You can easily invest in Bitcoin via an online broker and get exposure in as little as 10 minutes.
This guide will help you understand how to invest in Bitcoin using a low-cost, regulated brokerage site.
We also discuss Bitcoin as a viable investment option and the risks involved before we move on.
You can now buy Bitcoin from an SEC-regulated broker by following the short guide above in under 10 minutes.
Continue reading if you want to learn more about the investment process.
Where to Invest In Bitcoin
It is crucial to determine the best place for you to invest Bitcoin.
Some platforms are better suited to beginners than others for large-scale investors who are looking for high-level trading tools.
Keep this in mind when you are deciding where to invest Bitcoin. Below is a list of pre-vetted broker options.
1. eToro – The Best Place to Invest In Bitcoin 2022
We used eToro to illustrate how to invest in Bitcoin. Buy cryptocurrency In other words, it takes just 10 seconds to open a verified account at eToro.
eToro accepts debit/credit cards from Visa and MasterCard, ewallets such as Paypal and Neteller and traditional bank transfers. You can purchase Bitcoin using PayPal or bank transfer.
You won’t have to pay withdrawal or deposit fees if you are from the US. After your account has been funded in US dollars, eToro allows you to invest in Bitcoin spread-only (starting at 0.75%).
Instead of paying variable commissions, you only need to pay the difference between the sell and buy price. eToro can also be used to invest in other cryptocurrencies, with the broker supporting more than 45+ digital tokens. You can purchase Solana and Dogecoin. Also, Ethereum, Polkadot and the graph are all available with a click. You can also invest directly in ETFs, commodities and indices. You might also be interested in the eToro Copy Trading Tool if you are short on time or don’t have any experience in the investment area.
This allows you choose an experienced trader you like and copy their ongoing investments. You will only need to invest $200 and there is no additional charge. The CryptoPortfolio tool allows you to invest in a pre-made cryptocurrency basket. This is professionally managed by the eToro staff and rebalanced regularly.
2. Webull – Cryptocurrency Investments Starting at $1
An online broker such as Webull makes it easy to invest in Bitcoin. The platform is user-friendly and allows you to open an account with no minimum deposit. You can also invest in Bitcoin starting at $1.
This will be a good option for first-timers who want to explore the Bitcoin markets before taking on larger sums. This $1 minimum applies to all cryptocurrencies on Webull – from Shiba Inu and Dogecoin to Ethereum and Chainlink to Basic Attention Token. Webull also supports other asset classes through its platform, such as US-listed stocks and ETFs.
Webull is a platform that casual traders use, but it also offers advanced features and tools that can be used by seasoned investors. There are no less than 12 charting tools, and more than 50 technical indicators. You can make an investment in cryptocurrency or any other financial instrument supported by the 0% commission. Bank wires cost $8, and ACH transactions have no deposit fees.
Binance USA allows Americans to invest in Bitcoin, and 60+ other supported currencies. This is a great option for anyone looking to build a portfolio of digital currencies. Other than Bitcoin, Ethereum, Dogecoin and Dogecoin are some of the most widely used tokens.
3. Binance – Invest Bitcoin and 60+ other Cryptocurrencies
Binance US supports DeFi tokens (Decentralized Finance), which include VeChain and Chainlink. The fees you pay for Bitcoin investments will vary depending on which payment method you choose. If you prefer to pay by debit or credit card, you will be charged 4.5% transaction fees and 0.5% commission. You can also opt for domestic wire transfer deposits and ACH, which are free – you’ll only pay 0.5% commission.
Binance charges 0.1% per slide if you use it to exchange digital tokens, such as Bitcoin to Ethereum, Cardano to Litecoin or Cardano-Litecoin. This commission can be even lower if you trade large quantities. Binance will require you to provide an ID in order to open an account. You can then click a button to start investing in Bitcoin. Binance offers OTC and educational services.
4. Coinbase – Bitcoin investing via a beginner-friendly platform
Coinbase is the next broker you should consider when looking for a place to invest in Bitcoin. Coinbase, a NASDAQ-listed broker in cryptocurrency trading, is used by tens to millions of clients, many of whom are based in the US. It offers a convenient and safe way to invest in Bitcoin, and many other cryptocurrencies. This platform is ideal for beginners.
Coinbase is more expensive than any other broker, regardless of how you plan to pay for it. You will pay 1.5% fees if you deposit funds through ACH and then invest in Bitcoin when the money arrives. You will need a debit/credit card to pay for your Bitcoin investment immediately.
eToro might be a better choice for fee-conscious investors. Coinbase is known for its security commitment. In addition to many other security measures, 98% client funds are kept in cold storage. All account users must also set up two-factor authentication. You can also place a 48-hour lock on withdrawal requests. This ensures you have enough time to respond in case your account is compromised.
5. Kraken Pro – Invest Bitcoin using an Advanced Trading Suite
Kraken Pro is a great option for active traders who want to get exposure to Bitcoin using sophisticated tools. The most popular cryptocurrency exchange, Kraken Pro, was founded in 2011. US clients are only allowed to deposit funds with a domestic wire or crypto. ACH payments can only be accepted for withdrawals.
The Kraken Pro platform offers a wide range of charting and order types. This includes the ability draw overlays and trend lines, as well access technical indicators. Kraken Pro charges market takers and market makers 0.16% and 0.2% respectively for trading fees. Commissions for trading volumes exceeding certain milestones are lower, with a minimum of $50,000 per 30-day period.
Should I Invest In Bitcoin?
After you’ve decided on an online broker that suits your trading goals and skills, it’s time for independent research.
This means that you should really investigate whether a Bitcoin investment is the right one for your portfolio.
Below are five reasons to consider Bitcoin investing right now.
Bitcoin remains an emerging asset class
Many market commentators believe that Bitcoin 2022 will be the Apple and Microsoft of the 1980s. This means that the concept of cryptocurrency and blockchain technology are still in their infancy, even though Bitcoin was launched in 2009.
As such, Bitcoin investing today can give you exposure to an emerging asset type that has yet to realize its full potential.
Bitcoin Growth since 2009
Bitcoin was first launched in January 2009. However, the digital currency reached a maximum value of $1 per token only in February 2011. It took two more years for Bitcoin’s value to reach $1,000.
The Bitcoin value reached an all-time record of $69,000 in late 2021. This is a 10-year return of more than 6.8 million percent if you compare it to Bitcoin’s 2011 price.
This means that if you had invested $1,000 in Bitcoin in 2011, and then sold it when the price of digital currency reached $69,000 per token, your total cash out would be more than $68,000,000. This shows how quickly Bitcoin has been able to perform.
Bitcoin vs Stock Markets
Comparing the performance of Bitcoin against other asset classes is a great way to determine if it is worth investing in. The S&P 500 index is a great benchmark for this purpose.
- The S&P 500 has experienced a 94% increase over the last five years. This is a sign of attractive returns.
- Bitcoin’s growth has been over 3,500% in the same time period, which is far more than the S&P 500.
Importantly, diversifying your investment portfolio is key. It is important to note that you should also consider investing in Bitcoin.
Bitcoin is often called the digital gold. This is due to the fact that the asset classes have many similarities. There is a finite supply of gold. This means that once all the Earth’s gold has been mined, no more can be put into circulation.
- Bitcoin, like gold, is finite. Only 21 million tokens are ever created. The circulating supply of Bitcoin is increasing at steady intervals, much like gold.
- This happens in Bitcoin every 10 minutes. However, it only takes about four years for the total amount of Bitcoin blocks to be minted.
One common characteristic between Bitcoin and gold is the fact that both asset classes can be used as a hedge against wider financial markets. Bitcoin and gold are attractive options for hedging when inflation is high and stock markets are falling.
Highly liquid and easy to invest
Many people are concerned about the complexity of purchasing Bitcoin. There are also misconceptions that cashing out is difficult. This is false.
With a debit/credit or bank transfer, anyone can make a Bitcoin investment from their home. An SEC-regulated cryptocurrency broker can help you do this safely and easily.
Second, Bitcoin is part of a multi-trillion-dollar cryptocurrency trading market that never sleeps. You can cash out your Bitcoin investments to US dollars via your preferred online broker, and it is available 24 hours a day, 7 days a week.
How can you invest in Bitcoin the best way?
In 2022, there are two main ways to invest in Bitcoin.
BTC tokens can be purchased via an online broker or exchange, or you can invest in stocks that provide direct exposure to digital currency.
This means that you can also be exposed to crypto markets via crypto CFDs. You could speculate on the price movements for BTC crosses by opening an account with one of the top crypto bots Bitcoin Prime or Bitcoin Trader. A crypto robot does the rest based on the parameters and criteria you set.
It is obvious that Bitcoin investing is easy. All you have to do to get started with Bitcoin investment is open an account at an online broker. Then, simply purchase tokens.
You will keep full ownership of all digital assets you own until you cash out. Your profits and losses will be directly related to the Bitcoin market price.
This means that if you invest $500 in Bitcoin and it’s value increases by 25%, you will make a profit $125.
Investing In Bitcoin Stocks
Another option is to purchase stocks that are related to the Bitcoin market. Coinbase is the best place to start if you are looking for ways to invest in Bitcoin stocks.
Investing in Bitcoin vs. Trading Bitcoin
You should also consider the trading strategy you use when investing in Bitcoin.
More experienced investors may look at trading actively in order to time the markets.
Investors might choose to invest in Bitcoin during a market downturn, or offload when they see the upward trend reversing. They might then wait for the market to stabilize before entering a new position.
However, beginners are better suited for a long-term investment strategy. This will allow you to invest in Bitcoin, and then keep your digital assets for several years or months.
This allows you to spend less time researching markets and analyzing the value of your position. Instead, you can relax and “HODL” until it’s time to sell.
Note The term ‘HODL’ is a play upon the word ‘hold’. This simply refers to holding onto your investment over the long-term, and not selling during short-term price spikes.
How much to invest in Bitcoin
It doesn’t matter what asset class you invest in, it is crucial to have a clear plan regarding stakes. This means that you should consider how much money you can afford to lose when investing Bitcoin, based on your tolerance for risk and budget.
- Bitcoin, for example, is highly liquid, which means you can cash it out at any time. However, it is highly volatile and speculative.
- You might receive less back if you cash out Bitcoin tokens in an emergency situation.
- You should only put money that you feel comfortable with.
It is important to remember that Bitcoin investing should not be done ‘all in’. Your portfolio should include a greater percentage of traditional asset types, such as ETFs and index funds.
This will balance out the risk associated with Bitcoin and ensure you aren’t overexposed to any one asset.
Furthermore, as we will discuss in detail, it is better to invest small amounts over time via a dollar cost average strategy.
How to Choose a Bitcoin Wallet For Investing
The steps required to keep the digital tokens secure are another factor that can discourage newbies from investing in Bitcoin. Bitcoin, like all cryptocurrencies, is kept in a “wallet”.
- These Bitcoin wallets are often available in the form a mobile app. However, there is also desktop software, hardware devices and online storage options.
- It doesn’t matter what wallet you choose to store your Bitcoin tokens in, it is important that you use a variety of security procedures.
- This means that you should not give out your private keys and set up two-factor authentication (if the wallet offers it), and stick with trusted and reputable providers.
- Your Bitcoin funds could be stolen if your wallet is compromised.
You will not be able to find help if this happens. We recommend eToro, a SEC-regulated broker, for Bitcoin storage needs.
Because you have already invested in Bitcoin through the eToro site, your tokens will be protected by eToro’s institutional-grade security tools.
This means you don’t have to worry about learning how to protect your wallet and risky transactions. The tokens will be safe with eToro up until you cash out.