, figuring out how to buy Bitcoin, Dogecoin, Ethereum and other cryptocurrencies can be confusing at first. Thankfully, it’s pretty simple to learn the ropes. You can start investing in cryptocurrency by following these five easy steps.

1. Choose a Broker or Crypto Exchange

To buy cryptocurrency, first you need to pick a broker or a crypto exchange. While either lets you buy crypto, there are a few key differences between them to keep in mind.

What Is a Cryptocurrency Exchange?

A cryptocurrency exchange is a platform where buyers and sellers meet to trade cryptocurrencies. Exchanges often have relatively low fees, but they tend to have more complex interfaces with multiple trade types and advanced performance charts, all of which can make them intimidating for new crypto investors.

Some bitcoin investing for beginners step by step the most well-known cryptocurrency exchanges are Coinbase, Gemini and www.oldyorkcellars.com While these companies’ standard trading interfaces may overwhelm beginners, particularly those without a background trading stocks, bitcoin investing for beginners step by step, they also offer user-friendly easy purchase options.

The convenience comes at a cost, however, as the beginner-friendly options charge substantially more than it would cost to buy the same crypto via each platform’s standard trading interface. To save on costs, you might aim to learn enough to utilize the standard trading platforms before you make your fist crypto purchase—or not long after.

An important note: As someone new to crypto, you’ll want to make sure your exchange or brokerage of choice allows fiat currency transfers and purchases made with U.S. dollars. Some exchanges only allow you to buy crypto using another crypto, meaning you’d have to find another exchange to buy the tokens your preferred exchange accepts before you could begin trading crypto on that platform.

What Is a Cryptocurrency Broker?

Cryptocurrency brokers take the complexity out of purchasing crypto, offering easy-to-use interfaces that interact with exchanges for you, bitcoin investing for beginners step by step. Some charge higher fees than exchanges. Others claim to be “free” while making money by selling information about what you and other traders are buying and selling to large brokerages or funds or not executing your trade at the best possible market price. Robinhood and SoFi are two of the most well-known crypto brokers.

While they’re undeniably convenient, you have to be careful with brokers because you may face restrictions on moving your cryptocurrency holdings off the platform. At Robinhood and SoFi, for instance, you cannot transfer your crypto holdings out of your account. This may not seem like a huge deal, but advanced crypto investors prefer to hold their coins in crypto wallets for extra security. Some even choose hardware crypto wallets that are not connected to the internet for even more security.

2. Create and Verify Your Account

Once you decide on a cryptocurrency bitcoin investing for beginners step by step or exchange, bitcoin investing for beginners step by step can sign up to open an account. Depending on the platform and the amount you plan to buy, you may have to verify your identity. This is an essential step to prevent fraud and meet federal regulatory requirements.

You may not be able to buy or sell cryptocurrency until you complete the verification process. The platform may ask you to submit a copy of your driver’s license or passport, and you may even be asked to upload a selfie to prove your appearance matches the documents setting up a bitcoin mining server submit.

3. Deposit Cash to Invest

To buy crypto, you’ll need to make sure you have funds in your account. You might deposit money into your crypto account by linking your bank account, authorizing a wire transfer or even making a payment with a debit or credit card. Depending on the exchange or broker and your funding method, you may have to wait a few days before you can use the money you deposit to buy cryptocurrency.

Here’s one big buyer beware: While some exchanges or brokers allow you to deposit money from a credit card, doing so is extremely risky—and expensive. Credit card companies process cryptocurrency purchases with credit cards as cash advances. This means they’re subject to higher interest rates than regular purchases, and you’ll also have to pay additional cash advance fees. For example, you may have to pay 5% of the transaction amount when you make a cash advance. This is on top of any fees that your crypto exchange or brokerage may charge; these can run up to 5% themselves, meaning you might lose 10% of your crypto purchase to fees.

4. Place Your Cryptocurrency Order

Once there is money in your account, you’re ready to place your first cryptocurrency order. There are hundreds of cryptocurrencies to choose from, ranging from well-known names like Bitcoin and Ethereum to more obscure cryptos like Theta Fuel or Holo.

When you decide on which cryptocurrency to purchase, you can enter its ticker symbol—Bitcoin, for instance is BTC—and how many coins you’d like to purchase. With most exchanges and brokers, you can purchase fractional shares of cryptocurrency, allowing you to buy a sliver of high-priced tokens like Bitcoin or Ethereum that otherwise take thousands to own.

The symbols for the 10 biggest cryptocurrencies based on market capitalization* are as follows:

1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Tether (USDT)
4. Binance Coin (BNB)
5. Cardana (ADA)
6. Dogecoin (DOGE)
7. XRP (XRP)
8. USD Coin (USDC)
9. Polkadot (DOT)
10. Uniswap (UNI)

*Based on market capitalization as of June 28,

5. Select a Storage Method

Cryptocurrency exchanges are not backed by protections like the Federal Deposit Insurance Corp. (FDIC), and they’re at risk of theft or hacking. You could even lose your investment if you forget or lose the codes to access your account, as millions of dollars of Bitcoin already has been. That’s why it’s so important to have a secure storage place for your cryptocurrencies.

As noted above, if you’re buying cryptocurrency via a broker, you may have little to no choice in how your cryptocurrency is stored. If you purchase cryptocurrency through an exchange, you have more options:

• Leave the crypto on the exchange. When you buy cryptocurrency, it’s typically stored in a so-called crypto wallet attached to the exchange. If you don’t like the provider your exchange partners with or you want to move it to a more secure location, you might transfer it off of the exchange to a separate hot or cold wallet. Depending on the exchange and the size of your transfer, you may have to pay a small fee to do this.
• Hot wallets. These are crypto wallets that are stored online and run on internet-connected devices, such as tablets, bitcoin investing for beginners step by step, computers or phones. Hot wallets are convenient, but there’s a higher risk of theft since they’re still connected to the internet.
• Cold wallets. Cold crypto wallets aren’t connected to the internet, making them your most secure option for holding cryptocurrency. They take the form of external devices, like a USB drive or a hard drive. You have to be careful with cold wallets, though—if you lose the keycode associated with them or the device breaks or fails, you may never be able to get your cryptocurrency back. While the same could happen with certain hot wallets, some are run by custodians who can help you get back into your account if you get locked out.

Alternatives Ways to Buy Cryptocurrency

While buying cryptocurrency is a major trend right now, it’s a volatile and risky investment choice. If investing in crypto on an exchange or via a broker doesn’t feel like the right choice for you, here’s are a few options to indirectly invest in Bitcoin and other cryptocurrencies:

1. Wait for Crypto Exchange-Traded Funds (ETFs)

ETFs are extremely popular investment tools that let you buy exposure to hundreds of individual investments in one fell swoop. This means they provide immediate diversification and are less risky than investing in individual investments.

There is a huge appetite for cryptocurrency ETFs, which would allow you to invest in many cryptocurrencies at once. No cryptocurrency ETFs are available for everyday investors quite yet, but there may be some soon. As of Junethe U.S. Securities and Exchange Commission (SEC) is reviewing three cryptocurrency ETF applications from Kryptcoin, VanEck and WisdomTree.

2. Invest in Companies Connected to Cryptocurrency

If you’d rather invest in companies with tangible products or services and that are subject to regulatory oversight—but still want exposure to the cryptocurrency market—you can buy stocks of companies that use or own cryptocurrencies and the blockchain that powers them. You’ll need an online brokerage account to buy shares of public companies like:

• Nvidia (NVDA). This technology company designs and sells graphics processing units, which are at the heart of the systems used to mine cryptocurrency.
• PayPal (PYPL). Already a popular choice for people buying items online or transferring money to family and friends, this payments platform recently expanded to allow customers to buy and sell select cryptocurrencies with their PayPal and Venmo accounts.
• Square (SQ). This payment services provider for small businesses has purchased over $ million in Bitcoin since October In Februarythe firm disclosed that Bitcoin made up around 5% of the cash on its balance sheet. In addition, Square’s Cash App allows people to buy, sell and store cryptocurrency.

As with any investment, make sure you consider your investment goals and current financial situation before investing in cryptocurrency or individual companies that have a heavy stake in it. Cryptocurrency can be extremely volatile—a single tweet can make its price plummet—and it’s still a very speculative investment. This means you should invest carefully and with caution.

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.

CFD Accounts provided by IG International Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

IG provides an execution-only service. The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited.

Bitcoin: currency of the future?

All you need to know about Bitcoin