The last quarter of 2020 and the first quarter of 2021 saw the largest increase in Bitcoin’s value that’s ever occurred. It even eclipsed the crypto race of late-2017. At the time of writing this article, the value of a single Bitcoin (BTC) is $63,418. This number has grown exponentially as large Wall Street hedge funds and corporate-level investors have purchased record-amounts of the cryptocurrency along with other coins such as Ethereum (ETH) and Ripple (XRP).
So, can you buy Bitcoin on the stock market? No, Bitcoin can’t be bought directly on the Stock Market. If you want to purchase Bitcoin, then you’ll have to purchase it through a cryptocurrency exchange or through a mutual fund that you’re invested in. The most simple and straightforward way to purchase cryptocurrency is through a cryptocurrency exchange.
Purchasing Bitcoin and other cryptocurrencies is a straightforward process. However, it’s not done via the traditional stock market.
The common misconception that cryptocurrency tokens can be purchased on the stock market is due to the fact that several online stock trading apps recently gave customers the ability to trade cryptocurrency as well. Despite this, though, the stock trading and crypto trading platforms are completely separate.
In today’s article, I’m going to show you how to get started investing in Bitcoin, where to buy Bitcoin, and give you some helpful investment tips! It’s time to move into the future.
How To Start Buying Bitcoin
In 2009 the mysterious Satoshi Nakamoto created the world’s very first blockchain network. It was a decentralized network that didn’t have a single point of origin but instead was made up of all of the computers and servers that participated in the system. Computers attached to the system are “blocks,” and each one participates in the network by “mining” Bitcoins.
The owner of the device can then keep these Bitcoins or exchange them for cash or another cryptocurrency. Although that’s a bit of a primitive description, there it is in a nutshell. Bitcoin remained relatively lowkey until 2017. As the new technology grew popular, people from all over the world started investing in it, rocketing its value up to well over $25,000 per Bitcoin.
Since then, it’s had its ups and downs, but the past quarter has seen unprecedented growth and many investors are trying to get in on the game and see their own profits! Bitcoin is different from trading stocks because you’re not buying “shares” in a company; you’re mining for “digital gold.” Therefore you won’t be awarded dividends or have to follow the SEC’s stock-holding laws.
Now that you have a bit of a back story on crypto, I’m going to show you all of the different ways you can get started buying Bitcoin.
Method 1: Use A Cryptocurrency Exchange
The most simple and straightforward way to purchase cryptocurrency is through a cryptocurrency exchange. These exchanges are similar to stock-trading apps like E-Trade, Webull, or Robinhood. However, instead of purchasing stocks, you’ll be purchasing tokens and cryptocurrency.
The most popular crypto exchange is Coinbase, which was founded in 2012 in San Francisco. It was started by two online friends who met on Reddit when Bitcoin’s value was just a mere $6. Today, Coinbase is a publicly-traded company worth $85 billion, and its opening week stock prices saw highs of $350 and up!
To create an account, you’ll need to verify your identity with a driver’s license or passport. You’ll also need to link a bank account and a credit/debit card. This will allow you to start transferring money to your Coinbase account, which you can then use to purchase Bitcoin, Ethereum, Ripple, Litecoin, and a host of other cryptocurrencies.
Method 2: Use A Stock-Investing App
Both Robinhood and Webull recently created their own perspective platforms that users can use to purchase some of the top-performing cryptocurrency options on the market. While this opened up the door for a lot of everyday stock traders to start buying Bitcoin, it’s actually a lot different from a typical crypto exchange.
When you purchase Bitcoin on an app like Robinhood, you don’t actually own the tokens, and you’re not given a crypto wallet where you can store the funds and transfer them to other people. These stock trading platforms only allow you to invest. It’s great for day-trading crypto but not so great if you’re looking to hold onto it for the long term.
While their fees are a bit lower than a standard crypto exchange like Coinbase, I would generally recommend purchasing Bitcoin through a proper exchange so that you can actually own the coins and do with them as you please.
Method 3: Buy Bitcoin With Cash Money
The third method to buy Bitcoin is by using cash! One of the coolest things about investing in Bitcoin is that you don’t necessarily have to set up a whole online account using all of your personal information.
All you need to do is create a cryptocurrency wallet using a site like Exodus. The wallet is virtual, so as long as you remember your unique code and password, you can access your funds from any computer in the world with an internet connection.
Once you have your wallet set up, all you need to do is find a Bitcoin ATM near you, visit it and deposit your cash into your crypto wallet by using your unique Hash ID code. The only disadvantage of purchasing Bitcoin with cash at an ATM is that the ATMs often charge pretty high fees. However, if you’re trying to be discreet and stay unidentified, then the ATMs can be a good way to go.
Method 4: Invest Through Your Mutual Fund
The fourth and final method that I’ll mention is that you can invest in Bitcoin through your mutual fund. Not every mutual fund and brokerage offer customers the ability to purchase cryptocurrency options, but it’s becoming a popular add-on for many of the more forward-thinking brokerages.
You’ll just need to call your broker and ask them if it’s possible to purchase Bitcoin through them. If they give you the OK, then you’ll be able to diversify your investment portfolio with as much crypto as you want!