Investing in Bitcoin is in many ways similar to investing in stocks, but it is more volatile as a result of the daily fluctuations in Bitcoin. If you want to invest in Bitcoin, you can use an online broker. If you are wondering how it is done and which brokerage is the best, then read on. I will offer you steps on how to invest in Bitcoin as well as mention a few brokerages that you can trust.
However, before we can get started, I thought it wise to highlight some of the advantages of investing in Bitcoin. Being a relatively new investment in the market, not everyone quite understands its benefits. So, below are the reasons why you should invest in Bitcoin.
Lower inflation risk: Bitcoin, unlike other currencies, is immune to inflation. The blockchain system is infinite; thus, there is no need to worry about your Bitcoin losing its value.
Minimalistic trading: Bitcoin, unlike stock trading, is relatively easy. There are no lengthy procedures involved, such as holding a license, as is the case in stocks. You simply buy or sell Bitcoin from exchanges and put it in your wallet. The transactions are also instant, unlike stocks, which can take even weeks.
Liquidity: Arguably, Bitcoin is one of the most liquid investments dues to the global establishment of exchanges, trading platforms, and online brokerages. One can easily trade Bitcoin for cash assets such as gold at an incredibly low fee. The high liquidity has made Bitcoin an excellent investment for those looking for short-term profits.
The steps to investing in Bitcoin vary depending on the trading platform that you choose. But this is what you can expect from most of them:
- Register for a brokerage account with a company that allows crypto investments.
- Deposit some money to your brokerage account.
- Buy Bitcoin
- Sell the Bitcoin for a gain or loss.
I have researched the most popular trading platforms and selected a few that I feel are worth your investment. Below are a few brokerages that you can invest in.
TradeStation offers an entry to the crypto markets. It features competitive pricing, joint liquidity, and an intelligent implementation algorithm to provide customers with the best price. The brokerage eliminates the volume-tiered commission system. This offers competitive trade commissions that depend on your account balance rather than how much you have traded.
TradeStation collects liquidity from numerous sources such as OTC desks and exchanges, among other sources. This is in a bid to provide a vast liquidity pool in the crypto market. It also offers a consolidated market data feed that allows you to find the best exchange prices.
I find this platform to offer the best incentives. While it offers Bitcoin and other cryptocurrencies, it allows you to trade Bitcoin features through the brokerage and other qualified accounts.
There is no minimum account balance required to trade and no short sale restrictions. You can also trade futures alongside ETFs and equities on the same platform without inter-account fund transfers.
This is another fantastic brokerage that I have come across. It allows you to buy some Bitcoin with a $0 account minimum. You can pay for your purchases using a debit card or through your bank. Owning Bitcoin on this brokerage is quite simple and only requires you to register an account, verify your identity, and buy your cryptos. They also have a mobile app that allows you to trade everywhere you go.
If you decide to invest in Bitcoin, there are a few things that you need to know. First, Bitcoin is a high-risk, high-rewarding investment. You can earn high profits in the short-term and lose heavily should its value drop. Secondly, you need to understand that Bitcoin is a relatively new technology, and even the futurists are not sure about its fate. If you still decide that you want to invest in Bitcoin, you can consider the brokerages I have mentioned here and get started.